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Philip Morris Incorporated Annual Report 1972 r.wunurr Marl6oro PAIWAMEM w w w ®~'~ r . ~ MAoro ~ ~ ~.t

I Financial Highlights 2 Review of the Year 6 World Map-Philip Morris Incorporated 16 Philip Morris U.S.A. 22 Philip Morris International 28 Miller Brewing Company 32 Philip Morris Industrial 34 Mission Viejo Company 36 Directors and Officers 40 Financial Review 1i Philip Morris Incorporated, 100 Park Avenue, New York, N.Y. 10017. Transfer Agents: Morgan Guaranty Trust Company of New York, 30 West Broadway, New York, N.Y. 10015; United Virginia Bank, Box 6E, Richmond, Va. 23214. Annual Meeting: April 25, 1973, 2:00 P.M. 4001 Commerce Road, Richmond, Va. 7-1

Philip Morris Incorporated Annual Report 1972 J i Fincnic•iul fli-l:tigfits 1972 1971 Operating Revenues Net EarninLs Per Share of Common Stock: Net Earninas: Primary Fully Diluted Dividends Declared Percent Increase Over Prior Year: Operating Revenues Net Earninas Net Earnings Per Common Share: Primary Fully Diluted Operating Companies Revenues: Philip Morris U.S.A. Philip Morris International Philip Morris Industrial Miller Brewing Company ( 1) Mission Viejo Company (2) Consolidated Operating Revenues $ 920,323,000 424, 800,000 85,875,000 78.542,000 Operating Companies Income: Philip Morris U.S.A. Philip Morris International Philip Morris Industrial Miller Brewing Company ( I ) Mission Viejo Company (2) - Consolidated Operating Income (3) 52,131,22-1,0(10 S 1,852,-195,000 124,460.000 101,498,000 54.67 $4.02 4.37 3.64 1.262 1.21 15.01-r' 22.7% 2 2.6 % 31.0 ~/c 16.2 r~ 19.6 % I 0.1 r; 27.7% S 1,164,550,000 $1,035,178,000 623,699,000 517,670,000 1 13,136,000 95,513,000 211,262,000 204,134,000 18,577,000 $2,131,224,000 ' $1,852,495.000 S 194,072,000 - $ 166,734,000 84,095,000 66,968,000 7,735,000 6,135,000 228,000 1,300,000 1,331,000 $ 287,461,000 $ 241,137,000 1970 $1,509,540,000 77,498,000 $3.36 2.85 1.05 32.1% 32.8% 30.2% 18.8% $1,509,540,000 $ 138,051,000 54,167,000 - 6,049,000 4,913,000 $ 203,180,000 ( 1) Operating revenues from August 1, 1970. Equity of 53ry~ in net income in period 1/1 /70-7/31 /70 and 100 ':-r of operating income thereafter. (2) Operating revenues and operating income from September 30, 1972. (3) Corporate expense, interest, other items and income taxes, which are not directly attributable to the operating companies, are not allocated since any allocation thereof would be arbitrary. The notes to consolidated financial statements should be read in conjunction with the above data. JJ

Joseph F. Cullman 3rd Chairman Review of the Year In 1972, your company reported record operating revenues and profits and, for the 19th consecutive year, increased earnings per share over the previous year. Consolidated operating revenues for 1972 increased more than 15.0%, and net income rose 22.6%. Fully diluted earnings per share increased 20.1 and primary per share earnings 16.2%. Philip Morris in 1972 continued to gain a larger share of the world-wide cigarette industry. In unit sales, Philip Morris became the second largest publicly-held cigarette company in the world. Marlboro became the number one brand in the world and continued as the number two brand in the United States. Philip Morris continued as the second ranking cigarette company in the U.S. World-wide cigarette sales climbed 4% to approximately 3,450 billion units. Philip Morris's total unit sales, including U. S. and international, are now 6.5% of the world-wide total. U.S. industry sales increased in 1972 for the third consecutive year to approximately 554 billion units, a rise of over 3%. In the United States, Philip Morris's cigarette unit sales increased more than 13% during the year, and our market share increased to more than 20% at year end. Philip Morris's consolidated operating revenues have grown over the past five years at an average annual compounded rate of 18.7%. Net earnings for this period grew at an average annual compounded rate of 23.3%, and fully diluted earnings per share rose 17.6% a year. For the 45th year in a row, your company paid dividends on its common stock. For the fifth straight year, dividends were increased; the 1972 increase was the maximum