Investor Day June 23, 2015 For Investor Relations Purposes Only - PowerPoint PPT Presentation

Long-Term Adjusted Diluted EPS* Performance 8.6% 8.0% 7.9% 7.8% 7.7% 2010 2011 2012 2013 2014 *For reconciliation of non-GAAP to GAAP measures visit altria.com Note: Year-over-year percent change Source: Altria company reports For Investor Relations Purposes Only

This space is blank because brand images which appeared in the original presentation have been removed. For Investor Relations Purposes Only

An Ever-Changing Industry 2009 1998 Federal Excise Tax Increase Master Settlement Agreement signed FDA Regulation enacted 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 RJ Reynolds and Brown & Williamson Tobacco merge For Investor Relations Purposes Only

Marlboro Long-Term Performance +6.9pp 43.8 36.9 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Marlboro Camel Winston Newport Note: IRI/MSAi was implemented to read market share in 2011. Share prior to that reflects estimates based on share changes derived from previous services. Pall Mall includes premium and discount versions. Source: MSAi Shipments; IRI/Capstone IRP and TRP; IRI/MSAi For Investor Relations Purposes Only

Total Shareholder Return 1998-2014 1,081% 330% 190% Altria Group S&P 500 S&P Food, Beverage & Tobacco Note: Total shareholder return is simple price appreciation plus the reinvestment of the dividend as of the ex-dividend date. Excludes spin-offs. Source: Bloomberg 12/31/1997-12/31/2014 For Investor Relations Purposes Only

For Investor Relations Purposes Only

Altria’s Strategies Maximize income from core premium tobacco businesses over the long term Grow new income streams with innovative tobacco products Manage diverse income streams and strong balance sheet to deliver consistent financial performance For Investor Relations Purposes Only

Agenda  Diverse business model  Strong balance sheet  Productivity efforts Long-term Financial Goals  Grow adjusted diluted EPS at an 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

Diverse Business Model 27% Economic Interest Note: Third-party trademarks are the property of their respective owners and are included for informational purposes only. For Investor Relations Purposes Only

U. S. Tobacco Manufacturers’ Profit Pool $ in Billions +5.5% CAGR $15.5 $11.8 2009 2014 Source: ALCS estimates; other public company reports For Investor Relations Purposes Only

2014 Share of the U.S. Tobacco Profit Pool 51% 22% 14% 12% Altria Reynolds American Lorillard Other Note: Altria’s Profit Pool share is calculated by combining the adjusted OCI* for Altria’s Smokeable & Smokeless Products seg ments divided by Total Profit Pool. *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports; ALCS estimates; other public company reports For Investor Relations Purposes Only

Alcohol Assets Note: Third-party trademarks are the property of their respective owners and are included for informational purposes only. For Investor Relations Purposes Only

Ste. Michelle Wine Estates Strategy Grow income by expanding its share and distribution of premium wines. For Investor Relations Purposes Only

Ste. Michelle Wine Estates For Investor Relations Purposes Only

Ste. Michelle Wine Estates Note: Third-party trademarks are the property of their respective owners and are included for informational purposes only. For Investor Relations Purposes Only

Ste. Michelle Wine Estates Adjusted OCI* - $ in Millions Adjusted OCI* Margins +12.9% +2.7pp CAGR $134 21.6% 18.9% $73 2009 2014 2009 2014 * For reconciliations of non-GAAP to GAAP measures visit www.altria.com Source: Altria company reports For Investor Relations Purposes Only

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

Global Beer Profit Pool $ in Billions +4.1% CAGR $36.2 $32.1 2012 2015 Source: Bank of America Merrill Lynch Global Research Note: Third-party trademarks are the property of their respective owners and are included for informational purposes only. For Investor Relations Purposes Only

SABMiller Strong Income Growth Equity Earnings - $ in Millions +10.9% CAGR $1,006 $600 2009 2014 In 2014, Altria recorded pre-tax earnings of more than $1 billion. Source: Altria company reports For Investor Relations Purposes Only

SABMiller Market Value $ in Billions $22.1 $3.4 Jul-02 Jun-15 Note: Third-party trademarks are the property of their respective owners and are included for informational purposes only. Source: Bloomberg as of June 15, 2015 For Investor Relations Purposes Only

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

Philip Morris Capital Corporation Net Finance Receivable - $ in Millions Year-end Portfolio (# of Lessees/Transactions) $9.4 61 55 49 38 29 24 $1.7 2002 2014 2009 2010 2011 2012 2013 2014 Note: Net Finance Receivable reflects PMCC’s investments in finance leases excluding the allowance for losses. Source: Altria company reports For Investor Relations Purposes Only

