Altria : Quarterly Metrics - Q3 2020

Q3 2020 Earnings - Quarterly Metrics

	Smokeable	Q3 2020	r vs. Q3 2019
	Marlboro Price Gap (vs. Lowest Effective)	31%
	Marlboro Net Pack Price	$7.39	$0.26
	Lowest Effective Price	$5.65	$0.22
	Discount Segment Retail Share	24.3%	0.2pp
	Major Manufacturer Branded Discount	14.9%	(0.6pp)
	Deep Discount	9.4%	+0.8pp
	PM USA Menthol Retail Share	9.9%	(0.1pp)
	Estimated Weighted Average State Excise Tax per pack	$1.83	$0.01
	2020 PM USA Cigarette Wholesale Inventory Estimates:	(in billion units)
	End of Q3 2020	3.4
	End of Q2 2020	2.5
	End of Q3 2019	3.7
	End of Q2 2019	2.5
	2020 Cigarette Industry Wholesale Inventory:	(in billion units)
	End of Q3 2020	8.6
	End of Q2 2020	6.4
	End of Q3 2019	8.4
	End of Q2 2019	5.7
	Note: Wholesale inventory changes are one factor PM USA uses to estimate adjusted PM USA and industry volumes.
	Oral Tobacco	Q3 2020	r vs. Q3 2019
	Copenhagen Price Gap (vs Leading Discount Brand)	18%
	Copenhagen Retail Price	$5.37	$0.24
	Leading Discount Brand	$4.55	$0.17
	Note: All Smokeable and Oral Tobacco prices reflect IRI restatement.
	Other	Q3 2020	9M 2020
	Capital Expenditures	$56 million	$162 million
	Ongoing Depreciation and Amortization	$62 million	$192 million

Smokeable Shipping Days

	Q1	Q2	Q3	Q4	FY
2019	64	65	66	66	261
2020	65	65	66	66	262

Altria Client Services LLC

6601 West Broad Street, Richmond, VA 23230

Cigarette Industry Volume Decomposition Estimates

Twelve Months Ended

	03/31/20	06/30/20	09/30/20
Secular Decline Rate1	(2.5)%	(2.5)%	(2.5)%
Cigarette Price Elasticity	(1.3)%	(1.3)%	(1.3%)
Additional Cross Category Movement	(1.3)%	(0.1)%	0.2%
Macroeconomic & Other Factors	0.1%	0.4%	2.1%
Estimated Industry Decline	(5.0)%	(3.5)%	(1.5)%

Source: ALCS CMI estimates

1 Includes approximately 1% historical movement across tobacco categories

ALCS I Q3 2020 Earnings Call I 10.30.20 I For Investor Purposes ONLY

Oral Tobacco Industry Volume Growth Estimates

Six Months Ended

Q1 '19

Q2 '19

Q3 '19

Q4 '19

Q1 '20

Q2 '20

Q3 '20

6.5%

6.0%

5.0%*

3.0%

1.0%

0%

(0.5)%

Source: ALCS CMI estimates - rounded to the nearest 0.5%

Oral Tobacco industry includes MST, snus and oral nicotine pouch products

* Q1 2020 includes an adjustment for estimated retail loading due to COVID-19

ALCS I Q3 2020 Earnings Call I 10.30.20 I For Investor Purposes ONLY

Adult Vapers 21+ - Past 30 Day Usage

Twelve Months Ended (in millions)

20

13.5

11.611.8

	9.2	10.3	9.7
8.2

4.4	4.0	3.3	3.8	4.8	6.2	5.9
0
2014	2015	2016	2017	2018	2019	Sept 2020

Source: ATCT July 2013 to September 2020

ALCS I Q3 2020 Earnings Call I 10.30.20 I For Investor Purposes ONLY

JUUL Performance

Estimated Equivalized Volume Share of Category

43	46	47
	43	42	39
		38

Q1 '19

Q2 '19

Q3 '19

Q4 '19

Q1 '20

Q2 '20

Q3 '20

Source: ALCS CMI estimates

Note: Share based on volume equivalized to cartridges (1 disposable = 1 cartridge = 1mL e-liquid) Estimated category volume and share are subject to revisions based on the latest av ailable data

ALCS I Q3 2020 Earnings Call I 10.30.20 I For Investor Purposes ONLY