2016 CAGNY Investor Presentation February 17, 2016 For Investor - - PowerPoint PPT Presentation

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2016 CAGNY Investor Presentation February 17, 2016 For Investor - - PowerPoint PPT Presentation

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2016 CAGNY Investor Presentation February 17, 2016 For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016 Management Team Participants Howard Willard Billy Gifford Chief Operating Officer Chief Financial Officer Jim Dillard

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SLIDE 1

February 17, 2016

2016 CAGNY Investor Presentation

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 2

Management Team Participants

Howard Willard Chief Operating Officer Billy Gifford Chief Financial Officer Jim Dillard SVP, Research, Development, Regulatory Affairs and Chief Innovation Officer Denise Keane EVP and General Counsel

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Safe Harbor Statement

Statements, including earnings guidance, in this presentation that are not reported financial results

  • r other historical information are “forward-looking statements” within the meaning of Private

Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates and expectations, and are not guarantees of future performance. They are based

  • n management’s expectations that involve a number of business risks and uncertainties, any of

which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Altria undertakes no obligation to publicly update or revise any forward- looking statement other than in the normal course of its public disclosure obligations. The risks and uncertainties relating to the forward-looking statements in this presentation include those described under “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2014 and under “Cautionary Factors That May Affect Future Results” in its Quarterly Report on Form 10-Q for the period ended September 30, 2015. Reconciliations of non-GAAP financial measures included in this presentation to the most comparable GAAP measures are available on Altria’s website at altria.com.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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2015 Adjusted Diluted EPS* Performance

$2.57 $2.80

2014 2015 +8.9%

Source: Altria company reports *For reconciliation of non-GAAP to GAAP measures visit altria.com

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Dividend Per Share Growth

$2.08 $2.26

2014 2015 +8.7%

Source: Altria company reports Note: Dividend is based on the current annualized dividend (Last increased August 2015)

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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2015 Total Shareholder Return

23.1% 14.7% 1.4%

Altria S&P Food, Beverage & Tobacco S&P 500

Source: Bloomberg, 12/31/2014 to 12/31/2015 Note: Total shareholder return is simple price appreciation plus the reinvestment of the dividend as of the ex-dividend date

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Three-Year Total Shareholder Return

28.6% 34.5% 23.1%

2013 2014 2015

Source: Bloomberg, 12/31/2012 to 12/31/2015 Note: Total shareholder return is simple price appreciation plus the reinvestment of the dividend as of the ex-dividend date

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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2015 U.S. Dollar Sales in Major Retail Channels

$82 $70 $34 $28 $22

Tobacco Cigarettes Beer Carbonated Beverages Salty Snacks

Note: Total US MOC is comprised of Food, Drug, Mass Merchandisers, Club, Dollar, DeCA, Convenience and Walmart classes of trade with ACV of $2MM+ excluding Pharmaceutical sales. Carbonated Beverage and Beer (including Ale and Cider, not Liquor) exclude on-premise sales. Source: ALCS Estimates and IRI

$ in Billions

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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2015 U.S. Dollar Sales in Major Retail Channels

Note: Total US MOC is comprised of Food, Drug, Mass Merchandisers, Club, Dollar, DeCA, Convenience and Walmart classes of trade with ACV of $2MM+ excluding Pharmaceutical sales. Carbonated Beverage and Beer (including Ale and Cider, not Liquor) exclude on-premise sales. Source: ALCS Estimates and IRI

$ in Billions

$34 $82 $70 $34 $28 $22

Tobacco Cigarettes Marlboro Beer Carbonated Beverages Salty Snacks Marlboro

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 10

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For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Altria’s Alcohol Interests

Note: Third party trademarks are the property of their respective owners and are included for informational purposes only.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Long-Term Financial Goals

  • Grow adjusted diluted EPS at average annual rate of 7% to 9%
  • Maintain a target dividend payout ratio of approximately 80% of adjusted

diluted EPS

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Altria’s Strategies

Grow new income streams with innovative tobacco products Maximize income from core premium tobacco businesses over the long term Manage diverse income streams and strong balance sheet to deliver consistent financial performance

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Our History in the Beer Category

Note: Third party trademarks are the property of their respective owners and are included for informational purposes only.

