Slide 1: 2010 CAGNY Presentation
2010 CAGNY Presentation Boca Raton, Florida February 18, 2010 Exhibit 99.2
Slide 2: Safe Harbor Statement
Statements in this presentation that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates and expectations,
Slide 3: Altria's Executive Management
Mike Szymanczyk Chairman and Chief Executive Officer, Altria Dave Beran EVP and Chief Financial Officer, Altria Craig Johnson EVP, Altria Marty Barrington EVP, Chief Compliance & Administrative Officer, Altria Murray Garnick SVP of Litigation, ALCS Altria’s Executive Management
Slide 4: Altria's Operating Companies Evolution
Altria’s Operating Companies Evolution
Slide 5: Altria's Mission and Values
Integrity, Trust and Respect Executing with Quality Sharing with Others Passion to Succeed Driving Creativity into Everything We Do Altria’s Mission and Values Our Mission is to own and develop financially disciplined businesses that are leaders in responsibly providing adult tobacco and wine consum
Slide 6: Economy Impacting Adult Consumers
Remain under economic pressure Impacting their mindset Nearly 75% have a different set of priorities Important implications for CPG companies Source: Yankelovich Monitor Perspective, Dollars & Consumer Sense 2009 Economy Impacting Adult Consumers
Slide 7: Economy Impacting Adult Consumers
Shifting spending patterns Nearly 60% say they do not plan to spend the way they did in the past Companies need to create relevant and innovative brands Source: Yankelovich Monitor Perspective, Dollars & Consumer Sense 2009 Economy Impacting Adult Consumers
Slide 8: Federal Excise Tax Environment in 2009
Significant federal excise tax (FET) increases on tobacco products in April 2009 Cigarettes +158% Smokeless tobacco products +158% Machine-made large cigars +155% Federal Excise Tax Environment in 2009 Source: ALCS Government Affairs – – –
Slide 9: Cigarette State Excise Tax Environment
Cigarette State Excise Tax Environment Source: ALCS Government Affairs, ALCS MICR; Note: Year-end average state excise tax is volume weighted by state $1.12 $1.01 $0.88 $0.87 $0.78 $0.70 $0.66 $0.44 $0.43 $0.40 $1.26 $0.00 $1.50 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 10: 2009 Cigarette SET Legislation – Defeated
2009 Cigarette SET Legislation – Defeated Source: ALCS Government Affairs MT UT AL ME OR WY TN WA KS NV NM MO MN IL LA GA WV SC MD VA
Slide 11: 2010 Cigarette SET Environment
2010 Cigarette SET Environment Source: ALCS Government Affairs UT NY AL MS WA KS CA NM MO MD TN IL GA 2010 Cigarette Excise Tax Proposals
Slide 12: Smokeless Tobacco SETs
Smokeless Tobacco SETs Source: ALCS Government Affairs OR NE WY TX DC ME Converted to weight- based in 2009 MT IA ND UT AZ NY AL ME RI NJ DE CT KY VT OR NE WY TX DC
Slide 13: Smokeless Tobacco SETs
Smokeless Tobacco SETs Source: ALCS Government Affairs OR NE WY TX DC ME MT IA ND UT AZ NY AL ME RI NJ DE CT KY VT OR NE WY TX DC Ad Valorem MT IA ND UT AZ NY AL ME RI NJ DE CT KY VT OR NE WY TX DC MS TN WA KS NV CA ID NM OK AR MO MN IL MI LA IN PA NC GA WV SC FL OH NH MA MD WI CO SD AK VA Weight-ba
Slide 14: FDA Regulatory Authority
FDA assumed regulatory oversight over tobacco products Did not agree with every element of this law Supported enactment Thoughtfully implemented federal regulation should benefit tobacco consumers in the long-term FDA Regulatory Authority
