2017 CAGNY Investor Presentation February 22, 2017 Altria Client - - PowerPoint PPT Presentation

February 22, 2017

2017 CAGNY Investor Presentation

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 1

Management Team

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 2

Jim Dillard SVP, Research, Development, and Regulatory Affairs Murray Garnick Deputy General Counsel Howard Willard Chief Operating Officer Billy Gifford Chief Financial Officer

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, 2015 and under “Cautionary Factors That May Affect Future Results” in its Quarterly Report on Form 10-Q for the period ended September 30, 2016. 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.

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 3

This space is blank because brand images which appeared in the original presentation have been removed.

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

2016 Adjusted Diluted EPS* Performance

$2.80 $3.03

2015 2016 +8.2%

Source: Altria company reports

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 5

*For reconciliation of non-GAAP to GAAP measures visit altria.com

Growing Our Dividend

$2.26 $2.44

Aug-15 Aug-16 +8.0%

Source: Altria company reports Note: Dividend is based on the current annualized dividend (Last increased August 2016). Dividends are subject to the discretion of the Board.

50th increase in the last 47 years

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 6

2016 Total Shareholder Return

20.5% 12.0% 8.8%

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

Source: Bloomberg, 12/31/2015 to 12/30/2016 Note: Total shareholder return is simple price appreciation plus the reinvestment of the dividend as of the ex-dividend date

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 7

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 8

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

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 9

Altria’s Strategies

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

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 10

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 11

2016 U.S. Dollar Sales in Major Retail Channels

$83 $71 $34 $28 $22

Tobacco Cigarettes Beer Carbonated Beverages Salty Snacks

Source: IRI

$ in Billions

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 12

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.

2016 U.S. Dollar Sales in Major Retail Channels

$34 $83 $71 $34 $28 $22

Tobacco Cigarettes Beer Marlboro Carbonated Beverages Salty Snacks

Source: IRI

$ in Billions

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 13

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.

Marlboro

This space is blank because brand images which appeared in the original presentation have been removed.

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

$6.4 $8.0

2013 2016

Smokeable Products Segment Adjusted OCI*

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

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 15

+7.6%

CAGR

$ in Billions

This space is blank because brand images which appeared in the original presentation have been removed.

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

Marlboro Brand Leadership Across the U.S.

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 17

This space is blank because brand images which appeared in the original presentation have been removed.

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

Smokeless Products Segment Adjusted OCI*

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

$ in Billions

$1.0 $1.2

2013 2016 +6.3%

CAGR

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 19

Copenhagen and Skoal Combined Retail Share

50.7% 52.2%

2013 2016

Source: IRI InfoScan

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 20

+1.5pp

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 21

Altria’s Strategies

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

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 22

Innovative Products

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 23

This space is blank because brand images which appeared in the original presentation have been removed.

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 24

Continuum of Risk

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 25

Most Harmful Least Harmful

Risk continuum of tobacco products

(directional only – not to scale; adapted from Hatsukami et al.)

Conventional Cigarettes Medicinal Nicotine Smoking Cessation Smokeless Tobacco Products

Source: D.K. Hatsukami et al., Developing the science base for reducing tobacco harm, Nic. & Tob. Res.; vol. 9: S537-S553 (2007)

Altria’s Role in Harm Reduction

• Understand adult tobacco consumer preferences
• Develop products that meet them
• Seek FDA authorization to market and communicate appropriately about them

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 26

This space is blank because brand images which appeared in the original presentation have been removed.

For Investor Relations Purposes Only - CAGNY Conference, 2-22-17

Heated Tobacco

• Exclusive license to sell IQOS system in U.S.
• PM USA’s dedicated team is building its commercialization plan

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 28

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

IQOS Retail Engagement – Japan (PMI)

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 29

This space is blank because brand images which appeared in the original presentation have been removed.

IQOS Retail Engagement – Italy (PMI)

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 30

This space is blank because brand images which appeared in the original presentation have been removed.

PM USA Commercialization of IQOS

• Develop robust marketing plans for a U.S. lead market
• Integrated engagement model to educate at retail and in digital
• Create opportunities for guided trial using flexible retail concepts

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 31

This space is blank because brand images which appeared in the original presentation have been removed.

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

Regulatory Timing

• PMI submitted MRTP application in December 2016
• Expects to submit PMTA this quarter

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 33

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

Regulatory Landscape

• Substantial equivalence
• Applications for newly-deemed products
• Fostering innovation

34 Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l

Substantial Equivalence

• Comprehensive submissions to FDA
• FDA’s review process requiring more

resources

• Confident in data and information

provided

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 35

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

PMTA Cost Estimates (per application)

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 36

~ $117,000 to $466,000 ~$2.5M to $5.0M

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

Fostering Innovation

• Advocating to move the predicate date,

which would:

• Provide multiple product pathways
• Significantly reduce regulatory burden

and costs

37 Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 38

Smokeable Products Segment Strategy

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 39

Competitive Landscape

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 40

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

$7.6 $8.0

$0 $10 2015 2016

51.3% 51.4%

0% 65% 2015 2016

Smokeable Products Segment Performance

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

Adjusted OCI*

+5.3%

in Billions

PM USA’s Retail Share

+0.1pp

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 41

Marlboro Long-Term Retail Share Growth

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 42

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

1954 1962 1970 1978 1986 1994 2002 2010

44.0%

2016

This space is blank because brand images which appeared in the original presentation have been removed.