permitted under the Phase II dividend guidelines. The current annual dividend is now $1.296 per common share. United States Sales Philip Morris U.S.A.'s sales gains were led by the continuing growth of Marlboro which has attained a share of more than 12.5% of the U.S. market, compared with 6.6% five years ago. Marlboro has narrowed the distance between it and the number one brand in the U.S. and continues to increase the gap between it and the brands ranked below. Philip Morris U.S.A. further strengthened its position as the leader in the I00mm category with Benson & Hedges 100's, which became the leading 100mm brand in the U.S. in 1972, as well as Marlboro 100's, Parliament 100's, and Virginia Slims. The l 00mm segment is the fastest-growing category in the U.S. market with total I 00mm unit sales accounting for more than 21 % of the market for the year 1972, International In 1955, when Philip Morris initiated its international affiliate activities to supplement exports, your company sold 4.3 billion cigarettes in international markets. In 1972, Philip Morris International sold 113 billion units in more than 160 countries and territories through exports of over 14 billion cigarettes and local manufacture by affiliates and licensees. Philip Morris International's manufacturing affiliates are located in Argentina, Australia, Belgium, Canada, Canary Islands, Dominican Republic, Germany, Guatemala, Holland, India, Indonesia, Mexico, Nigeria, Pakistan, Panama, Switzerland, United Kingdom, and Venezuela. Marketing affiliates exist in Ecuador, France, Greece, New Zealand, Puerto Rico, and Sweden. Licensees include manufacturers in Austria, Bolivia, Finland, Haiti, Hong Kong, Italy, Malaysia, Netherlands Antilles, The Philippines, and Yugoslavia. Philip Morris Europe, the largest International region in sales and profits, maintained its rapid growth, putting into production a new factory in West Berlin and expanding the Philip Morris Holland B. VV plant in Bergen op Zoom. Marlboro is among the leading brands in Austria, Finland, Italy and Switzerland and has substantial sales in other European countries. Muratti Ambassador is another leading Philip Morris entry in European cigarette markets. Philip Morris International's Asia/ Pacific, Canada,,and Latin America- Iberia regions also strengthened their respective market positions in 1972 and reported improved sales and earnings. LI i -SW [o 0 2

F 1 I 3t MlllPr Brewlnq Miller Brewing devoted substantial effort and resources to reorganizing and strenohcning its operations. while experiencing a difficult year. Althouzh barrel sales and operatinu, revenues increased in 1972. Miller's operating income declined. This decline reflected the intensified price competition in the brewing industry and the rising costs for raw materials, labor and packaging materials. Miller has undertaken to strengthen its sales and profitability by institutins far-reaching changes which are not yet reflected in the company's financial results. Senior management has been suhstantiallv reinforced, marketinQ has been reoraanizcd, and the distributor organization is beinL, strenuthened. In 1972, Miller's product line was expanded throuLh new products and acquisitions. Several packaging innovations were well received. The continuing concentration of the brewing industry offers promise of long-term opportunity for Miller since it is one of the three nationallv distributed brands of premium beer, the fast-growine segment of the market. In 197?, the premium beer segment accounted for 30% of the market compared with 23% in 1967. Philip A9orris Industrial Philip Morris Industrial's operating revenue exceeded S 100 million for the first time, an increase of 18~,c over 1971. and the increase in operating income was even greater- 26%. Our industrial companies benefited from the improvement in the U.S. economy in 1972, but more important is the fact that the sales strategies of these companies have been sharply re-focused, with satisfactorv results in terms of sales and profitability. The orientation of marketing strategies around high technology-high margin products produced substantial increases in revenues and income at Nicolet Paper Company