Boca Raton, Florida February 22, 2012 For Investor Relations - PowerPoint PPT Presentation

Smokeless Products Segment’s Profitability Adjusted OCI* ($ in Millions) +19.1% CAGR * For reconciliations of non- GAAP to GAAP measures visit www.altria.com; includes USSTC and PM USA’s smokeless products Source: Altria company reports For Investor Relations Purposes Only

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Copenhagen and Skoal ’s Combined Performance Volume Retail Share (Cans in Millions) (Percent) +8.4% +1.6pp CAGR Source: SymphonyIRI Group InfoScan Smokeless Tobacco Database For Investor Relations Purposes Only

Altria’s Alcohol Assets Note: Trademarks used for discussion purposes only. All third party trademarks remain the property of the respective owners. For Investor Relations Purposes Only

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Wine Segment’s Business Results Adjusted OCI* ($ in Millions) +14.1% CAGR * For reconciliation of non-GAAP to GAAP numbers visit www.altria.com Source: Altria company reports For Investor Relations Purposes Only

Altria’s Economic Interest in SABMiller Reported Equity Earnings Total Global Beer Profit Pool ($ in Millions) (~$29.0 Billion) 9.4% CAGR SABMiller Source: Altria company reports; ALCS SB&D estimates, other public company reports For Investor Relations Purposes Only

Altria’s Economic Interest in SABMiller Market Value ($ in Billions) $16.3 This space is blank because brand images which appeared in the original presentation have $12.1 been removed. 2007 Jan-12 Note: Trademarks used for discussion purposes only. All third party trademarks remain the property of the respective owners. Source: Altria company reports; Bloomberg closing stock price in GBP converted to USD as of Jan 31, 2012

Altria’s Economic Interest in SABMiller  Strengthens Altria’s balance sheet by providing: – Equity earnings This space is blank because – Cash flow brand images which appeared in the original presentation have – Potential source of liquidity been removed. Note: Trademarks used for discussion purposes only. All third party trademarks remain the property of the respective owners. For Investor Relations Purposes Only

Altria’s Balance Sheet  Altria’s strategies to maintain a strong balance sheet helps to: – Secure the cash flow generated by its operating companies – Protect Altria’s investment grade credit rating – Support Altria’s ability to return cash to shareholders For Investor Relations Purposes Only

External Challenges  Financial results have historically created value  Ability to successfully manage external challenges equally important  These challenges continue to present risks For Investor Relations Purposes Only

Altria’s Strong Performance Total Shareholder Return Altria’s Adjusted Diluted EPS* (2008 – 2011) +7.9% CAGR * As redefined; for reconciliation of non-GAAP to GAAP measures visit www.altria.com. Source: Altria company reports; Bloomberg Yearly Return (Dec 31, 2007 – Dec 31, 2011). Assumes quarterly reinvestment of dividends as of ex-dividend date. For Investor Relations Purposes Only

Altria’s Business Model  Foundation to increase shareholder value into the future – Growing current businesses – Creating new revenue and profit streams For Investor Relations Purposes Only

Innovative New Products  Altria’s companies have a strong track record of developing products that meet adult consumer preferences – Product development efforts will build on deep understanding of adult cigarette consumers and smokeless tobacco expertise  External partnerships enhance our development, manufacturing and distribution capabilities  Ability to navigate regulatory environment in U.S. that provides pathways to innovation, including modified risk tobacco products For Investor Relations Purposes Only

Dave Beran Vice Chairman Business Operations Altria Group, Inc. For Investor Relations Purposes Only

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Altria’s Tobacco Companies’ Leading Brands  Superior brand equity  Strong adult demographics  These help support: – Premium pricing – Higher margins Provide the foundation for future income growth For Investor Relations Purposes Only

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Marlboro ’s Retail Share 42.0% Source: Maxwell; MSAi Shipments; IRI/Capstone – Total Retail Panel; IRP SymphonyIRI Group/Capstone Projected Retail Panel For Investor Relations Purposes Only

Marlboro #1 in Every State Source: ALCS MICR, STARS Geo Agg For Investor Relations Purposes Only

Evaluating Brand Strength  Brand equity  Adult consumer loyalty  Adult demographics  Pricing  Income  Ability to grow and sustain high margins For Investor Relations Purposes Only