Slide 15: Significant FDA Regulatory Events in 2010
In March, FDA is expected to issue regulations regarding sale, promotion and advertising of cigarettes and smokeless tobacco products In June, cigarette manufacturers are required to remove descriptors, and smokeless tobacco manufacturers also must make warning notice label changes In August, Tobacc
Slide 16: Growth Strategies of Altria's Operating Companies
Maximizing income while maintaining share momentum on Marlboro in cigarette category Quickly integrating USSTC into the Altria family of companies and returning Copenhagen and Skoal to growth Profitably assuming share leadership in the machine-made large cigar category driven by the growth of Black
Slide 17: 2009 Cigarettes Segment's Performance
+5.5% Adjusted OCI* ($ in Billions) Source: Altria company reports, IRI/Capstone Integrated Retail Panel * For reconciliation of non-GAAP to GAAP numbers visit www.altria.com 2009 Cigarettes Segment’s Performance -0.1pp Marlboro ’ s Retail Share 41.8% 41.9% 40% 43% 2008 2009 $5.3 $5.0 $4 $6 2008 200
Slide 18: Cigarette Manufacturers' Income Performance
Cigarette Manufacturers’ Income Performance PM USA’s Adjusted OCI* ($ in Billions) OCI* Profit Growth ($ in Millions) 2007 – 2009 * For reconciliation of non-GAAP to GAAP numbers visit www.altria.com Source: Altria company reports; Lorillard, Inc. and Reynolds American Inc. company reports and ALCS
Slide 19: Cigarette Manufacturers' Metrics - 2007 to 2009
Cigarette Manufacturers’ Metrics - 2007 to 2009 Adjusted OCI* Per Pack (Percent Change) Adjusted OCI* Margins (Percentage Point Change) * For reconciliation of non-GAAP to GAAP numbers visit www.altria.com 4.0pp 3.0pp 1.0pp 0 8 PM USA RJRT Lorillard 27% 23% 16% 5% 35% PM USA RJRT Lorillard Source: A
Slide 20: Marlboro's Price Gap
as high as 2009 yearly average 38% Marlboro ’ s Price Gap Source: IRI/Capstone Inventory and Price Gap in C-Stores; Note: Marlboro excludes Marlboro 72mm 51% 70% 0% 80% 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 21: 2009 Smokeless Products Segment's Performance
2009 Smokeless Products Segment’s Performance $800 $100 + * For reconciliation of non-GAAP to GAAP numbers visit wwwalria.com Source: ALCS company reports, InfoScan Smokeless Tobacco Database Adjusted OCI* ($ in Millions) USSTC’s Premium Retail Share $632 2009 51% 44% Jan-09
Slide 22: Copenhagen and Skoal's Retail Share Performance
Historic Retail Share Performance Retail Share 48.1% 46.8% 42% 50% Q3 09 Q4 09 47% 50% 53% 56% 60% 64% 68% 70% 40% 75% '01 '02 '03 '04 '05 '06 '07 '08 Copenhagen and Skoal’s Retail Share Performance Source: USSTC RAD/SVT ending December 2008; ALCS company reports, InfoScan Smokeless Tobacco Database
Slide 23: Copenhagen and Skoal's Volume Performance
+7.8% Volume (Cans in Millions) Source: ALCS company reports 144.6 134.1 125 155 Q4 08 Q4 09 Copenhagen and Skoal’s Volume Performance
Slide 24: 2009 Cigars Segment's Performance
2009 Cigars Segment’s Performance Source: ALCS company reports, InfoScan Cigar Database for machine-made large cigars * For reconciliation of non-GAAP to GAAP numbers visit www.altria.com Black & Mild ’ s Retail Share +1.3pp +1.6% Adjusted OCI* ($ in Millions) $185 $182 $170 $190 2008 2009 29.9% 28.