Strong Balance Sheet  Manage difficult capital market conditions  Make acquisitions  Manage our debt maturity towers  Return cash to shareholders Our strong BBB+ credit rating allows us to competitively access the capital markets to cover short-term cash needs. Note: Third-party trademarks are the property of their respective owners and are included for informational purposes only. For Investor Relations Purposes Only

Strong Balance Sheet  Debt covenant of not more than 3 to 1 Debt-to-EBITDA*  $1 billion in long-term debt coming due in September 2015 1.7x Mar 2015 Note: Debt to EBITDA calculated in accordance with credit agreements. *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Relations Purposes Only

Dividend Growth $ per Share +8.9% CAGR $2.08 $1.36 Aug-09 Aug-14 In 2014, we paid shareholders $3.9 billion in dividends. Note: Dividend is based on the current annualized dividend (Last increased August 2014) Source: Altria company reports For Investor Relations Purposes Only

Share Repurchase Programs $ in Billions $4.2 Mar 2011 – Mar 2015 Through recent share repurchase programs, we reduced outstanding shares by ~6%. Note: From March 31, 2011 through March 31, 2015 Source: Altria company reports For Investor Relations Purposes Only

Share Repurchase Programs Mar 2011 – Mar 2015 $50.02 $32.89 Average Share Repurchase Price Altria Share Price At the end of the first quarter, we had $326 million remaining in our $1 billion share repurchase program. Note: Altria Share Price as of March 31, 2015. $32.89 represents weighted average share repurchase price Source: ALCS For Investor Relations Purposes Only

Returning Cash to Shareholders $ in Billions $22.3 $4.2 Share Repurchase $18.1 Dividend Jan 2010 – Mar 2015 Source: Altria company reports For Investor Relations Purposes Only

Improving Productivity ~$2 Billion This space is blank because brand images which appeared in the original presentation have been removed. 2007 - 2013 Source: ALCS For Investor Relations Purposes Only

Improving Productivity  Improved efficiency of manufacturing machinery  Standardized technology systems to reduce maintenance costs  Redesigned 100+ processes  Eliminated more than 18,000 hours of work Note: Third-party trademarks are the property of their respective owners and are included for informational purposes only. For Investor Relations Purposes Only

Smokeable Products Cost Management Controllable Costs/1000 Units* FETRA Expense Savings - $ in Millions +0.6% CAGR $29.57 $28.73 ~$300 ~$100 2009 2014 2014 2015 * For reconciliations of non-GAAP to GAAP measures visit www.altria.com Note: FETRA refers to the Fair and Equitable Tobacco Reform Act of 2004. Reflects savings versus prior year Source: Altria company reports For Investor Relations Purposes Only

Balancing Productivity and Disciplined Investment Manufacturing Headcount ~(7)% 3,000 1,500 Q4 2013 Q1 2015 Note: Headcount includes PMUSA, JMC, and USSTC hourly employees Source: ALCS For Investor Relations Purposes Only

Investing For Our Future  Product development, distribution, and brand-building for innovative tobacco products  Funding regulatory science needed to advance our harm reduction goals We are maximizing our core businesses and growing income, while investing for our future. For Investor Relations Purposes Only

Flexible Organizational Structure Our shared services model allows us flexibility to support our operating companies as they change. For Investor Relations Purposes Only

A Compelling Investment • Provides consistent performance Diverse Business Model through all business environments Strong Balance Sheet • Allow us to continue returning cash to shareholders Focus on Productivity For Investor Relations Purposes Only

2015 Guidance  Altria reaffirms its guidance for 2015 full-year adjusted diluted EPS in the range of $2.75 to $2.80, representing a growth rate of 7% to 9% from an adjusted diluted EPS base of $2.57* in 2014. *For reconciliation of non-GAAP to GAAP measures visit altria.com Source: Altria company reports For Investor Relations Purposes Only

For Investor Relations Purposes Only

Altria Group Distribution Company (AGDC) For Investor Relations Purposes Only

AGDC Consumer Sales and Distribution Engagement For Investor Relations Purposes Only

Engaging Adult Tobacco Consumers  Managing our database of ~20 million adult tobacco consumers  Using this tool to engage through various channels Source: AGDC For Investor Relations Purposes Only

Digital Engagement This space is blank because brand images which appeared in the original presentation have been removed. For Investor Relations Purposes Only

Top-Ranked Websites This space is blank because brand images which appeared in the original presentation have been removed. A third-party review ranked these websites in the top 10 of 100 branded websites. Source: iPerceptions Study For Investor Relations Purposes Only

