Philip Morris International Inc. (PMI) Holds 2024 Virtual Annual Meeting of Shareholders

Rhea-AI Summary

Philip Morris International Inc. (NYSE: PM) conducted its 2024 Annual Meeting of Shareholders, featuring an address by Executive Chairman André Calantzopoulos and a business presentation by CEO Jacek Olczak. The company highlighted its strong performance in 2023, rapid progress in smoke-free products, excellent momentum in heat-not-burn and nicotine pouch categories, and continued dedication to sustainability and rewarding shareholders. PMI's strategy to transition into a smoke-free company has yielded significant growth, with smoke-free products contributing nearly 40% of total net revenues and over 40% of gross profit in Q4 2023. The meeting saw strong shareholder participation, with the election of 12 directors, approval of executive compensation, and ratification of auditors. PMI will release final voting results in a Form 8-K filing with the SEC. The webcast and presentation materials will be available on the company's website.

Positive

• PMI showcased robust business fundamentals, strong financial performance in 2023, and a promising start to 2024.

• The company reported significant momentum in the heat-not-burn and nicotine pouch categories, indicating growth potential.

• PMI's focus on sustainability and recognition by external stakeholders demonstrates its commitment to environmental and social responsibility.

• The strategy to transition to smoke-free products has driven substantial revenue and profit contributions, positioning the company for continued success.

Negative

• Despite positive performance, PMI may face regulatory challenges in the tobacco industry regarding smoke-free products.

• The reliance on smoke-free products for a significant portion of revenue and profit exposes PMI to market fluctuations in this product category.

• While shareholder participation was strong, any dissenting votes or concerns raised during the meeting could impact investor confidence and future decisions.

STAMFORD, CT--(BUSINESS WIRE)-- Regulatory News:

Philip Morris International Inc. (NYSE: PM) held its 2024 Annual Meeting of Shareholders today. André Calantzopoulos, Executive Chairman of the Board, addressed shareholders and answered questions. Jacek Olczak, Chief Executive Officer, gave a business presentation, which included an overview of PMI’s:

• performance in 2023 and strong start to 2024;
• robust business fundamentals and rapid progress on its smoke-free transformation;
• excellent momentum in the heat-not-burn and nicotine pouch categories;
• further progress on sustainability, with continued recognition by leading external stakeholders; and
• commitment to rewarding shareholders over time.

"Our strategy to become a smoke-free company has enabled us to build and sustain strong momentum, resulting in smoke-free products reaching nearly 40% of our total net revenues and over 40% of our gross profit in the fourth quarter of 2023,” said Jacek Olczak, Chief Executive Officer.

“As a global smoke-free champion with leading brands IQOS and ZYN, we are well positioned to further accelerate our transformation in the years to come, to the benefit of the company, our shareholders, other stakeholders and public health.”

Approximately 80 percent of the shares entitled to vote were represented at the meeting in person or by proxy. The shareholders elected 12 nominees for director; approved, on an advisory basis, the compensation of named executive officers; and ratified the selection of PricewaterhouseCoopers SA as independent auditors. Final voting results will be included in a Form 8-K that PMI will file with the SEC in the coming days.

An archived copy of the webcast of the meeting will be available for approximately one year from the date of the meeting at www.virtualshareholdermeeting.com/PM2024. The presentation slides and script will be available at the same website address.

Forward-Looking & Cautionary Statements

The presentation, related discussion and this press release contains projections of future results and goals and other forward-looking statements, including statements regarding expected financial or operational performance; capital allocation plans; investment strategies; regulatory outcomes; market expectations; and business plans and strategies. Achievement of future 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: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco and/or nicotine use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; the impact of natural disasters and pandemics on PMI's business; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; 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; if it is unable to attract and retain the best global talent, including women or diverse candidates; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI's Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2023, and the Quarterly Report on Form 10-Q for the first quarter ended March 31, 2024. 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: Delivering a Smoke-Free Future

Philip Morris International (PMI) is a leading international tobacco company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products. Since 2008, PMI has invested over $12.5 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. In 2022, PMI acquired Swedish Match – a leader in oral nicotine delivery – creating a global smoke-free champion led by the companies’ IQOS and ZYN brands. The U.S. Food and Drug Administration has authorized versions of PMI’s IQOS devices and consumables and Swedish Match’s General snus as Modified Risk Tobacco Products. As of December 31, 2023, PMI's smoke-free products were available for sale in 84 markets, and PMI estimates that approximately 33 million adults around the world use PMI's smoke-free products. Smoke-free business accounted for approximately 37% of PMI’s total full-year 2023 net revenues. With a strong foundation and significant expertise in life sciences, PMI announced in February 2021 its ambition to expand into wellness and healthcare areas and, through its Vectura Fertin Pharma business, aims to enhance life through the delivery of seamless health experiences. For more information, please visit www.pmi.com and www.pmiscience.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240508897532/en/

Philip Morris International

Investor Relations:

Stamford, CT: +1 (203) 904 2410

Lausanne: +41 (0)58 242 4666

Email: InvestorRelations@pmi.com

Media: David Fraser

Lausanne: +41 (0)58 242 4500

Email: David.Fraser@pmi.com

Source: Philip Morris International

FAQ

What was the focus of Philip Morris International Inc.'s 2024 Annual Meeting of Shareholders?

PMI's 2024 Annual Meeting of Shareholders highlighted the company's strong performance in 2023, rapid progress in smoke-free products, momentum in heat-not-burn and nicotine pouch categories, sustainability efforts, and commitment to rewarding shareholders.

Who addressed the shareholders at PMI's Annual Meeting?

Executive Chairman André Calantzopoulos and CEO Jacek Olczak addressed the shareholders at PMI's 2024 Annual Meeting.

What percentage of PMI's revenue did smoke-free products contribute in Q4 2023?

Smoke-free products contributed nearly 40% of PMI's total net revenues and over 40% of gross profit in the fourth quarter of 2023.

What were the outcomes of the shareholder voting at PMI's Annual Meeting?

The shareholders elected 12 director nominees, approved executive compensation on an advisory basis, and ratified PricewaterhouseCoopers SA as independent auditors. Final voting results will be disclosed in a Form 8-K filing with the SEC.

Where can the webcast and presentation materials of PMI's Annual Meeting be accessed?

The webcast of the meeting will be available for about a year on www.virtualshareholdermeeting.com/PM2024, along with the presentation slides and script.