Slide 25: 2009 Wine Segment's Performance
Adjusted OCI* ($ in Millions) Source: Altria company reports; Nielsen Total Wine Database – U.S. Food & Drug 2009 Wine Segment’s Performance Retail Volume Change (2009 vs. 2008) * For reconciliation of non-GAAP to GAAP numbers visit www.altria.com 10% 2% Ste. Michelle Wine Industry $73 $0 $100 2009
Slide 26: Ste. Michelle Wine Estates' Financial Performance
Source: Altria and UST company reports; pro forma calculation from UST reports with comparable data Ste. Michelle Wine Estates’ Financial Performance * For reconciliation of non-GAAP to GAAP numbers visit www.altria.com Adjusted OCI* ($ in Millions) +17.9% CAGR $73 $38 $10 $110 2005 2009
Slide 27: Altria's 2009 Financial Performance
* For reconciliation of non-GAAP to GAAP numbers visit www.altria.com; **assumes reinvestment of dividend Source: Altria company reports; Bloomberg Yearly Return ending December 2009 Altria’s 2009 Financial Performance Adjusted Earnings Per Share* +6.1% Total Shareholder Return** 25.9% 39.1% 0% 50%
Slide 28: Historical Total Tobacco Volume
Pounds in Millions Source: ALCS MICR Industry estimates for cigarettes; TTB all other tobacco segments; cigarettes, small cigars & RYO based on 0.0325 oz./stick [FY 2008] Historical Total Tobacco Volume 0 1,100 2004 2005 2006 2007 2008 5 year CAGR (~1%)
Slide 29: Cigarette Retail Pack Price in Convenience Stores
Source: IRI/Capstone Integrated Retail Panel Cigarette Retail Pack Price in Convenience Stores +22% $1.00 $6.00 2008 2009
Slide 30: Tobacco Categories' 2009 Volume Performance
Tobacco Categories’ 2009 Volume Performance Source: ALCS MICR estimates; Note: Smokeless is defined as moist smokeless tobacco and spit-less tobacco products ~7% (~0.5%) (~8%) Cigarettes Smokeless Machine-made Large Cigars
Slide 31: Tobacco Categories' 2009 Profit Pools
Tobacco Categories’ 2009 Profit Pools Machine-made Large Cigars Cigarettes Smokeless Tobacco ~$9.4 billion ~$1.0 billion ~$600 million Source: Company reports; ALCS BS&D estimates.
Slide 32: Tobacco Manufacturers' Profit Pool
Altria’s Share of Profit Pool +8.0pp * * Excludes USSTC Total Profit Pool ($ in Billions) +2.0% Tobacco Manufacturers’ Profit Pool Source: Company reports; ALCS BS&D estimates $11.4 $11.6 $9.5 $12.5 2008 2009 47% 55% 30% 70% 2008 2009
Slide 33: Adult Tobacco Consumers
Switch between tobacco categories and use different kinds of tobacco products Our tobacco companies believe that there are different groups of adult tobacco consumers Seeking different characteristics in their tobacco products Source: ALCS MICR Adult Tobacco Consumers
Slide 34: Adult Tobacco Consumers
Adult Tobacco Consumers Adult Smokers Adult Smokers Looking for Smokeless Tobacco Alternatives Adults Who Use Both Smokable Products and Traditional MST Products Traditional Adult Dippers
Slide 35: Satisfying Adult Tobacco Consumers
Increasing number of adult tobacco consumers are exploring alternatives to cigarettes and traditional MST products The business opportunity: Filling the increasing demand for new smokeless products Continuing to appeal to traditional adult smokers and dippers Altria’s tobacco operating companies are
Slide 36: Marlboro Menthol's Retail Share Performance
+0.5pp Source: IRI/Capstone Integrated Retail Panel Marlboro Menthol’s Retail Share Performance 5.2% 5.7% 3% 7% 2008 2009
Slide 37: Copenhagen's Growth Opportunities
Copenhagen ’ s Growth Opportunities Source: InfoScan Smokeless Tobacco Database ending December 2009 0% 100% Share of Wintergreen Segment Share of Straight Segment
Slide 38: Skoal's Heritage
History of smokeless product innovation Uniquely positioned to capitalize on growth in number of adult tobacco consumers seeking smokeless tobacco alternatives Skoal ’ s Heritage
Slide 39: Smokeless Tobacco Pouches
