Altria Group, Inc. · NYSE:MO
Altria — Investor Presentation (March 2008)
21 slides from Altria's investor presentation, Mar 11, 2008
Slide 1: Altria - Selected Slides
Investor Presentation March 11, 2008 Mike Szymanczyk and Dave Beran Altria - Selected Slides
Slide 2: Safe Harbor
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: Premium Cigarette Brands Continue To Gain Share
Premium Cigarette Brands Continue To Gain Share 0 80 1993 1995 1997 1999 2001 2003 2005 2007 Marlboro Other Premium Brands Source: MSA Shipments (1993 - 2000), IRI/Capstone – Total Retail Panel (2001 – 2007)
Slide 4: FY 2007 PM USA Had Higher Retail Share Growth
29.0 29.5 0 55 2006 2007 50.6 50.3 0 55 2006 2007 Lorillard RJ Reynolds PM USA +0.3pp +0.1pp (0.5pp) Source: IRI/Capstone, Total Retail Panel FY 2007 PM USA Had Higher Retail Share Growth 9.5 9.4 0 55 2006 2007
Slide 5: Marlboro Larger Than Next Ten Brands Combined
Source: IRI/Capstone - Total Retail Panel FY 07 data (Market Information) 39.7 41.0 0 55 Marlboro Next Top Ten Brands Marlboro Larger Than Next Ten Brands Combined
Slide 6: Marlboro Larger Than Other Major Manufacturers
41.0 38.5 RJR Lorillard 0 55 Marlboro RJR /Lorillard Source: IRI/Capstone - Total Retail Panel FY 07 data (Market Information) Marlboro Larger Than Other Major Manufacturers
Slide 7: Marlboro Menthol Number One in 24 States
Brand Ranking #2 #1 OK KS NE SD ND MT WY OR WA MN MO AR TN IN CT VT NH RI MA KY ME DE WV NY NJ MD PA GA NC SC VA FL MS AL LA TX NM CO AZ UT NV CA ID IA WI IL MI OH HI AK Source: PM STARS Geo Aggregate Database FY 2007 Marlboro Menthol Number One in 24 States
Slide 8: Marlboro Smooth Drives Share Growth
0 5 2006 2007 +0.5pp 4.4 4.9 Marlboro Menthol w/o Smooth Marlboro Smooth Marlboro Smooth Drives Share Growth Source: IRI/Capstone Projected Retail Panel Database ending 2007 Marlboro Menthol
Slide 9: Share of Marlboro New Products since 1990
Menthol Seventy-twos 2004 Milds 2000 Menthol Ultra Lights 1999 Medium 1991 Full flavor & Lights Seventy- twos 2005 Virginia Blend 2H ‘07 Blend No. 27 2003 Smooth 1H ‘07 Ultra Lights 1998 Share of Marlboro New Products since 1990 Source: MSA Shipments (1990-2000), IRI/Capstone – Total Retail Panel (2
Slide 10: Newport is Strong in the East
Newport > SDI of 125 SDI = State Share / Nat’l Share Source: PM STARS Geo Aggregate Database FY 2007 Newport is Strong in the East
Slide 11: Camel is Strong in the West
Camel is Strong in the West Camel Newport > SDI of 125 SDI = State Share / Nat’l Share Source: PM STARS Geo Aggregate Database FY 2007
Slide 12: Discount is Strong in the South & Mid-West
SDI > 125 Source: PM STARS Geo Aggregate Database FY 2007 SDI = State Share / Nat’l Share Discount is Strong in the South & Mid-West
Slide 13: Marlboro Competes Nationally
Marlboro Competes Nationally SDI = State Share / Nat’l Share 75 – 125 > 125 Marlboro Presence Combined: Newport, Camel and Discount Source: PM STARS Geo Aggregate Database FY 2007
Slide 14: PM USA Portfolio Brands Areas of Strength
L&M L&M Virginia Slims Basic Parliament Parliament Source: PM STARS Geo Aggregate Database FY 2007 PM USA Portfolio Brands Areas of Strength
Slide 15: Marlboro Equity Extends to Other Tobacco Products
Likely to purchase Marlboro MST* Source: Marlboro MST Long / Fine Cut ad pack conducted from July-Sept 2007. Based on the interviews among 573 adult MST users ages 21-54 in 30 markets across the US. Results are based on a national sample and are not projected to particular geographic markets. % of A
Slide 16: Marlboro MST Taste Versus Competition
* Based on post-trial questioning Marlboro MST tasted better than their regular brand* % of Adult MST users: Marlboro MST Taste Versus Competition Source: Marlboro MST Long / Fine Cut ad pack conducted from July-Sept 2007. Based on the interviews among 573 adult MST users ages 21-54 in 30 markets ac
Slide 17: Black & Mild Retail Share Performance
Black & Mild Retail Share Performance 23.1% 25.3% 20% 26% 2006 2007 +2.2pp Source: IRI Syndicated Reviews Database ending 12/23/07
Slide 18: PM USA Employee Retention Rate
96 95 95 50 100 2005 2006 2007 PM USA Employee Retention Rate Source: PM USA Human Resources
Slide 19: PM USA Reduced Headcount as Volume Declines
14.3 10.6 0 15 1998 2007 Headcount (000’s) PM USA Reduced Headcount as Volume Declines (26%) 175 228 0 250 1998 2007 Volume (Bil.) (23%) Source: Headcount: PM USA HR; Volume: MSAi Shipment
Slide 20: Reconciliation – Non-GAAP Financial Measures
Net Cash Provided by Revenues Operating Operating Activity, Net of Companies From Continuing Excise Taxes Income Operations 2007 Altria Reported Financial Statements 38.1 $ 13.9 $ 10.2 $ Adjustments: Discontinued Operations - Spin-off of PM International (22.9) (9.0) (5.6) Asset Impairment, Exit Cos
Slide 21: Illustrative EPS for Year Ended December 31, 2007
Illustrative EPS for Year Ended December 31, 2007 Altria Reported Diluted EPS $1.48 Tax Items (0.09) PMCC recoveries from airline exposures (0.06) Interest on tax reserve transfers to Kraft 0.02 Asset impairment and exit cost 0.15 Altria Adjusted Diluted EPS $1.50 Source: Altria Finance, reconciliat