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

Unmatched Brand Equity

30 70 Camel Newport Marlboro

Source: 2016 TNS Brand Equity Study (Age Group: 21 – 54), January 2017

Equity among Adult Smokers

Marlboro’s equity score is at least 14 points higher than the leading competitive brands.

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 44

This space is blank because brand images which appeared in the original presentation have been removed.

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

Marlboro Adult Smoker 21 – 29 Share

Source: ALCS CATTS – 6MM ending September 2016

50 Marlboro Newport Camel

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 46

Marlboro

This space is blank because brand images which appeared in the original presentation have been removed.

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

Marlboro’s Growing Menthol Retail Share

6.8% 7.6%

0% 10% 2013 2016 +0.8pp

Source: IRI/MSAi

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 48

This space is blank because brand images which appeared in the original presentation have been removed.

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

Retail Coverage

Source: ALCS

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 50

~240k Retail Stores ~90% Volume Coverage

Digital Engagement

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 51

This space is blank because brand images which appeared in the original presentation have been removed.

Marlboro Digital Connections

120 2015 2016

in Millions

Note: Connections defined as the sum of logins, email opens and SMS entries/opt-ins

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 52

+34%

Source: ATCD and Web Trends as of 12/31/16.

Marlboro Mobile Engagement

50 2015 2016 +99%

Source: ATCD and Web Trends as of 12/31/16.

10 2015 2016 +620%

in Millions Mobile Connections Coupon Redemption

This space is blank because brand images which appeared in the original presentation have been removed.

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

Nat Sherman

• Portfolio of super-premium cigarettes and premium cigars
• Will benefit from Altria’s companies’ retail distribution, brand management and

adult tobacco consumer engagement capabilities

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 55

This space is blank because brand images which appeared in the original presentation have been removed.

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

1,198 1,403

2013 2016

Middleton’s Performance

Source: IRI InfoScan

Shipment Volume

(Sticks in Millions)

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 57

32% 38%

2013 2016

Share of Profit Pool

+5.4%

CAGR

Source: ALCS estimates

Smokeless Segment Strategy

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 58

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

Smokeless Segment Performance

~3% ~2.5%

USSTC Industry

50.7% 52.2%

2013 2016

Source: ALCS estimates

Copenhagen & Skoal Combined Retail Share Volume Growth 2013-2016 (3-yr CAGR)

+0.5pp

• Avg. Annual Growth

Source: IRI InfoScan

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 59

Smokeless Segment Adjusted OCI*

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 60

+6.3%

CAGR

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

$ in Billions

$1.0 $1.2

2013 2016

This space is blank because brand images which appeared in the original presentation have been removed.

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

Copenhagen Retail Share

31.6% 33.8%

2015 2016

Source: IRI InfoScan

+2.2pp

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 62

This space is blank because brand images which appeared in the original presentation have been removed.

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

Skoal’s Innovative Forms and Varieties

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 64

This space is blank because brand images which appeared in the original presentation have been removed.

This space is blank because brand images which appeared in the original presentation have been removed.

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

Smokeless Products Segment Results

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

2015 2016 +4.9%

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 66

Shipment Volume

(Cans in Millions)

814 854 $1.1 $1.2

2015 2016 +11.0%

Adjusted OCI* Growth

(in Billions)

2015 2016 +0.9pp

Copenhagen & Skoal Share 51.3% 52.2%

Smokeless Recall Update

• USSTC voluntarily recalled products from its Franklin Park facility
• Majority of USSTC’s products unaffected
• Estimated OCI impact of ~$50 to $70 million

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 67

This space is blank because brand images which appeared in the original presentation have been removed.

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

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

2012 2013 2014 2015 2016

E-Vapor Estimated U.S. Consumer Sales

Source: ALCS estimates

$ in Billions

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 69

Long Term E-Vapor Opportunity

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 70

9.1 5.3 3.6

Adult Vapers Adult Dippers Adult Large Mass Cigar Smokers

Source: ATCT 12MM ending Nov2016, LA+

in Millions Past 30-Day Users

This space is blank because brand images which appeared in the original presentation have been removed.

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

MarkTen XL Expansion

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 72

This space is blank because brand images which appeared in the original presentation have been removed.