and Polymer Industries, Inc., a specialty chemical manufacturer. Milprint Inc., the nation's leading producer of flexible packaging, recorded higher revenues, but income dipped slightly below the 1971 level. Mission Viejo In September, we acquired 100% of Mission Viejo Company, a new community development and home building concern. Mission Viejo's largest operations are located in Orange County, California, and it is also buildinL, homes in Phoenix, Arizona, and a new community in Denver, Colorado. Mission Viejo's sales and earnings were consolidated with those of Philip Morris's other operations in the fourth quarter of 1972. Capital Expansion We are in the initial stages of a major capital expenditure program. In 1972, our expenditures reached $120 million, a substantial increase over the $68 million spent in 1971. During the next five-year period, we expect to spend more than $500 million for new and expanded manufacturing facilities. These will be constructed not only in the U.S. but overseas as well, and principally for tobacco operations. These plans emphasize our confidence in the continued long-range expansion and profitability of the cigarette industry around the globe. The most significant component of this program is a cigarette manufacturing complex now under construction in Richmond, Virginia, planned as the world's largest and most efficient facility of its kind. When this project is completed in 1977, its total cost, including land, buildings, equipment and machinery, will exceed $200 million. It is anticipated that the first cigarettes will be produced in this facility in 1973 and that construction of the buildings will be completed in 1974. The new 8-story Research Tower in Richmond, housing some 300 scientists, will be dedicated this April. Smoking and Health The tobacco industry continues to broaden its support of research directed to finding answers to the many unresolved questions about smoking and health. At year end, the Harvard Medical School announced acceptance of a $2.8 million grant from eight tobacco companies, including Philip Morris, and an association of tobacco growers. The grant will fund a five-year program of research on the relationships, if any, between cigarette smoking and pulmonary and cardio-vascular diseases. In announcing the grant, the principal Harvard investigator said, "While it is common knowledge that cigarette smoking has been alleged to be a major cause of these diseases, many other factors, not so well publicized, may also be important. These include exposure to air pollutants, the genetic differences in host susceptibility, and so on. A direct causal relationship for many of these or other environmental factors has not been clearly demonstrated." Philip Morris is also a participant in a $2 million research grant to Washington University, in St. Louis, Missouri, for the study of cancer immunology in man. This study is now in its second year, and encouraging progress is being made in this very active and promising field of cancer investigation. While there was little in the way of new legislative activity relative to smoking and health in the United States, several countries in which we have operations did enact laws limiting cigarette advertising and requiring warning notices on packages and advertising. Problem Areas The government's Phase II wage and price regulations and the relatively moderate fiscal and monetary policies in effect in 1972 resulted in a reduced rate of inflation of approximately 3.8 % for the entire year. Profit margin limitations prevented your company . from raising the prices of its products or those of its subsidiaries during 1972. A serious threat to your company, all multi-national companies, and the national interest exists in the form of the "Hartke-Burke Bill" now before Congress. This legislation threatens harm to international trade by eliminating credits for taxes paid in other countries, which would greatly increase tax obligations in the U. S. The bill would also impose quotas on imports and prohibit the exportation of U. S. technology. As has been the case with most multi-national companies, Philip Morris's international expansion has resulted in increased U. S.

