CONSUMER CENTRICITY AT THE CORE
Natasa Milosevic
Senior Vice-President Marketing & Sales
JT International
May 8, 2023
© Copyright JT 2023

Consumer centricity powers our strategy
CONSUMER USAGE MOMENTS

CONSUMER TRENDS

Daily Routine & Other occasions

Better World

Wellbeing

Smarter Living

In control

Authentic

Experience+

CLOSE
OF DAYEVENTS &PARTIESSTARTOF DAYEVENING /LOUNGING

CONSUMER SEGMENTATION

IDLE
TIME

RELAXING
MOMENTSCOMMUTETIME

ROUTINE
BREAK

AFTER MEAL
/ DINNERREWARDFORTASKDRIVING

Conscious

Economizers

Socializers

Explorers

Confidents

Responsible

Combustibles© Copyright JT 2023

RRP

Tobacco Investor Conference

27

The Marketing & Sales strategic framework
JTI PURPOSE

M&S MISSIONCREATING FULFILLING MOMENTS

Creating leading power Brands & Experiences for the modern world

CREATING A BETTER FUTURE

STARTING POINT

Think

Consumer

COMBUSTIBLESCOMBUSTIBLES

RRP

RRP

Global Flagship Brands

Build a Global Power Brand

Maximize Profitable GrowthThink
Think
Think

Consumer
Consumer
Consumer

Exploratory

Drive

Deliver

Shape

Digital & Data Strategy

Executional Excellence

The Future© 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 Conference28

Combustibles

Maximize Profitable Growth© 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

Proven combustibles strategy fuels growth
FOCUS ON GLOBAL FLAGSHIP BRANDS

Profitable SoM growth powered by GFBTop-30 SoM1) , %

35.0%
32.9%

Two of the Top 3 cigarette brands in the world
Brand SoM2) , %GFB as % of total volume

35.6%

69%

7.6%

33.6%
3.5%

31.4%
+7pp vs. 20182018
© Copyright JT 2023

201920202021

2022

Note: 1) Based on cigarettes + fine cut in Top-30 markets 2) Based on cigarettes + fine cut in 71 markets

1.9% 1.9%
#2

#3

#10

#11

Tobacco Investor Conference30Consumer centric portfolio to maximize potential
TARGETED CONSUMER PORTFOLIO
Portfolio
Consumer Map

PORTFOLIO STRATEGYPORTFOLIO OPTIMIZATION

Complementary
Brands Positioning

Simplification
Principles
PREMIUM
EXPERIENCELEADINGPORTFOLIO

Innovation
Territories

Multi-level
Offering by Brand
Base© Copyright JT 2023

Longs

GLOBALICONMODERN
VALUE

CompactBig Packs

FCT1Focus
on GFBs

2

Rationalize“tail brands”
and SKUs

3

Capitalize onlocal needs

Tobacco Investor Conference

31Build a Global Power Brand© 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

Presentation title in footer

32

Rapidly growing consumer base
Ploom User
GrowthPloom HTS
Share of Segment

Ploom X
Awareness2)

1.2MM

Doubled+45% YoY2022 vs 2020

+30%

Robust adoption
despite highly
competitive market

High regular andexclusive usage1)

Jan’23 vs Nov’21

Growing awarenesswith high potential© Copyright JT 2023

Note: Based on internal estimates 1) Occasional <=50%, 50% < Regular <100%, Exclusive = 100% 2) Prompted awareness incremental growth
Consumers refers to existing adult smokers or users of other heated tobacco products. Activities subject to marketing principles and local law

Tobacco Investor Conference33

Effective consumer targetingCore Adult Target Audience

Source of Business and Late AdoptersExplorers

Conscious

Data-driven segmentation toidentify core audience
Confidents Responsibles

Economizers

Socializers

Prioritizing most progressive
consumers that are open to RRPInterest in trends and new products

Creating scale through thespillover effectSocially active, urban citizens
Express themselves with brands© Copyright JT 2023

Consumers refers to existing adult smokers or users of other heated tobacco products. Activities subject to marketing principles and local law

Tobacco Investor Conference34Ploom: creating modern pleasure
Our mission

Designing the futureof mindful pleasure, forthe modern consumer© Copyright JT 2023

