Altria Group, Inc. · NYSE:MO
Altria — Shareholder Meeting (May 2021)
45 slides from Altria's shareholder meeting presentation, May 20, 2021
Slide 1: 2021 Annual Meeting of Shareholders
2021 Annual Meeting of Shareholders May 20, 2021 1 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 2: 2 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 |
2 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
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 Preliminary voting results Business update Question and answer session
Slide 4: Presentation of Documents
Presentation of Documents Notice of Meeting Form of Proxy Proxy Statement 2020 Annual Report 4 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
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 5 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 6: Agenda
Agenda Presentation of documents Welcome and Election of Board of Directors 6 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 7: Honoring Tom Farrell
Honoring Tom Farrell 7 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 8: Newly Elected Board Chair Kathryn McQuade
Newly Elected Board Chair Kathryn McQuade 8 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 9: Board of Directors nominees
John T. Casteen III Dinyar S. Devitre William F. Gifford, Jr. Debra J. Kelly-Ennis W. Leo Kiely III Kathryn B. McQuade George Muñoz Mark E. Newman Nabil Y. Sakkab Virginia E. Shanks Ellen R. Strahlman 9 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 10: Agenda
Agenda Presentation of documents Welcome and Election of Board of Directors Ratification of PricewaterhouseCoopers LLP as Altria’s independent registered public accounting firm 10 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 11: 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 11 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 12: Advisory Vote
Advisory Vote Compensation of NEOs Vote is non-binding, the Compensation and Talent Development Committee will consider its outcome when making future decisions Our board recommends shareholders vote in favor 12 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.
Slide 13: 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 13 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2
Slide 14: Shareholder Proposals
a oO = ie) << o = o < ”) Proposals
Slide 15: Preliminary Voting Report
Preliminary Voting Report Election of Altria’s Board of Directors Ratification of PricewaterhouseCoopers LLP Advisory vote to approve the compensation of Altria’s NEOs Shareholder Proposals 15 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 16: 16 | For Investor Purposes Only | 2021 Annual Meeting of Shareholders | May
16 | For Investor Purposes Only | 2021 Annual Meeting of Shareholders | May 20, 2021
Slide 17: 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 18: Business Update
Business Update 2020 Results Q1 2021 Results Corporate Responsibility Priorities and ESG efforts 18 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 19: 2020 Results
2020 Results Adjusted Diluted EPS* Grew adjusted diluted earnings per share* (EPS) by 3.6% +3.6% Increased our dividend for the 55th time in 51 years $4.21 $4.36 Laid the groundwork for our non-combustible product portfolio to make significant progress toward our Vision 2019 2020 *For reconcil
Slide 20: 20 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 |
20 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 21: Smokeable Products Segment Results
Smokeable Products Segment Results Adjusted Operating Company Income* ($ in millions) +10.2% $10,111 $9,173 2019 2020 *For reconciliation of non-GAAP to GAAP measures visit altria.com 21 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 22: Adjusted Cigarette Industry Volume Decline Rate Estimates
Adjusted Cigarette Industry Volume Decline Rate Estimates 2015 2016 2017 2018 2019 2020 0.0% (0.5)% (2.5)% (4.0)% (4.5)% (5.5)% Source: AVI SCMI estimates – rounded to nearest 0.5% Note: Estimates are subject to revision due to wholesaler resubmission of inventory data 22 | For Investor Presentation
Slide 23: 2020 Non-combustible Portfolio Progress
2020 Non-combustible Portfolio Progress Helix expanded on! nicotine pouches to 78,000 retail stores Helix submitted to FDA pre-market tobacco applications for the on! portfolio PM USA launched IQOS and Marlboro HeatSticks in Charlotte and introduced IQOS devices for sale in select Charlotte co
Slide 24: Continued to Reward our Shareholders
Continued to Reward our Shareholders Dividends Paid $6.3B In January 2021, our Board authorized a new $2 billion share repurchase program, which we expect to complete by June 30, 2022. 2020 Source: Altria company reports 24 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 202
Slide 25: 2021 First Quarter Results
2021 First Quarter Results Q1 2021: Adjusted Diluted EPS* (1.8%) $1.09 $1.07 2020 2021 *For reconciliations of non-GAAP to GAAP measures visit altria.com. 25 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 26: 2021 Non-combustible Progress
