Investing and leading through change
Daniel SciammaGeneral Manager, UK

Caution on Forward-Looking Statements
Today’s presentations contain forward-looking statements. These statements appear in a number of places in these presentations and include statements regarding the intent, belief, or current andfuture expectations of our management with respect to our business, financial condition and results of operations. In some cases, you can identify forward-looking statements by terms such as“may”, “will”, “should”, “would”, “expect”, “intend”, “project”, “plan”, “aim”, “seek”, “target”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or the negative of these terms or other similarterminology. These statements are not guarantees of future performance and are subject to various risks and uncertainties. Actual results, performance or achievements, or those of the industries
in which we operate, may differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. In addition, these forward-looking
statements are necessarily dependent upon assumptions, estimates and data that may be incorrect or imprecise and involve known and unknown risks and uncertainties. Forward-looking
statements regarding operating results are particularly subject to a variety of assumptions, some or all of which may not be realized.

Risks, uncertainties or other factors that could cause actual results to differ materially from those expressed in any forward-looking statement include, without limitation:(1) decrease in demand for tobacco products in key markets;(2) restrictions on promoting, marketing, packaging, labeling and usage of tobacco products in markets in which we operate;(3) increases in excise, consumption or other taxes on tobacco products in markets in which we operate;(4) litigation around the world alleging adverse health and financial effects resulting from, or relating to, tobacco products ;(5) our ability to realize anticipated results of our acquisition or other similar investments;(6) competition in markets in which we operate or into which we seek to expand;(7) deterioration in economic conditions in areas that matter to us;(8) economic, regulatory and political changes, such as nationalization, terrorism, wars and civil unrest, in countries in which we operate;(9) fluctuations in foreign exchange rates and the costs of raw materials; and(10) catastrophes, including natural disasters.

© Copyright JT 2016.

London – September 23, 2016

JT Investor Meeting2This presentation contains images or packages of our brands in some slides.
Those slides have been included exclusively to illustrate JT Group’s strategy orperformance to our investors. They are not intended to be used for any otherpurpose.

© Copyright JT 2016

London – September 23, 2016

JT Investor Meeting3

Strong market fundamentals…
Top-5 tobacco industry value markets• 5th largest market in terms of industry value

228 $Bn

CN• Predictable excise tax increases
94 $BnUS• Total industry volume decline slowing in 1H 2016
JP32 $Bn• RMC industry volume of 31.8 BnU in 2015

DE27 $Bn

UK23 $Bn• Fine cut industry volume of 15.3 BnU in 2015
• E-vapor positive momentum continues

JT Investor Meeting© Copyright JT 2016
London – September 23, 2016
Source: Internal estimates. Note: Tobacco industry retail value in 2015 (including cigarettes and fine cut where relevant). Units of local currency per USD: GBP = 0.654; EUR = 0.902; JPY = 121.044; CNY = 6.228

4

…Yet increasing challenges

Key regulatory changes

Pictorial
healthwarnings

Display ban
introduction

EU TPD2&plainpackaging

NUKDP evolution(1)14.9%

Price segments dynamics
16.0%

34.7%

29.7%

27.1%

Mid-price& above

33.7%

37.7%

38.8%

Value& below

31.6%

32.6%

34.1%

Fine cut2014

2015

H1 201610.2%+5.8pp200920122016

2013© Copyright JT 2016
Source: Internal estimates. (1) Non UK Duty Paid as % of total cigarette consumption

2014

London – September 23, 2016

2015

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JTI: Continuous growth & UK leadership since 2015
JTI Share of market evolution

36.9%

38.3%

39.4%

40.8%

41.3%

41.9%

42.2%

2007

2011

2012

2013

2014

2015

1H 2016

JTI Share of value evolution

39.4%

40.5%

41.5%

42.3%

42.6%

35.7%

38.7%

2007

2011

2012

2013

2014

2015

1H 2016© Copyright JT 2016
Source: Nielsen

London – September 23, 2016

JT Investor Meeting6Strategic growth drivers

London – September 23, 2016

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Developing leading brands across all categories
Cigarettes

Fine CutEmerging Products

Focused investments behind strong equity brands© Copyright JT 2016

London – September 23, 2016

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Sterling: Driving cigarettes growth since 2012
Sterling SoM evolution (RMC)• #1 Cigarette brand since 2012
• #1 Capsule offering: Sterling Fresh Taste+9.1pp• Success driven by:
12.0%

13.2%

• Consumer-driven innovation• Balanced pricing

4.1%
2007
© Copyright JT 2016
Source: Nielsen• Brand equity2012

2015
London – September 23, 2016

JT Investor Meeting9Amber Leaf: UK’s biggest fine cut and the largest brand in the market
Amber Leaf SoM evolution (FCT)• Strong #1 fine cut (FCT) brand in the UK• Leading tobacco brand since 2012+16.4pp• Success driven by:
34.3%

38.0%
• Effective pricing

21.6%• Optimum product offering• High quality

2007© Copyright JT 2016
Source: Nielsen

2012

2015
London – September 23, 2016

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B&H Blue: Building success despite regulatory challenges
B&H Blue Share of market & Share of segment(1)719.2%

SoSSoM

65.0%

5• UK’s fastest growing brandpost retail display ban

201541032• Excellence in trademarketing capabilities

2.8%

4.3%

1SoS (%)

SoM (%)

13.0%

50.6%
00May

Aug

Nov

Feb

2014
© Copyright JT 2016
Source: Nielsen. (1) Share of ‘ultra value’ segment

MayAug2015

Nov

FebJun2016
London – September 23, 2016

JT Investor Meeting11Superior trade capabilities providing strong presence at retailKey retail channels

Share of retail

JTI SoM, 2015

MultipleGrocers

28.7%

42.1%

Gas &Convenience

23.5%

41.2%

+0.9pp

Independents& Symbols

47.8%

42.2%

+1.0pp© Copyright JT 2016
Source: Nielsen market track FY 2014 & 2015 sales values for combined RMC & fine cutLondon – September 23, 2016

vs. 2014+0.5pp

JT Investor Meeting

12Partnership with trade through change
ONLINE TRADE SUPPORT & LOYALTY PROGRAMS© Copyright JT 2016

London – September 23, 2016

JTI TRADE APP

JT Investor Meeting

13

Focused investment generating high returns
Core revenue per thousand(Index, 2007=100)• Unit price & EBITA almost doubled
since the Gallaher acquisition

100

114

181

x2
• Sustainable growth offsetting

2007

2011

2015

industry volume decline, driven by:EBITA(Index, 2007=100)• Strong brands in all categories• Robust share and pricing gains
197

100

106

2007

2011

x2

• Disciplined cost management

2015© Copyright JT 2016
Note: Core revenue per thousand cigarette equivalent units and EBITA on a local currency basis

London – September 23, 2016

JT Investor Meeting

14

Strong confidence in JTI’s ability to continue growing aheadTobacco
manufacturer
JTI• Market leadership• Share and profitability growthTobacco
brand
Amber Leaf

• Brand portfolio strength• Trade marketing excellence

Cigarette
brandSterling• Highly talented workforce© Copyright JT 2016

London – September 23, 2016

JT Investor Meeting15