employment and a positive contribution to our balance of payments. Employment in the U.S. in support of our international activities increased more than 300% during this period. We sincerely hope that Congress will examine the record carefully before imposing any counter productive measures. In 1972, five states and the District of Columbia raised or passed legislation approving increases in cigarette excise taxes; this compares with 16 state increases in 1971. Unfortunately, we cannot realistically expect the number of future tax increases to remain at or close to the 1972 level. In fiscal 1972, total cigarette excise tax revenues came to $5.2 billion, an amount almost 50% greater than the combined revenues from cigarette sales of the six domestic manufacturers (excluding federal excise tax). This total was composed of $2.1 billion in federal excise taxes, $3.0 billion at the state level, and $.1 billion at the municipal and county levels. It is an accepted fact that the excise tax, like the sales tax, is a regressive form of taxation in that a larger proportion of lower incomes are absorbed by each dollar of such a tax. It has been documented that excise taxes actively discriminate against poor urban dwellers who tend to smoke greater numbers of cigarettes. In many instances, excise tax increases have been at least partially self-defeating. In New York City where the "tar" tax was added to substantial existing excise taxes, the number of cigarettes taxed continued to decline. In 1972, the number of cigarettes taxed declined below the level taxed in 1965. While actual tax revenues have increased marginally, legal cigarette sales are being diverted from New York City or are being displaced by bootlegged cigarettes. The New York State Commission of Investigation estimated last year that one out of three packs of cigarettes consumed in New York City was contraband. Social Responsibility In late 1971, Philip Morris initiated a company-wide audit of its practices in the areas which fall under the heading of "corporate responsibility" in an effort to determine whether management policies and directives were, in fact, being carried out-and to what extent, and where.-Requiring nearly a year, the findings have helped establish bench marks and directions for future management action at corporate, operating company, and individual plant levels. In October, our overall corporate program received favorable recognition in a report entitled "Initiatives in Corporate Responsibility," prepared and published by the Consumer Subcommittee of the U. S. Senate Committee on Commerce under the chairmanship of Senator Frank E. Moss, of Utah. This Senate Commerce Committee report, which surveyed 300 of the top corporations on the Fortune "500" list, referred to ". . . an outstanding report submitted by Philip Morris . . ." During 1972, responsibility for reviewing our continuing programs in these areas, and for initiating new programs, was assigned to two new committees of our Board of Directors -the Environmental Committee and the Corporate Committee on Social Responsibility and Contributions. These committees were created to ensure that our programs and performance are progressive and productive. The goals that we have been pursuing include recruitment of women, minorities, and veterans, advancement of equal opportunities for minorities and women, increased business with minority-owned institutions, on-the- job training, significant involvement in both community affairs and the arts, and substantial reduction or elimination of pollutants from our factories. Early in 1973, after a lengthy period of intensive study, Philip Morris announced a unique pioneering scholarship program in support of vocational training as a specific supplement to our support of higher education. We hope and expect that this program, which has received the support of the U. S. Department of Labor, will represent a significant educational-experiment in time to come. In 1972, Miller completed its conversion to fully recyclable, aluminum beer cans, while Formosa Spring's and Nicolet Paper's effluent control programs became fully operational. Mission Viejo's efforts to preserve and enhance the environment during and after home construction proved highly successful. In 1972, your Board was saddened by the death of Dr. Jess H. Davis, President of the Stevens Institute of Technology. We shall miss his wisdom and dedication. The Board was subsequently strengthened by the election as Directors of Mrs. Whitney M. Young, Jr., widow of the late civil rights leader, and Mr. John T Landry, Vice President of Philip Morris Incorporated and Group Vice President-Director of Marketing, Philip Morris U.S.A. We are optimistic about Philip Morris's future-in 1973 and the years beyond. Our record of growth in the cigarette business, in the U. S. and world-wide, is well known. Given the vitality and momentum of our cigarette brands throughout the world, there is every reason to believe that our cigarette growth will continue. We also believe there is great future potential in the brewing, industrial, and housing areas of our business. For their dedicated contributions to our continuing growth, we are grateful to all our 33,000 Philip Morris employees in this country and around the world, and we thank them for their outstanding performance. Respectfully submitted on behalf of the Board of Directors, I Joseph F. Cullman 3rd Chairman of the Board and Chief Executive Officer h3 C7 A,.,.e WA:.~ 03 0 George Weissman President and Chief Operating Officer w W a- .a , 1 1 I I4 ~

Architect, Ulrich Franzen; Photographer, Ezra Stoller I 5 The new Philip Morris Research Center Tower (above), completed last fall in Richmond, will be dedicated this April in a ceremony including a scientific symposium at which three Nobel Prize winners, among others, will participate. Dr. Glenn T. Seaborg, former Atomic Energy Commission Chairman and winner o f a Nobel Prize in 1951, has agreed to be keynote speaker at the ceremony. Research is a very high priority function at Philip Morris, not only in terms o f our corporate research in tobacco agronomy, product development, and product quality but also in fields not directly related to the internal Philip Morris research program. Specifically, Philip Morris as a company invests substantial sums in support of scientific and medical research in the area o f cigarette smoking and health, and the U.S. tobacco industry as a whole expends more funds in such research than the federal government or all voluntary health agencies in the United States combined. It is important to note that there is a continuing exchange of scientific data and findings between the Philip Morris Research and Development Center in Richmond and research organizations operated by Philip Morris International affiliates arouna the world.

