NEW YORK–(BUSINESS WIRE)–Regulatory Information:
Philip Morris Worldwide Inc. (PMI) (NYSE: PM) is happy to announce that Jacek Olczak was appointed Chief Government Officer following the corporate’s 2021 Annual Shareholders Assembly earlier at the moment. Mr. Olczak—most not too long ago the corporate’s Chief Working Officer—was additionally elected to the Board of Administrators. André Calantzopoulos, who served as PMI’s Chief Government Officer from 2013, was appointed Government Chairman of the Board previous to the assembly. Mr. Lucio Noto stepped down from his function as interim Chairman of the Board and was reelected to the Board of Administrators. The appointments comply with the announcement of PMI’s management transition in December 2020. When decided, PMI will announce the title of the Lead Unbiased Director on its web site.
In accepting his appointment as CEO, Mr. Olczak dedicated to accelerating PMI’s smoke-free transformation, introduced in 2016. The corporate is targeted on creating, scientifically substantiating, and responsibly commercializing smoke-free merchandise which can be much less dangerous than smoking, with the goal of changing cigarettes as quickly as attainable.
Mr. Olczak mentioned: “I’m humbled and excited to steer PMI as we speed up our transformation right into a smoke-free firm. PMI is an trade chief in scientific innovation, and our ambition is that greater than half of our internet revenues will come from smoke-free merchandise in 2025. Our evolving portfolio will drive our long-term future. We are going to lean into our scientific analysis and experience, utilizing our collective expertise and creativeness to innovate past our current portfolio and discover new areas of enterprise improvement.”
Mr. Olczak, 56, started his profession with PMI in 1993. He began in finance and basic administration positions throughout Europe, together with as Managing Director of PMI’s markets in Poland and Germany and as President of the European Union Area, earlier than being appointed Chief Monetary Officer in 2012. He held that place till 2018, when he grew to become PMI’s Chief Working Officer. He holds a grasp’s diploma in economics from the College of Lodz, Poland.
Mr. Olczak has been a significant driver of PMI’s smoke-free transformation, which moved into its commercialization section with the launch of IQOS in Nagoya, Japan, in 2014. Beneath his oversight as COO, PMI elevated the portion of its internet revenues derived from smoke-free merchandise to twenty-eight % within the first quarter of 2021. Additional, the corporate grew the geographical protection of its smoke-free merchandise from zero to 66 markets in key cities or nationwide as of March 31, 2021. And Mr. Olczak led PMI’s industrial transformation, efficiently creating it from a primarily business-to-business firm to an more and more business-to-consumer firm.
Mr. Calantzopoulos mentioned: “Jacek is ideally positioned to ship PMI’s smoke-free imaginative and prescient in his new function as CEO. His ardour for the corporate and our staff underpins his drive for outcomes, as does his deep information of our merchandise, techniques, values, and traders. I consider he’s the perfect chief to make sure our enterprise’s continued progress and ship shareholder worth. I stay up for persevering with to work with him in my new capability as Government Chairman of the Board.”
Roughly 85 % of the shares entitled to vote have been represented on the assembly in particular person or by proxy. The shareholders elected 13 nominees for director; authorized, on an advisory foundation, the compensation of named government officers; and ratified the choice of PricewaterhouseCoopers SA as unbiased auditors. Closing voting outcomes can be included in a Kind 8-Ok that PMI will file with the SEC inside the subsequent few days.
An archived copy of the webcast of the assembly can be obtainable for roughly one 12 months from the date of the assembly at www.virtualshareholdermeeting.com/PMI2021. The presentation slides and script may even be obtainable on the similar web site handle.
Philip Morris Worldwide: Delivering a Smoke-Free Future
Philip Morris Worldwide (PMI) is main a change within the tobacco trade to create a smoke-free future and finally change cigarettes with smoke-free merchandise to the good thing about adults who would in any other case proceed to smoke, society, the corporate and its shareholders. PMI is a number one worldwide tobacco firm engaged within the manufacture and sale of cigarettes, in addition to smoke-free merchandise, related digital gadgets and equipment, and different nicotine-containing merchandise in markets outdoors the U.S. As well as, PMI ships variations of its IQOS Platform 1 gadget and consumables to Altria Group, Inc. on the market underneath license within the U.S., the place these merchandise have obtained advertising authorizations from the U.S. Meals and Drug Administration (FDA) underneath the premarket tobacco product utility (PMTA) pathway; the FDA has additionally approved the advertising of a model of IQOS and its consumables as a Modified Threat Tobacco Product (MRTP), discovering that an publicity modification order for these merchandise is acceptable to advertise the general public well being. PMI is constructing a future on a brand new class of smoke-free merchandise that, whereas not risk-free, are a a lot better selection than persevering with to smoke. By multidisciplinary capabilities in product improvement, state-of-the-art services and scientific substantiation, PMI goals to make sure that its smoke-free merchandise meet grownup shopper preferences and rigorous regulatory necessities. PMI’s smoke-free product portfolio contains heat-not-burn and nicotine-containing vapor merchandise. As of March 31, 2021, PMI’s smoke-free merchandise can be found on the market in 66 markets in key cities or nationwide, and PMI estimates that roughly 14.0 million adults all over the world have already switched to IQOS and stopped smoking. For extra info, please go to www.pmi.com and www.pmiscience.com.
