Presentation slides: part 2

Jose Cabrera

Global Marketing &

Portfolio Director

27 JUNE 2023 - INVESTOR EVENT

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New Approach To Marketing & Portfolio Strategy

To leverage marketing and portfolio as a challenger

Our Past

• Investment in international brands at the expense of brands
• Leading to many failed migrations
• Brands with similar roles competing at the same pricing
• Lack of consistency for brand positioning
• Insufficient investment

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Now and the future…

• Consumer-led
• Proud of our local jewels
• Active portfolio management
• Consistent approach applied across multiple markets
• Relevant consumer experience
• Smart investment

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Enhanced Central Brand Building Capabilities

With clearly differentiated roles and responsibilities

Global & central functions		Markets
Consistent	Unique brand	Insights &
portfolio
positioning	analytics
strategy	Local	Local go-to-
		Sales
			consumer	market
			excellence
			adaptation	experience
			working
			together
Creating	End-to-end	Supported by	with…
consumer	a new agency
design
experiences	model

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Embracing the Breadth of our Brand Portfolio
Enables us to leverage distinct consumer preferences
International brands	Local jewel brands
	58%
	Local jewel brands
	as a proportion of
	tobacco net
	revenue
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We show up with relevant brands globally

With both our global and local jewel brands

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Consistent Portfolio Strategy and Management

Process focused on balancing share and profit

	Three-year market ambition	Clear priorities
Portfolio	Consumer & market landscape	• Brand priorities with 3-5 years perspective
strategy	Portfolio opportunities & targeting	• Size mid-term category & brand ambitions
	Portfolio classification & prioritisation	• Identify key marketing mix initiatives to
	achieve category & brand ambitions
Portfolio	Brand diagnostics & challenges	• Identify new business opportunities for IMB
initiatives	Brand response & initiatives

Enables our teams to focus on where a challenge could create most value

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Identifying New Opportunities in Markets

To which we can offer credible solutions

AUSTRALIA	GERMANY	MOROCCO	CZECH REPUBLIC
Opportunity:	Opportunity:	Opportunity:	Opportunity:
25-40 year old value-	capture down-traders	Offer value to lower	target older, predominantly
minded consumers		income smokers	male smokers
Our solution:	Our solution:	Our solution:	Our solution:
Launch JPS Evolve line	Launch Paramount	Launch Fortuna (market	Launch of News
extension		leader in Spain)
Outcome:	Outcome:	Outcome:	Outcome:
0.3% market share growth	3.4% market share growth	1.7% market share after	0.8% market share after
after six months	in category after ten	eight months	three months
	months
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With The

We can focus on getting the right consumer insights for each brand

•	Vertical career movement	• Work / life balance
•	Financial security	•	Financial independence
•	Upward social mobility	•	Social reach

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New Consumer Insights

Inspired adjusted brand positioning for our global brands

FROMTO

Davidoff inspires

entrepreneurially-minded smokers to shape their own future

JPS supports grassroots

musicians to Let the Players

Play

Parker & Simpson

celebrates and rewards

local grafters

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Stepping up our end-to- end design capabilities to bring to life modern brand worlds with ownable assets

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