reduced-risk products science update · reduced-risk products science update dr. ian jones, phd jti...
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Reduced-Risk ProductsScience Update
Dr. Ian Jones, PhDJTI VP, Reduced-Risk Products Science
London – June 5, 2018© Copyright JT 2018 2JT Investor Conference
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 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” or the negative of these terms or other similar terminology. These statements 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 by these forward-looking statements. In addition, these forward-looking statements are necessarily dependent upon assumptions, estimates and data that 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 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.
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This presentation contains images of our products in some slides. Those slides have been included exclusively to illustrate JT Group’s strategy or performance to our investors. They are not to be used for any other purpose.
London – June 5, 2018© Copyright JT 2018
Science is central to our RRP business
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Multi-disciplinary expertise & international collaboration
Fundamental Research
Applied Science
Reduced-Risk Assessment
JTG R&D centersAustria, Germany, Japan, Poland, Sweden, Switzerland and the UK
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Broadening spectrum of consumer needs
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Consumers are increasingly
interested in experiences and
products that address a
broadening spectrum of
personal and social needsReduced Risk
Potential
Affordability
Social Consideration
Convenience
Satisfaction
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Focus on Reduced-Risk potential
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Combining risk-reduction potential & product acceptance
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ProductAcceptance
Risk-ReductionPotential X Harm Reduction=
To fulfill the Harm Reduction equation
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The JT Group approach to assessment of RRP
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The emission is our starting point
What comes out of the product
Users’ exposure to emissions & uptake into the body
Biological effects of uptake into the body
Environmental impact simulations
EMISSION1
UPTAKE2
EFFECT3
INDOOR AIR QUALITY4
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Tobacco Infused Vapor
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How Ploom TECH works
Battery
Liquid Cartridge
Tobacco Capsule
Tobacco Vapor
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Cigarettes
TobaccoInfusedVapor
ettes
Heated Tobacco
Charcoal Heated
Co
800 700 600 500 400 300 200 100 0
1) Emission│ The risk cliff concept
Potential risk-reduction in T-Vapor products
TobaccoInfusedVapor
100 0
1
Temperature may be an indicator of risk
HIGHER
LOWER
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Reference: Internal JT Group Studies. Note: “TPM” stands for Total Particulate Matter.
1) Emission│ Dramatically reduced levels of TPM in Ploom TECH
Analysis of smoke & vapor constituents
Reduction in the nine constituents recommended by the WHO for reduction in cigarette smoke
1
3R4FReference cigarette
(control)
Commercially availableHeated Tobacco product
-99%
E-cigarette
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60 adult smokersrandomly selected
Screened Randomized
20 subjects continued to smoke
20 subjects used Ploom TECH
20 subjects smoking abstinent
Existing adultsmokers
The subjects used products ad libitum for 5 days
2) Uptake│ Clinical study design
Biomarkers of exposure
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60%
20%
40%
80%
0%
100%
Percentage Reduction
Smoking AbstinencePloom TECH Use
1, 3 – Butadiene (MHBMA)
Acrolein (3-HPMA)
Exhaled CO
NNK(NNAL)
2) Uptake│ Reductions similar to smoking abstinence
Reference: D. Yuki et al., 2018. Assessment of the exposure to harmful & potentially harmful constituents in healthy Japanese smokers using a novel tobacco vapor product vs. conventional cigarettes and smoking abstinence. Regul Toxicol Pharmacol. 96, 127-134.
Biomarkers of exposure
-85%-69%
-89%-64%
Conventional cigarettes
2
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
100 100 1,000 10,000 100,000Puffs/L (logarithmic)
[Cell Viability]
Analysis of cell viability
3) Effect│ Less biological impact compared to smoking
Reference: S. Munakata et al., 2017. Comparative effects of cigarette smoke and novel tobacco product vapor on in vitro cellular responses in human bronchial epithelial cells. Society of Toxicology 2017, Baltimore.
Reference cigaretteCommercially availableHeated Tobacco productE-cigarette AE-cigarette BPloom TECH
3
ReferenceCommercHeated ToE-cigarettE-cigarettPloom TE
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Analysis of oxidative stress (inflammation)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1,0000 10 100,000100 10,000Puffs/L (logarithmic)
[GSH-GSSG]
3) Effect│ Less biological impact compared to smoking
Reference cigaretteCommercially availableHeated Tobacco productE-cigarette AE-cigarette BPloom TECH
Reference: S. Munakata et al., 2017. Comparative effects of cigarette smoke and novel tobacco product vapor on in vitro cellular responses in human bronchial epithelial cells. Society of Toxicology 2017, Baltimore.
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In vitro airway model
Control (before exposure)
0 Puffs/L
Smoking(3R4F cigarette)
200 Puffs/L
2,000 Puffs/L
3) Effect│ Observably less effect on tissue model, even at 10 times more puffs
Reference: Internal JT Group Studies.
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Exhaled breath analysis
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
[ug per exhalation]
AmmoniaAcetoneFormaldehydeNicotine
Ploom TECH Use No Product Use
Formaldehyde
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4) Indoor Air Quality│ Minimal impact
Reference: H. Ichitsubo and M. Kotaki, 2018. Indoor air quality (IAQ) evaluation of a Novel Tobacco Vapor (NTV) product. Regul Toxicol Pharmacol. 92, 278-294.
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Simulation of an occupied smoking lounge
0.1
1.0
10.0
100.0
1,000.0
Formaldehyde (ug/m3)
Nicotine (ug/m3)
CO (ppm)
Acetaldehyde (ug/m3)
Ammonia (ug/m3)
Solanesol(ug/m3)
Toluene (ug/m3)
3-Ethenylpyridine(ug/m3)
Glycerol (ug/m3)
PG (ug/m3)
SPM (mg/m3)
TVOC (ug/m3)
Acetone (ug/m3)
[Units] No Product UsePloom TECH UseCigarette Use
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4) Indoor Air Quality│ Minimal impact
Reference: H. Ichitsubo and M. Kotaki, 2018. Indoor air quality (IAQ) evaluation of a Novel Tobacco Vapor (NTV) product. Regul Toxicol Pharmacol. 92, 278-294.
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London – June 5, 2018© Copyright JT 2018
Positive scientific results to date
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Summary of Reduced-Risk potential
Our scientific assessments on
Ploom TECH are providing
very encouraging results,
highlighting its strong
Reduced-Risk potential
EMISSION1
UPTAKE2
EFFECT3
INDOOR AIR QUALITY4
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