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Introduction Financial Highlights Letter to Shareholders Tribute to Jane Evans Responsibility Business Review   Philip Morris USA Inc.   Philip Morris International Inc.   Kraft Foods Inc.   Philip Morris Capital Corporation Board of Directors and Officers Financial Review    Management’s Discussion and Analysis of          Financial Condition and Results of Operations      Description of the Company      Critical Accounting Policies      Consolidated Operating Results      2003 compared with 2002      2002 compared with 2001      Operating Results by Business Segment        Tobacco          Business Environment          Operating Results          2003 compared with 2002          2002 compared with 2001        Food          Business Environment          Operating Results          2003 compared with 2002          2002 compared with 2001        Beer         Operating Results        Financial Services          Business Environment          Operating Results      Financial Review      Market Risk      New Accounting Standards      Contingencies      Cautionary Factors That May          Affect Future Results

Financial Review (Continued)   Selected Financial Data—Five-Year Review    Consolidated Balance Sheets    Consolidated Statements of Earnings    Consolidated Statements of       Stockholders’ Equity    Consolidated Statements of Cash Flows    Notes to Consolidated Financial Statements      1. Background and Basis of Presentation      2. Summary of Significant Accounting              Policies      3. Miller Brewing Company Transaction      4. Divestitures      5. Acquisitions      6. Inventories      7. Finance Assets, net      8. Short-Term Borrowings and Borrowing              Arrangements      9. Long-Term Debt      10. Capital Stock      11. Stock Plans      12. Earnings per Share      13. Pre-tax Earnings and Provision for               Income Taxes      14. Segment Reporting      15. Benefit Plans      16. Additional Information      17. Financial Instruments      18. Contingencies      19. Subsequent Event      20. Quarterly Financial Data (Unaudited)    Report of Independent Auditors    Company Report on Financial Statements Shareholder Information Our Tobacco Companies' Products Our Food Company's Products