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Adult Tobacco Consumer Experiences This space is blank because brand images which appeared in the original presentation have been removed. For Investor Relations Purposes Only

Engaging Adult Tobacco Consumers Interactions (in millions)  Direct mail  E-mail +21%  Programs in adult-only facilities 256  Sweepstakes entries 211  Coupons 2013 2014 Source: AGDC For Investor Relations Purposes Only

AGDC’s Retail Presence This space is blank because brand images which appeared in the original presentation have been removed. For Investor Relations Purposes Only

AGDC’s Competitive Advantage Efficient and Adaptable Model Innovative Tools & Resources Highly Skilled People Effective Trade Alignment For Investor Relations Purposes Only

Our Sales and Distribution System Expanding existing brands Executing price Communicating Promoting and launching and product brand equity responsible new innovative promotions and news retailing products For Investor Relations Purposes Only

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This space is blank because brand images which appeared in the original presentation have been removed. Our goal is to gain trade alignment by promoting and demonstrating mutual success. For Investor Relations Purposes Only

Efficient Cigarette Distribution Model Richmond Manufacturing Center For Investor Relations Purposes Only

Efficient Cigarette Distribution Model Bonded Warehouse For Investor Relations Purposes Only

Efficient Cigarette Distribution Model 21 Public Warehouses For Investor Relations Purposes Only

Efficient Cigarette Distribution Model 600+ Direct Buying Locations For Investor Relations Purposes Only

Efficient Cigarette Distribution Model Distribution Costs Retail ~3-5% <2% AGDC "Best-in-Class" Typical In 2014, we distributed 125 billion cigarettes at a cost of less than five cents per pack. Note: Distribution costs as of December 31, 2014 (as a % of net revenue, net of FET). Source: Warehouse Education Research Council Analysis For Investor Relations Purposes Only

Breadth and Scale of Coverage This space is blank because brand images which appeared in the original presentation have been removed. • 240,000 Retail Stores • Call Center provides ongoing • 95% Industry Volume Coverage support for lower-volume stores. Source: AGDC For Investor Relations Purposes Only

Sharpening Our Shared Services Model AGDC Organization Size  Expanded Responsibilities  Reduced Costs ~(20)%  Generated Capacity  Expanded Retail Coverage  Improved Processes and Systems 2007 2015 Source: AGDC For Investor Relations Purposes Only

Trade Class Tobacco Volume Contribution 70.5% Balance of Trade Classes = 29.5% C-Stores Tobacco Supermarket Drug Dollar Mass Merch Other Note: Tobacco: Includes Cigarettes, Cigars & Smokeless Only workload for FY 2014 Source: MI Connect STARS week ending 12/28/14 For Investor Relations Purposes Only

Convenience Store Overview ~150,000 c-stores in the U.S. $700 billion in annual revenues ~160 million consumer transactions per day ~50% of c-store shoppers are in the 21-39 age demographic Source NACS Convenience Trends Jan-Apr 2014, *Nielsen Co. 2012, 2013 NACS CTP (Fuel Included) For Investor Relations Purposes Only

Tobacco Impact inside C-Stores Other Other Snacks and Candy Foodservice Beer Snacks and Candy 17% Tobacco Beer Packaged Beverages Packaged Beverages 36% Tobacco Foodservice Sales Revenue Gross Profit Dollars Source: NACS Convenience Trends 2014 For Investor Relations Purposes Only

Adult Tobacco Consumer Cross-Purchasing 48% 30% Average Tobacco Consumer Average Other C-Store Consumer Source: 2014 VideoMining Study; 2014 Retail Experience Survey For Investor Relations Purposes Only

Adult Tobacco Consumer Market Basket ~$25 ~$6 Average Tobacco Consumer Average Other C-Store Consumer Source: 2014 VideoMining Study; 2014 Retail Experience Survey For Investor Relations Purposes Only

AGDC Advantages This space is blank This space is blank because brand images because brand images which appeared in the which appeared in the original presentation original presentation have been removed. have been removed. Leadership Brands Innovative Tools Talented People For Investor Relations Purposes Only

PM USA Retail Leaders Program  Offers incentives and promotional resources to help retailers grow their business This space is blank  PM USA achieves acceptance of new because brand images offerings and promotions which appeared in the  PM USA receives best-in class visibility and product placement original presentation have been removed. For Investor Relations Purposes Only

This space is blank because brand images which appeared in the original presentation have been removed. For Investor Relations Purposes Only