Japan Tobacco Inc. · TSE:2914

Japan Tobacco — Tobacco Investor Conference 2023

12 slides from Japan Tobacco's conference presentation, May 8, 2023

  1. Slide 1: A Purpose and a Strategy Fit for the Future

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

  2. Slide 2: A new purpose to guide JT's tobacco business long-term

    A new purpose to guide JT’s tobacco business long-term Creating fulfilling moments. Creating a better future. © Copyright JT 2023 Tobacco Investor Conference 5

  3. Slide 3: Clear growth opportunities across both categories

    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

  4. Slide 4: Combustibles to remain the largest category

    Combustibles to remain the largest category Industry volume, trillion units CAGR CAGR 3.0 -1% 22-35 2.9 2.7 2.6 5% 7% 12% 16% +8% 88% 85% 79% 74% -2.5% 2022 2025 2030 2035 Combustibles HTS E-Vapor Oral © Copyright JT 2023 Note: Based on internal forecasts. Industry volume excluding China Tobacco Inv

  5. Slide 5: Within the growing nicotine revenue pool, HTS forecasted to outpace combustibles in future value creation

    Within the growing nicotine revenue pool, HTS forecasted to outpace combustibles in future value creation… Industry net revenues, $Bn Variance 22-35 CAGR 200 +3% 174 151 135 22% +$33Bn 17% 11% 9% 75% 69% 62% +$17Bn 79% 2022 2025 2030 2035 Combustibles HTS E-Vapor Oral © Copyright JT 2023 Note: Based

  6. Slide 6: …with significant opportunities and differences by cluster

    …with significant opportunities and differences by cluster 2035 industry net revenues, % 1) EMA Asia Western Europe Combustibles HTS E-Vapor Oral © Copyright JT 2023 Note: Based on internal forecasts Tobacco Investor Conference 9 1) Eastern Europe, Middle East, Africa & Americas (EMA)

  7. Slide 7: Our purpose and industry view shape our strategy…

    Our purpose and industry view shape our strategy… Creating fulfilling moments Creating a better future COMBUSTIBLES RRP Maximize top-line and ROI Prioritize investments in HTS  Sustained share gains  Ploom X geographic expansion  Capitalize on pricing opportunities  Enhanced capabilities  Disci

  8. Slide 8: …and requires a targeted consumer-centric product portfolio

    …and requires a targeted consumer-centric product portfolio 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 Co

  9. Slide 9: Combustibles: Proven track record & ongoing momentum

    Combustibles: Proven track record & ongoing momentum Top-30 SoM1), % Tobacco AOP2), % +4.2pp Average +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 •

  10. Slide 10: RRP: Targeted investments fueling HTS growth

    RRP: Targeted investments fueling HTS growth HTS SoS in Japan, % RRP Volume, BnU 9.3% 7.9 6.9 7.1 7.7% 5.8 4.7 4.5% 2.8% 1.1% 2018 2019 2020 2021 2022 Q1 23 2018 2019 2020 2021 2022 • Invest towards HTS • Innovations to strengthen HTS and other RRP portfolio • Ploom X expansion in Japan • Build capa

  11. Slide 11: RRP: Ambition to outperform HTS segment growth

    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

  12. Slide 12: RRP: Going beyond organic to drive growth and accelerate learnings

    RRP: Going beyond organic to drive growth and accelerate learnings • 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 20

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