8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 17, 2008 (June 17, 2008)

Lorillard, Inc.

(Exact name of registrant as specified in its charter)

Commission File Number: 001-34097

Delaware	13-1911176
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

714 Green Valley Road, Greensboro, North Carolina 27408-7018

(Address of principal executive offices, including zip code)

(336) 335-7000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

The Company will post to its website (www.lorillard.com) a presentation concerning its products and services generally, financial results, business opportunities and related matters. This presentation will be discussed during its presentation to analysts, which will be webcast live at 4:30 p.m. EDT. A copy of the slide presentation is furnished as Exhibit 99.1 to this Form 8-K.

The information under Item 7.01 and in Exhibit 99.1 in this Form 8-K is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Lorillard, Inc. slide presentation dated June 2008

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	LORILLARD, INC.
	(Registrant)
Dated: June 17, 2008	By:	/s/ Ronald S. Milstein
		Ronald S. Milstein
		Senior Vice President, Legal and
		External Affairs, General Counsel
		and Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Lorillard, Inc. slide presentation dated June 2008

EX-99.1

Analyst Presentation

June 2008

Exhibit 99.1

2

Safe Harbor Disclaimer

You

are

cautioned

that

certain

statements

made

in

this

presentation

are

“forward-looking”

statements

within

the

meaning of the

Private Securities Litigation Reform Act of 1995.  Forward-looking statements include, without limitation, any statement that

may project, indicate or imply future results, events, performance or achievements, and may contain the words “expect”,

“intend”, “plan”, “anticipate”, “estimate”, “believe”, “will be”, “will continue”, “will likely result”, and similar

expressions.

In

addition,

any

statement

that

may

be

provided

by

management

concerning

future

financial

performance

(including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible actions by

Lorillard, Inc. are also forward-looking statements as defined by the Act.

Forward-looking statements are based on current expectations and projections about future events and are inherently subject

to a variety of risks and uncertainties, many of which are beyond the control of Lorillard, Inc., that could cause actual results to

differ materially from those anticipated or projected.

Information

describing

factors

that

could

cause

actual

results

to

differ

materially

from

those

in

forward-looking

statements

is

available

in

Lorillard,

Inc.’s

various

filings

with

the

Securities

and

Exchange

Commission.

These

filings

are

available

from

the

SEC

over

the

Internet

or

on

hard

copy,

and

are,

in

some

cases,

available

from

Lorillard,

Inc.

as

well.

Forward-looking

statements

speak

only

as

of

the

time

they

are

made,

and

Lorillard,

Inc.

expressly

disclaim

any

obligation

or

undertaking

to

update

these

statements

to

reflect

any

change

in

expectations

or beliefs or any change in events, conditions

or circumstances on which any forward-looking statement is based.

This

forward-looking

statements

disclaimer

is

only

a

brief

summary

of

Lorillard,

Inc.’s

statutory

forward-looking-statements

disclaimer.

You

are

urged

to

read

that

disclaimer,

which

is

included

in

Lorillard’s

S-4

filing

with

the

SEC,

in full.

3

Regulation G Compliance

You are also reminded that during this presentation, certain non-GAAP financial measures,

such as EBIT, EBITDA and Operating Profit per unit may be discussed.  These measures

should not be considered an alternative to net income, or any other measure of financial

performance or liquidity presented in accordance with generally accepted accounting

principles (GAAP).  These measures are not necessarily comparable to a similarly titled

measure of another company.  Please refer to the accompanying slides for information that

reconciles

these

discussed

figures

with

the

most

comparable

GAAP

measures.

4

Today’s Presenters

Martin L. Orlowsky

Chairman, President and Chief Executive Officer

David H. Taylor

Executive Vice President, Finance and Planning, Chief Financial Officer

Overview of Lorillard

Martin L. Orlowsky

Chairman, President and Chief Executive Officer

6

Lorillard Overview

Third largest tobacco company in the United

States

Primarily focused on the premium price cigarette

market

Strong brand portfolio led by the Newport brand

#1 menthol cigarette brand

#2 overall cigarette brand

Other brands include: Old Gold, Maverick, Kent,

True and Max

Sells products only in the U.S., Puerto Rico and

U.S. possessions

Headquarters, manufacturing and research

facilities in Greensboro, NC

7

Investment Highlights

Leader in the best performing segments of the cigarette market

Significant Newport brand equity

Continuous increases in share of market

Strategy has resulted in industry-leading relative profitability

Track record of strong financial performance

Experienced management team

Newly

independent

status

of

Lorillard

will

provide

financial

flexibility

to

invest

in

growth initiatives and to continue to generate value for shareholders

8

$582

$642

$706

$826

$898

19.2%

19.8%

22.6%

17.9%

22.0%

$0

$200

$400

$600

$800

$1,000

2003

2004

2005

2006

2007

10.0%

15.0%

20.0%

25.0%

30.0%

% of Sales

Impressive Financial Performance

Net Sales

Net Income

($ in millions)