Ahead-Trying and Cautionary Statements
This press launch comprises projections of future outcomes and different forward-looking statements. Achievement of future outcomes is topic to dangers, uncertainties and inaccurate assumptions. Within the occasion that dangers or uncertainties materialize, or underlying assumptions show inaccurate, precise outcomes might differ materially from these contained in such forward-looking statements. Pursuant to the “protected harbor” provisions of the Non-public Securities Litigation Reform Act of 1995, PMI is figuring out vital elements that, individually or within the mixture, might trigger precise outcomes and outcomes to vary materially from these contained in any forward-looking statements made by PMI.
PMIs enterprise dangers embrace: excise tax will increase and discriminatory tax constructions; growing advertising and regulatory restrictions that would cut back our competitiveness, eradicate our capacity to speak with grownup customers, or ban sure of our merchandise; well being considerations referring to using tobacco and different nicotine-containing merchandise and publicity to environmental tobacco smoke; litigation associated to tobacco use and mental property; intense competitors; the results of worldwide and particular person nation financial, regulatory and political developments, pure disasters and conflicts; modifications in grownup smoker conduct; misplaced revenues on account of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable forex change charges and forex devaluations, and limitations on the flexibility to repatriate funds; hostile modifications in relevant company tax legal guidelines; hostile modifications in the fee, availability, and high quality of tobacco and different agricultural merchandise and uncooked supplies, in addition to parts and supplies for our digital gadgets; and the integrity of its info techniques and effectiveness of its information privateness insurance policies. PMI’s future profitability can also be adversely affected ought to it’s unsuccessful in its makes an attempt to provide and commercialize reduced-risk merchandise or if regulation or taxation don’t differentiate between such merchandise and cigarettes; whether it is unable to efficiently introduce new merchandise, promote model fairness, enter new markets or enhance its margins via elevated costs and productiveness features; whether it is unable to develop its model portfolio internally or via acquisitions and the event of strategic enterprise relationships; or whether it is unable to draw and retain one of the best international expertise. Future outcomes are additionally topic to the decrease predictability of our reduced-risk product class’s efficiency.
The COVID-19 pandemic has created important societal and financial disruption, and resulted in closures of shops, factories and workplaces, and restrictions on manufacturing, distribution and journey, all of which is able to adversely impression our enterprise, outcomes of operations, money flows and monetary place in the course of the continuation of the pandemic. Our enterprise continuity plans and different safeguards is probably not efficient to mitigate the impression of the pandemic. Presently, important dangers embrace our diminished capacity to transform grownup people who smoke to our RRPs, important quantity declines in our duty-free enterprise and sure different key markets, disruptions or delays in our manufacturing and provide chain, elevated forex volatility, and delays in sure value saving, transformation and restructuring initiatives. Our enterprise is also adversely impacted if key personnel or a big variety of staff or enterprise companions turn out to be unavailable because of the COVID-19 outbreak. The numerous hostile impression of COVID-19 on the financial or political situations in markets during which we function might end in modifications to the preferences of our grownup customers and decrease demand for our merchandise, notably for our mid-price or premium-price manufacturers. Continuation of the pandemic might disrupt our entry to the credit score markets or improve our borrowing prices. Governments could briefly be unable to deal with the event of science-based regulatory frameworks for the event and commercialization of RRPs or on the enforcement or implementation of laws which can be important to our enterprise. As well as, messaging concerning the potential unfavourable impacts of using our merchandise on COVID-19 dangers could result in more and more restrictive regulatory measures on the sale and use of our merchandise, negatively impression demand for our merchandise, the willingness of grownup customers to change to our RRPs and our efforts to advocate for the event of science-based regulatory frameworks for the event and commercialization of RRPs.
The impression of those dangers additionally will depend on elements past our information or management, together with the length and severity of the pandemic, its recurrence in our key markets, actions taken to comprise its unfold and to mitigate its public well being results, and the last word financial penalties thereof.
PMI is additional topic to different dangers detailed once in a while in its publicly filed paperwork, together with the Kind 10-Q for the quarter ended March 31, 2021. PMI cautions that the foregoing listing of vital elements isn’t an entire dialogue of all potential dangers and uncertainties. PMI doesn’t undertake to replace any forward-looking assertion that it might make once in a while, besides within the regular course of its public disclosure obligations.