A PURPOSE AND A STRATEGYFIT FOR THE FUTURE
Eddy Pirard
President & Chief Executive Officer
JT International
May 8, 2023
© Copyright JT 2023

A new purpose to guide JT’s tobacco business long-term

Creating fulfilling moments.
Creating a better future.

© Copyright JT 2023

Tobacco Investor Conference5Clear growth opportunities across both categories
Industry net revenues
Combustibles

RRP

Variance
2022-35+$17Bn+$48Bn

CAGR
2022-35+1%+8%© Copyright JT 2023 Note: Based on internal forecasts. Industry net revenues excluding China

Tobacco Investor Conference

6Combustibles to remain the largest category
Industry volume, trillion units

3.0
5%

88%

2022

2.9

CAGR-1%

7%2025© Copyright JT 2023 Note: Based on internal forecasts. Industry volume excluding China

2.7

2.6

12%

85%

Combustibles

CAGR
22-35

HTS

16%

+8%

79%

74%

-2.5%

2030

2035

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OralTobacco Investor Conference7Within the growing nicotine revenue pool, HTS forecasted
to outpace combustibles in future value creation…
Industry net revenues, $Bn
CAGR
+3%

200Variance
22-35

174

151
1359%

17%

11%

22%

+$33Bn+$17Bn

79%

75%

69%

62%

2022

2025

2030

2035

Combustibles© Copyright JT 2023 Note: Based on internal forecasts. Industry net revenues excluding ChinaHTS

E-Vapor

Oral
Tobacco Investor Conference

8…with significant opportunities and differences by cluster
2035 industry net revenues, %Asia

1)

EMA

Western Europe

Combustibles© Copyright JT 2023 Note: Based on internal forecasts

1) Eastern Europe, Middle East, Africa & Americas (EMA)HTS

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Oral
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9Our purpose and industry view shape our strategy…
Creating fulfilling moments
Creating a better future© Copyright JT 2023

COMBUSTIBLES

RRPMaximize top-line and ROI

Prioritize investments in HTS

 Sustained share gains

 Ploom X geographic expansion

 Capitalize on pricing opportunities

 Enhanced capabilities

 Disciplined approach to investments

 Exploratory initiatives beyond HTS

Tobacco Investor Conference

10…and requires a targeted consumer-centric productportfolio
Combustibles

HTS

Other RRPs

E-vapor

Oral

Infused© 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

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11Combustibles: Proven track record & ongoing momentum
Tobacco AOP2), %Top-30 SoM1), %+4.2ppAverage+10.1%

20182019

2020

2021

2022

2022

2018

2019

2020

2021

2022

• Competitive and well positioned brand portfolio• Historical delivery on the high-end of Group’s target• Ongoing investments in GFB• Maximize pricing opportunities• Best-in-class execution• Drive earnings through a diverse geographic footprint• Share of market gains ambition• Mid to high single digit AOP growth ambition© Copyright JT 2023

Note: 1) Based on cigarettes + fine cut in Top-30 markets
2) Tobacco business AOP variance at constant FX. FY17-21 equal to the sum of international and domestic tobacco businesses for illustration purposes

Tobacco Investor Conference

12RRP: Targeted investments fueling HTS growth
RRP Volume, BnUHTS SoS in Japan, %
9.3%
7.7%

6.9

7.1

2020

2021

7.9

5.8
4.7

4.5%
2.8%
1.1%
2018

2019

2020

2021

2022

Q1 23• Invest towards HTS• Ploom X expansion in Japan2018

20192022• Innovations to strengthen HTS and other RRPportfolio• Build capabilities and talent• Aggressive targeted Ploom X geo-expansion• Foundation towards mid-teens HTS SoS1) ambition© Copyright JT 2023

• Double RRP core revenue by 20252) and achieve
breakeven3) across the RRP category by 2028

Note: 1) In key markets, including Japan and Italy 2) Versus 2022
3) Breakeven at brand contribution level representing gross profit less commercial expenditure and before allocation of overheads

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13

RRP: Ambition to outperform HTS segment growth
HTS share of industry volume

HTS share of JT volume2x>6x2022

2028

2022

2028
Mid-teens SoS in HTS1)© Copyright JT 2023 Note: Internal forecasts 1) In key markets, including Japan and Italy

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14

RRP: Going beyond organic to drive growth and acceleratelearnings• Joint venture with Altria to market and commercialize HTS
products in the US with Ploom branded devices and Marlboro
branded consumables• On track to submit PMTA for the latest version of Ploom HTS
products in the first half of 2025 and MRTP by end of 2025
• Memorandum of Understanding to explore other RRP1)

opportunities with Altria globally© Copyright JT 2023 Note: 1) All third-party trademarks remain the property of their respective owners

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