($ in millions)

$2,604

$2,690

$2,892

$3,056

$3,281

$652

$658

$676

$699

$688

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

2003

2004

2005

2006

2007

$3,256

$3,348

$3,568

$3,755

$3,969

Net Sales (excl. Excise Taxes)

Excise Taxes

From

2003-2007,

net

sales

grew

at

a

5.1%

CAGR,

while

net

income

grew

at

an

11.5%

CAGR

9

Experienced Leadership

Board of Directors

Management Team Members

Name

Occupation

Martin L. Orlowsky

Chairman, President and CEO of Lorillard

David H. Taylor

Director and EVP, Finance and Planning, CFO of Lorillard

Richard W. Roedel

Kit D. Dietz

Principal of Dietz Consulting LLC

Additional Directors To Be Named

Retired Chairman and CEO of BDO Seidman LLP

Name

Title

Year Joined

Martin L. Orlowsky

Chairman, President and CEO

1990

David H. Taylor

EVP, Finance and Planning, CFO

2008

Ronald S. Milstein

1996

Charles E. Hennighausen

EVP, Production Operations

2002

Randy B. Spell

EVP, Marketing and Sales

1977

Thomas R. Staab

SVP, Finance and Treasurer

1998

SVP, Legal and External Affairs, General

Counsel and Secretary

Industry Operating Environment

11

Trends in the U.S. Cigarette Market

Total U.S. cigarette market size of ~$50 billion

Industry

unit

volume

has

declined

at

a

3.1%

CAGR

over

the

past

5

years,

3.3%

in Q1 2008; premium segment declined at a slower rate (<2.0%)

Expected annual declines of 3% to 4% of total over the next several years

286

276

274

271

270

260

79

68

64

60

56

52

54

57

56

51

49

45

418

401

394

382

376

357

0

100

200

300

400

500

600

2002

2003

2004

2005

2006

2007

Premium

Discount

Deep Discount

(billions of cigarettes shipped)

Source:  Domestic wholesale shipments per MSAI.

12

Lorillard is Best Positioned in Market

Premium segment is largest in the market (~73% of the market)

Segment has gained share of market over the last five years

Lorillard

has

gained

share

of

premium

segment

over

the

last

five

years

Premium Segment

28% of the overall cigarette market

Segment has gained share of market over last five years

Relatively stable in recent years (~100 billion cigarettes shipped per year)

Newport is #1 menthol brand and has gained share of menthol segment over the last five years

(approx. 33%)

Menthol Segment

13

Premium Segment Growth

68.3%

68.8%

69.6%

71.1%

71.9%

72.8%

18.8%

17.0%

16.2%

15.7%

15.0%

14.6%

14.3%

13.3%

13.1%

12.6%

14.2%

13.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

2002

2003

2004

2005

2006

2007

Premium

Discount

Deep discount

In the last 5 years, the premium segment continues to increase as a

percentage of the overall market

Source:  Domestic wholesale shipments per MSAI.

14

Menthol / Non-Menthol Segmentation

As consumer preferences continue to evolve,

Lorillard is best positioned to capitalize on that trend

26.0%

26.4%

26.4%

26.7%

27.4%

27.9%

74.0%

73.6%

73.6%

73.3%

72.6%

72.1%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

2002

2003

2004

2005

2006

2007

Menthol

Non-Menthol

The menthol segment represented ~100 billion of the 357 billion cigarettes shipped

in the United States in 2007

Source:  Domestic wholesale shipments per MSAI.

15

Current Operating Environment

Industry could come under greater pressure in 2008 due to macro economic

pressures

1

st

quarter industry shipments declined at a rate slightly greater than trend

Level of competition continues to be high

Regulatory legislation

Excise tax pressures

Litigation

Growth Behind a Brand

17

Discount

5.7%

Premium

94.3%

Strong Brand Portfolio is Led by Newport

Others

6.1%

Newport

93.9%

2007 Sales: 

$3,969 million

Source:  Lorillard Shipment Data.

(1) Includes Old Gold, Maverick, Kent, True and Max brands.

