ALTRIA GROUP, INC.

Optimize & Accelerate Initiative

•In October 2024, we announced a multi-phase Optimize & Accelerate initiative (Initiative) designed to modernize our ways of working and accelerate progress toward our Vision and 2028 Enterprise Goals. At that time, we estimated the Initiative’s initial phases would deliver at least $600 million in cumulative cost savings over five years (excluding exit and implementation costs), with plans to reinvest those savings in our business.

•The Initiative is performing in line with our original expectations, and we are pleased with the progress made in the first year. In 2025, we began modernizing our ways of working, which enabled increased speed, efficiency and effectiveness across the organization. We are now adding the final phases of the Initiative and continue to expect to deliver cumulative savings of at least $600 million by the end of 2029.

•The savings estimates exclude estimated pre-tax charges of approximately $175 million, updated from our prior estimate of approximately $125 million. This updated estimate incorporates charges associated with the final phases of the Initiative.