Organization: Philip Morris International, Inc.

Year: 2015

Whereas: Whereas: Corporate lobbying exposes our company to risks that could adversely affect the company's stated goals, objectives, and ultimately shareholder value, and Whereas: We rely on the information provided by our company, and, therefore, have a strong Interest in full disclosure of our company's lobbying to evaluate whether it is consistent with our company's expressed goals and in the best interests of shareholders and long-term value; Resolved, the shareholders of Philip Morris International, Inc. ('PMI') request that the Board authorize the preparation of a report, updated annually, disclosing: 1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications. 2. Payments by PMI used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient. 3. PMI's membership in, and payments to, any tax-exempt organization that writes and endorses model legislation. 4. Description of management's and the Board's decision making process and oversight for making payments described in sections 2 and 3 above. For purposes of this proposal, a 'grassroots lobbying communication' is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. 'Indirect lobbying' is lobbying engaged in by a trade association or other organization of which PMI is a member. Both 'direct and indirect lobbying' and 'grassroots lobbying communications' include efforts at the local, state and federal levels. The report shall be presented to the Audit Committee or other relevant oversight committees and posted on PMI's website.

Resolved: Resolved: the shareholders of Philip Morris International, Inc. ('PMI') request that the Board authorize the preparation of a report, updated annually, disclosing: 1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications. 2. Payments by PMI used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient. 3. PMI's membership in, and payments to, any tax-exempt organization that writes and endorses model legislation. 4. Description of management's and the Board's decision making process and oversight for making payments described in sections 2 and 3 above. For purposes of this proposal, a 'grassroots lobbying communication' is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. 'Indirect lobbying' is lobbying engaged in by a trade association or other organization of which PMI is a member. Both 'direct and indirect lobbying' and 'grassroots lobbying communications' include efforts at the local, state and federal levels. The report shall be presented to the Audit Committee or other relevant oversight committees and posted on PMI's website.

Supporting Statement:Supporting Statement: As shareholders, we encourage transparency and accountability in our company's use of corporate funds to influence legislation and regulation. PMI serves on the boards of National Center for Asia-Pacific Economic Cooperation and US ASEAN Business Council and is a member of the Trans-Atlantic Business Council. PMI does not disclose its memberships in, or payments to, trade associations, or the portions of such amounts used for lobbying. Absent a system of accountability, company assets could be used for objectives contrary to PMI's long-term interests. PMI spent $18.1 million on lobbying in 2012 and 2013, according to US Senate records. This figure does not include lobbying expenditures in states, where PMI also lobbies but disclosure requirements are uneven or absent. And PMI does not disclose membership in or payments to tax-exempt organizations that write and endorse model legislation, such as chairing International Relations Task Force of the American Legislative Exchange Council (ALEC). At least 90 companies, including Kraft, Entergy and Express Scripts, have publicly left ALEC because their business objectives and values did not align with ALEC's activities. We urge support for this proposal.