Accounted for 94.3% of 2007

domestic shipments

Newport (93.9% of 2007 net sales)

Primary driver of profitability

Kent, True and Max

Mature

brands

--

harvesting

profit

Premium Brands

Accounted for 5.7% of 2007 domestic

shipments

Maverick and Old Gold

Maintain presence in lower price

segment

Discount Brands

2007 Net Sales Breakdown by Brand

2007 Volume Breakdown by Price

2007 Domestic

Shipments: 

35.8 billion

(1)

18

Newport is the Leader in the Menthol Segment

28.6%

29.2%

30.1%

31.5%

32.2%

32.9%

11.4%

12.8%

14.2%

15.0%

16.4%

8.7%

8.8%

8.5%

7.5%

6.8%

6.4%

9.9%

11.2%

11.5%

11.4%

11.1%

11.4%

11.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2002

2003

2004

2005

2006

2007

Market Share

Newport

Marlboro Menthol

Kool

Salem

Newport continues to grow its leadership in the menthol segment

Source:  Domestic wholesale shipments per MSAI.

19

Brand Marketing Strategy

Continue to focus on premium price segment

Leverage Newport’s strong brand equity position in the marketplace

Adjust Newport promotion spending consistent with the brand’s performance

and competitive actions

Selectively promote Newport in markets / stores with the highest

return on

investment

Maintain presence in the discount segment with Maverick / Old Gold without

marketing investment

Overall objective is to profitably grow Newport’s market share

20

Differentiated Sales Promotion Strategy

Higher average retail pricing

Fewer free goods promotions

Fewer line extensions

Brand-building initiatives

Selectively promote brand in markets

with highest returns on investment

Stronger sustainable growth

Consistent profitable growth

High returns on marketing investments

Better brand positioning

Lorillard

Competition

VS.

Heavier promotions to buy market share

Significant discounting and free

goods promotions

Extensive and undifferentiated product

lines and offerings

Growth in volume at cost of profitability

Artificially high volumes

Price driven sales

Most profitable operating model in the industry

21

Focused Marketing Initiatives

Retail Promotions

Retail discounts in stores with highest

potential returns

Relationship Marketing

7.5 million adult smoker names (Lorillard

and competition) in database

Custom Newport Magazine mailings

Targeted incentive program mailings

–

Retail coupons

–

Sweepstakes offers

–

Premium incentives

Point-of-Sale Marketing

In-store advertising

In-store merchandising displays

Media Advertising

Selective print media

22

Strong Sales and Distribution Network

Effective Sales Force

Direct salaried

Aligned geographically to

support business

Customer Driven

Retail store oriented

Cover 279,000 stores per year

(95% of total Industry cigarette

sales)

Wholesale distribution

590 direct buying accounts

utilizing 950 distribution centers

Rapid

order

fulfillment

–

next

day delivery

Breakdown of Sales Channels by Volume

Convenience/

Gas

56%

Supermarket

3.4%

Cigarette Store

7.9%

Grocery 5.1%

Drug 2.6%

Liquor 4.4%

Other  9.9%

23

Market Development / Growth Strategy

Focus on developed and developing markets:

Focus on sales areas that exhibit a combination of Newport and Premium Menthol

strength

Focus on stores with highest penetration of menthol segment

Invest marketing dollars in identified markets / stores for most 

profitable

Newport

market share growth

Developed Markets

Northeast, Southeast

Upper Midwest

Developing Markets

Select States West of the

Mississippi

Western States

Menthol Overview

25

Western Myths

Lorillard has a weak sales force and distribution network

in the West

Myth #1    -

Newport has virtually no business in the West

Myth #2     -

Newport is the Menthol Category “Builder”

Myth #3     -

Lorillard is either unable or unwilling to build business in

the West

Myth #4     -

26

Menthol Cigarette Volume By State

Source: Lorillard Proprietary Retail Data

Billions

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Tot Menthol

Newport

Marlboro M

Kool

52 Weeks Ending May 31, 2008

27

Menthol Cigarette Volume By 23 Western States

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Total Menthol

Newport

Marlboro Menthol

Kool

Source: Lorillard Proprietary Retail Data

Billions

52 Weeks Ending May 31, 2008

28

0.1% to 0.5% Menthol Volume

0.6% to 0.9% Menthol Volume

1.0% and above Menthol Volume

Total

10

7

6

23

2.5

5.3

14.7

22.4

2.6

5.5

15.3

23.4

# of

States

Menthol

Volume

(billions)

*% Menthol

Of Total U.S.

