JT GroupPriorities for Sustainable Growth
Masamichi Terabatake

JT Group President & Chief Executive Officer

Forward-Looking Statements
This presentation contains forward-looking statements. These statements appear in a number of places in this document and include statements regarding the intent, belief, orcurrent and future 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” orthe negative of these terms or other similar terminology. These statements are not guarantees of future performance and are subject to various risks and uncertainties. Actualresults, performance or achievements, or those of the industries in which we operate, may differ materially from any future results, performance or achievements expressed orimplied by these forward-looking statements. In addition, these forward-looking statements are necessarily dependent upon assumptions, estimates and data that may beincorrect or imprecise and involve known and unknown risks and uncertainties. Forward-looking statements regarding operating results are particularly subject to a variety ofassumptions, 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)

increase in awareness of health concerns related to smoking;(2)

regulatory developments; including, without limitation, tax increases and restrictions on sales, marketing, packaging, labeling and use of tobacco products, privately
imposed restrictions and governmental investigations;(3)litigation around the world alleging adverse health and financial effects resulting from, or relating to, tobacco products;(4)

our ability to further diversify our business beyond the traditional tobacco industry;(5)

our ability to successfully expand internationally and make investments outside Japan;(6)

competition and changing consumer preferences;(7)

our ability to manage impacts derived from business diversification or business expansion;(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 2018

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JT Investor Conference2Our Management Policy

JT Investor Conference

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Management Principle

4S MODEL
We strive to fulfill our responsibilities to our•valued Consumers,•Shareholders,•Employees, and•the wider Society,

Shareholders

Consumers

carefully considering the respective interests ofthese four key stakeholder groups, and exceeding

Employees

Society

their expectations wherever we can© Copyright JT 2018

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Strategic framework and resource allocation

Strategic framework

Quality
top-line growthᶣCompetitive
cost baseᶣResource allocation

Based on the 4S model, JT Group allocates resources to:
1. Prioritize business investments to fuel growth in the tobacco
business
2. Enhance shareholder returns by delivering a sustainable andsteady increase of the Dividend Per Share in line with theRobustbusiness foundations© Copyright JT 2018

Group’s mid- to long-term profit outlook

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6Business Plan 2018

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Mid- to long-term target and role of each business
Mid to high single-digit profit growth* in the plan period
1. Reduced-Risk Products (RRP)**TOBACCO BUSINESSJT Group’s profit growth engine• Drive the future growth of tobacco business
2. Combustible Tobacco Products• Remain the platform of profitability

PHARMACEUTICAL & PROCESSEDFOOD BUSINESSES•

Continue to deliver profit

Complement profit growth•

Grow via top-line expansion© Copyright JT 2018London – June 5, 2018

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9* Adjusted operating profit growth at constant FX in the mid- to long-term. ** RRP / Reduced-Risk Products: products with potential to reduce the risks associated with smoking.

Business Plan 2018 Priorities - Growth opportunity of RRP
Drive the future growth of the Group• Fulfill diverse consumer needs with the highest quality RRP portfolio• Long and extensive experience in RRP development• Develop a global RRP portfolio focusing on features that matter to consumers• First priority is to achieve RRP leadership in Japan• Multi-product portfolio with different heating profiles• Aim to gain 40% share of RRP category by the end of 2020

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8Business Plan 2018 Priorities - Organic and M&A expansion

Empower JT Group’s growth engine• Prioritize investments toward organic growth and M&A to:• Further expand our presence in emerging markets• Consolidate our leading position in established markets• Disciplined approach in pursuing M&A opportunities and integration process© Copyright JT 2018

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9Delivering on 2018 objectives• Solid start of the year to deliver on our 2018 full year target• Japanese domestic tobacco business• Capsule production capacity enhancements being delivered as planned• National roll-out of Ploom TECH started successfully• Development of new RRP offers on schedule• Robust market share level in combustibles• International tobacco business• Strong top-line growth driven by pricing is on track• Integration of newly acquired assets are on or above plan
• On track to deliver JTG’s 15th consecutive year of Dividend Per Share increase© Copyright JT 2018

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Closing Remarks

Aim to be the leading global tobacco company

Our long-term vision remains to become the #1 global tobacco company,
by offering consumers freedom of choice• Continuous business investment in both combustibles and RRP to significantly
strengthen JT Group’s portfolio• Strong leadership to enhance organizational capabilities© Copyright JT 2018

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