1970

Philip Morris Acquired Miller Brewing Co.

$230 Million

2002

Combined Miller with SAB

$3.4 Billion in Shares + ~$2.0 Billion in Cash

Source: Altria company reports

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Market Value of Altria’s SABMiller Investment

$3.4 $19.5

July 2002 September 14, 2015

Source: Bloomberg

$ in Billions

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Contributions from SABMiller Investment

  • $8.7 billion in equity earnings
  • $3.8 billion in dividends

Source: Altria company reports

2002 to 2015

Note: Third party trademarks are the property of their respective owners and are included for informational purposes only.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Objectives

  • Continued participation in the global beer profit pool
  • Tax efficiency
  • Appropriate premium
  • Appropriate board representation to assure that we maintained significant

influence over the asset

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Strategic Rationale

  • The first truly global beer company and one of the largest CPG companies
  • Significant growth opportunity for leading brands
  • Build on strength of the world’s great beer operators
  • Prospects for cost synergies

Source: AB InBev Investor Presentation on 11/11/2015 Note: Third party trademarks are the property of their respective owners and are included for informational purposes only.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Impact to Altria

  • Continue participation in the global beer profit pool with an approximately

10.5% stake in the new company

  • Achieve continued tax efficiency
  • Two seats on the new company’s board of directors
  • Continue the use of equity accounting for the asset’s contribution to Altria’s

earnings

  • Receive approximately $2.5 billion in pre-tax cash

Source: Altria company reports Note: Ownership interest and pre-tax cash consideration are subject to any proration.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SABMiller Transaction Premium - PSA

Source: ABI InBev 2.7 deal document

£29.34 £41.84

SABMiller Share Price Undisturbed Share Price as of 9/14/15 Total PSA Value as of 11/10/15

43% Premium

Note: PSA defined as Partial Share Alternative

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Marlboro Among the Top 10 Most Valuable Global Brands - 2015

Source: MillwardBrown – Top 100 Global Brands - 2015 Note: Third party trademarks are the property of their respective owners and are included for informational purposes only.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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2015 Smokeable Products Segment Results

  • Adjusted OCI* increased 10.9%
  • PM USA adjusted cigarette volume grew 0.5%
  • Middleton cigar volume grew 4.2%

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

Source: Altria company reports Cigarette volume adjusted for trade inventory changes and other factors. *For reconciliation of non-GAAP to GAAP measures visit altria.com

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Cigarette Retail Share

50.9% 51.3%

2014 2015

Source: IRI/MSAi

+0.4pp

43.8% 44.0%

2014 2015 +0.2pp

PM USA Marlboro

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Marlboro’s Strengths

  • Innovation to maintain Marlboro’s vibrancy
  • Scale and breadth at retail
  • Our advantage in digital engagement

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Marlboro’s Non-Menthol Strength

44.0% 54.9%

Total Market Share Share of Non-Menthol Segment

Source: IRI/MSAi Note: FY 2015 retail market share

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Marlboro’s Growing Menthol Retail Share

6.7% 7.2%

0.0 10.0 2012 2015 +0.5pp

Source: IRI/MSAi

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Represents Leading Brand in Each Category

Marlboro’s Value to C-Stores

Note: Retail sales in Convenience Stores only. Carbonated Beverages and Beer (including Ale and Cider, not liquor) exclude on-premise sales. Source: IRI C-Stores 52-weeks ending 12/27/15

$ in Billions

$27.1 $6.5 $2.5 $0.9 $0.4

Marlboro Beer Carbonated Beverages Salty Snacks Chocolate Candy Marlboro

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Sales Expertise

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Retail Coverage

Source: ALCS

~240k Retail Stores ~90% Volume Coverage

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Source: ARC Reporting through w/e 10.31.15

Marlboro Mobile Coupons

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

~100,000

Stores Participating

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For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Marlboro Mobile Visits

350 marlboro.com Company A Company B Company C

Source: comScore Custom Report January 2015 – December 2015 Note: ComScore projection is based on approximately 750,000 person (age 21+) data panel. Visits are defined as the total number of times during a reporting period that a person accessed content within the website.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Growth in Digital Engagement

