Shareholders approve all proposed resolutions of Novartis Board of Directors
(Thomson Reuters ONE) -
Novartis International AG / Shareholders approve all proposed resolutions of Novartis Board of Directors processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
* Dividend increased to CHF 2.10 per share for 2009 (+5%), representing a
payout of 55% of net income from continuing operations, marking thirteenth
consecutive increase in the dividend per share since the creation of
Novartis in 1996
* Novartis reaffirms underlying Group net sales growth outlook
* Novartis shareholders approve the introduction of a consultative vote on the
compensation system
* Mr. Hans-Joerg Rudloff, Dr. Daniel Vasella and Mrs. Marjorie Yang re-elected
to the Novartis Board of Directors
Basel, February 26, 2010 - Novartis shareholders today followed the Board of
Directors' recommendations for all proposed resolutions at the Group's Annual
General Meeting. These included a 5% increase in the dividend payment for 2009,
as well as an amendment to the articles of incorporation providing for a
consultative shareholder vote on the compensation system.
A total of 2,322 shareholders were present at the meeting held in Basel,
representing 1,34 billion shares or 50.7% of the 2,64 billion issued shares of
Novartis.
"Despite the recessionary environment, 2009 was a successful business year for
Novartis and the completion of the CEO succession process prepares the company
for its next growth period, including the proposed merger with Alcon, the
worldwide leader in eye care. Thanks to our strong results, I am pleased that
the dividend could be increased for the thirteenth consecutive year, delivering
total shareholder return at a compounded annual growth rate of 9% since 1996,
outpacing the corresponding world market and world pharmaceutical indices. Our
strategically diversified healthcare portfolio enables us to sustain performance
and mitigate risks," said Dr. Daniel Vasella, Chairman of Novartis. "Today, our
shareholders also took steps to further strengthen our governance in the wake of
the global financial crisis, following Novartis' strong history of proactively
setting best corporate governance standards. In the future, shareholders will
prospectively vote on our compensation system. With this decision Novartis will
be the first large, listed Swiss company to include a consultative vote on its
Compensation System. In 2009, the Board of Directors also established a Risk
Committee to oversee enterprise risk management processes and systems, and will
progressively include a 'clawback provision' for incentive payments in employee
contracts."
Shareholders approved the introduction of a consultative vote on the
compensation system in the articles of incorporation. Such a vote will be held
before every significant change in the compensation system, but at least at
every third Annual General Meeting - the first such vote will take place at the
Annual General Meeting in 2011. The three-year cycle for votes allows
shareholders to take a longer-term view when examining the sustainability of the
compensation system. Sustainable compensation systems are harmonized with
multi-year business plans, and only attain their full effect when used unchanged
for several years, so they are understood by all employees.
The recently announced inclusion of"clawback provisions" for incentive payments,
which allows Novartis to retract any unjustified payment to an employee if later
it is found to be based on financial misstatements or unethical business
behavior, further enhances its governance.
Shareholders approved a dividend payment of CHF 2.10 per share for 2009 compared
to CHF 2.00 in 2008, representing a payout ratio of 55% of net income from
continuing operations. Payment for the 2009 dividend will be made with effect
from March 5, 2010.
The Group confirmed expectations for 2010 to be a year of significant progress
in implementing its strategy to meet the growing needs of patients and aging
societies worldwide through its healthcare portfolio. Novartis further confirmed
its guidance for the year and barring unforeseen events, expects to maintain
momentum in 2010 and increase Group net sales at a mid-single digit percentage
rate in local currencies* based on the rapidly growing contributions of recently
launched products and targeted investments in emerging growth markets.Novartis
is integrating the drive for greater productivity and increased efficiency into
its operations, improving speed while freeing up resources to focus on customers
and growth initiatives. This is expected to lead to further improvement in the
Group's operating income margin in 2010. Pharmaceuticals net sales in 2010 are
expected to grow at a mid- to high-single digit rate in local currencies, driven
by strong underlying volume growth with a continued uncertain pricing
environment.
