Slide 1: CAGNY 2025
CAGNY 2025 1
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
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Slide 4: Agenda
Agenda • Evolution of the U.S. nicotine space; • Our efforts to capture the harm reduction opportunity; • Highly profitable smokeable business; • Our ambitions beyond U.S. nicotine; and • Commitment to creating substantial shareholder value. 4 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 5: The Potential for Harm Reduction is Significant
The Potential for Harm Reduction is Significant U.S. Adult Nicotine Consumers (twelve months ended, in millions) Combustible Only Combustible & Smoke-Free Smoke-Free Only 53 55 ~21% 11 18 ~33% 8 8 34 28 2019 2024 Source: ATCT December 2019 - December 2024. Numbers may not foot due to rounding. 5 | A
Slide 6: Smoke-Free Volume Growth Offsetting Cigarette Industry Declines
Smoke-Free Volume Growth Offsetting Cigarette Industry Declines Nicotine Space Estimated Volume (volume in billions of equivalized cigarette packs) Combustible Oral Tobacco E-Vapor +2% CAGR 16.8 17.2 16.6 16.0 16.1 15.5 ~20% ~45% 2019 2020 2021 2022 2023 2024 Source: ALCS CMII Estimates; ATCT; STARS
Slide 7: PROVEN SINCE 1822
= f PROVEN SINCE 1822 PLUS NICOTINE POUCHES
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Slide 10: to FDA authorization. Third-party tradema
to FDA authorization. Third-party tradema
Slide 11: The U.S. Oral Tobacco Industry Continues to Grow
The U.S. Oral Tobacco Industry Continues to Grow Oral Tobacco Industry Volume Growth Adult Oral Tobacco Product Consumers (twelve months ended) (past 30-day usage, twelve months ended, in millions) 8.5% 7.8 6.9 5.9 5.5% 0.5% 2022 2023 2024 2022 2023 2024 Over the past 3 years, nicotine pouch consume
Slide 12: 12 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
12 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 13: USSTC Leads in Premium Moist Smokeless Tobacco (MST)
USSTC Leads in Premium Moist Smokeless Tobacco (MST) USSTC Share of Premium MST +2.7pp 59.6 56.9 57.0 57.5 57.9 2020 2021 2022 2023 2024 Source: Circana projected (MOC) data as of week ending 12/29/2024. Brands included: Copenhagen, Skoal, Grizzly, Kodiak, Camel Snus, General Snus, Hawken and Levi G
Slide 14: Oral Tobacco Products Segment
Oral Tobacco Products Segment Adjusted Operating Companies Income (OCI)* and Adjusted OCI Margins* Adjusted OCI Adjusted OCI Margins ($ in millions) CAGR +2.4% $1,811 71.7% 71.7% 68.5% 67.4% 67.8% 66.3% $1,606 2019 2024 2019 2020 2021 2022 2023 2024 *For reconciliations of non-GAAP to GAAP measures
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Slide 16: A Successful 2024 for Helix with on! Volume and Share Growth
A Successful 2024 for Helix with on! Volume and Share Growth on! Shipment Volume on! Share of Oral Tobacco Category (cans in millions) +44.4% +2.0pp 43.9 8.9 30.4 6.9 Q4 '23 Q4 '24 Q4 '23 Q4 '24 Helix achieved profitability for the first time in the fourth quarter, ahead of its 2025 goal. Source: AL
Slide 17: Encouraged by on!'s Loyal and Growing Consumer Base
Encouraged by on!’s Loyal and Growing Consumer Base on! Repeat Purchasers1 >40% ~800K ~550K Q4 '23 Q4 '24 1Estimated numbers of ATCs 21+ that regularly purchase on! (e.g., 6+ weeks) Source: ALCS CMII estimates based on Circana Projected Total U.S. MOC data week ending 12/29/2024 and POS scan data we
Slide 18: on! Consumers Skew 21-29, More Urban and Higher Income
on! Consumers Skew 21-29, More Urban and Higher Income Demographic Comparison Cigarettes Cigarettes Age MST 21-29 30+ on! on! Cigarettes Cigarettes Region MST Urban Rural on! on! Cigarettes Cigarettes Income MST <$50K $50K+ on! on! Source: ATCT December 2023 to December 2024; Nicotine Pouch Awarenes
Slide 19: 19 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
19 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 20: | ALCS | Q4 2024 | 1.30.25
20 | ALCS | Q4 2024 | 1.30.25 | For Investor Purposes ONLY
Slide 21: Improved on! Retail Position and Visibility
Improved on! Retail Position and Visibility All third-party trademarks remain the property of their respective owners. 21 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 22: Exciting Prospects and Potential for on! PLUS in the U.S.
