Altria Group, Inc. · NYSE:MO
Altria — Merger or Acquisition (March 2023)
18 slides from Altria's merger presentation, Mar 6, 2023
Slide 1: Altria Business Update
Altria Business Update March 6, 2023 1 | ALCS | Business Update | 3.6.23 | For Investor Purposes ONLY
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: Definitive Agreement to Acquire NJOY Holdings, Inc.
Definitive Agreement to Acquire NJOY Holdings, Inc. • We will gain full ownership of NJOY’s e-vapor product portfolio, including NJOY ACE, currently the only pod-based e-vapor product with market authorizations from the U.S. Food and Drug Administration (FDA). • The purchase price is approximately $
Slide 4: E-Vapor is the Largest U.S. Smoke-Free Category
E-Vapor is the Largest U.S. Smoke-Free Category FY 2022 % of Total Equivalized1 Adult Tobacco Consumers Retail Sales U.S. Tobacco Volumes (in millions) (in $ billions) 13.7 $7 15% 9.5 Exclusive Adult Vapers Total Adult Vapers U.S. Retail Sales % of Total U.S Source: ATCT December 2022 Source: IRI In
Slide 5: 2022 National Youth Tobacco Survey (NYTS) Results
2022 National Youth Tobacco Survey (NYTS) Results Current E-Vapor Use Among Middle & High School Student Combined 30 20.0 Percentage (%) 9.4 1.1 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Sources: ALCS analysis of NYTS 2011-2022. Note: in 2014 and 2015, modifications were made to
Slide 6: Significant Actions Taken to Reduce Underage Vaping
Significant Actions Taken to Reduce Underage Vaping Since 2019, we and many other stakeholders have taken significant actions to address underage vaping. Our efforts have contributed to: • the enactment of Tobacco 21 laws at the federal level and in 41 states; • the inclusion of synthetic nicotine p
Slide 7: Exit of JUUL Investment
Exit of JUUL Investment Our teams have been diligently evaluating all options to best compete in the e-vapor category. As part of this analysis, we decided it would be in the best interest of our shareholders to exit the JUUL investment given the significant regulatory and legal challenges and uncer
Slide 8: NJOY Transaction Strategic Rationale
NJOY Transaction Strategic Rationale Five Strategic Pillars of the NJOY Transaction Our Beliefs Our resources can E-vapor can play an NJOY ACE is NJOY has taken a Our consumer responsibly important role in uniquely positioned responsible research supports accelerate U.S. harm reduction if relative t
Slide 9: U.S. E-Vapor Category Regulatory Expectations
U.S. E-Vapor Category Regulatory Expectations • We continue to believe that the U.S. e-vapor category will undergo a multi-year transition period. Over the next few years, we expect that the FDA will issue marketing determinations on all currently pending PMTA submissions and exercise appropriate en
Slide 10: NJOY ACE is Currently the Only Authorized Pod Product
NJOY ACE is Currently the Only Authorized Pod Product Regulatory Status of Major Pod-based E-Vapor Products Marketing Granted Orders issued It appears that PMTAs remain Market Denial Orders were issued by for NJOY ACE device, Rich Tobacco pending for all currently marketed the FDA in June 2022 for a
Slide 11: Underage Use Prevention
Underage Use Prevention Usual Brand Used Among Middle & High School E-Cigarette Users Combined NJOY Marketing Evaluation 2022 NYTS *NJOY Not Among Top Brands* • We evaluated NJOY’s marketing practices and 20 national survey data related to underage use of tobacco products. 14.5 12.5 • We believe NJO
Slide 12: Adult Tobacco Consumer (ATC) Research
Adult Tobacco Consumer (ATC) Research % of Post-Trial Survey Participants Who “Definitely Would Buy” Listed Product Adult Smokers Adult Vapers 27% 26% 20% 19% 19% 13% JUUL Vuse Alto NJOY ACE JUUL Vuse Alto NJOY ACE Non-Menthol Non-Menthol Non-Menthol Non-Menthol Non-Menthol Non-Menthol Source: ALCS-
Slide 13: NJOY ACE Marketplace Assessment
NJOY ACE Marketplace Assessment FY 2022 – Total U.S. Store Count Retail Share (excludes vape shops) (multi-outlet and convenience stores) 121,000 35% 33,000 3% NJOY ACE Vuse NJOY ACE Vuse Source: STARS FY 2022 Source: IRI/MSAi InfoScan E-Vapor 2022 – MOC, WE 1/1/23 13 | ALCS | Business Update | 3.6.
Slide 14: Expanding Smoke-Free Competition
Expanding Smoke-Free Competition • We believe we can responsibly accelerate adult smoker and competitive adult vaper adoption of NJOY ACE in ways that NJOY could not as a standalone company. Sales Force of ~1,600 • We believe the strengths of our commercial employees across the U.S. resources can be
Slide 15: Our Compelling Smoke-free Portfolio
Our Compelling Smoke-free Portfolio E-Vapor Oral Tobacco Heated Tobacco HTC All third-party trademarks remain the property of their respective owners. 15 | ALCS | Business Update | 3.6.23 | For Investor Purposes ONLY
Slide 16: Financial Details of the Transaction
Financial Details of the Transaction • Purchase price of approximately $2.75 billion, payable at closing. Terms • Terms include additional $500 million in contingent cash payments. • Accretive to our cash flow within two years of closing. Estimated • Accretive to adjusted diluted earnings per share
Slide 17: 2023 Financial Impact
2023 Financial Impact • We reaffirm our guidance to deliver full-year adjusted diluted EPS in a range of $4.98 to $5.13. This range represents an adjusted diluted EPS growth rate of 3% to 6% from a $4.84 base in 2022. This guidance range does not include the potential financial impacts of the transa
Slide 18: 18 | ALCS | Q4 2022 | 2.1.23 | For Investor Purposes ONLY
18 | ALCS | Q4 2022 | 2.1.23 | For Investor Purposes ONLY