120 2012 2013 2014 2015

in Millions

Source: ARC reporting through December 2015 Note: Interactions defined as web/app engagements, email opens, SMS received

+158%

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Marlboro’s Strong Brand Equity

30 70 2010 2015

Source: 2015 TNS Brand Equity Study (Age Group: 21 – 54), January 2016

+5 pts

Overall Equity (Adult Smokers 21 – 54)

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Unmatched Brand Equity

30 70 Camel Newport Marlboro

Source: 2015 TNS Brand Equity Study (Age Group: 21 – 54), January 2016

Overall Equity among Adult Smokers

Marlboro’s overall equity score is more than 14 points higher than leading competitive brands.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Marlboro Adult Smoker 21 – 29 Share

Source: ALCS CATTS – 6MM ending September 2015

50 Marlboro Newport Camel Marlboro

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Marlboro Long-Term Retail Share Growth

Source: Maxwell; MSAi Shipments; IRI/Capstone – Total Retail Panel; IRP IRI Group/Capstone Projected Retail Panel; IRI/MSAi

1954 1963 1972 1981 1990 1999 2008

44.0

2015

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Marlboro Brand Leadership Across the U.S.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Smokeless Products Strategy

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

Increase income by growing volume at or ahead of the category growth rate, while maintaining modest share momentum on Copenhagen and Skoal combined

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Copenhagen and Skoal Share Performance

69.9% 47.3%

2001 2009

Source: RAD SVT 2001; IRI 2009 - 2015

47.9% 51.3%

2010 2015 +3.4pp

Before Altria’s Acquisition After Altria’s Acquisition

(22.6)pp

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Smokeless Products Adjusted OCI*

Source: Altria company reports *For reconciliation of non-GAAP to GAAP measures visit altria.com

$ in Millions

$832 $1,112

2010 2015 +6.0%

CAGR

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Copenhagen Retail Share

24.5% 31.6%

2010 2015

Source: IRI Group InfoScan Smokeless Tobacco Database (FY 2012 – Retail Share) Source: IRI InfoScan

+7.1 pp

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Copenhagen Long Cut Wintergreen Share Growth

Source: IRI InfoScan

5.8% 8.6%

0% 10% Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Smokeless Brand Equity – 2015

30 70 Copenhagen Skoal Grizzly

Equity Among Adult Dippers (21 – 54) Equity Among Adult Dippers (21 – 29)

30 70 Copenhagen Skoal Grizzly

Source: 2015 TNS Brand Equity Study (Age Group: 21 – 54 and Age Group: 21 - 29), January 2016

Copenhagen Skoal Copenhagen Skoal

Copenhagen’s equity is at least four points higher than Grizzly among adult dippers 21–54 and those age 21–29.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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~$0.5 ~$1.3 ~$2.0 ~$2.5

2012 2013 2014 2015

E-Vapor Estimated U.S. Consumer Sales

Source: ALCS estimates

$ in Billions

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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E-Vapor Category Development

  • Today’s products not fully meeting expectations
  • Meaningful category growth hinges on product innovation

We continue to advocate for regulation and tax policies that recognize a continuum of risk.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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MarkTen XL has delivered significantly stronger share performance than the

  • riginal MarkTen.

MarkTen XL

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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MarkTen XL Expansion

Note: Third party trademarks are the property of their respective owners and are included for informational purposes only.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 61

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Heated Tobacco Platform

  • Altria has the exclusive rights in the U.S.
  • Marketplace and research results are encouraging

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

Note: Third party trademarks are the property of their respective owners and are included for informational purposes only.

