GROWING IN RRP

Takehiko Tsutsui
Executive Vice President Reduced-Risk Products
JT International
May 8, 2023
© Copyright JT 2023

Ploom X: step-change evolution in HTS
Gen 2 (2020)

Gen 3 (2021)• Critical features of the device andtobacco sticks improved:• Heating engine, heating profile andtemperature for longer duration &consistency• Design & aesthetics, in a smaller size
• Seamless user experience and interaction

Ploom S 2.0

Ploom model S

Ploom X

(Japan)(outside Japan)(Global)• New blends for enhanced tobacco flavor/aroma• Longer sticks for better usability© Copyright JT 2023

Note: This slide is not intended to promote sales of tobacco or nicotine containing products or encourage smoking or using nicotine containing products

Tobacco Investor Conference45Ploom X: significant improvement in consumer metrics
Consumer satisfaction

Consumer retention

Consumer engagement

C-SAT 1)

Retention rate 2)

Net Promoter Score 3)+14%+50%+10pp

Ploom S 2.0 Ploom X© Copyright JT 2023

Ploom S 2.0

Ploom X

Ploom S 2.0 Ploom X

Note: 1) Consumer Satisfaction score (index): # of users who answered satisfied / # of users who answered the questionnaire (source: internal estimates)2) # of users / # of consumer who have tried the product before (source: internal estimates)
3) Measurement taken from asking customers how likely they are to recommend the product to others on a scale of 0-10 (source: internal estimates)

Tobacco Investor Conference46Ploom X: improving performance in Japan
Share in HTSMEVIUS relaunch in Mar’23

109.3%

987

relaunch(Mar’23)

6543

4.0%

21launch (Jul’21)

0Q2Q32021© Copyright JT 2023

Q4Q1

Q2

Q32022Q4Q12023

Note: This slide is not intended to promote sales of tobacco or nicotine containing products or encourage smoking or using nicotine containing products

Tobacco Investor Conference47

Ploom X: accelerating global expansion# of markets to launch Ploom X
2022 Global HTS volume market coverage

59%

77%

28
14May

104Present© Copyright JT 2023

2023

2024

Total
Tobacco Investor Conference48Ploom X: consistent execution in new market launches
UK / London© Copyright JT 2023

Italy / Milan

Lithuania / Vilnius

Note: This slide is not intended to promote sales of tobacco or nicotine containing products or encourage smoking or using nicotine containing products

Tobacco Investor Conference49HTS: product improvement and innovation
20192020

2021

2022

2023

Ploom X 3)

Gen 3

Ploom S 2.0 1)

Ploom model S 2)

Gen 2

Ploom S 1)

Gen 1
© Copyright JT 2023

• Improved sensorial delivery• 20 sticks per charge• 4’30” session time• 30” heat-up time

• Improved sensorial delivery• More constant vapor intensity• 5’00” session time• 25” heat-up time
• Smaller size
• Improved design & aesthetics• Customization

Note: This slide is not intended to promote sales of tobacco or nicotine containing products or encourage smoking or using nicotine containing products
1) For Japan 2) Outside Japan 3) Global

Tobacco Investor Conference50Exploratory RRP: innovation & consumer learnings continue
Infused tobacco

Nicotine pouches

E-vaporNEXT GENERATIONPRODUCT UPGRADE

PRODUCT UPGRADE© Copyright JT 2023

Note: This slide is not intended to promote sales of tobacco or nicotine containing products or encourage smoking or using nicotine containing products

Tobacco Investor Conference51

Innovation initiatives: endeavors for the future pipelines
RRP patent filings 1)

Technology / research initiatives

Recognition by EPO 2)

90+TOP

TOPTOP

2020

2021

2022

10050

50

Projects on-going
All RRPs

ExploratoryHTS
2016© Copyright JT 2023

Note: 1) # of 1st (priority) applications in each year in the RRP field2) Ranking of the main applicants at the European Patent Office (EPO)

2017

2018

2019

Tobacco Investor Conference

52

Science: at the center of our reduced risk efforts• Holistic approach from fundamental
scientific research to product performanceassessments

Reduced risk efforts 1)• Addressing reduced risk as one of the key
consumer drivers• Readiness for potential future regulatory
requirements• Active stakeholder engagement with
reduced risk scientific evidence© Copyright JT 2023

Note: 1) Please refer to www.jt-science.com for more details

Tobacco Investor Conference53