Smokeless Tobacco Pouches Pouch* Volume Share of Tobacco (in Millions) Pouch Volume 150 +217% 2005 2006 2007 2008 2009 * Pouches includes MST pouches and spitiess tobacco products Source: 2006 - 2007: USSTC RADISVT; 2008 ~ 2009: ALCS MICR STARS OTP Database
Slide 40: Skoal's New Slim Can
Offers pouches in an easier to manage package at a compelling value proposition Skoal plans to introduce many other new products Skoal ’ s New “ Slim Can ”
Slide 41: Black & Mild Cigarillo
Black & Mild Cigarillo
Slide 42: Marlboro and Black & Mild Adult Tobacco Consumer Demographics
Source: CASTS Database [ Marlboro 2009 YTD ending 11/09; Black & Mild YTD ending 09/09] Marlboro Adult Tobacco Consumer Demographics Black & Mild 25% 45% Overall Share 21 - 29 30% 50% Overall Share 21 - 29 30 - 39
Slide 43: Skoal and Copenhagen Adult Tobacco Consumer Demographics
Source: CASTS Database [ Skoal and Copenhagen 2009 YTD ending 09/09] Skoal Copenhagen Adult Tobacco Consumer Demographics 15% 35% Overall Share 30 - 49 20% 40% Overall Share 21 - 29
Slide 44: Litigation Environment
Substantial success in managing litigation Downward trend in individual cases, with exception of the Engle progeny cases PM USA has not tried an individual smoking and health case other than the Engle progeny trials and retrials in 48 months Litigation Environment
Slide 45: "Lights" Class Action Litigation
Only three statewide “Lights” class action cases have been certified One case, Curtis , has already been dismissed on merits and is on appeal In federal court, “Lights” cases have been consolidated in a single federal district court Have achieved substantial success on class certification issue “Lig
Slide 46: Engle Progeny Cases
PM USA has strong factual and legal defenses The Eleventh Circuit heard an appeal whether plaintiffs’ theories violate state law and due process In state cases, overwhelming majority of cases are inactive, although PM USA has tried some cases with varying results PM USA intends to appeal any loss an
Slide 47: Litigation Environment
Successfully managed litigation, notwithstanding significant challenges Vigorously defended these claims for decades and intend to continue doing so Litigation Environment
Slide 48: Strategies to Achieve Long-term Growth
Growing income by investing in four strong brands, Marlboro , Copenhagen , Skoal and Black & Mild Returning cash to shareholders in the form of dividends Preserving a strong balance sheet Reducing interest expense Strategies to Achieve Long-term Growth
Slide 49: Altria's Dividend
Percent of Market Capitalization Source: Bloomberg and company filings: CPG companies with a market capitalization greater than $10 billion as of year-end 2009 Altria’s Dividend 6.6% 6.4% 4.9% 4.8% 4.3% 3.9% 3.7% 3.3% 3.1% 3.0% MO RAI LO PM KFT HNZ KMB CAG CPB PG
Slide 50: Altria's Dividend
Payout Ratios Yield S&P 500 Source: Bloomberg and company filings: Payout ratio and yield compares CPG companies with a market capitalization greater than $10 billion as of year-end 2009. Altria’s stated 80% payout ratio is a target. S&P 500 compares all companies in the Index and ranks the top-ten
Slide 51: Altria's Dividend
Payout ratio and yield are compelling Consistent history of dividend growth Forty-two times in the last forty years Altria’s Dividend –
Slide 52: Altria's Dividend Growth
+6.3% Source: Altria company reports and press releases (Note: Annualized Dividend Rate) 2009 Since PMI Spin-off +17.2% Altria’s Dividend Growth $1.16 $1.36 2008 2009 $1.28 $1.36 $1.00 $1.50 Aug-08 Aug-09
Slide 53: Altria's Dividend
Past dividend increases are not predictive of future ones All future dividend payments are subject to the discretion of Altria’s Board of Directors Expect to increase dividends in-line with adjusted earnings per share growth Altria’s Dividend
Slide 54: Cost Reduction Program