MarkTen National Retail Share

MarkTen XL MarkTen XL

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 73

5% 11%

Q4 2015 Q4 2016 +6pp

Source: IRI Projected Database – MOC as of 01/01/17 (Totals may not foot due to rounding)

MarkTen XL in #2 Position Where Sold

*Volume Sales: 1 Disposable Unit = 1 Cartridge = 1 Kit w/ 1 Cartridge = 1mL E-Liquid

32% 21% 8%

0% 50% Vuse MarkTen blu

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 74

Source: IRI Masked Store Level Database as of we 1-1-17

MarkTen XL

This space is blank because brand images which appeared in the original presentation have been removed.

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

7.4% 6.2% 5.3% 4.8% 0% 10% 2013 2014 2015 2016 0.9 1.0 1.1 1.2 0.0 1.4 2013 2014 2015 2016

Improving Economic Conditions

73 87 98 100 150 2013 2014 2015 2016

Sources: The Conference Board, full-year average

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 76

Unemployment Rate US Consumer Confidence US Housing Starts

(in Millions)

Cigarette Category Decline Rate Estimates

(4.0)% (3.5)% (0.5)% (2.5)%

2013 2014 2015 2016

Source: ALCS estimates – rounded to nearest 0.5%

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 77

2016 Category Volume Growth

~3% ~10%

Smokeless Machine-made Large Cigars

Source: ALCS estimates – rounded to nearest 0.5%

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 78

Cigarette SET Environment

$1.44 $1.49 $1.51 $1.57

2013 2014 2015 2016

Source: ALCS estimates

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 79

California and Pennsylvania SET increases expected to have an approximate 1% impact on industry volume in 2017.

Weighted average $ per pack

This space is blank because brand images which appeared in the original presentation have been removed.

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

Smokeable Products Segment Performance

Source: ALCS Finance *For reconciliation of non-GAAP to GAAP measures visit altria.com

2013 2016 +4.6%

CAGR

Net Revenue per 1000*

$116.60

2013 2016 Adjusted OCI Margins*

42.2%

+6.0pp

Note: Net of FET

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 81

48.2% $133.54

Smokeless Products Segment Adjusted OCI Margins*

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

62.3% 64.4%

2013 2016 +2.1pp

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 82

Cost Discipline

• $300 million productivity initiative
• SG&A Infrastructure
• Leaner organization
• Reinvesting some savings in brand building, harm reduction and regulatory

capabilities

• $50 million manufacturing consolidation plan

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 83

Source: Altria company reports

Altria’s Alcohol Assets

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 84

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

Consistent Financial Performance

$1.51 $3.03

2007 2016 +8.0%

CAGR

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

$1.16* $2.44

2007 2016 +8.6%

CAGR

Dividend Per Share Growth Adjusted Diluted EPS*

Note: Dividend is based on the current annualized dividend (Last increased August 2016);

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 85

* First declared dividend post-spin

• Ste. Michelle Wine Estates Growth

$118 $167

$0 $200 2013 2016

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

Adjusted OCI*

+12.3%

CAGR

8.0 9.3

10 2013 2016 +5.4%

CAGR

Reported Shipment Volume

Cases

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 86

in Millions

This space is blank because brand images which appeared in the original presentation have been removed.

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

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 88

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

Altria’s Strong Balance Sheet

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 89

A- A3 BBB+

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

Dividend Growth

$2.26 $2.44

Aug-15 Aug-16 +8.0%

Source: Altria company reports Note: Dividend is based on the current annualized dividend (Last increased August 2016). Dividends are subject to the discretion of the Board.

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 90

Share Repurchase Program

• Repurchased over $1 billion in shares in 2016
• Expanded and extended share repurchase program in October
• $1.9 billion remaining in $3 billion program at the end of 2016
• Expect to complete program by the end of Q2 2018

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 91

Source: Altria company reports Note: Share repurchases are subject to the discretion of the Board.

Returning Cash To Shareholders

$28.2

2011-2016 Share Repurchase Dividend

Source: Altria company reports

$ in Billions

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 92

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 93

2017 Guidance

• Altria reaffirms our expectation to deliver 2017 adjusted diluted EPS 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.

• We also expect that our 2017 earnings growth will be higher in the second

half of the year, due primarily to lag accounting effects on our ABI equity investment in the fourth quarter last year.

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

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 94

Altria’s Strategies

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

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 95

187% 98% 92%

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

Five-Year Total Shareholder Return

Source: Bloomberg, 12/31/2011-12/30/2016 Note: Total shareholder return is simple price appreciation plus the reinvestment of the dividend as of the ex-dividend date

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 96

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 97

This space is blank because brand images which appeared in the original presentation have been removed.

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

Regulation G Disclosure

• For reconciliations and further

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

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 99

Altria Client Services l Investor Relations l 2-22-17 l FINAL l Highly Confidential l 100