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Retrospective de i'Annee En 1972, votre sociEt€ a fait 8tat d'un chiffre d'affaires et de b@n@fices sans precedent et, pour la I96me annee consecutive, Ies dividendes par action ont augmente par rapport a I'ann@e pre- cedente. Pour 1972. le chiffre d'affaires consolide a accuse un accrotssement de plus de 15,0% et les recettes nettes ont augmente de 22,617- Le revenu par action (en tenant compte deslitres convertibles) augmentait de 20,1 1~ et le revenu effectif par action de 16,2r . En 1972. Philip Morris a continue A accroitre sa part du marche mondial des cigarettes. En termes de ventes umtatres. Philip Morris devenait la seconde soctete cotee en bourse de l'industrie de Ia cigarette dans Ie monde. Marlboro est devenue la premtc're marque sur le marche mondial, tout en Sc maintenant au second rang sur le march@ des Etats-Unis. Et Philip Morris a toujours Ia seconde place dans I'industrie de la cigarette aux Etats-Unis. Le chiffre d'affaires de I'industrie est monte de 41r pour atteindre approximativement 3.450 milliards d'unites. Les ventes totales de Philip Morris (en comptant les Etats-Unis et I'etranger) atteignent maintenant 6-51c du marchb mondial. En 1972, pour la troisiPme annEe consEcutive, les ventes de I'industrie aux Etats-Unis ont accus6 un accroissement, atteignant environ 554 milliards d'unit€s, soit une majoration de plus de 3%. Pendant I'annEe, les ventes unitaires de Philip Morris sur Ie marchE americain ont augmente de plus de 13% et notre part du march6 est passee en fin d'annde A plus de 20%. Philip Morris a vu son chiffre d'affaires consolide croitre, au cours des cinq derni8res annees, au taux annuel compos6 de 18,7%- Pendant cette pertode, les revenus nets progressaient scion un taux compose annuel moyen de 23,3% et les revenus par action (en tenant compte des titres convertibles) croissaient de 17.6% par annee. Pour la 456me annce consecutive. votre compagnie a payd des dividendes sur ses actions ordinaires. Pour Ia cinqui8me annee cdnsecutive, les divi- dendes ont accusE une majoratioit; celle de 1972 represente le maximum autorise par les directives de Ia Phase 11. A l'heure actuelle, le dividende annuel se monte a$1,296 par action ordinaire. t'entes aux Etats-Unis Les gains realises par les ventes de Philip Morris aux Etats-Unis ont suivi 1'essor impressionnant de Marlboro qui, parti de 6,67c if y a cinq ans, s'est taille une de 12 5''' du ma hd a'rica part , o rc me tn. Marlboro s'est consid6rablement rapproch6 de la principale marque dec Etats-Unis et continue a distancer de plus en plus les marques qui Ia suivent. Philip Morris U.S.A. a de nouveau renforcE sa positton de chef de file dans la cat€gorie des 100 mm, avec Benson et Hedges 100 devenue en 1972 la principale marque de 100 mm aux Etats-Unis, suivie de Marlboro 100, de Parliament 100 et de Virginia Slims. La catEgorie des 100 mm est celle qui connait aux Etats-Unis la croissance Ia Plus rapide; en eHet, ses ventes ont atteint plus de 21% de I'ensemble du marche pour 1972. Ventes internationales En 1955, Iorsque Philip Morris entreprit d'ouvrir des filiales dans le monde pour approvisionner le marche de 1'exportation, ses ventes mondiales atteignirent 4,3 milliards de cigarettes. En 1972, les ventes dans 160 pays et territoires ont atteint 113 milliards d'unit8s, dont 14 milliards A I'expor- tation. le reste ayant et6 fabriqu6 localement ou sous licence. Les filiales de Philip Morris International not des usines de cigarettes en Argentine, en Australie, en Belgique, au Canada, aux Iles Canaries, en Republique Dominicaine, en Allemagne, au Guate- mala, en Holiande, en Inde, en Indonesie, au Mexique, au NiReria, au Pakistan, au Panama, en Suisse, dans Ie Royaume-Uni, et au Venezuela. II existe d'autres