Shareholders also re-elected Dr. Daniel Vasella and Mrs. Marjorie Yang for a
three year term each to the Novartis Board of Directors. Mr. Hans-Joerg Rudloff
was also re-elected for a one-year term. Mrs. Yang has been a member of the
Board of Directors since 2008 and qualifies as an independent Non-Executive
Director. With her re-election she will now serve as the Chair of the Novartis
Compensation Committee.
Disclaimer
These materials contain certain forward-looking statements relating to the
Group's business, which can be identified by terminology such as "outlook,"
"will," "risk," "expectations," "guidance," "expects," "expected," or similar
expressions, or by express or implied discussions regarding potential future
sales or earnings of the Novartis Group or any of its divisions or business
units; or regarding the potential acquisition and merger with Alcon; or by
discussions of strategy, plans, expectations or intentions. You should not place
undue reliance on these statements. Such forward-looking statements reflect the
current views of the Group regarding future events, and involve known and
unknown risks, uncertainties and other factors that may cause actual results to
be materially different from any future results, performance or achievements
expressed or implied by such statements. There can be no guarantee that the
Novartis Group, or any of its divisions or business units, will achieve any
particular financial results. Neither can there be any guarantee that the
proposed acquisition and merger with Alcon will be completed in the expected
form or within the expected time frame or at all. Nor can there be any guarantee
that Novartis will be able to realize any of the potential synergies, strategic
benefits or opportunities as a result of the proposed acquisition. In
particular, management's expectations could be affected by, among other things,
unexpected regulatory actions or delays or government regulation generally;
unexpected clinical trial results, including additional analysis of existing
clinical data or unexpected new clinical data; the Group's ability to obtain or
maintain patent or other proprietary intellectual property protection;
uncertainties regarding actual or potential legal proceedings, including, among
others, product liability litigation, litigation regarding sales and marketing
practices, government investigations and intellectual property disputes;
competition in general; government, industry, and general public pricing and
other political pressures; uncertainties regarding the after-effects of the
recent global financial and economic crisis; uncertainties regarding future
global exchange rates and uncertainties regarding future demand for our
products; uncertainties involved in the development of new pharmaceutical
products; the impact that the foregoing factors could have on the values
attributed to the Group's assets and liabilities as recorded in the Group's
consolidated balance sheet; and other risks and factors referred to in Novartis
AG's current Form 20-F on file with the US Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described herein as anticipated, believed, estimated or expected. Novartis
is providing the information in these materials as of this date and does not
undertake any obligation to update any forward-looking statements as a result of
new information, future events or otherwise.
About Novartis
Novartis provides healthcare solutions that address the evolving needs of
patients and societies. Focused solely on healthcare, Novartis offers a
diversified portfolio to best meet these needs: innovative medicines,
cost-saving generic pharmaceuticals, preventive vaccines, diagnostic tools and
consumer health products. Novartis is the only company with leading positions in
these areas. In 2009, the Group's continuing operations achieved net sales of
USD 44.3 billion, while approximately USD 7.5 billion was invested in R&D
activities throughout the Group. Headquartered in Basel, Switzerland, Novartis
Group companies employ approximately 100,000 full-time-equivalent associates and
operate in more than 140 countries around the world. For more information,
please visithttp://www.novartis.com
* Excluding Alcon acquisition
# # #
Novartis Media Relations
Central media line : +41 61 324 2200
Eric Althoff
Novartis Global Media Relations
+41 61 324 7999 (direct)
+41 79 593 4202 (mobile)
eric.althoff(at)novartis.com
e-mail:media.relations(at)novartis.com
Novartis Investor Relations
Central phone: +41 61 324 7944
Ruth Metzler-Arnold +41 61 324 9980 North America:
Pierre-Michel Bringer +41 61 324 1065 Richard Jarvis +1 212 830 2433
John Gilardi +41 61 324 3018 Jill Pozarek +1 212 830 2445
Thomas Hungerbuehler +41 61 324 8425 Edwin Valeriano +1 212 830 2456
Isabella Zinck +41 61 324 7188
e-mail:investor.relations(at)novartis.com e-mail:investor.relations(at)novartis.c
[HUG#1389239]
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Novartis International AG
Postfach Basel null
WKN: 904278;ISIN: CH0012005267;
Media release (PDF): http://hugin.info/134323/R/1389239/347440.pdf
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Datum: 26.02.2010 - 11:31 Uhr
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