Continue to make excellent progress on $1.5 billion program 2009 initiatives: Ceasing production at Cabarrus, NC cigarette manufacturing facility Integrating UST Reshaping corporate structure Cost Reduction Program – – –
Slide 55: Altria's Cost Management Program
($ in Millions) Source: Altria company reports Altria’s Cost Management Program $462 $1,500 $1,038 $0 $1,500 2007- 2009 Savings Add. Cost Savings Expected by 2011 2007 - 2011
Slide 56: Benefits of Cost Reduction Program
Increasing earnings Improving efficiencies Reinvesting in brand building initiatives Altria’s service companies and PM USA are appropriately sized for the post-FET environment Benefits of Cost Reduction Program
Slide 57: Cost Management Strategy
Continue reducing cigarette related infrastructure ahead of volume declines Redesign business processes to enhance productivity in the smokeless tobacco and machine-made large cigar businesses Cost Management Strategy
Slide 58: Altria's Transformation
Operating companies offer adults many types of products and compete in different categories and segments Tobacco operating companies have leadership positions in major tobacco categories Compare ourselves against other leading CPG companies with similar scale and scope Altria’s Transformation
Slide 59: Peer comparison of net revenues, COGS and employees
Source: Company filings: Compares CPG companies with net revenues, excluding excise taxes, greater than $10 billion in the S&P Food, Beverage & Tobacco Index. Based on most recently available employee count per 10-K filings. COGS for peers are adjusted to exclude certain one-time items. For reconcil
Slide 60: Altria's Financial Profile
Altria’s Financial Profile Source: Company filings: Compares CPG companies with net revenues, excluding excise taxes, greater than $10 billion in the S&P Food, Beverage & Tobacco Index. Adjusted EBITDA peer comparisons exclude certain one-time items and restructuring costs. For reconciliations of no
Slide 61: Peer comparison of adjusted EBITDA
Source: Company filings: Compares CPG companies with net revenues, excluding excise taxes, greater than $10 billion in the S&P Food, Beverage & Tobacco Index. Adjusted EBITDA peer comparisons exclude certain one-time items and restructuring costs. For reconciliations of non-GAAP to GAAP numbers visi
Slide 62: Altria's Strong Balance Sheet
Altria’s Strong Balance Sheet Important to continue delivering sustainable and predictable earnings growth over time to grow the dividend Protects the company’s investment grade credit rating Preserves access to the capital markets Secures cash flow generated by operating companies
Slide 63: Altria's Investment Grade Credit Rating
Altria’s Investment Grade Credit Rating Access to commercial paper backstopped with revolving credit facilities Replaced prior $3.4 billion credit facility with two new facilities in November 2009 $2.4 billion 3-year facility $0.6 billion 364-day facility – –
Slide 64: Altria's Economic Interest in SABMiller
Altria’s Economic Interest in SABMiller Equity Earnings ($ in Millions) Source: Altria company reports; Bloomberg Closing Stock Price in GBP converted to USD as of February 12, 2010. +12.5% (CAGR) Market Value ($ in Billions) $3.4 $11.3 $0 $18 Jul-02 Feb-10 $296 $600 $0 $800 2003 2009
Slide 65: Altria's Economic Interest in SABMiller
Currently intend to maintain position for the foreseeable future Monetizing position would weaken Altria’s balance sheet and be dilutive to Altria’s earnings per share Sale would have significant tax implications and potential overhang in SABMiller’s stock price Retention of a portion of any sale pr
Slide 66: Altria's Strong Balance Sheet
Altria’s Strong Balance Sheet Enables Altria to maximize cash returned to shareholders in the form of dividends Maintain a conservative financial profile