Exciting Prospects and Potential for on! PLUS in the U.S. • Submitted PMTAs for on! PLUS in three varieties: Tobacco, Mint and Wintergreen • Each in three nicotine strengths: 6MG, 9MG and 12MG All new products subject to FDA authorization. Product packaging design is subject to change. 22 | ALCS | C
Slide 23: Compelling Portfolio of Oral Tobacco Products
Compelling Portfolio of Oral Tobacco Products 23 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 24: Our Heated Tobacco Portfolio
Our Heated Tobacco Portfolio We believe heated tobacco will comprise ~5% of the U.S. nicotine space over the long term. All new products subject to FDA authorization. All third-party trademarks remain the property of their respective owners. 24 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 25: Our Partnership with JT Group
Our Partnership with JT Group All new products subject to FDA authorization. All third-party trademarks remain the property of their respective owners. 25 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 26: Smokers Who Used Ploom Had Meaningful Reductions in Cigarettes
Smokers Who Used Ploom Had Meaningful Reductions in Cigarettes Change in Cigarette Consumption From Baseline, Week 6 ~74% Had Meaningful Reductions 42.1% 31.5% 20.5% 3.4% 2.5% 50-99% Reduction in No Cigarettes >0-49% Reduction in Increase in Cigarettes No Change in Cigarettes Cigarettes Cigarettes S
Slide 27: Switching Completely to Ploom Reduced Exposure to HPHCs
Switching Completely to Ploom Reduced Exposure to HPHCs* Reductions in Biomarkers of Exposure (BOEs) in Ploom and Abstinence Groups Cigarette 0 Use Percent Reduction (%) Switching to Ploom or Smoking -100 Abstinence Carcinogens Respiratory Reproductive & Cardiovascular (11 BOEs) Toxicants Developmen
Slide 28: Our Innovative Heated Tobacco Capsule Product
Our Innovative Heated Tobacco Capsule Product All new products subject to FDA authorization. 28 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 29: E-Vapor Has Been the Most Successful Category Transitioning Smokers
E-Vapor Has Been the Most Successful Category Transitioning Smokers Adult Vapers 21+ - Past 30-Day Usage (twelve months ended, in millions) Exclusive Vapers Vapers Who Also Smoke Cigarettes 20.0 18.0 13.5 12.5 10.0 13.5 12.0 9.5 8.0 6.0 2020 2021 2022 2023 2024 Source: ATCT December 2020 to December
Slide 30: A Year of Progress for NJOY
A Year of Progress for NJOY 30 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 31: NJOY Litigation
NJOY Litigation • In January, the U.S. International Trade Commission issued its final determination in JUUL Labs, Inc.’s case against NJOY. • An importation ban would severely limit FDA-authorized choices for consumers and undermine public health. • We are pursuing every pathway to minimize the dis
Slide 32: Vaper Product Preferences
Vaper Product Preferences High Value for a Flavor Convenient Form Reasonable Price Source: ALCS CMII Consumer Research 32 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 33: Illicit Products Driving E-Vapor Category Growth
Illicit Products Driving E-Vapor Category Growth E-Vapor Category Volume (volume in billions of equivalized cigarette packs) +30% ~6.0 ~4.5 TK - Chart showing growing illicit volume Illicit Products vs. declining pod Represent >60% volume of the Category 2023 2024 Source: ALCS Estimates; ATCT; STARS
Slide 34: Concerning Illicit Product Growth
Concerning Illicit Product Growth • These products are the primary source of underage e-vapor use. • There are no controls over how these products are marketed or sold. • In 2024, nearly 40% of new entrants into the e-vapor category were not prior smokers. All third-party trademarks remain the prope
Slide 35: A Smoke-Free Future is Possible
A Smoke-Free Future is Possible • We are working on a pipeline of products to meet evolving vaper preferences. • Until meaningful progress is made to address the illicit market and increase product authorizations, we will take a disciplined approach to our investments in e-vapor. 35 | ALCS | CAGNY |
Slide 36: Achieving Our Vision Requires Four Critical Elements
Achieving Our Vision Requires Four Critical Elements 1. Underage tobacco use continuing to decline or remain low. 2. Consumers require accurate information about nicotine. 3. The entire industry operating within a fully enforced, science-based regulatory environment. 4. A variety of satisfying, FDA-
Slide 37: Youth E-Vapor Use Has Dropped Dramatically
Youth E-Vapor Use Has Dropped Dramatically 2019-2024 National Youth Tobacco Survey (NYTS) Current Tobacco Product Use (past 30-day usage, among middle & high school students) NYTS 2019 NYTS 2024 20.0 5.9 5.3 4.3 3.5 1.4 1.8 1.2 1.2 - 1 E-Vapor Cigarettes Cigars Smokeless Tobacco Nicotine Pouches Sou
Slide 38: Consumers Are Misinformed About Nicotine
Consumers Are Misinformed About Nicotine ADULT Definitely Probably Probably Definitely CIGARETTE YES YES NOT NOT SMOKERS ASKED 19% 44% 30% 7% 0% 100% Do you believe nicotine is the chemical that 63% 7% causes most of INCORRECT CORRECT the cancer caused by smoking cigarettes? Source: Hannel, T., Wei,
Slide 39: Illicit Products Lack Regulatory Oversight