Brand Equity Study Note: Trademarks used for discussion purposes only. All third party trademarks remain the property of the respective owners. For Investor Relations Purposes Only

Brand Equity Score Comparisons Age Group: 21 to 54 Competitive Brands Source: 2011 TNS Brand Equity Study (Ages: 21 – 54) For Investor Relations Purposes Only

Brand Equity Score Comparisons Age Group: 21 to 29 Competitive Brands Source: 2011 TNS Brand Equity Study (Ages: 21 – 29) For Investor Relations Purposes Only

Marlboro ’s Brand Equity Score Comparison Source: 2011 TNS Brand Equity Study (Age: 21 – 54 Marlboro Adult Smokers) For Investor Relations Purposes Only

Marlboro ’s Adult Smoker Loyalty  Have higher loyalty to their brand  ~90% of Marlboro adult smokers purchase the brand 100% of the time Source: CATTS Database Adult Cigarette Smokers 21+ For Investor Relations Purposes Only

Adult Smoker Demographics Age group: 21 to 29 Source: CATTS Database (6mm ending Sep 2011); Adult Cigarette Smokers 21+ For Investor Relations Purposes Only

Marlboro ’s Adult Smoker Demographics Source: CATTS Database (6mm ending Sep 2011); Adult Cigarette Smokers 21+ For Investor Relations Purposes Only

Net Price Gaps vs. Lowest Effective Marlboro Note: Marlboro Excludes 72mm Source: IRP SymphonyIRI Group/Capstone Projected Pricing Database For Investor Relations Purposes Only

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Effective Price Gaps vs. Lowest Effective Newport Newport (East) Marlboro Camel Pall Mall (1) Newport (East) % price gap reflects data primarily from: AL, DC, FL, GA, KY, ME, MA, MD, NH, NJ, NY, NC, PA, RI, SC TN, VT, VA and WV. Source: IRP SymphonyIRI Group/Capstone Projected Pricing Database For Investor Relations Purposes Only

Cigarette Manufacturers’ Metrics Per Pack Revenues Net of Excise Taxes (2007 – 2011 CAGR) * For reconciliation of non-GAAP to GAAP measures visit www.altria.com. Source: Altria company reports. Lorillard and Reynolds American Inc. company reports, and ALCS estimates. Net revenues excludes excise tax only. For Investor Relations Purposes Only

Marlboro ’s Retail Share Performance Source: 2007: IRI/Capstone Projected Retail Panel Database; 2008-2011: IRP SymphonyIRI Group/Capstone Projected Retail Panel For Investor Relations Purposes Only

Cigarettes Segment’s Financial Results Adjusted OCI* Margins Adjusted OCI* (Percent) ($ in Billions) 4.5% +7.5pp CAGR * For reconciliations of non-GAAP to GAAP measures visit www.altria.com Source: Altria company reports For Investor Relations Purposes Only

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The Value Equation Positioning Price Product Packaging Promotion For Investor Relations Purposes Only

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PM USA’s Retail Programs  In 2011, introduced Marlboro Leadership Pricing (MLP) option  In 2012, enhanced program with MLP option and a Marlboro flexible option This space is blank because brand images which appeared in the original presentation have been removed. For Investor Relations Purposes Only

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Brand Equity Score and Adult Demographics Black & Mild ’s Adult Tobacco Overall Equity Score Comparison (Ages: 21 – 54) Demographic Share Competitive Brands Source: CATTS OTP (6mm Sep 2011) Adult Cigar Smokers 21; +2011 TNS Brand Equity Study (Ages: 21 – 54) For Investor Relations Purposes Only

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Machine-made Large Cigar Segments Tipped Cigarillo Untipped Cigarillo Non-Cigarillo Note: Percent contribution to total machine-made large cigar category Source: SymphonyIRI Group InfoScan FMDC Cigar database 2011 For Investor Relations Purposes Only

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Copenhagen and Skoal  Unique positions with complementary product portfolio strategies designed to maximize USSTC’s performance  USSTC #1 position: Flavors: Forms:  Natural  Fine-cut  Mint  Long-cut  Straight  Pouches  Blend For Investor Relations Purposes Only

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Brand Equity Score Comparisons Overall Equity Score Comparison Overall Equity Score Comparison (Ages: 21 – 54) (Ages: 21 – 29) Competitive Brands Competitive Brands Source: 2011 TNS Brand Equity Study For Investor Relations Purposes Only