Slide 67: Altria's Cash Flow
Altria’s Cash Flow Majority of cash flow generated from operations is expected to be returned to shareholders as dividends Capital expenditures for next several years are expected to be under 2% of net revenues Since the share repurchase program is suspended indefinitely, we expect to use excess cas
Slide 68: Altria's Debt
Debt to EBITDA ratio at the end of 2009 was 1.9 to 1 Ratio in-line with peers, and supports investment grade credit rating Reducing interest expense would further strengthen balance sheet, improve cash flow and increase earnings per share and dividends Altria’s Debt
Slide 69: Altria's Debt
Altria’s Debt $3.4 billion in debt coming due over next four years, which has over $260 million in annual interest Decision to refinance or retire debt depends upon: Conditions of the capital markets Interest rates Business needs and conditions – – –
Slide 70: Altria's Adjusted EPS Growth Objective
Altria’s Adjusted EPS Growth Objective Delivered average adjusted EPS growth of 8% over the past two years Within the long-term objective of 8% to 10% outlined at time of PMI spin Dramatic change in operating environment since March 2008 More appropriate mid-term adjusted EPS growth objective of 7%
Slide 71: 2010 Business Environment
2010 Business Environment Adult consumers remain under economic pressure and face high unemployment Remain cautious about state excise tax environment and competitive environment
Slide 72: Altria's 2010 Adjusted EPS Guidance
Altria’s 2010 Adjusted EPS Guidance Source: Altria company filings * For reconciliation of non-GAAP to GAAP numbers visit www.altria.com Partially due to FET-related pricing strategies in 2009, income growth comparisons are expected to be more challenging for the first and second quarters of 2010 Ex
Slide 73: Delivering Superior Returns to Shareholders
+17.2% Source: Altria company filings; Bloomberg Yearly Return Dividend Growth Delivering Superior Returns to Shareholders 2009 Total Shareholder Return* * Assumes reinvestment of dividends 39.1% 25.9% 21.6% Altria S&P 500 S&P Food, Beverage & Tobacco $1.16 $1.36 2008 2009
Slide 74: Total Shareholder Return vs. Top Ten CPG Companies
Source: Bloomberg Total Shareholder Return Note : Top ten defined as the 10 largest U.S. Consumer Packaged Goods by market capitalization as of Dec. 31, 2009; TSR as of Dec. 31, 2009 Market Cap. 2009 Company Name Industry ($ in Millions) TSR (%) 1 2 Coca-Cola Co Beverages 132,079 29.5 3 Kimberly-Cla
Slide 75: Altria's Total Shareholder Return – 1999 to 2009
Source: Bloomberg Altria’s Total Shareholder Return – 1999 to 2009 174.4% -2.9% 69.3% Altria S&P 500 S&P 500 Food, Beverage & Tobacco
Slide 76: Compelling Investment
High dividend yield with strong EPS growth prospects ~80% dividend payout ratio target +6.5% dividend yield Opportunity to grow both EPS and dividends by 7% to 9% per year Compelling Investment Note: Dividend yield is based on the closing stock price as of 2/12/2010 – – –
Slide 77: Altria's Solid Business Model
Altria’s Solid Business Model Tobacco space profit pool is growing Tobacco operating companies have leading positions in all major tobacco categories Relatively unaffected by currency issues, input costs and private label brand competition from the trade Potentially more earnings predictability than
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Slide 79: Non-GAAP Financial Measures
Non-GAAP Financial Measures Altria reports its consolidated financial results in accordance with generally accepted accounting principles (GAAP). Today’s remarks may contain various operating results on both a reported basis and on an adjusted basis, which excludes items that affect the comparabilit
Slide 80: Regulation G Disclosure
For full reconciliation, visit www.altria.com/investors Regulation G Disclosure