Illicit Products Lack Regulatory Oversight Disposable Vapers Test Results From 12 Major Illicit (past 30-day usage, twelve months ended, in millions) E-Vapor Brands 9 misrepresented nicotine type ~13.5 ~9.5 10 misrepresented nicotine concentration 2023 2024 Source: ALCS; Altria Sciences Source: ALCS
Slide 40: FDA-Authorized Smoke-Free Products Remain Limited
FDA-Authorized Smoke-Free Products Remain Limited Estimated E-Vapor Category Volume ~2% PMTA Authorized Source: ALCS CMII estimates based on theoretical e-vapor volume. All third-party trademarks remain the property of their respective owners. 40 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 41: Some Encouraging Enforcement News
Some Encouraging Enforcement News • The creation of the federal multi-agency task force has led to increased import refusals and product seizures. • The FDA announced an updated importation policy establishing a “green list” e-vapor products must be on to lawfully enter the country. • State Attorney
Slide 42: There is a Pathway to Restore Order in the Market
There is a Pathway to Restore Order in the Market Authorization Enforcement Adjust course on Use all available tools PMTAs to establish a to hold rule-breakers legal market of smoke- accountable free alternatives 42 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 43: Moving beyond smoking
Moving beyond smoking
Slide 44: 44 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
44 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 45: Smokeable Products Segment Performance
Smokeable Products Segment Performance Adjusted OCI* Adjusted OCI Margins* ($ in millions) +3.6% +7.1pp CAGR $10,922 61.6% $9,173 54.5% 2019 2024 2019 2024 *For reconciliations of non-GAAP to GAAP measures visit altria.com. 45 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 46: Marlboro Remains the Undisputed Retail Share Leader
Marlboro Remains the Undisputed Retail Share Leader Marlboro Retail Share Marlboro Dollar Share (1.4pp) +2.3pp 46.8 44.5 43.1 41.7 2019 2024 2019 2024 Source: Circana/MSAi InfoScan, total U.S. Blended – week ending 12/29/2024; Circana InfoScan, total U.S. MOC – week ending 12/29/2024. 46 | ALCS | CA
Slide 47: Marlboro Leads in the Premium Segment
Marlboro Leads in the Premium Segment Share of Premium (Full Year 2024) 59.3 15.5 9.7 6.6 4.7 Marlboro Newport Camel Winston, Kool Natural American & Salem Spirit Premium Share Δ Since FY +2.3 (1.6) (1.5) - +0.9 2019 Source: Circana/MSAi InfoScan, total U.S. blended – week ending 12/29/2024. 47 | AL
Slide 48: Revenue Growth Management (RGM) Has Transformed Over Time
Revenue Growth Management (RGM) Has Transformed Over Time Today Building National Product-Specific State Level RGM Store Level RGM Personalized RGM Promotions Price 48 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 49: Historical Price Gap Comparison
Historical Price Gap Comparison Marlboro Price Gap (vs. lowest effective) 49% 42% 44% Q4 '22 Q4 '23 Q4 '24 This national price gap does not fully reflect PM USA’s value delivery strategies. Source: Circana, Unify Masked Model – week ending 12/29/24 49 | ALCS | CAGNY | 2.19.25 | For Investor Purposes
Slide 50: PM USA's Efficiency of Value Delivery
PM USA’s Efficiency of Value Delivery Marlboro Black Price Gap (vs. leading competitive discount) ~20% ~5% National Missouri Store Group Example Source: Databricks POS Scan Data – week ending 12/29/2024 50 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 51: Executing Our Smokeable Strategy
Executing Our Smokeable Strategy 51 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 52: Strong Margins Supported by Evolving Manufacturing Footprint
Strong Margins Supported by Evolving Manufacturing Footprint Smokeable Products Segment (adjusted OCI margins*) +7.1pp 61.6% 54.5% 2019 2024 *For reconciliations of non-GAAP to GAAP measures visit altria.com. 52 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 53: Capital Expenditures Have Evolved to Support Smoke-Free Products
Capital Expenditures Have Evolved to Support Smoke-Free Products • Over the last five years, the proportion of our capital investments supporting innovative products has grown by nearly 45%. • These investments now represent over 50% of our total capital expenditures. 53 | ALCS | CAGNY | 2.19.25 | F
Slide 54: Creating Incremental Value Through Long-Term Adjacencies
Creating Incremental Value Through Long-Term Adjacencies International U.S. Incremental Smoke-Free Non-Nicotine Value 54 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 55: on! PLUS Growing Competitive Player Internationally
on! PLUS Growing Competitive Player Internationally 55 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 56: Expanding International on! Portfolio
Expanding International on! Portfolio • Doubled retail distribution throughout 2024 • Launching two new flavors, Raspberry Lemon and Watermelon Mint 56 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 57: BOLD FLAVORS & VIBRANT SENSATIONS
BOLD FLAVORS & VIBRANT SENSATIONS 57 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY All third-party trademarks remain the property of their respective owners.
