JTI at a glance

© Copyright JTI 2013 JT was established in 1985 In 1999 JT becomes global with the purchase of the international operations of R.J. Reynolds JT Group includes Japan’s domestic tobacco market, as well as beverages, seasonings, processed foods and pharmaceutical businesses A global Fortune 500 company* Over 51,000 employees worldwide, including JTI 33.3% owned by the Japanese government, making it the largest shareholder JTI at a glance2 Our parent company The JT Group Beverages Processed foods Pharmaceuticals Japanese domestic tobacco *2013

© Copyright JTI 2013JTI at a glance3 JTI today 27,000 1 employees (approx.) 364 offices 25 factories 8 research & development centers 5 tobacco processing facilities JTI is the JT Group’s international tobacco business We employ people in 73 countries around the world We are a leading international tobacco product company created in 1999 We sold billion cigarettes 2 The Company’s core revenue is USD 12,273 million 2 © Copyright JTI As of December Jan-Dec 2013

JTI at a glance A portfolio strongly represented across most price segments 4 Our Global Flagship Brand portfolio

JTI at a glance5 Our ‘Other Tobacco Products’ and ‘Emerging Products’ Roll-your-own, make-your-own Snus Cigars Ploom Electronically heated tobacco product that heats tobacco pods to create vapor Shisha

Investment case JTI in Serbia

JTI: the first and biggest Japanese investor in Serbia JTI opens the marketing and sales office in Belgrade JTI acquires Tobacco Industry Senta - today JT International a.d. Senta Initial investment of USD 45 million USD 169 million JTI invested so far in Serbia.

Key rationale Supplying promising markets of Serbia and West Balkans Importance of CEFTA Free-trade agreement between Serbia, Montenegro, Bosnia & Herzegovina, Albania, (UN Mission in) Kosovo, Macedonia, and Moldova Provides 0% customs duty for our exports to Macedonia, Montenegro and Bosnia and Herzegovina EU trade liberalization Preferable customs rates for import of various goods from Serbia envisaged in Stabilization and Association Agreement JTI exports from Serbia Cigarettes to Bosnia and Herzegovina, Montenegro, Macedonia, Croatia and Albania Serbian-grown tobacco to the EU Total export of cigarettes and tobacco in 2013 worth USD 23,4 million 8 Why investing in Serbia?

Senta factory Factory in Senta West Balkan’s headquarters in Belgrade Offices in Bosnia and Herzegovina, Croatia, Albania and Kosovo JTI in Serbia production base for the Western Balkans 7 markets – one EU member and 6 CEFTA parties * *The map is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo declaration of independence.

JTI: tax contributor in Serbia JTI is the 6 th largest taxpayer in the country billion dinars contributed to the state budget in 2013.

JTI growth story Sales volume in Serbia increased by 50% despite significant market contraction JTI’s share of market in Serbia increased by over 100% since 2006

Tobacco growing operations in Serbia 12 JTI - a leader in tobacco production in Serbia with market share of 43% in ’12 JTI cooperates in Serbia with 250 seasonal workers and 180 farmers Continuous growth of tobacco production and total yield per hectare Over 50% increased tobacco purchase 80% increase in contracted tobacco

Today JTI in Serbia employs over 300 people From JTI generated 200 new jobs Engages over 250 seasonal workers Internships programs for graduated students (2010 – 2014) - 34 interns Skillful and well educated (mostly English-speaking) workforce Employees – Wheel of our Growth

Senta factory is first in Serbia to implement Kaizen management process Fully accepted by the employees Productivity increased by 52% Reject ratio reduced by 66%. Factory certificated: ISO 9001:2008, ISO 14001:2004, OHSAS 18001: Kaizen

Continuous dialog with the Government Communication maintained on all key aspects of economic legislation development Investor-friendly tax regime Salary tax rate -10% and corporate profit tax rate – 15%, among the lowest in the Europe National treatment of foreign investors Serbia’s EU aspirations influencing regulatory environment that is heading towards alignment with EU Predictable development of operating environment (e.g. excise calendar in tobacco industry) Conclusion The investment in Serbia proved to be good platform for business expansion of JTI in Serbia and Adriatica region 15 Business Environment in Serbia

Enterprising Open Challenging