Good Conversion Practices for PMI’s Smoke-free Products

PMI offers a variety of quality, scientifically substantiated smoke-free products that are much better choices than continued smoking.* Our vision is that our smoke-free products will one day replace cigarettes.

• Cigarette smoking causes serious diseases and is addictive. Without question, the best decision any smoker can make is to quit tobacco and nicotine use altogether.

• Minors should not use tobacco or nicotine in any form.

• PMI’s smoke-free products are for adults who would otherwise continue to smoke or use other nicotine products.

• We do not offer PMI’s smoke-free products to people who have never used tobacco or nicotine products or who have quit using tobacco and nicotine products. Our smoke-free products are not alternatives to quitting and are not designed as cessation aids.

• PMI’s smoke-free products are not risk free and contain nicotine, which is addictive. Switching to a smoke-free product is, however, a better choice than continuing to smoke.

• We support our adult smoke-free product users in their journey to full conversion through education and guidance.

• For consumers to experience the benefits of smoke-free products, they must switch completely and abandon smoking permanently.

• We inform consumers of all relevant safety information about our smoke-free products.

Important information: IQOS ILUMA i is not risk-free and provides nicotine which is addictive.

* Based on the totality of evidence available for IQOS in comparison with continuing to smoke. See Important Information on IQOS.am.

Safety Warnings & Instructions

Tobacco and Nicotine

• Tobacco sticks used with IQOS™, lil contain nicotine, which is addictive.

• IQOS and lil are not risk-free. The best way to reduce tobacco- and nicotine-related health risks is to quit tobacco and nicotine use altogether.

• Some users of nicotine-containing products may experience abdominal pain, chest pain, choking sensation, cough, difficulty breathing, dizziness, dry mouth, dry throat, gingivitis, headache, malaise, nasal stuffiness, nausea, mouth irritation, palpitations, throat irritation, and vomiting.

• Nicotine-containing products should not be used by people who have or are at risk of heart disease, are diabetic, are epileptic, or are experiencing seizures.

• Nicotine-containing products should not be used during pregnancy or while breast-feeding. If you are pregnant, breast-feeding, or think you may be pregnant, you should quit tobacco and nicotine use altogether.

• Stopping smoking or switching to IQOS and lil and their respective tobacco sticks, or other nicotine-containing products may require the adjustment of the dosing of certain medicines (e.g. theophylline, clozapine, ropinirole).>
• If you have questions about whether you should use IQOS and lil given an existing health condition, consult a health care professional.

Use of tobacco sticks

• Only use:

◦ IQOS ILUMA devices ^TM with TEREA,^TM sticks,

◦ lil SOLID^TM with Fiit^TM tobacco sticks,

• Never use IQOS or lil devices with a cigarette or similar products. Doing so may cause injury.

• Do not modify HEETS sticks and Fiit sticks in any way or add any substance to HEETS sticks and Fiit sticks. Doing so may result in injury.

Prior to use of a product, users should read the full Safety Warnings & Instructions, which contain important safety information about the use of the product.

Safety Warnings & Instructions for IQOS ILUMA i PRIME

Safety Warnings & Instructions for IQOS ILUMA i

Safety Warnings & Instructions for IQOS ILUMA i ONE

Safety Warnings & Instructions for IQOS ILUMA PRIME

Safety Warnings & Instructions for IQOS ILUMA

Safety Warnings & Instructions for IQOS ILUMA ONE

Safety Warnings & Instructions for lil SOLID 2.0

Safety Warnings & Instructions for lil SOLID Es

Battery Degradation
IQOS and lil SOLID devices, including holders, contain a lithium-ion battery. The lithium-ion battery in the devices is a consumable component that degrades with usage and age. This is a natural process common to all rechargeable lithium-ion batteries. As the battery ages, the active ingredients inside the battery become less capable of retaining energy, resulting in a permanent decrease in maximum battery capacity and usable energy. In addition, the active ingredients become less effective in delivering energy, resulting in a decrease of the battery’s ability to provide sufficient power for electronic device components to operate. As a result, where relevant, the duration of experience may appear to be shorter, the number of puffs or experiences with one full charge may appear to be fewer, the second consecutive use might be shorter or missing, or some device features may not perform.

The battery is a chemical system that requires certain temperature ranges during charge and discharge to work optimally and minimize battery capacity degradation over its lifetime. Although your device has a specific operating range within which the device will function, operating at the extreme ends of this range will degrade your battery faster. Your device comes with customized software to control the charging parameters in order to maximize the life of your device. These algorithms can support the longevity of your battery life, but they can still never fully mitigate the normal aging mechanisms of lithium batteries. High and low temperature operation of your device will accelerate the natural degradation of your battery. Even if you do not use your device the batteries contain chemical systems which can still degrade over time. In order to slow the battery degradation process, we recommend charging your device within the recommended temperature zone, not keeping it discharged for long periods of time and using the charging cables and power adaptors that come together with the device as per the user guides.

Please read more on important information in the FAQ section.

You will find consumer communication around the website and in other touchpoints that come from the following sources for IQOS products:

IQOS provides cigarette-like satisfaction. *

Studies * showed that the satisfaction of those who switched completely to IQOS is comparable to those who continued to smoke cigarettes.

*Source: 3 month clinical studies conducted in US and Japan with 160 adult smokers each under real conditions (ambulatory).

IQOS leaves significantly less stains on your teeth* than cigarettes.

Important information: If teeth are already stained, switching to IQOS will not reverse the colour of those stains.

*Source: non-clinical laboratory study conducted in Switzerland with IQOS aerosol on human teeth and the most widely used dental composites. Contrary to real world conditions, teeth were not exposed to other staining substances which may influence the results.