Copenhagen ’s Adult Tobacco Demographics Source: CATTS OTP (6mm Sep 2011) Adult MST Consumers 21+ For Investor Relations Purposes Only

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Copenhagen ’s Performance Volume Retail Share (Cans in Millions) (Percent) +26% +3.4pp Source: Altria company reports For Investor Relations Purposes Only

Skoal Adult Dippers’ Perceptions of Their Brand  Modern  Innovative This space is blank because  Products deliver great taste brand images which appeared  Forms are easy to manage in the original presentation have been removed. Source: ALCS MICR For Investor Relations Purposes Only

Skoal ’s Equity Score and Adult Demographics Overall Equity Score Comparison Overall Equity Score Comparison (Ages: 21 – 54) (Ages: 21 – 29) Competitive Brands Competitive Brands Base = Adult MST Consumers 21+ Source: 2011 TNS Brand Equity Study (Ages: 21 – 54) For Investor Relations Purposes Only

Skoal ’s Product Portfolio  Skoal traditionally offered adult dippers tobacco-forward products  Today, adult dippers want more flavor-forward tobacco products For Investor Relations Purposes Only

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Smokeless Tobacco Segments Mint Segment Pouch Segment (Flavor) (Form) Source: Symphony IRI Group InfoScan FDC Smokeless 2011 For Investor Relations Purposes Only

Smokeless Tobacco Segments Mint Segment Pouch Segment (Flavor) (Form) Source: Symphony IRI Group InfoScan FDC Smokeless 2011 For Investor Relations Purposes Only

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Skoal ’s Retail Share Performance Delisted SKUs Source: SymphonyIRI Group InfoScan Smokeless Tobacco Database For Investor Relations Purposes Only

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Smokeless Products Growth Opportunities  Adult smokers continued to be interested in smokeless alternatives For Investor Relations Purposes Only

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Smokeless Products Growth Opportunities  Adult smokers continued to be interested in smokeless alternatives  USSTC and PM USA see growth opportunities for their premium smokeless brands  New forms and flavors present opportunities to develop new revenue and profit streams For Investor Relations Purposes Only

Altria’s Tobacco Businesses Smokeless Machine-made Cigarettes Tobacco Large Cigars and Snus For Investor Relations Purposes Only

Tobacco Profit Pools Altria’s Share of Profit (Percent) +8pp (1) (2) (1) Does not include USSTC in 2007, but does reflect adjusted OCI financial results from JMC after its acquisition in December 2007 as well as PM USA. (2) Includes PM USA, USSTC and JMC Adjusted OCI financial results. Note: Altria’s Profit Pool share is calculated by combining the Adjusted OCI for PM USA, USSTC & Middleton divided by Total P rofit Pool Source: Altria company reports; ALCS BS&D estimates; other public company reports For Investor Relations Purposes Only

Revenue and Profit Pools  We believe revenue and profit pools derived from adult tobacco consumers can continue to expand  We believe our tobacco companies are well-positioned to increase share of these revenue and profit pools over time – Leading premium brands – Innovative new products For Investor Relations Purposes Only

Altria’s Tobacco Businesses and Products  Continue to evolve to meet future preferences of adult tobacco consumers  Adult consumers are: – Increasingly switching between multiple forms of tobacco – Expressing interest in non-combustible alternatives  Dynamics provide opportunity for new product growth in the long-term  Metrics to evaluate our performance will evolve or be complemented with new metrics For Investor Relations Purposes Only

Cost Management Strategy  Completed a multi-year $1.5 billion cost reduction program in Q3 2011  Launched a new initiative that is expected to deliver $400 million in savings against previously planned spending by end of 2013 For Investor Relations Purposes Only

Cost Reduction Program  New program primarily focused on reducing cigarette-related infrastructure For Investor Relations Purposes Only

Realigned Corporate Structure  To improve efficiencies  Middleton is a subsidiary of PM USA  More efficient resource allocation across smokeable products businesses For Investor Relations Purposes Only

Cost Management Strategy  Completed a multi-year $1.5 billion cost reduction program in Q3 2011  Launched a new initiative that is expected to deliver $400 million in savings against previously planned spending by end of 2013  Contributed to margin expansion while supporting investments in premium brands For Investor Relations Purposes Only