filiales de Philip Morris en Equateur, en France, en Grbce, en Nouvelle-Zdlande, it Porto-Rico et en Suede. Philip Morris a octroyE des licences de fabrication A des entreprises d'Autriche, de Bolivie, de Finlande, d'Haiti, de Hong-Kong, d'Italie, de Malaisie, des Antilles Neerlandaises, des Philippines et de Yougoslavie. Philip Morris-Europe qui, sur le plan interna- tional, constitue la zone Ia plus importante en ter- mes de ventes et b8n€fices, a mis en exploitation une nouveile usine AL Berlin-Ouest et Elargi les ins- tallations de Philip Morris Holland B. V. 5 Bergen Op Zoom. Marlboro figure parmi les premiisres marques en Autriche, Finlande, Italie et Suisse et atteint des chiffres de vente importants dans d'au- tres pays d'Europe. Muratti Ambassador est une autre marque Philip Morris que reussit particu- lierement bien sur le marchb europ8en de la cigarette. Dans les rfgions Asie-Pacifique, Canada, Ameri- que Latine et Espagne, Philip Morris a, en 1972, renforcb ses positions sur les differents march6s et il annonce une augmentation des ventes et profits. Miller Brewing Bien que 1'ann6e ait 6tE difficile pour Miller Brewing, celle-ci a consacr6 beaucoup d'efforts et des ressources importantes $ revigorer ses op6- rations. MalgrE l'augmentation des ventes de barils en 1972, Miller a vu diminuer ses recettes d'exploitation. Le d6ciin des recettes d'exploita- tion reflpte une concurrence plus sEvi're an sein de I'industrie de Ia bi8re, ainsi qu'une augmenta- tion des co0ts des mati@res premi8res, de la main d'oeuvre et des matEriaux de conditionnement. Miller a entrepris de renforcer ses ventes et d'amEliorer sa rentabilit6 en adoptant des mesu- res de r6forme profondes dont les rEsuitats ne se sont pas encore repercutEs sur les bilans finan- ciers. Les cadres supErieurs ont 6t6 fortement etoffEs, le service des ventes a ete reorganisE, tan- dis que Ie reseau de distribution se trouvait ren- forc6. En 1972, Miller a Elargi sa gamme de produits, en achetant ou en cr6ant de nouvelles marques. Plusieurs innovations en mati2re de conditionnement ont donnE de bons rFsultats. La tendance de I'industrie de la bit`re vers une con- centration de plus en lus poussee permet 'a Miller de faire des pr~visions'a long terme, puts- que cette societb figure parmi les trois distribu- teurs'a 1'6chelle nationale de bibres de qualit6. qui constituent Ie secteur du marche dont 1'expansion est la plus rapide. En 1972, le secteur des biPres de qualit@ repr8sentait 30% du march6, comparb A 23% en 1967. Philip Morris Industrial Philip Morris Industrial a vu son chiffre d'af- faires dEpasser, pour la premiPre fois, 100 millions de dollars, ce qui reprdsente une majoration de 18% sur 1971; 1'accrotssement des recettes d'ex- 3 loitation a 6tE encore plus marqu6, atteignant N. Nos societ6s industrielles ont profitd du mouvement de reprise qui a caract6ris6 I'bconomie ambricaine en 1972; if convient cependant d'at- tacher une importance encore plus grande au fait que ces soci6t8s ont restructur6 leurs stratEgies de vente, ce qui a donnb des rfsultats satisfaisants sur le plan des ventes et de la rentabilite. L'orien- tation des strat6gies de commercialisation en fonc- tion de produits qui font appel A une technologie complexe et offrent de fortes marges b€n6ficiaires, a permis d'augmenter les chiffres d'affaires et les b€n@fices de la Nicolet Paper Company et de Poty- mer Industries, Inc. qui 61abore des produits chi- miques A utilisations spEciales. Milprint Inc., le premier producteur americain de mat€riaux de conditionnement flexibles. a enregistre une aug- mentation de son chiffre d'affaires mais une baisse de bEnEfices par rapport au niveau de 1971. Mission Viejo Au mois de septembre dernier, nous avons acquis 'a 100% Ia Mission Viejo Company, nouvelle