Financial Strength - Altria

Altria Group owns three premier tobacco operating companies in the United States which have leading positions in the major tobacco categories of cigarettes, smokeless tobacco and large machine-made cigars. Altria also has a substantial position in the alcohol business with Ste. Michelle Wine Estates and an economic interest in SABMiller plc.

Altria’s tobacco operating companies increase their profitability primarily with investments behind four strong premium brands: Marlboro, Copenhagen, Skoal and Black & Mild. These brands all have sizeable share of their respective categories, strong adult demographics and high brand loyalty. They also have opportunities to continue growing their share and income by offering adult tobacco consumers new and innovative products.

Ste. Michelle is one of the fastest-growing top 10 premium wine producers in the United States, with a strong portfolio of well-regarded wines. Ste. Michelle is focused on its “String of Pearls” growth strategy, where the company develops or acquires unique wine assets or distribution rights with legacies of leadership and growth in key wine segments. Ste. Michelle has performed very well over the past few years, growing its operating companies income and return on assets, and plans to remain focused on these objectives, while bringing some diversity to Altria’s operating company portfolio.

Strategies for Long-Term Growth

Altria is focused on four strategies to achieve its long-term growth target.

First, grow income by investing in the four strong brands of its tobacco operating companies, while continuing to optimize cost structures.

Second, remain focused on returning a large amount of cash to shareholders with an aggressive dividend policy.

Third, preserve a strong balance sheet.

Fourth, reduce the cost of debt.

Recognition

1The list is based on a survey of executives, directors and analysts from 667 companies in 33 countries.