Altria Group, Inc. · NYSE:MO
Altria — Shareholder Meeting (May 2020)
38 slides from Altria's shareholder meeting presentation, May 14, 2020
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 14, 2020 For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 1
Slide 2: For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020
For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 2
Slide 3: Agenda
Agenda ▪ Presentation of documents ▪ Welcome and Election of Board of Directors ▪ Ratification of PricewaterhouseCoopers LLP as Altria’s independent registered public accounting firm ▪ Advisory vote ▪ Shareholder proposals ▪ Voting results ▪ Business update ▪ Question and answer session For Investor
Slide 4: Presentation of Documents
Presentation of Documents ▪ Notice of Meeting ▪ Form of Proxy ▪ Proxy Statement ▪ 2019 Annual Report For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 4
Slide 5: Inspectors of Election
Inspectors of Election ▪ Broadridge Financial Services to act as inspector of election ▪ Determine the shares represented today ▪ Certify the vote of all matters presented For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 5
Slide 6: Agenda
Agenda ▪ Presentation of formal documents ▪ Welcome and Election of Board of Directors For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 6
Slide 7: Board of Directors nominees
John T. Casteen III Dinyar S. Devitre Thomas F. Farrell II Debra J. Kelly-Ennis W. Leo Kiely III Kathryn B. McQuade George Muñoz Mark E. Newman Nabil Y. Sakkab Virginia E. Shanks For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 7
Slide 8: Agenda
Agenda ▪ Presentation of formal documents ▪ Welcome and Election of Board of Directors ▪ Ratification of PricewaterhouseCoopers LLP as Altria’s independent registered public accounting firm For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 8
Slide 9: Agenda
Agenda ▪ Presentation of formal documents ▪ Welcome and Election of Altria’s Board of Directors ▪ Ratification of PricewaterhouseCoopers LLP as Altria’s independent registered public accounting firm ▪ Advisory vote For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 9
Slide 10: Advisory Vote: Compensation of NEOs
Advisory Vote ▪ Compensation of NEOs ▪ Vote is non-binding, the Compensation and Talent Development Committee will consider its outcome when making future decisions ▪ The board recommends shareholders vote in favor For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 10
Slide 11: Advisory Vote: 2020 Performance Incentive Plan
Advisory Vote ▪ 2020 Performance Incentive Plan ▪ Important part of Altria’s overall compensation program ▪ The board recommends shareholders vote in favor For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 11
Slide 12: Agenda
Agenda ▪ Presentation of formal documents ▪ Welcome and Election of Altria’s Board of Directors ▪ Ratification of PricewaterhouseCoopers LLP as Altria’s independent registered public accounting firm ▪ Advisory vote ▪ Shareholder Proposals For Investor Purposes Only | 2020 Annual Meeting of Sharehold
Slide 13: For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020
For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 13
Slide 14: Voting Report
Voting Report ▪ Election of Altria’s Board of Directors ▪ Ratification of PricewaterhouseCoopers LLP ▪ Advisory vote to approve the compensation of Altria’s NEOs ▪ Advisory vote to approve the 2020 Performance Incentive Plan ▪ Shareholder Proposals For Investor Purposes Only | 2020 Annual Meeting of
Slide 15: Slide 15
Slide 16: 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
Slide 17: Business Update
Business Update ▪ 2019 Full-year and 2020 First-quarter Results ▪ New 10-Year Vision ▪ Corporate Responsibility Priorities and Environmental, Social and Governance Note: Third party trademarks are the property of their respective owners and are included for informational purposes only. For Investor
Slide 18: Continued to Reward our Shareholders
Continued to Reward our Shareholders Adjusted Diluted EPS* Performance Dividends Paid +4.7% $4.02 $4.21 $6.1B 2018 2019 2019 *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 202
Slide 19: Exceptional 2019 Core Tobacco Business Performance
Exceptional 2019 Core Tobacco Business Performance For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 19
Slide 20: Our Approach Through COVID-19 Challenges
Our Approach Through COVID-19 Challenges ▪ Focused on the health and welfare of our employees ▪ Implemented remote and social distancing protocols ▪ Temporarily suspended operations at our Richmond MC; currently re-opened under enhanced safety protocols For Investor Purposes Only | 2020 Annual Meeti
Slide 21: COVID-19 Support Efforts
COVID-19 Support Efforts ▪ Committed ~$7 million to support relief efforts ▪ Donated supplies ▪ Employees raised more than $200,000 to support non-profits on the front lines All-third party trademarks remain the property of their respective owners. For Investor Purposes Only | 2020 Annual Meeting of
Slide 22: Strong First Quarter Performance
Strong First Quarter Performance Adjusted Diluted EPS* Performance +18.5% *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 22
Slide 23: Liquidity and Commitment to Returning Shareholder Value
Liquidity and Commitment to Returning Shareholder Value ▪ Our businesses are highly cash generative, and we’ve taken steps to strengthen our liquidity and balance sheet to increase financial flexibility ▪ We’re committed to returning value to shareholders through dividends ▪ We remain committed to a
Slide 24: 10-Year Vision
10-YEAR VISION Responsibly lead the transition of adult smokers to a noncombustible future. For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 24
Slide 25: To Achieve Our Vision, We Will...