Slide 81: Cigarettes Segment's Adjusted OCI 2007
Cigarettes Segment’s Adjusted Operating Companies Income (OCI) for Year Ended December 31, 2007 (dollars in millions) Reported OCI $4,511 Asset impairment and exit costs 344 Implementation costs 27 Provision for Scott Case 26 Adjusted OCI $4,908 Source: ALCS Finance, reconciliation between GAAP and
Slide 82: Cigarettes Segment's Adjusted OCI Margin 2007
Cigarettes Segment’s Adjusted Operating Companies Income (OCI) Margin for Year Ended December 31, 2007 (dollars in millions) Adjusted OCI $4,908 Revenues 18,470 Less Excise taxes (3,449) Net Revenues excluding excise taxes $15,021 Adjusted OCI margin 32.7% Source: ALCS Finance, reconciliation betwee
Slide 83: Cigarettes Segment's Adjusted OCI 2008
Cigarettes Segment’s Adjusted Operating Companies Income (OCI) for Year Ended December 31, 2008 (dollars in millions) Reported OCI $4,866 Exit costs 97 Implementation costs 69 Adjusted OCI $5,032 Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures
Slide 84: Cigarettes Segment's Adjusted OCI 2009
Cigarettes Segment’s Adjusted Operating Companies Income (OCI) for Year Ended December 31, 2009 (dollars in millions) Reported OCI $5,055 Exit costs 115 Implementation costs 139 Adjusted OCI $5,309 Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures
Slide 85: Cigarettes Segment's Adjusted OCI Change
Cigarettes Segment’s Adjusted Operating Companies Income (OCI) for Year Ended December 31 (dollars in millions) 2008 adjusted OCI $5,032 2009 adjusted OCI $5,309 % change 2009 adjusted OCI versus prior-year period 5.5% Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures
Slide 86: Cigarettes Segment's Adjusted OCI Margin 2009
Adjusted OCI $5,309 Revenues 20,919 Less Excise taxes (6,465) Net Revenues excluding excise taxes $14,454 Adjusted OCI margin 36.7% Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures Cigarettes Segment’s Adjusted Operating Companies Income (OCI) Margin for Year Ended D
Slide 87: Cigarettes Segment's Adjusted OCI Margin Change
Cigarettes Segment’s Adjusted Operating Companies Income (OCI) Margin for Year Ended December 31 2007 adjusted OCI margin 32.7% 2009 adjusted OCI margin 36.7% % point change 2009 adjusted OCI margin versus 2007 adjusted OCI margin 4.0pp Source: ALCS Finance, reconciliation between GAAP and non-GAAP
Slide 88: Smokeless Products Segment's Adjusted OCI 2009
Smokeless Products Segment’s Adjusted Operating Companies Income (OCI) for Year Ended December 31, 2009 (dollars in millions) Reported OCI $381 Asset impairment and exit costs 193 Integration costs 43 UST acquisition-related costs* 15 Adjusted OCI $632 Source: ALCS Finance, reconciliation between GA
Slide 89: Cigars Segment's Adjusted OCI 2008
Cigars Segment’s Adjusted Operating Companies Income (OCI) for Year Ended December 31, 2008 (dollars in millions) Reported OCI $164 Integration costs 18 Adjusted OCI $182 Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures
Slide 90: Cigars Segment's Adjusted OCI 2009
Cigars Segment’s Adjusted Operating Companies Income (OCI) for Year Ended December 31, 2009 (dollars in millions) Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures Reported OCI $176 Integration costs 9 Adjusted OCI $185
Slide 91: Cigars Segment's Adjusted OCI Change
Cigars Segment’s Adjusted Operating Companies Income (OCI) for Year Ended December 31 (dollars in millions) 2008 adjusted OCI $182 2009 adjusted OCI $185 % change 2009 adjusted OCI versus prior-year period 1.6% Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures
Slide 92: Wine Segment's Adjusted OCI 2009
Wine Segment’s Adjusted Operating Companies Income (OCI) for Year Ended December 31, 2009 (dollars in millions) Reported OCI $43 Exit costs 3 Integration costs 6 UST acquisition-related costs* 21 Adjusted OCI $73 Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures * Exc
