Slide 1: A Compelling Investment
A Compelling Investment New York March 11, 2008 PMI-Selected Slides PMI-Selected Slides
Slide 2: Strong Track Record
Strong Track Record 100% 1,200% OCI Volume OCI = 1,178% Volume = 254% Source: PMI Financials
Slide 3: OCI Performance
OCI Performance 2007 OCI Performance Source: PMI Financials (%) A reconciliation of reported OCI to adjusted OCI will be included in slides posted to www.altria.com Increase in Constant Currency 7.9% 4.3% 1st Half 2nd Half
Slide 4: Operating Companies Income Reconciliation
Operating Companies Income Reconciliation Operating Companies Income Reconciliation (U.S. Dollars in millions) First Half Second Half % Change % Change Reported Operating Companies Income 4,394 $ 4,106 $ 7.0% 4,528 $ 4,352 $ 4.0% Adjustments: Remove asset impairment and exit costs Remove Italian ant
Slide 5: Geographical Balance
Geographical Balance 2007 Volume Non OECD 54% OECD 46% 2007 OCI OECD 67% Non OECD 33% OECD Non-OECD (a) (a) Excluding PRC and duty-free Source: PMI Financials (a)
Slide 6: PMI vs. Competition (2006)
PMI vs. Competition (2006) 1,000 IMT JT BAT PMI 2006 Volume 2.6 3.5 6.1 2.2 IMT JT BAT PMI 2006 Net Earnings ($bio) (bio) (a) Assumes JT’s acquisition of Gallaher effective January 1, 2006 (b) Assumes Imperial’s acquisition of Altadis effective January 1, 2006 Sources: For volumes, company annual re
Slide 7: Top International Brands
Top 15 International Brands (bio) Source: 2007 competitive data derived by PMI from 2006 company reports using PMI estimates of 2007 evolution. Competitive data for BAT Global Drive Brands from 2007 company report. PMI data from financials Lark Parliament LD Dunhill Chesterfield Bond Street Philip M
Slide 8: Portfolio Opportunities – Price Segments
Portfolio Opportunities – Price Segments PMI 2007 Segment Shares Low Mid Premium (b) NON-OECD (a) OECD (a) Total (a) (%) (a) Excluding PRC and duty-free (b) Including above premium Source: PMI GIMS Reference: PMI International Market Share excl. PRC: 25.2%
Slide 9: Portfolio Opportunities – Flavor Segments
Portfolio Opportunities – Flavor Segments PMI 2007 Segment Shares Super Lights (b) Lights Full Flavor NON-OECD (a) OECD Total (a) (%) (a) Excluding PRC and duty-free (b) Including “ultra lights” Source: PMI GIMS Reference: PMI International Market Share excl. PRC: 25.2%
Slide 10: Portfolio Opportunities – Menthol
Portfolio Opportunities – Menthol (a) Excluding PRC and duty-free Source: PMI GIMS (%) (a) (a) CAGR: 3% (bio) Estimated Menthol Market (a) Estimated PMI Segment Share OECD Total
Slide 11: Marlboro Smoker Profiles
Marlboro Smoker Profiles Saudi Arabia EU EEMA Asia LA (%) Source: PMI General Consumer Tracking Survey for 2007 (b) Research carried out in key regions, representing approximately 64% of total market (a) Data for Q4 based on new research methodology Italy France Greece Germany Poland Turkey Ukraine
Slide 12: International Share Opportunities
25.2% 20.2% 17.2% 8.7% 15.6% 12.5% 10.6% 5.4% International Share Opportunities 28.7% 55.9% PMI BAT JT IMT Other PMI BAT JT IMT Other International Market (a) International Market excl. PRC (a) (a) Assumes JT’s acquisition of Gallaher and Imperial’s acquisition of Altadis were effective as of Januar
Slide 13: Operating Performance
Operating Performance ($/000) (%) Source: PMI Financials CAGR: 5.5% CAGR: 9.5% PMI Operating Income per 8.42 10.44 Marlboro Margin per 000
Slide 14: Adjusted Operating Margins
45 40 30 29 Adjusted Operating Margins Source: PMI Form 10; BAT Company Report; Imperial months ending Sep. 20, (excludes Altadis); JT months ending Dec. 2007 (cigarette business only). (%) Imperial PMI BAT JT
Slide 15: Total Operating Cost per 000 cigarettes
15.8 16.4 18.4 20.7 Total Operating Cost per 000 cigarettes Imperial PMI JT BAT ($/000) Source: PMI Form 10; BAT Company Report; Imperial months ending Sep. 20, (excludes Altadis); JT months ending Dec. 2007 (cigarette business only).
Slide 16: Forecast Cumulative Operating Cash Flow
Forecast Cumulative Operating Cash Flow (2008-10) ($ bio) 6.6 13.9 21.7