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Heated Tobacco Commercialization

  • Progressing toward goal of commercializing product platform in the U.S.
  • FDA application to designate heated tobacco technology as modified risk

is expected to be filed towards the end of 2016

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Portfolio Approach

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Cigarette Category Decline Rate Estimates

(5.0)% (3.5)% (3.0)% (4.0)% (3.5)% (0.5)%

2010 2011 2012 2013 2014 2015

Source: ALCS estimates

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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U.S. Consumer Confidence

100 106 103 58 45 55 58 67 73 87 98

150 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sources: The Conference Board, full-year average

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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U.S. Economic Environment

7.4% 6.2% 5.3% 4.8%

0% 10% 2013 2014 2015 2016E

$3.58 $3.44 $2.51 $1.98

$0 $5 2013 2014 2015 2016E

Unemployment Rate Gasoline Prices ($/gal)

Sources: Bureau of Labor Statistics - Official Unemployment Rate (U3); U.S. Energy Information Administration, full-year average Note: All 2016 estimates are from the respective agencies.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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U.S. Tobacco Manufacturers’ Profit Pool

$15.5 $17.0

$0 $20 2014 2015

Source: Altria company reports; ALCS estimates; other public company reports

+10%

$ in Billions

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Favorable Economics

27.8% 14.4% 8.3%

0% 50% Altria S&P Beverages S&P Food

29.6% 14.3% 5.4%

0% 50% Altria S&P Beverages S&P Food

2015 Net Income Margins 2015 Free Cash Flow Margins

Source: FactSet Note: Net Income and Free Cash Flow Margins are non-GAAP. 2015 GAAP net income and FCF margins based on reported results and calendar Q4 estimates for companies that have not reported. Free cash flow defined as operating cash flow less capex. For reconciliation of non-GAAP to GAAP measures visit altria.com.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Consistent Financial Performance

$1.90 $2.80

2010 2015 +8.1%

CAGR

Source: Altria company reports *For reconciliation of non-GAAP to GAAP measures visit altria.com.

$1.52 $2.26

2010 2015 +8.3%

CAGR

Dividend Per Share Growth Adjusted Diluted EPS*

Note: Dividend is based on the current annualized dividend (Last increased August 2015);

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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2015 Dividend Payout Ratio

Source: Bloomberg and Thomson Reuters

S&P Food, Beverage and Tobacco Index

92.3% 72.7% 66.0% 61.5% 58.1% 56.7% 56.6% 47.9% 46.7% 80.7%

PM MO RAI KO PEP GIS K HSY DPS CPB

Note: All payout ratios have been calculated using the company’s current annualized dividend rate divided by the 2015 adjusted EPS estimate or actual results if available.

1 Altria’s dividend payout ratio is based on the annualized dividend of $2.26 divided by 2015 EPS of $2.80. In addition, Altria’s announced payout ratio target is ~80% of underlying EPS. 2 General Mills and Campbell Soup 2015 EPS estimates are adjusted to align with a calendar year end Kraft Heinz Co not included due to partial year consensus estimates

Source: FactSet

1 2 2

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Smokeable Products Companies’ Strategy

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

Maximize income while maintaining modest share momentum on Marlboro over time.

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$5.7 $7.6

$0 $10 2010 2015

43.6% 44.0%

0% 65% 2010 2015

Smokeable Products Income and Share Growth

Source: Altria company reports *For reconciliation of non-GAAP to GAAP measures visit altria.com; CAGR calculated on actual figures

Adjusted OCI*

+5.8%

CAGR

$ in Billions

Marlboro Retail Share

+0.4 pp

Source: IRI/MSAi

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Smokeable Products Segment Pricing Growth

Source: Altria company reports *For reconciliation of non-GAAP to GAAP measures visit altria.com

$104.47 $128.54

2010 2015

Revenues Net of Excise Taxes /1000 Units*

+4.2% CAGR

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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57.5% 63.7%

0% 70% 2010 2015

$0.8 $1.1

$0.0 $1.5 2010 2015

Smokeless Products Income Growth

Source: Altria company reports *For reconciliation of non-GAAP to GAAP measures visit altria.com; CAGR calculated on actual figures

Adjusted OCI*

+6.0%

CAGR

$ in Billions

Adjusted OCI* Margins

+6.2pp

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Smokeless Products Segment Performance

724 814

850 2010 2015

47.9% 51.3%

0% 70% 2010 2015

Source: Altria company reports

Copenhagen & Skoal Combined Retail Share Smokeless Reported Shipment Volume Growth

+3.4pp

Source: IRI InfoScan as of 01/03/2016

in Millions

+2.3%

CAGR

Note: CAGR calculated on actual figures

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 78

Productivity

Source: Altria company reports

$300

Annualized savings by end of 2017

million

  • SG&A Infrastructure
  • Leaner organization
  • Investments to include:
  • Brand building
  • Harm reduction
  • Regulatory capabilities

