TOBACCO INVESTOR CONFERENCEJT GROUP
May 8, 2023

© Copyright JT 2023

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, or current and future expectations of our management with respect to our business, financial condition and results ofoperations. 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 similar terminology. Thesestatements 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 bythese forward-looking statements. In addition, these forward-looking statements are necessarily dependent upon assumptions, estimates and datathat 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) 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, changing consumer preferences and behavior;(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 2023

Tobacco Investor Conference2AgendaTime (CET)
12:00

13:30

14:00
© Copyright JT 2023

SessionSpeakers

Conference starts
A purpose and a strategy fit for the future

Eddy Pirard

Funding our RRP expansion

Vassilis Vovos

Consumer centricity at the core

Natasa Milosevic

Growing in RRP

Takehiko Tsutsui

Q&A

N. Kato, E. Pirard, V. Vovos, N. Milosevic, T. Tsutsui

Closing remarks

Eddy Pirard

Conference ends
Tobacco Investor Conference3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+$48BnCAGR
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

E-Vapor

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

200

Variance
22-35

174

151
135
9%

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 China

HTS

E-Vapor

Oral
Tobacco Investor Conference8

…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

E-Vapor

Oral
Tobacco Investor Conference9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

Tobacco Investor Conference

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

2018

2019

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 Japan

2018

2019

2022

• Innovations to strengthen HTS and other RRP
portfolio• 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

Tobacco Investor Conference

13

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

HTS share of JT volume

2x

>6x

2022

2028

2022

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

Tobacco Investor Conference

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 RRP

1)

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

Tobacco Investor Conference

15

FUNDING OUR RRP EXPANSION
Vassilis Vovos
Executive Vice-President & Chief Financial Officer
JT International
May 8, 2023
© Copyright JT 2023

Consistently delivering solid performance
2018–2022 average annual growth1)

Volume+1%

Core
Revenue+6%© Copyright JT 2023 Note: FY17-21 equal to the sum of international and domestic tobacco businesses for illustration purposes

1) Tobacco business Core Revenue and AOP variance at constant FX

AOP

+10%

Tobacco Investor Conference17Business Plan 2023: building the foundation for growth2023 – 2025

• Ploom X expansion supported by significant
investment over the next three years• Quality topline growth and increasing combustibles
return on investment will provide funding for RRP• Continued efficiency initiatives drive a competitive
cost base while enhancing strategic capabilities• Low-single digit AOP growth over next three years
with upside potential as RRP reaches scale© Copyright JT 2023 Note: Tobacco business Core Revenue and AOP variance at constant FX

VolumeStableCore Revenue

Mid-single digit growth

AOP

Low-single digit growth

Tobacco Investor Conference18

Continue to drive quality top-line growth
Price / mix, % of Core Revenue1)2023 - 2025

Average 6.4%
SoM
growthIndustry
volume

-2%
CAGR
2018

2019

© Copyright JT 2023 Note: 1) Price / mix contribution to core revenue growth at constant FX

FY18-21 price/mix equal to the sum of international and domestic price/mix for illustration purposes

2020

2021

2022
Tobacco Investor Conference19Clear market roles to maximize combustibles ROI
Market strategic roles guiding decision-making
towards sustainable growthMarket role

EARNINGSEARNINGS & SoM

SoM

Focus

Prioritize sustainableearnings performance

Balance sustainableearnings and shareperformance

Build consumer base formid- to long-term
profitability growth% of 2022 Volume

43%

47%

10%

© Copyright JT 2023

Tobacco Investor Conference

20Strengthen our competitive cost base…

Next generation
Global Business
Services
Transformation
initiatives
delivering over
¥50Bn by 2023

© Copyright JT 2023

Efficiency focus
through ourkaizen mindset¥20Bn
supply chain
efficiencies by2024

Tobacco Investor Conference

21

…while enhancing strategic capabilities

Product
innovation

Reducedrisk science

Digital

One Tobacco© Copyright JT 2023

Tobacco Investor Conference22Focused RRP investment…
RRP investment composition
8%• Invest over ¥300 billion in RRP between 2023-2025• Main area of focus is HTS• Support geo-expansion and share gains

24%

67%

• Leverage our commercial organization and traderelationships in HTS launch markets

2023-2025
Capex© Copyright JT 2023

• Investment set aside for exploratory RRP
segments

R&D• Established manufacturing capacity for planned
expansion

Commercialization
Tobacco Investor Conference23

…towards 2028 RRP breakeven
Building scale through geo-expansion

Enhancing the positive revenue & margin mix1)

>6x

>1.6x

>1.5x

>3x

2022

2025

2028

HTS volume© Copyright JT 2023

Note: 1) Revenue / GM per unit based on the first wave of rollout countries

Cigarette

HTS

Revenue per unit

Cigarette

HTS

Gross margin per unit
Tobacco Investor Conference24Intact growth algorithm

Foundation for future profit generation

Quality topline growth

Focus on return on
investment in
combustibles

Competitive cost baseand continued
capability
enhancement

Focused RRP
investment towards
profitability growth

Mid to high single digit AOP growth1)© Copyright JT 2023 Note: 1) At constant FX

Tobacco Investor Conference

25

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 Growth

Think
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

2019

2020

2021

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

GLOBALICON

MODERN
VALUE

Compact

Big Packs

FCT

1

Focus
on GFBs

2

Rationalize“tail brands”
and SKUs

3

Capitalize on
local 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 Adopters

Explorers

Conscious

Data-driven segmentation to
identify 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

Powerful
Imagery

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
12

3Power Brand& Ecosystem

Connected
Consumer Journey

Omnichannel
Activation

Discover

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

Consider

Buy

Live

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 Home

37

Immersive retail experiences
Flagship Store

Brand Expression & Brand ExperienceHigh

Brand 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

Club
Club

SocialImplementing 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 Club

members
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 Conference

40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

Globally
consistentBest-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 inJapanConstantly 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.

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

10

9.3%

9
8
7

relaunch(Mar’23)

6
5
4
3

4.0%

2
1

launch (Jul’21)

0

Q2

Q3
2021

© Copyright JT 2023

Q4

Q1

Q2

Q3

2022

Q4

Q1
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 Conference47

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

59%

77%

28
14
May

10
4
Present© 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
2019

2020

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

TOP

TOP

2020

2021

2022

100

50

50

Projects on-going
All RRPs

Exploratory

HTS
2016

© Copyright JT 2023

Note: 1) # of 1st (priority) applications in each year in the RRP field
2) 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 Conference

53

QUESTIONS AND ANSWERS

JT Group | Tobacco Investor Conference

May 8, 2023
© Copyright JT 2023