Altria Group, Inc. · NYSE:MO
Altria — Shareholder Meeting (May 2017)
29 slides from Altria's shareholder meeting presentation, May 18, 2017
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 18, 2017 F . Altria
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
Slide 3: Business Update
Business Update For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 3
Slide 4: 2016 Adjusted Diluted EPS Performance
2016 Adjusted Diluted EPS* Performance +8.2% $3.03 $2.80 2015 2016 $5.9 billion in adjusted net earnings *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2
Slide 5: 2016 Total Shareholder Return
2016 Total Shareholder Return 20.5% 12.0% 8.8% Altria S&P 500 S&P Food, Beverage & Tobacco Note: Total shareholder return is simple price appreciation plus the reinvestment of the dividend as of the ex-dividend date Source: Bloomberg, 12/31/2015 to 12/30/2016 For Investor Relations Purposes only l A
Slide 6: Returning Cash to Shareholders
Returning Cash to Shareholders Annualized Dividend Growth $2.44 $2.26 +8.0% Aug-15 Aug-16 Paid over $4.5 billion in dividends and repurchased over $1 billion of Altria shares Note: Dividend is based on the current annualized dividend (Last increased August 2016) Source: Altria company reports For In
Slide 7: Altria's Strong Balance Sheet
Altria’s Strong Balance Sheet A- A3 A- Note FitchRatings upgraded in 2017, Standard & Poor’s and Moody’s upgraded in 2016 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, In
Slide 8: Smokeable Products Adjusted OCI
Smokeable Products Adjusted OCI* $ in Billions +5.3% $8.0 $7.6 2015 2016 *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 8
Slide 9: Smokeless Products Adjusted OCI
Smokeless Products Adjusted OCI* $ in Billions +11.0% $1.2 $1.1 2015 2016 *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 9
Slide 10: This space is blank because brand images which appeared in the original presentation have
This space is blank because brand images which appeared in the original presentation have been removed. For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 10
Slide 11: Ste. Michelle Adjusted OCI
Ste. Michelle Adjusted OCI* $ in Millions +9.9% $167 $152 2015 2016 *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 11
Slide 12: Beer Ownership
Beer Ownership Altria owns over 10% of AB InBev, the world’s first global brewer Note: third-party trademarks are the property of their respective owners and are included for informational purposes only. Source: Altria company reports For Investor Relations Purposes only l Altria Group, Inc. 2017 An
Slide 13: For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l
For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 13
Slide 14: 2017 Q1 Adjusted Diluted EPS Performance
2017 Q1 Adjusted Diluted EPS* Performance +1.4% $0.73 $0.72 Q1 2016 Q1 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. 2017 Annual Shareholder Meeting l 5/18/2017 14
Slide 15: 2017 Guidance
2017 Guidance Altria reaffirms its guidance for 2017 adjusted diluted EPS to be in a range of $3.26 to $3.32, representing a growth rate of 7.5% to 9.5% from our adjusted diluted EPS base of $3.03* in 2016. *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company re
Slide 16: Responsibility Priorities
Responsibility Priorities Tobacco Harm Reduction Marketing Employees Supply Chain For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 16
Slide 17: Continuum of Risk
Continuum of Risk Conventional Cigarettes Smokeless Tobacco Products Medicinal Nicotine Smoking Cessation Most Harmful Least Harmful Risk continuum of tobacco products (directional only – not to scale; adapted from Hatsukami et al.) Source: D.K. Hatsukami et al., Developing the science base for redu
Slide 18: Innovative Products
Innovative Products This space is blank because brand images which appeared in the original presentation have been removed. 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,
Slide 19: Heated Tobacco
Heated Tobacco This space is blank because brand images which appeared in the original presentation have been removed. 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.
Slide 20: FDA's Role in Tobacco Harm Reduction
FDA’s Role in Tobacco Harm Reduction Evaluate potentially reduced-harm products Decide what manufacturers may communicate to consumers Note: third-party trademarks are the property of their respective owners and are included for informational purposes only. For Investor Relations Purposes only l
Slide 21: For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l
For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 21
Slide 22: 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. 2017 Annual Shareholder Meeting l 5/18/2017 22
Slide 23: Supply Chain Responsibility
Supply Chain Responsibility Our Goal To find diverse, high-quality suppliers and work with them to innovate and address societal issues within the supply chain. We work with suppliers to set clear expectations, monitor compliance and address societal concerns where we have a voice. For Investor Rela
Slide 24: For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l
For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 24
Slide 25: For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l
For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 25
Slide 26: For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l
For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 26
Slide 27: Recognition
Recognition 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. 2017 Annual Shareholder Meeting l 5/18/2017 27
Slide 28: For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l
For Investor Relations Purposes only l Altria Group, Inc. 2017 Annual Shareholder Meeting l 5/18/2017 32
Slide 29: 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. 2017 Annual Shareholder Meeting l 5/18/2017 33