To Achieve Our Vision, We Will... ▪ Lead the industry in operating responsibly and preventing underage use of adult products ▪ Develop and expand our portfolio of FDA–authorized, noncombustible products and actively convert adult smokers to them ▪ Maximize the profitability of our combustible produc
Slide 26: Environmental, Social, Governance
Environmental Operating responsibly has been core to our success as a business. Social Governance For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 26
Slide 27: Our Focus Areas
Our Focus Areas ▪ Reducing the harm of tobacco products ▪ Marketing responsibly ▪ Managing our supply chain responsibly ▪ Developing our employees and culture For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 27
Slide 28: Diversified Noncombustible Product Platform
Diversified Noncombustible Product Platform Moist Oral Nicotine Heated Tobacco E-Vapor Smokeless Tobacco Pouches USSTC & Copenhagen on! IQOS JUUL Most profitable Broadest portfolio of Exclusive license to the Strategic investment MST company with nicotine strengths only FDA-authorized in the leading
Slide 29: 2019 Actions Supporting Underage Tobacco Prevention
2019 Actions Supporting Underage Tobacco Prevention ▪ Announced $100MM incremental spend toward ¹ underage tobacco prevention ▪ Supported Tobacco 21 laws and retailer compliance ▪ Created a new retailer trade program to reward responsible retailing ▪ Funded expansion of Success360 prevention and ces
Slide 30: Increase in site visits since 2015
Since 2015, we’ve had a more than 120% increase in site visits, exceeding our 2018 target to increase annual visits by 20%. For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 30
Slide 31: Supply Chain
Supply Chain In 2019: ▪ Expanded our diverse supplier spending to nearly 9% ▪ Completed 100% of our planned Good Agricultural Practice assessments on domestic growers ▪ Communicated with more than 1,800 growers on our expectations on topics like using registered farm labor contractors and respecting
Slide 32: Park 500 Natural Treatment System Site
Park 500 Natural Treatment System Site For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 32
Slide 33: 2030 Environmental Goals
2030 Environmental Goals ▪ Cut absolute Scope 1 & 2 greenhouse gas emissions by 55% from 2017 base ▪ Reduce our carbon footprint by 18% ▪ Achieve 100% renewable electricity ▪ Reduce waste sent to landfill by 25% compared to 2017 ▪ Achieve 100% water neutrality, annually For Investor Purposes Only |
Slide 34: For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020
For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 34
Slide 35: Long-term sustainability depends on comprehensive solutions
The long-term sustainability of our business depends on our ability to deliver comprehensive solutions to critical environmental, social and governance challenges impacting a broad range of stakeholders For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 35
Slide 36: Agenda
Agenda ▪ Presentation of formal documents ▪ Welcome and Election of Altria’s Board of Directors ▪ Ratification of PricewaterhouseCoopers LLP as Altria’s independent registered public accounting firm ▪ Advisory vote ▪ Shareholder Proposals ▪ Voting Results ▪ Business Update ▪ Question and answer sess
Slide 37: For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020
For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 37
Slide 38: For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020
For Investor Purposes Only | 2020 Annual Meeting of Shareholders | May 14, 2020 38