Management information

“Our 4S model represents our commitment to serve our four stakeholder groups: our valued consumers, shareholders, employees, and wider society. We strive to fulfill our responsibilities towards our stakeholder groups by carefully considering their respective interests and exceeding their expectations wherever we can.

Today when discontinuous changes are happening on various scales in nature, society, and individual lives, and the business environment is becoming ever more uncertain and complex, we have drawn up JT Group Purpose to make clear the direction in which the Group must go to continue to exist sustainably. Specifically, ''human enrichment'' was identified as an area demanded by future society, and one where the Group can continue to make the most of our value over the long term. JT Group Purpose is then encapsulated in the phrase, ''Fulfilling Moments, Enriching Life,'' based on our desire to be entrusted with and go on contributing in this area.

The JT Group itself will keep evolving, so that we can continue to earn public trust and contribute in the area of ''human enrichment,'' something that is diverse and changing from one era and one person to the next.

We are facing more volatile circumstances in our business environment, with changes in consumer demands, the expansion of RRP (Reduced-Risk Products), stricter regulation and tax hikes in our markets. Not only do we need to take these circumstances into account, we should also take into account how complex society itself is becoming.

Over the years, the JT Group has continued growing by proactively dealing with operational challenges and by transforming with a long-term perspective, notwithstanding significant changes in its business environment, such as the peaking-out of the tobacco market in Japan and the tightening of regulations. To mention a just few successes, we have achieved business expansion abroad through the large-scale acquisitions of RJR Nabisco Inc.’s non-U.S. business and the entire Gallaher Group Plc (U.K.), rebranded Mild Seven as MEVIUS and pursued geographic expansion into emerging markets. We consistently implement varied initiatives conducive to our further growth, including the new operating model for the consolidated tobacco business which went live in January 2021.

We are at an inflection point, ready to transform again. We strive to ensure the Group’s sustainable profit growth even in times of tumultuous change like today’s unprecedented circumstances with the ambition of offering new value to the consumers in the RRP category.

For the JT Group to maintain long-term growth, it’s essential that we contribute to social progress through our business operations. We have formulated initiatives to achieve business and social sustainability which have been the basis of management from the past. We have also made it standard practice for me, as the CEO, and the Board of Directors to engage in setting targets, discussing specific initiatives to achieve them, and monitoring the progress of the related initiatives, all with firm commitment.

The 4S model, which forms our management principle, remains the cornerstone for all our decision making processes and activities. To remain the preferred choice of consumers, shareholders, employees and the wider society, we will strive to fulfill our responsibilities, exceeding expectations wherever we can, through our sustainable profit growth.”

Integrated Report 2022