Slide 58: Competing Internationally with a Portfolio of Oral Nicotine Pouches
Competing Internationally with a Portfolio of Oral Nicotine Pouches WET DRY SLIM MINI All third-party trademarks remain the property of their respective owners. 58 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 59: Setting the Foundation to Achieve Our 2028 Goal
Setting the Foundation to Achieve Our 2028 Goal 2028 Enterprise Goals Long-Term Growth • Compete internationally in the top innovative oral tobacco markets and develop a pathway to participate International in the heated tobacco and e-vapor markets. Innovative Non-Nicotine Smoke-Free 59 | ALCS | CAG
Slide 60: Large Opportunity in Non-Nicotine Adjacencies
Large Opportunity in Non-Nicotine Adjacencies Energy Stress Focus Relax Relief $100 Billion Total Addressable Market in the U.S. Source: AVI Venture Growth, Estimates, Circana, External Sources 60 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 61: Applying Our World-Class Capabilities to Non-Nicotine
Applying Our World-Class Capabilities to Non-Nicotine Unique Trade High-Speed Regulatory Distribution Product Relationships Manufacturing Science Formats 61 | ALCS | CAGNY | 2.19.25 | For Investor Purposes ONLY
Slide 62: Energy Drink Category Insights in the Convenience Channel
Energy Drink Category Insights in the Convenience Channel Energy drink category in convenience stores ~$14B Consumers interested in an energy shot with all-natural ingredients >50% Energy shot consumers that believe products can be improved ~60% Note: Energy drink category includes ready-to-drink fo
Slide 63: Our Investment in Proper Wild
Our Investment in Proper Wild All third-party trademarks remain the property of their respective owners.
Slide 64: Our Investment in Proper Wild
Our Investment in Proper Wild • AGDC is providing sales and distribution services in a small number of retail stores. • Gaining valuable data and insights to further our understanding of the category. • We plan to expand distribution in 2025. All third-party trademarks remain the property of their r
Slide 65: Significant Cash Returns to Shareholders
Significant Cash Returns to Shareholders Cash Returned to Shareholders Adjusted Diluted Earnings Per Share (EPS)* ($ in billions) +4.0% >$40 Billion Returned Over the Past Five Years CAGR $10.2 $5.12 $8.1 $8.4 $4.21 Share $7.8 $3.4 Repurchases $1.8 $6.3 $1.7 $1.0 Dividends $6.3 $6.4 $6.6 $6.8 $6.8 2
Slide 66: We Remain Committed to Our Corporate Goals
We Remain Committed to Our Corporate Goals • Deliver a mid-single digits adjusted diluted EPS CAGR 2028 Enterprise Goals in 2028 Corporate • Progressive dividend goal targeting mid-single digits dividend per share growth annually Financial • Target a debt-to-EBITDA ratio of 2.0x Total Share of Polic
Slide 67: Balanced Approach to Deploying Excess Cash
Balanced Approach to Deploying Excess Cash Annually our business typically produce over $1 billion of cash in excess of dividend payments.* We will continue to balance: Share Investments in Debt Repurchases Our Vision Repayment *For reconciliations of non-GAAP to GAAP measures visit altria.com. 67 |
Slide 68: Our Balance Sheet Remains Strong
Our Balance Sheet Remains Strong Annual Debt Maturity Towers (through 2038, $ in billions) $1.9 $1.8 $1.5 $1.6 $1.3 $1.1 $1.0 $0.8 $0.5 $0.5 $0.2 - - - 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Debt-to-EBITDA* ratio of 2.1x as of December 31, 2024 Euro notes converted to
Slide 69: 2025 Financial Outlook
2025 Financial Outlook • We reaffirm our guidance to deliver full-year 2025 adjusted diluted EPS1 of $5.22 to $5.372,3. This range represents an adjusted diluted EPS growth rate of 2% to 5% from a 2024 base of $5.12. 1 For reconciliations of non-GAAP to GAAP measures visit altria.com. 2 Our guidance
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