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Smokeable Smokeless Other

Diverse Income Streams – FY 2015

Source: Altria company reports Underlying earnings contribution, adjusted to exclude tobacco and health judgments

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SLIDE 80
  • Ste. Michelle Wine Estates Growth

$83 $152

$0 $200 2010 2015

Source: Altria company reports * For reconciliations of non-GAAP to GAAP measures visit www.altria.com; CAGR calculated on actual figures

Adjusted OCI*

+12.9%

CAGR

6.7 8.9

10 2010 2015 +5.8%

CAGR

Reported Shipment Volume

$ in Millions Cases in Millions

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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  • Ste. Michelle Wine Estates

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For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Philip Morris Capital Corporation

Source: Altria company reports

$4.7 $1.3

2010 2015

Net Finance Receivables

Note: Net Finance Receivables reflect PMCC’s investments in finance leases excluding the allowance for losses.

$ in Billions

($3.4)

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Market Value of SABMiller Investment

$3.4 $25.8

July 2002 December 2015

Source: Bloomberg

$ in Billions

Note: Third party trademarks are the property of their respective owners and are included for informational purposes only.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SABMiller Equity Earnings

$108 $1,006

2002 2014

$ in Millions

Source: Altria company reports

+20.4%

CAGR

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 85

SABMiller Equity Earnings

$628 $757

2010 2015 +3.8%

CAGR

Source: Altria company reports

$ in Millions

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Altria’s Strong Balance Sheet

We’re committed to maintaining investment grade credit ratings.

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Reduced Weighted Average Coupon Rate

9.1% 5.5%

December 2009 December 2015

Source: Altria company reports

(3.6)pp

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Growing Our Dividend

$2.08 $2.26

Aug-14 Aug-15 +8.7%

Source: Altria company reports Note: Dividend is based on the current annualized dividend (Last increased August 2015). Dividends and share repurchases are subject to the discretion of the Board.

In 2015, Altria raised its dividend for the 49th time in 46 years.

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Share Repurchases

  • Repurchased $554 million in shares in 2015
  • $965 million remaining in current $1 billion program at 12/31/15
  • Expect to complete program by the end of 2016

Source: Altria company reports

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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Returning Cash To Shareholders

$25.8

2010-2015 Share Repurchase Dividend

Source: Altria company reports

$ in Billions

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 91

Altria’s Business Model

  • Maximize income from our core tobacco business
  • Diverse income streams
  • Deliver long-term financial goals

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 92

204% 108% 81%

Altria Group S&P Food, Beverage and Tobacco S&P 500

Five-Year Total Shareholder Return

Source: Bloomberg, 12/31/2010-12/31/2015 Note: Total shareholder return is simple price appreciation plus the reinvestment of the dividend as of the ex-dividend date

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 93

2016 Guidance

  • Altria reaffirms our expectation to deliver 2016 adjusted diluted EPS growth

in a range of $3.00 to $3.05, representing a growth rate of 7% to 9% from

  • ur adjusted diluted EPS base of $2.80* in 2015.
  • Subject to shareholder and regulatory approval, ABI expects to close its

proposed transaction with SABMiller in the second half of 2016.

  • This guidance does not include any impact from the proposed AB InBev /

SABMiller transaction. At the appropriate time, we expect to provide further details on any impact of the transaction to Altria’s 2016 earnings guidance and the potential use of cash proceeds.

Source: Altria company reports *For reconciliation of non-GAAP to GAAP measures visit altria.com

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 94

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For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 95

A Compelling Investment

Note: Third party trademarks are the property of their respective owners and are included for informational purposes only. Source: WSJ Blogs – The Best Stock Over The Last 30 Years? You’ve Never Heard of It – MoneyBeat, 1/29/2016

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 96

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For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 97

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016

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SLIDE 98

Regulation G Disclosure

  • For reconciliations and further

explanations of non-GAAP financial measures, visit: altria.com

For Investor Relations Purposes Only - CAGNY Conference, Feb. 17, 2016