Philip Morris International Inc. (PMI) Announces Leadership Succession Plan
Regulatory News:
The Board of Directors of Philip Morris International Inc. (NYSE /
Euronext Paris: PM) today announced that André Calantzopoulos was
appointed Chief Executive Officer to become effective immediately
following the Annual Meeting of Shareholders on May 8, 2013. Mr.
Calantzopoulos was also nominated for election to the Board of Directors
at the Annual Meeting. He has served as PMI’s Chief Operating Officer
since the company’s spin-off on March 28, 2008. Louis Camilleri, PMI’s
current Chairman and Chief Executive Officer, will remain as Chairman of
the Board and as an employee of the company.
Since the spin-off, Messrs. Camilleri and Calantzopoulos have worked
closely together in their respective roles as Chief Executive Officer
and Chief Operating Officer. Under their combined leadership, PMI has
solidified its position as the largest and most profitable international
tobacco company, while expanding its global market share, excluding
China and the USA, to a record 28.8% in 2012. Among PMI’s substantial
achievements under their combined leadership since the spin-off through
year-end 2012:
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Total Shareholder Return of 103.5% versus the S&P 500 Index (20.6%);
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Returned over $50 billion to shareholders through dividends and share
repurchases;
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Met, or exceeded, the high end of its adjusted diluted EPS annual
growth target of 10-12%, excluding currency, each year;
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Increased its dividend each year for a cumulative increase of 84.8%;
and
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Repurchased 489 million shares, or 23.2% of the shares outstanding
after the spin-off, at an average price of $56.96 per share.
Lucio A. Noto, PMI’s independent Presiding Director, said: “Louis has
assembled and led a tremendous team, as demonstrated by PMI’s
outstanding performance as an independent public company. His close
working relationship with André as they shared responsibility for
leading the company, together with André’s many achievements on the
operational side of the business, make this decision the culmination of
a rigorous and well executed plan of succession. The Directors have
greatly appreciated the transparency with which Louis and André have
interacted with the Board. On behalf of the entire Board, I want to
thank Louis for his steadfast devotion to the company and the tremendous
results achieved over a lengthy and stellar career. The company and its
shareholders, employees and directors owe Louis a tremendous debt of
gratitude for his unrivalled service.”
Louis Camilleri said: “After eleven years of leading PMI and its former
parent, and with the company squarely poised for future success, I
decided that the time has come for me to relinquish my executive role. I
am delighted to hand over the management responsibility of the company
to André. He is well equipped, and the company is well positioned, to
continue to deliver superior shareholder value. He has played an
instrumental role in numerous key initiatives, including critical
innovative developments such as the new architecture that has
revitalized the Marlboro brand, new product development and
revamped consumer engagement activities that drove our broad-based
market share gains in both OECD and non-OECD markets. Under André’s
leadership as Chief Operating Officer, we have successfully increased
our revenues even in difficult operating and economic environments,
recorded strong productivity gains, driven relentlessly towards our goal
of developing successful next generation products, and enhanced the
caliber and depth of our organization and future leadership talent.”
“From the bottom of my heart,” continued Mr. Camilleri, “I wish to thank
the Board, the senior management team and each employee of PMI across
the globe for their continuous contributions and their dedication to
making this the world’s premier international tobacco company. It has
been a true privilege to serve this amazing company, its employees and
its shareholders.”
As Chairman of the Board of PMI, Louis Camilleri will assist the CEO in
long-term strategy, serve as the CEO’s sounding board and continue to
fulfill the duties of Chairman of the Board of Directors. Lou Noto will
continue his key role as the independent Presiding Director of the
company. André Calantzopoulos will have the management responsibility
for the company and will report to the full Board of Directors.
André Calantzopoulos said: “I am deeply honored that Louis and the Board
have the confidence in me to continue to build on PMI’s tremendous
success. I am particularly grateful to Louis for his mentorship over a
long period of time, during which I have always been deeply impressed
with his passion for the company, his critical and insightful analysis
and vision, his regard for each PMI employee, and his devotion to the
integrity and transparency of communications to investors and to
enhancing shareholder value. He has set the standard by which all future
leaders of PMI will be judged.”
Prior to the spin-off, André Calantzopoulos, 55, served as PMI’s
President and Chief Executive Officer since 2002. He joined the company
in 1985 and worked extensively across Central Europe, including as
Managing Director of PM Poland and President of the Eastern Europe
Region. André earned a degree in electrical engineering from the Swiss
Federal Institute of Technology and an MBA from INSEAD in France.
Forward-Looking and Cautionary Statements
This press release contains projections of future results and other
forward-looking statements. Achievement of projected results is subject
to risks, uncertainties and inaccurate assumptions. In the event that
risks or uncertainties materialize, or underlying assumptions prove
inaccurate, actual results could vary materially from those contained in
such forward-looking statements. Pursuant to the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995, PMI
is identifying important factors that, individually or in the aggregate,
could cause actual results and outcomes to differ materially from those
contained in any forward-looking statements made by PMI.
PMI’s business risks include: significant increases in cigarette-related
taxes; the imposition of discriminatory excise tax structures;
fluctuations in customer inventory levels due to increases in product
taxes and prices; increasing marketing and regulatory restrictions,
often with the goal of reducing or preventing the use of tobacco
products; health concerns relating to the use of tobacco products and
exposure to environmental tobacco smoke; litigation related to tobacco
use; intense competition; the effects of global and individual country
economic, regulatory and political developments; 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; adverse changes in
applicable corporate tax laws; adverse changes in the cost and quality
of tobacco and other agricultural products and raw materials; and the
integrity of its information systems. PMI’s future profitability may
also be adversely affected should it be unsuccessful in its attempts to
produce products with the potential to reduce the risk of
smoking-related diseases; 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.
PMI is further subject to other risks detailed from time to time in its
publicly filed documents, including the Form 10-K for the year ended
December 31, 2012. 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 obligations.
Philip Morris International Inc.
Philip Morris International Inc. (PMI) is the leading international
tobacco company, with seven of the world’s top 15 international brands,
including Marlboro, the number one cigarette brand worldwide.
PMI’s products are sold in more than 180 markets. In 2012, the company
held an estimated 16.3% share of the total international cigarette
market outside of the U.S., or 28.8% excluding the People’s Republic of
China and the U.S. For more information, see www.pmi.com.