IQOS has no negative impact on indoor air quality*. This is proven by air quality tests conducted in accordance with international standards.

*Source: PMI study conducted under ISO standards simulating real-world scenarios and based on threshold limits established by existing air quality guidelines.

IQOS emits on average 95% lower levels of harmful chemicals compared to cigarettes. *

Important information: This does not necessarily equal a 95% reduction in risk. IQOS is not risk-free.

* Reductions in levels of the 9 harmful chemicals the World Health Organization recommends to reduce in cigarette smoke, which do not include nicotine.

IQOS emits significantly lower levels of harmful chemicals compared to cigarettes. *

* Reductions in levels of the 9 harmful chemicals the World Health Organization recommends to reduce in cigarette smoke, which do not include nicotine.

Switching completely to IQOS presents less risk to your health than continuing to smoke. *

* Source: Based on the totality of evidence available for IQOS in comparison with continuing to smoke.

Switching completely to IQOS is less harmful than continuing to smoke.*

* Based on the totality of evidence available for IQOS in comparison with continuing to smoke.

IQOS has extensive and robust clinical evidence* showing that using IQOS presents less risk to your health than continuing to smoke.

* Based on the totality of evidence available for IQOS in comparison with continuing to smoke.

Switching completely to IQOS is less harmful than continuing to smoke. IQOS emits on average 95% lower levels of harmful chemicals compared to cigarettes. *

* Based on the totality of evidence available for IQOS in comparison with continuing to smoke.
** “95% less” represents the average reduction in levels of the 9 chemicals recommended for reduction in cigarette smoke by the World Health Organization, which do not include nicotine. It does not necessarily equal a 95% reduction in risk.

IQOS emits on average 95% lower levels of harmful chemicals compared to cigarettes.

Important information: This does not necessarily equal a 95% reduction in risk. IQOS is not risk-free.

* Based on the totality of evidence available for IQOS in comparison with continuing to smoke.
** Reductions in levels of the 9 harmful chemicals the World Health Organization recommends to reduce in cigarette smoke, which do not include nicotine. It does not necessarily equal a 95% reduction in risk. Switching completely to IQOS is a better choice for your health than smoking. *

* Based on the totality of evidence available for IQOS in comparison with continuing to smoke.

CIGARETTES PRODUCE TAR - IQOS DOESN’T

Tar is the residue from smoke after a cigarette is burned.

IQOS does not produce tar because it heats tobacco instead of burning it. It generates an aerosol residue that is fundamentally different from tar and consists of significantly lower levels of harmful chemicals.*

Switching completely to IQOS is less harmful than continuing to smoke.*

Important information: IQOS is not risk-free, and provides nicotine which is addictive.
*Source: Based on the totality of evidence available for IQOS in comparison with continuing to smoke.

CIGARETTES PRODUCE HIGH AMOUNTS OF CARBON MONOXIDE - IQOS DOESN’T

Cigarettes burn tobacco, which produces high amounts of carbon monoxide.

IQOS doesn’t burn tobacco, producing on average 98% less carbon monoxide (CO) and significantly lower levels of other harmful chemicals compared to cigarettes.*

* We measured the levels of the 9 harmful chemicals the World Health Organization recommends to reduce in cigarette smoke, which do not include nicotine, and these are reduced on average by 95%.

Over 13.9 million adult smokers have stopped burning tobacco and started heating it with IQOS.

*Source: PMI Financials or estimates, IQOS user panels and PMI Market Research. Status as of March 2021. IQOS users who have completely quit cigarettes and for whom PMI HeatSticks represent at least 70% of their past 7-day heated tobacco consumption.

There are more than 19.1 million* IQOS users globally, of which 13.9 million* have completely quit cigarettes.

*Source: PMI Financials or estimates, IQOS user panels and PMI Market Research. Status as of March 2021. IQOS users for whom HeatSticks represent at least 5% of their daily tobacco consumption over the past 7 days.
*IQOS users who have completely quit cigarettes and for whom PMI HeatSticks represent at least 70% of their past 7-day heated tobacco consumption.

Thousands of adult smokers around the world convert to IQOS every day.*

*Source: Status as of March 2021 Exclusive Heat-Not-Burn users that are using PMI HeatSticks for at least 70% of their past-7 days heated tobacco consumption. PMI Financials or estimates, IQOS user panels and PMI Market Research.

Every day, thousands of adult smokers around the world stop burning tobacco and start heating it with IQOS.*

*Source: Status as of March 2021 Exclusive Heat-Not-Burn users that are using PMI HeatSticks for at least 70% of their past-7 days heated tobacco consumption. PMI Financials or estimates, IQOS user panels and PMI Market Research. The majority of smokers who switch to IQOS completely quit cigarettes.*

*Source: PMI Financials or estimates, IQOS user panels and PMI Market Research

IQOS is the #1 heated tobacco product.*

*Source: PMI global estimate of total In-Market Sales of Heated Tobacco Units as of February 2021. (excluding China and US).

You will find consumer communication around the website and in other touchpoints that come from the following sources for lil products:

lil SOLID Es produces less smell than cigarettes.*

*91% agreement amongst 351 adult consumers in Russia, 2021.

As lil SOLID Es produces less smell than cigarettes, it is less likely to bother other people around you.*

*90% agreement amongst 351 adult consumers in Russia, 2021.

lil SOLID Es leaves less lingering odor on my hands, hair and clothes than cigarettes.*

*90% agreement amongst 351 adult consumers in Russia, 2021.

lil SOLID Es leaves less smell on various types of interiors, furniture and fabric than cigarettes.*

*90% agreement amongst 351 adult consumers in Russia, 2021.

lil SOLID Es will leave less smell on your interior features than cigarettes.*

*90% agreement amongst 351 adult consumers in Russia, 2021.