Altria Group, Inc. · NYSE:MO

Altria — Shareholder Meeting (May 2018)

37 slides from Altria's shareholder meeting presentation, May 17, 2018

  1. Slide 1: Altria Group, Inc. 2018 Annual Shareholder Meeting

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 1

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Statements, including earnings guidance, in this presentation that are not reported financial results or other historical information are “forward-looking statements” within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements are bas

  3. Slide 3: Business Update

    Business Update For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 3

  4. Slide 4: Smokeable Products Segment Performance

    Smokeable Products Segment Performance Adjusted OCI* in Billions Adjusted OCI* Margins +6.4% +10.0pp CAGR $8.6 51.2% $6.3 41.2% 2012 2017 2012 2017 * For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Relations Purposes ONLY l Altria Group, I

  5. Slide 5: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 5

  6. Slide 6: Smokeless Products Segment Performance

    Smokeless Products Segment Performance Adjusted OCI* in Billions Adjusted OCI* Margins +7.4% +7.0pp CAGR $1.4 67.8% 60.8% $1.0 2012 2017 2012 2017 * For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Relations Purposes ONLY l Altria Group, In

  7. Slide 7: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 7

  8. Slide 8: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 8

  9. Slide 9: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 9

  10. Slide 10: * For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Bloomberg Daily Return

    * * For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Bloomberg Daily Return For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 10

  11. Slide 11: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 11

  12. Slide 12: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 12

  13. Slide 13: Continuum of Risk

    Continuum of Risk (submitted to FDA in 2009) Conventional Cigarettes Smokeless Tobacco Products Modified Risk Cigarettes Medicinal Nicotine Decreasing number of cigarettes/day Smoking Cessation Most Harmful Least Harmful Risk Continuum of Tobacco Products (Directional only – not to scale; adapted fr

  14. Slide 14: Non-combustible Product Platforms

    Non-combustible Product Platforms Smokeless/Oral Tobacco E-Vapor Heated Tobacco For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 14

  15. Slide 15: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 15

  16. Slide 16: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 16

  17. Slide 17: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 17

  18. Slide 18: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 18

  19. Slide 19: Adjusted Diluted EPS Performance

    Adjusted Diluted EPS* Performance +11.9% $3.39 $3.03 2016 2017 *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 19

  20. Slide 20: Total Shareholder Returns

    Total Shareholder Returns 9.4% 20.5% 23.1% 34.5% 28.6% 2013 2014 2015 2016 2017 Note: Total shareholder return is simple price appreciation plus the reinvestment of the dividend as of the ex-dividend date Source: Bloomberg For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareho

  21. Slide 21: Cash Dividends

    Cash Dividends Dividends Paid Annualized Dividend Growth (in Billions) +8.2% $2.64 $2.44 $4.8 2017 Aug-16 Aug-17 51st increase in the last 48 years Source: Altria company reports For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 21

  22. Slide 22: Dividends & Share Repurchase

    Dividends & Share Repurchase Cash Returned to Shareholders Annualized Dividend Growth (in Billions) +8.2% $2.64 $7.7 $2.44 Share $2.9 Repurchases $4.8 Dividends 2017 Aug-16 Aug-17 51st increase in the last 48 years Source: Altria company reports For Investor Relations Purposes ONLY l Altria Group, I

  23. Slide 23: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 23

  24. Slide 24: 2018 Performance

    2018 Performance Adjusted Diluted EPS* Performance Annualized Dividend Growth +30.1% +6.1% $0.95 $2.80 $2.64 $0.73 Q1 2017 Q1 2018 Aug-17 Mar-18 *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Relations Purposes ONLY l Altria Group, Inc.

  25. Slide 25: Filed MRTPA on Copenhagen Snuff in 1Q 2018

    Filed MRTPA on Copenhagen Snuff in 1Q 2018 For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 25

  26. Slide 26: 2018 Guidance

    2018 Guidance  We reaffirm our guidance to deliver 2018 adjusted diluted EPS in a range of $3.90 to $4.03, representing a growth rate of 15% to 19% from our adjusted diluted EPS base of $3.39* in 2017. *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports

  27. Slide 27: Altria Stock Performance

    Altria Stock Performance PMI Spin-off - 2018 $80 $0 Mar-08 Mar-10 Mar-12 Mar-14 Mar-16 Mar-18 Source: Bloomberg For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 27

  28. Slide 28: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 28

  29. Slide 29: Underage Tobacco Prevention

    Underage Tobacco Prevention Note: third-party trademarks are the property of their respective owners and are included for informational purposes only. For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 29

  30. Slide 30: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 30

  31. Slide 31: Supply Chain Responsibility

    Supply Chain Responsibility Develop Long-Lasting Relationships​ Develop a Diverse Supplier Base​ Promote a Strong Culture of Responsibility​ Monitor and Assess Supplier Performance​ For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 31

  32. Slide 32: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 32

  33. Slide 33: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 33

  34. Slide 34: For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l

    For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 34

  35. Slide 35: External Recognition

    External Recognition For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 35

  36. Slide 36: Slide 36

  37. Slide 37: Regulation G Disclosure

    Regulation G Disclosure  For reconciliations and further explanations of non-GAAP financial measures, visit: altria.com For Investor Relations Purposes ONLY l Altria Group, Inc. 2018 Annual Shareholder Meeting l 5-17-18 37

Altria Group — Shareholder Meeting (May 2018) on 6ix