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Philip Morris International Launches New BONDS by IQOS Smoke-Free Device to Accelerate the Achievement of a Smoke-Free Future

ROUNDHEAT TOBACCO SYSTEMTM Unlocks Affordable, Bladeless-Heating Technology from the World’s No. 1 Heated Tobacco System1, IQOS

2022-11-22 15:38
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LAUSANNE, Switzerland -- (BUSINESS WIRE) --

Philip Morris International Inc. (PMI) (NYSE: PM) today announced the launch of its latest heat-not-burn tobacco heating system, BONDS by IQOS with its accompanying specially designed tobacco sticks, BLENDS. A new product from IQOS, the world’s No. 1 tobacco heating system2, BONDS by IQOS offers adults who would otherwise continue to smoke access to a compact, low maintenance and hassle-free to use smoke-free offer—validated by science—as a better alternative to cigarettes—to accelerate the achievement of a smoke-free future.

BONDS by IQOS heats tobacco instead of burning it and delivers authentic tobacco taste satisfaction without ash and less smell than cigarettes3, thanks to resistive external heating, with no blade, via the ROUNDHEAT TOBACCO SYSTEMTM. When BONDS by IQOS heats the tobacco, it emits 95%4 less harmful chemicals compared to cigarettes5.

Like all PMI’s smoke-free, nicotine containing products, BONDS by IQOS is intended for adults who would otherwise continue smoking or using other nicotine products, and who are looking for a better alternative to cigarettes.

BONDS by IQOS represents another step forward in our ambition to replace cigarettes with innovative, science-based, smoke-free alternatives,” says Jacek Olczak, Chief Executive Officer at PMI. He continues to say, “We know that no single smoke-free product will appeal to all adult smokers. Providing a range of alternatives to continued smoking—with a variety of taste, technology, usage, and price options—is imperative and helps us to address a range of preferences as diverse as adult smokers themselves—ultimately encouraging them to leave cigarettes behind. BONDS by IQOS provides an opportunity to address consumer acquisition barriers for this segment, most notably up-front device costs and authentic tobacco taste satisfaction—providing further options of innovative smoke-free options to help ensure they do not go back to cigarettes. Through continuous innovation, we want to ensure that all adult smokers who would otherwise continue smoking, switch and abandon cigarettes.”

PMI believes that they will only achieve a smoke-free future if all adult smokers who do not quit tobacco and nicotine altogether are aware, have access to, and can afford to switch to better alternatives. As of the end of 2021, PMI’s smoke-free products were available in 30 LMIC markets6—with the ambition clearly stated for at least 50% of the markets where it commercializes smoke-free products to be LMIC markets by 2025—bolstered by new innovative products for consumers with lower purchasing power.

PMI’s goal is that by 2025 at least 40 million adults who would otherwise continue to smoke will have switched to its smoke-free products and that by 2025 more than 50% of its total net revenues will come from smoke-free products. As of September 30, 2022, PMI estimates there were approximately 19.5 million total IQOS users, excluding Russia and Ukraine, of which approximately 13.5 million have switched to IQOS and stopped smoking, with the balance in various stages of conversion7.

BONDS by IQOS is designed to be used only with BLENDS tobacco sticks to deliver a variety of tobacco tastes. At the time of launch, BLENDS tobacco sticks will be available in five different flavors, including classic, menthol and aromatic. When fully charged BONDS by IQOS delivers up to 20 uses, including three consecutive experiences. BONDS by IQOS comes in four different colors.

BONDS by IQOS is available in a pilot city launch in the Philippines as of November 22, with further commercialization anticipated during the remainder of 2022 and next year.

Further information in relation to PMI’s smoke-free products can be found on https://www.iqos.com.

Important information: BONDS by IQOS is not risk-free.

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is a leading international tobacco company working to deliver 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, vapor and oral nicotine products, which are sold in markets outside the U.S. Since 2008, PMI has invested more than USD 9 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. 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. The U.S. Food and Drug Administration (FDA) has authorized the marketing of versions of PMI’s IQOS Platform 1 devices and consumables as a Modified Risk Tobacco Products (MRTPs), finding that an exposure modification orders for these products are appropriate to promote the public health. As of September 30, 2022, excluding Russia and Ukraine, PMI’s smoke-free products are available for sale in 70 markets, and PMI estimates that approximately 13.5 million adults around the world had already switched to IQOS and stopped smoking. With a strong foundation and significant expertise in life sciences, in February 2021, PMI announced its ambition to expand into wellness and healthcare areas and deliver innovative products and solutions that aim to address unmet consumer and patient needs. For more information, please visit www.pmi.com and www.pmiscience.com.

Forward-Looking and Cautionary Statements

This press release contains statements relating to future plans and circumstances, including statements regarding our planned strategies, programs, operations, and goals that are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may generally, but not always, be identified by the use of words such as "anticipates," "intends," "expects," "believes," or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of PMI. Any such forward-looking statements speak only as of the date on which they are made and PMI has no obligation (and undertakes no such obligation) to update or revise any of them, whether as a result of new information, future events or otherwise, except for in accordance with applicable laws and regulations.

PMI's business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our 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 its attempts to produce and commercialize reduced-risk products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; or if it is unable to attract and retain the best global talent, including women or diverse candidates. Future results are also subject to the lower predictability of our reduced-risk product category's 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, 2021, and the Form 10-Q for the quarter ended September 30, 2022. 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 obligation.

1 PMI global estimate of total In-Market Sales of Heated Tobacco category in units as of December 2021 (excluding China and US).
2 PMI global estimate of total In-Market Sales of Heated Tobacco category in units as of December 2021 (excluding China and US).
3 97% agreement amongst 345 adult consumers in Philippines, 2022
4 Important information: It does not necessarily equal a 95% reduction in risk. BONDS by IQOS is not risk-free.
5 “95% less” represents the average reductions in levels of a range of harmful chemicals (excluding nicotine) compared to the smoke of a reference cigarette. See Important Information on IQOS.com
6 Figure inclusive of Russia & Ukraine
7 Source: PMI Q3 2022 Earnings Release--October 2022

View source version on businesswire.com: https://www.businesswire.com/news/home/20221121005673/en/

CONTACT:

Philip Morris International
For press inquiries, please contact:

Bryson W. Thornton
+41 (0) 58 242 4500
Bryson.Thornton@pmi.com

Blaine Dodds
+41 (0) 58 242 4500
Blaine.Dodds@pmi.com

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