Management information

Management principle

The 4S model

We strive to fulfill our responsibilities to our valued consumers, shareholders, employees and the wider society. Carefully considering the respective interests of these four key stakeholder groups, and exceeding their expectations wherever we can.

The 4S model

The 4S model is the JT Group's core competency. Our decision-making has been and will continue to be based on this management principle. To strive to fulfill our responsibilities to our valued stakeholders and exceed their expectations;

• For our consumers, we will offer superior products which meet or even go beyond their evolving needs. To achieve that, we will make the most of the JT Group's diversity to enhance our capacity in innovation.
• For our shareholders, we intend to strike an optimal balance between profit growth and shareholder returns. This means that we will enhance our shareholder returns based on our profit growth outlook in the mid- to long-term.
• For our employees, we will further evolve to become an attractive and respected company so that employees feel proud to be a part of it. For that, we will highly value the employees with a strong sense of commitment to deliverables and properly reward their accomplishments.
• The growth of the JT Group is dependent on sustainability of society. We will continue to contribute to society and in doing so enhance our company value.

Strategic framework

  • Quality top-line growth

    Among the strategic pillars, the JT Group places a particular emphasis on quality top-line growth, which is indispensable for sustainable growth. We aim to grow top-line by consistently offering innovative products.

  • Competitive cost base

    We continue to strive for further cost base improvement, while investing for future sustainable growth.

  • Robust Business foundation

    The business environment surrounding the JT Group has been changing fast. In order to respond, to drive evolution and even take advantage of the changes, we encourage each employee and organization to take actions towards change and innovation for continuous improvement.

Resource allocation

Business investments

The “4S Model” guides our resource allocation, and we give the highest priority to business investments, which contributes to sustainable profit growth in the mid- to long-term, while continuing to offer new value and exceed consumer expectations. Investment towards the growth of tobacco business is of our highest priority.

Financial policy

We will maintain a strong financial base that secures stability in case of changes in business environment such as economic crises and flexibility enabling expeditious responses to business investment opportunities.

Shareholder return policy

We aim to enhance shareholder returns considering the Company’s mid- to long-term profit growth trend, while striking a balance to profit growth through business investments and maintaining a strong financial base as mentioned above.
In particular, we will work toward stable and consistent increase of dividend per share. Dividend payout ratio is not an indicator for our management target, although it will be taken into consideration when deciding the dividend amounts.
As for considering implementing a share buy-back program, we will take into account our mid-term operating environment and financial outlook.
We will also continue to closely monitor the shareholder returns of global FMCG companies that have a stakeholder model similar to our 4S model and that have achieved strong business growth.

Our resource allocation policy in Business Plan 2020

Dividend Per Share (JPY)

Related links

Corporate governance

We have enhanced our corporate governance, based on our belief that it is the means for conducting transparent, fair, timely and decisive decision-making for pursuing JT's management principle, the 4S model.