2021 Non-combustible Progress Helix PM USA Continued to expand availability for on!, which was Expanded Marlboro HeatSticks and IQOS devices available in 93,000 retail stores at the end of the quarter statewide within Georgia, Virginia, North Carolina and South Carolina Announced the completio
Slide 27: 2021 Adjusted Diluted EPS Guidance
2021 Adjusted Diluted EPS* Guidance Altria reaffirms its expectation for 2021 full-year adjusted diluted EPS to be in a range of $4.49 to $4.62, representing a growth rate of 3% to 6% from an adjusted diluted EPS base of $4.36 in 2020. * For reconciliation of non-GAAP to GAAP measures visit altria.c
Slide 28: Pursuing our Vision for Long-Term Sustainability
Pursuing our Vision for Long-Term Sustainability The pursuit of our Vision is about creating a more sustainable enterprise that’s aligned with stakeholder expectations for responsibly managing our businesses. 28 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.202
Slide 29: Our Responsibility Focus Areas
Our Responsibility Focus Areas ENVIRONMENTAL SOCIAL GOVERNANCE Billy Gifford Chief Executive Officer Altria Group, Inc. 29 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 30: The Most Important Social Issues to Address
The Most Important Social Issues to Address 30 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 31: Supporting Cessation
Supporting Cessation 31 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 32: Non-combustible Product Portfolio
Non-combustible Product Portfolio All-third party trademarks remain the property of their respective owners. 32 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 33: Risk Cliff Between Combustible & Non-Combustible Tobacco
Risk Cliff Between Combustible & Non-Combustible Tobacco1 Higher Combustible Risk Tobacco Products Lower Risk Non-Combustible Tobacco Products 1 Adapted from Nutt, et. Al Estimating the Harms of Nicotine-Containing Products Using the MCDA Approach. Eur. Addict Res 2014; 20:218-225. 33 | For Investor
Slide 34: Amplifying our Voice on Harm Reduction
Amplifying our Voice on Harm Reduction Investing in rigorous scientific studies to support these “We are investing in science to arrive at the right products and advancing our leadership in the external insights, guide product development and generate the environment through communications, engage
Slide 35: Making More Progress on Harm Reduction
Making More Progress on Harm Reduction 35 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 36: Preventing Underage Tobacco Use
Preventing Underage Tobacco Use Past 30-Day Tobacco Products Use Among High School Students National Youth Tobacco Survey 40 Any Tobacco Cigarettes E-Cigarettes 31.2 27.1 27.5 Percentage (%) 24.6 25.3 24.2 23.3 22.9 23.6 20.2 20.8 19.6 20 19.6 15.8 16.0 14.0 12.7 13.4 11.3 11.7 9.3 9.2 8.0 7.6 8.1 5
Slide 37: Preventing Underage Tobacco Use
Preventing Underage Tobacco Use Our newest initiatives include: Monetary incentives to retailers for point-of-sale age validation technology Expect the technology to be installed in over 120,000 stores by the end of 2021 Investing in marketplace monitoring tools for more real-time data on unde
Slide 38: Minimizing Our Environmental Footprint
Minimizing Our Environmental Footprint Our 2030 Goals: cut absolute Scope 1 & 2 greenhouse gas emissions by 55% from 2017 base reduce our carbon footprint by 18% from 2017 base achieve 100% renewable electricity reduce waste sent to landfill by 25% compared to 2017 achieve 100% water neutr
Slide 39: Supporting Our People & Communities
Supporting Our People & Communities To address today’s environment and enhance our culture, we’re focused on: supporting the well-being of our workforce and communities building an inclusive, diverse and equitable culture helping to address racial and economic inequities in the communities whe
Slide 40: Driving Responsibility Through Our Value Chain
Driving Responsibility Through Our Value Chain 40 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 41: Responsibility Reports Available on Altria.com
Responsibility Reports Available on Altria.com 41 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 42: Our Approach
Our Approach We believe the long-term sustainability of our businesses depends on our ability to deliver comprehensive solutions to critical environmental, social and governance challenges impacting a broad range of stakeholders. 42 | For Investor Presentation ONLY | Altria Annual Meeting of Shareho
Slide 43: 2020 Recognition
2020 Recognition All-third party trademarks remain the property of their respective owners. 43 | For Investor Presentation ONLY | Altria Annual Meeting of Shareholders 2021 | 5.20.2021
Slide 44: 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 44 | For Inv
Slide 45: Question and Answer Session
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