Establishing a premium brand image

Achieved brand image attributes

PowerfulImagery

StylishFulfilling
Moments

Credible

Innovation

Advanced

Note: This slide is not intended to promote sales of tobacco or nicotine containing products or encourage smoking or using nicotine containing products
Consumers refers to existing adult smokers or users of other heated tobacco products. Activities subject to marketing principles and local law

Tobacco Investor Conference35Consumer-centric strategy
123Power Brand& Ecosystem

Connected
Consumer Journey

Omnichannel
Activation

Discover

Build Ploom brand, supported
by premium line of products© Copyright JT 2023

Consider

BuyLive

Handholding consumers
across the whole transition journey

Advocate

Always-on activation
for a superior brand experience

Note: This slide is not intended to promote sales of tobacco or nicotine containing products or encourage smoking or using nicotine containing products
Consumers refers to existing adult smokers or users of other heated tobacco products. Activities subject to marketing principles and local law

Tobacco Investor Conference36

Maximizing acquisition and brand loyalty
Discover

Building strong
awareness

ConsiderBuy

Awareness

Acquisition

Digital marketing | OOH1) | Press

Offline and Online retail | Referral

AdvocateLive

Brand loyalty
Loyalty Club | Events

Seamless route toconsumer

Qualitative consumer
acquisition

Activating brand loyalty
from Day 1© 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
Consumers refers to existing adult smokers or users of other heated tobacco products. Activities subject to marketing principles and local law

Tobacco Investor Conference1) Out Of Home37Immersive retail experiences
Flagship Store

Brand Expression & Brand Experience

HighBrand StoreFLAGSHIP STORE
The ultimate brand experience

BRAND STORE
The full brand experience

POP-UP STORE
To provide curiosity
SHOP-IN-SHOP
Bring the brand to life

Pop-up StoresShop-in-shop

CONVENT IONAL RETAIL
Low© Copyright JT 2023

Consumer reachHigh

Note: This slide is not intended to promote sales of tobacco or nicotine containing products or encourage smoking or using nicotine containing products
Consumers refers to existing adult smokers or users of other heated tobacco products. Activities subject to marketing principles and local law

Tobacco Investor Conference

38Personalized digital experiences powered by data

Driving Awareness, Acquisition and Retention

ClubClubSocialImplementing Global Digital Ecosystem
Media

Connecting offline with online
Consumer
Care
Ploom website

Personalized with A.I.

eCRM1)
Own Retail© Copyright JT 2023

3rd-party ECom

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 Conference
Consumers refers to existing adult smokers or users of other heated tobacco products. Activities subject to marketing principles and local law 1) Electronic consumer relationship management

39Ploom Club: growing community of loyal users

Maximizing brand loyalty

416K
Building relationship &brand top-of-mind relevanceEnter the Clubmembers
by end 2022

Facilitating efficient andqualitative consumer acquisition+72%‘22 vs ‘21
Earn and Spend© Copyright JT 2023

Invite friends

Note: This slide is not intended to promote sales of tobacco or nicotine containing products or encourage smoking or using nicotine containing products
Consumers refers to existing adult smokers or users of other heated tobacco products. Activities subject to marketing principles and local law

Tobacco Investor Conference40

Best in class consumer care
Global Platform Model

Consumer-centricity in action
Face of the brand and thecompany, connecting with consumers

Go beyond expectations
handholding consumers along journey

GloballyconsistentBest-in-classplatform

Aiming for 24/7
availability

Agile &Scalable

Multi-channel
from phone calls to live chatCost
efficient© Copyright JT 2023

Consumers refers to existing adult smokers or users of other heated tobacco products. Activities subject to marketing principles and local law

360o
integrated

Tobacco Investor Conference41

Ready for global expansion

Building an aspirational brand
New mindset & capabilities (on & offline)
Powerful launches
Superior omnichannel consumer experience
Focusing on consumer retention

Preparing
US launch

Accelerating
marketroll-outs

Building on
success inJapan

Constantly bringing product innovations© Copyright JT 2023

Tobacco Investor Conference42Ploom video

VIDEO© Copyright JT 2023

Tobacco Investor Conference

43This video was prepared for JT Group Tobacco Investor Conference May 8, 2023. This video is not intended to promote sales of tobacco or nicotine containing products or encourage smoking or using nicotine containing products.