REG-Philip Morris International Inc. Philip Morris International Inc. (PMI) Announces Leadership Succession Plan

Wed Mar 13, 2013 8:03am EDT

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http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130313:nBw135657a

Andre Calantzopoulos Appointed Chief Executive Officer

Louis Camilleri to Remain Chairman of the Board
NEW YORK--(Business Wire)--


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:

* Total Shareholder Return of 103.5% versus the S&P 500 Index (20.6%); 
* Returned over $50 billion to shareholders through dividends and share
repurchases; 
* Met, or exceeded, the high end of its adjusted diluted EPS annual growth
target of 10-12%, excluding currency, each year; 
* Increased its dividend each year for a cumulative increase of 84.8%; and 
* 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. 

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Philip Morris International Inc. 

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