Slide 93: Adjusted Diluted EPS 2007
Adjusted Diluted Earnings per Share (EPS) from Continuing Operations Attributable to Altria for Year Ended December 31, 2007 Reported diluted EPS from continuing operations $1.48 Asset impairment, exit and implementation costs 0.15 Interest on tax reserve transfers to Kraft Foods Inc. (Kraft) 0.02 R
Slide 94: Adjusted Diluted EPS 2008
Adjusted Diluted Earnings per Share (EPS) from Continuing Operations Attributable to Altria for Year Ended December 31, 2008 Reported diluted EPS from continuing operations $1.48 Tax Items (0.03) Gain on sale of corporate headquarters building (0.12) Loss on early extinguishment of debt 0.12 SABMill
Slide 95: Adjusted Diluted EPS 2009
Adjusted Diluted Earnings per Share (EPS) Attributable to Altria for Year Ended December 31, 2009 Reported diluted EPS $1.54 Tax Items (0.04) UST acquisition-related costs* 0.06 Asset impairment, exit, integration and implementation costs 0.19 Adjusted diluted EPS $1.75 * Excludes asset impairment,
Slide 96: Adjusted Diluted EPS Change 2008
2007 adjusted diluted EPS from continuing operations $1.50 2008 adjusted diluted EPS from continuing operations $1.65 % change in 2008 adjusted diluted EPS from continuing operations versus prior-year period 10.0% Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures Adju
Slide 97: Adjusted Diluted EPS Change 2009
2008 adjusted diluted EPS from continuing operations $1.65 2009 adjusted diluted EPS from continuing operations $1.75 % change in 2009 adjusted diluted EPS from continuing operations versus prior-year period 6.1% Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures Adjus
Slide 98: Projected Full-Year Adjusted Diluted EPS 2010
Projected Full-Year Adjusted Diluted Earnings per Share (EPS) Attributable to Altria for Year Ending December 31, 2010 Projected reported diluted EPS $1.78 to $1.82 Exit, integration and implementation costs 0.04 UST acquisition-related costs* 0.01 SABMiller special items 0.02 Projected adjusted dil
Slide 99: Projected Adjusted Diluted EPS Change 2010
Projected Full-Year Adjusted Diluted Earnings per Share (EPS) Attributable to Altria for Year Ending December 31 2009 adjusted diluted EPS $1.75 2010 projected adjusted diluted EPS $1.85 to $1.89 % change in 2010 projected full-year adjusted diluted EPS versus the prior-year period 6% - 8% Source: A
Slide 100: Altria EBITDA for the Debt Covenant Year 2009
Altria Earnings Before Interest Taxes, Depreciation & Amortization (EBITDA) for the Debt Covenant Year Ended December 31, 2009 (dollars in millions) Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures. Net earnings attributable to Altria Group, Inc. $3,206 Equity earnin
Slide 101: Altria Total Debt for EBITDA Calculation
Altria Total Debt for EBITDA calculation Year Ended December 31, 2009 (dollars in millions) Current portion of Long-term debt $775 Long-term debt 11,185 Discount on debt 41 Third-party guarantees 12 Total debt $12,013 Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures.
Slide 102: Altria Revenues Net of Excise Taxes and Government Payments
Altria Revenues Net of Excise Taxes and Government Payments for the Year Ended December 31, 2009 (dollars in millions) Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures. Revenues $23,556 Less Excise taxes (6,732) Net revenues net of excise taxes $16,824 Less MSA, quot
Slide 103: Altria Adjusted EBITDA 2009
Altria Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) for the Year Ended December 31, 2009 (dollars in millions) Source: ALCS Finance, reconciliation between GAAP and non-GAAP financial measures. * Excludes exit and integration costs Net earnings attributable to Altri
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