Overview Key strengths Key risks Dominant player in the traditional tobacco sector, including combustible cigarettes, cigars, and moist smokeless tobacco (MST). Regulatory environment becoming more challenging, though outcomes are still not certain and resolutions many years out. Significant industry expertise, including in distribution, regulatory affairs, and litigation defense. Secular decline in combustible cigarette volumes further pressured by illicit products and smokers declining real incomes from high cumulative inflation. Substantial scale with over $8 billion of free operating cash flow (FOCF). Further trade down to discount cigarettes. Relatively conservative financial policies including an approximately 2x debt to EBITDA target. Aggressive shareholder payments, including a very high dividend payout. Increased potential to effectively compete in next generation smokeless products, though Altria presently