Units

Western States

Percent Menthol Volume Contribution

52 Weeks Ending May 2008

Source: Lorillard Proprietary Retail Data

* 96 Billion Units Shipped

29

23 Western States

Newport

Marlboro Menthol

Kool / Salem

A/O Prem Menthol

Discount Menthol

100.00

17.03

22.83

20.68

15.34

24.12

100

84

113

102

76

119

Market

Share

Menthol

Segment 

Share

Index To

Menthol

Market

Menthol Share Overview

23 Western States

Source: Lorillard Proprietary Retail Data

3.45

4.62

4.19

3.11

4.89

30

Texas  [5.0% (M) Vol]

Newport

Marlboro Menthol

Kool / Salem

California  [4.4% (M) Vol]

Newport

Marlboro Menthol

Kool / Salem

100.00

19.46

21.20

23.46

100.00

26.13

23.91

17.59

100

86

94

104

100

137

125

92

Index To

Menthol

Market

Menthol Share Overview

Strong Western States

Source: Lorillard Proprietary Retail Data

4.40

4.80

5.31

4.99

4.56

3.36

Market

Share

Menthol

Segment

Share

31

Menthol Share Overview

Texas By City

Texas

Dallas

Ft. Worth

Houston

5.31

8.43

6.19

9.78

23.46

24.29

23.78

29.01

21.20

11.40

16.80

13.85

4.80

3.96

4.37

4.67

19.46

37.57

27.15

25.29

4.40

13.04

7.07

8.52

Newport

Marlboro Men

Kool

/ Salem

Segment

Share

Segment

Share

Segment

Share

Source: Lorillard Proprietary Retail Data

Market

Share

Market

Share

Market

Share

32

California

Los Angeles

Oakland

Sacramento

San Bernardino

San Diego

San Francisco

Menthol Share Overview

California By City

3.36

4.64

7.09

4.06

4.23

3.35

4.21

17.59

17.55

14.64

15.77

15.30

14.51

17.04

23.91

13.68

6.82

18.45

16.27

26.28

21.78

4.56

3.61

3.30

4.75

4.50

6.07

5.38

26.13

45.73

58.33

35.34

43.94

29.01

34.09

4.99

12.08

28.24

9.10

12.15

6.69

8.42

Segment

Share

Newport

Marlboro Men

Kool

/ Salem

Segment

Share

Segment

Share

Source: Lorillard Proprietary Retail Data

Market

Share

Market

Share

Market

Share

33

Idaho  [0.2% (M) Vol]

Newport

Marlboro Menthol

Kool / Salem

Montana  [0.1% (M) Vol]

Newport

Marlboro Menthol

Kool / Salem

100.00

4.52

26.35

15.15

100.00

6.30

27.64

17.88

100

38

219

126

100

52

228

148

Index To

Menthol

Market

Menthol Share Overview

Weak Western States

Source: Lorillard Proprietary Retail Data

.54

3.17

1.82

.76

3.35

2.17

Market

Share

Menthol

Segment

Share

34

Growth Opportunities and Strategies

New Products and

Line Extensions

Will introduce if additive to profitable growth

Will not dilute Newport brand equity

Explore Smokeless

Tobacco Opportunity

Through Swedish Match Partnership

Triumph Snus

Test marketing began in February 2008

Too early for conclusions

Leverage Lorillard sales and marketing

Capital efficient entry to smokeless

Potential Acquisition

Opportunities

Explore and evaluate potential targets

Expand product offering

Expand geographic reach

Must make sense for shareholder value

creation

Universe of targets is limited

Financial Overview

David H. Taylor

Executive Vice President, Finance and Planning, Chief Financial Officer

36

Most Profitable Operating Model

$27.21

$28.35

$30.10

$34.13

$36.58

$22.29

$23.72

$25.02

$26.29

$28.07

$9.02

$13.43

$17.06

$18.63

$20.79

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

2003

2004

2005

2006

2007

Adjusted Operating Profit

Per 1,000 Cigarettes

Lorillard

Philip Morris USA

Reynolds

Profitability of Lorillard vs. Competition

Lorillard operates the most profitable business model among major U.S. cigarette

companies, consistently outperforming key competitors

Note:

Based

on

Lorillard’s

analysis

of

competitors’

public

information.

37

Stable Volume and Growing Market Share

31.0

31.3

32.2

33.1

32.8

7.9%

8.4%

9.2%

8.8%

7.7%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2003

2004

2005

2006

2007

Volume

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Market Share

Impressive and sustained growth in Newport market share and cigarettes

shipped

(billions of domestic cigarettes shipped)

Source:  Domestic wholesale shipments per MSAI.