en- treprise de construction de logements et de d6ve- loppements communautaires. Mission Viejo a son plus grand chantier dans I'Orange County, en Californie, et construit 6galement des logements 2L Phoenix, Arizona, et dans un nouveau quartier de Denver, Colorado. Pendant te quatriPme tri- mestre de 1972, les ventes et les b@nefices de Mission Viejo ont 6tE consolid6s avec les autres opErations de Philip Morris. Expansion Nous en sommes aux premir`res €tapes d'un vaste programme d'expansion. En 1972, nos dEpenses ont atteint $120 millions ce qui repr6sente une forte majoration par rapport aux $68 millions d6- pens6s en 1971. Pendant la prochaine p6riode quinquennale, nous escomptons d6penser plus de $500 millions pour 6largir ou cronstruire des usi- nes, non seulement aux Etats-Unis, mais aussi'a 1'8tranger, surtout pour l'industrie du tabac. Ces projets tfmotgnent de la confiance que nous avons dans 1'expansion et la rentabilitb h long terme de l'industrie de la cigarette dans le monde. Le plus important ellment de ce programme est la construction AL Richmond, Virginie du complexe industriel le plus grand et le plus perfectionnE du monde pour la fabrication de la cigarette. Une fois les travaux achev6s en 1977, il aura coOtE au total plus de $200 millions pour le terrain, les batiments, I'6quipement et les machines. 11 est prEvu que les premibres cigarettes sortiront de 1'usine pendant ]e premier trtmestre 1973 et que le stade de pleine production sera atteint en 1974, lorsque Ia cons- truction des batiments sera terminee. La nouvelle tour de recherches. haute de 8 6tages, en construction'a Richmond, sera inaugur6e en avril prochain. Elle abritera 300 techniciens. Le tabac et la santE L'industrie du tabac continue A intensifier 1'appui qu'elle donne b la recherche, pour resoudre les nombreuses questions qui restent encore sans rEponse au sujet de Ia cigarette et de la sante. A la fin de l'ann@e, Ia Facultb de Mddecine de Harvard a annonc6 qu'elle a accept@ de huit entre- prises de tabac, dont Philip Morris, et d'une association de producteurs de tabac, un don de $2.8 millions, qui doit permettre la r8alisation d'un programme de recherches 6chelonnees sur cinq ans, portant sur les ra orts susce tib(es d'exister entre la cigarette etples maladies pulmo- naires et cardio-vasculaires. En annonsant ce don, le directeur des recherches 'a Harvard, a d6c1ar6: "Tout Ie monde sait qu'on a accuse Ia cigarette d'etre 1'une des principales causes de ces maladies; cependant, d'autres facteurs, qui n'ont pas requ Is mcme publicitE, peuvent egalement jouer un r8le important. Parmi eux, il faut citer la pollution de 1'air, les diff8rences g6n6tiques en ce qui con- cerne Ia susceptibilitb des hotes, etc. Nul n'a r€fut€ de fason nette qu'ii existe un rapport direct de cause'e effet dans le cas de ces facteurs ou d'autres el6ments de I'environnement". Philip Morris participe 6galement'a un don de $2 millions qui a€td fait A Washington University, Saint Louis, Missouri, pour des recherches sur l'immunologie du cancer chez I'homme. Cette 6tude, qui en est'd sa seconde annEe, fait des pro- gr8s encourageants dans ce domaine, trbs promet- teur et tr6s actif, des recherches sur le cancer. Tandis que les Etats-Unis n'ont gu8re adopt6 de dispositions nouvelles en ce qui concerne Ia fu- m€e et la sant6, plusieurs pays ot] nous avons des Int6rets ont promulgub des lois limitant la publi- citb des cigarettes et exigeant que des mises en garde figurent sur les paquets de cigarettes et dans Ie materiel publicitaire. Proble'mes En 1972, la Phase lI des rBglements fEderaux en mati8re de controle des prix et des salaires, ainsi qu'une politique fiscale et monetaire relativement modBrBe, ont eu pour effet de permettre un taux d'infiation limit6'a 3,8% environ pour 1'ensemble 115