38

Summary Income Statement

Solid top-line and earnings profile

($ in millions)

2005

2006

2007

Net Sales

$3,568

$3,755

$3,969

% Growth

6.6%

5.2%

5.7%

Excise Taxes

676

699

688

Cost of Goods Sold

562

550

571

Settlement Costs

876

911

1,048

Gross Profit

$1,454

$1,595

$1,662

% Margin

40.7%

42.5%

41.9%

SG&A

370

354

388

Operating Income

$1,084

$1,241

$1,274

% Margin

30.4%

33.0%

32.1%

Net Income

$706

$826

$898

% Growth

10.0%

17.0%

8.7%

% Margin

19.8%

22.0%

22.6%

EBITDA

$1,132

$1,288

$1,314

% Growth

8.7%

13.8%

2.0%

% Margin

31.7%

34.3%

33.1%

39

Strong Cash Flow Generation

Lorillard has a history of generating strong and sustainable cash flow

($ in millions)

2005

2006

2007

Cash Flows from Operating Activities

$820

$778

$882

Less: Capital Expenditures

(31)

(30)

(51)

Free Cash Flow

$789

$748

$831

Less: Dividends to Loews

(646)

(783)

(1,170)

Free Cash Flow After Dividends

$143

($35)

($339)

40

Conservative Capitalization Profile

With $1 billion of new debt issuance, Lorillard’s debt / EBITDA would be ~0.8x

Balance preservation of financial flexibility and improving capital structure

($ in millions)

Q1 2008

Cash, Cash Equivalents and Marketable Securities

$1,607

Other Assets

1,143

Total Assets

$2,750

Debt

$0

Other Liabilities

1,852

Shareholder's Equity

898

Total Liabilities and Shareholder's Equity

$2,750

Credit Statistics

Debt / EBITDA

0.0x

Debt / Capitalization

0.0%

Lorillard

expects

to

issue

between

$750

million

-

$1

billion

of

debt

in

the

near

term

41

First Quarter 2008 Results

Net sales

Increase driven primarily by higher

average unit prices

Unit volume roughly flat, impacted by:

–

Downward wholesale inventory

adjustments

–

~200 million fewer promotional units

shipped

Gross profit unchanged

Increases in net sales offset by higher

State Settlement costs

Net income

Decline attributable to:

–

$13 million of expenses related to the

separation

–

$6 million in higher legal expenses

–

$22 million less investment income

($ in millions)

Q1 '07

Q1 '08

Net Sales

$913

$921

Excise Taxes

162

163

Cost of Goods Sold

134

135

Settlement Costs

249

257

Gross Profit

$369

$366

% Margin

40.4%

39.7%

SG&A

82

100

Operating Income

$287

$266

% Margin

31.4%

28.9%

Other Income (Expense), net

11

4

Income Taxes

(109)

(99)

Net Income

$189

$171

% Margin

20.7%

18.6%

EBITDA

$297

$275

% Margin

32.5%

29.8%

42

Outlook

Remainder of 2008

Level of competition will continue to be high

Lorillard cost structure will be impacted by:

–

Transaction costs

–

Incremental costs related to independence

–

Legal costs for Engle

Positive pricing impact beginning in May

Investment income impacted by nature and level of investments and rate environment

2008 and beyond

Revenue growth primarily net pricing

Settlement costs will continue to grow

Operating margins ~32%-33%

43

Outlook

Revenue Growth

Transition

Expenses

3.0% -

4.0%

~$25 million

Operating Margin

32% -

33%

2009 -

2012

3.0% -

4.0%

32% -

33%

~$9 million per year

2008

44

Long-Term Objectives

Revenue

Growth

EPS

Growth

Dividend

Yield

3% -

4%

5% -

7%

~5%

Total Shareholder Return

10% -

12%

Modest share repurchase

program funded with free

cash flow and debt issuance

Anticipated dividend payout

ratio of ~70% -

75%

45

Investment Highlights

Leader in the best performing segments of the cigarette market

Significant Newport brand equity

Continuous increases in share of market

Strategy has resulted in industry-leading relative profitability

Track record of strong financial performance

Experienced management team

Newly independent

status of Lorillard will provide financial flexibility to invest in

growth initiatives and to continue to generate value for shareholders

46

Reconciliation of Net Income to EBITDA

($ in millions)

2005

2006

2007

Q1 '07

Q1 '08

Net Income

$706

$826

$898

$189

$171

Add: Income Taxes

445

518

485

109

99

Other (Income) Expense, net

(67)

(103)

(109)

(11)

(4)

Operating Income

$1,084

$1,241

$1,274

$287

$266

Depreciation and Amortization

48

47

40

10

9

EBITDA

$1,132

$1,288

$1,314

$297

$275

Questions