The JT Group regards R&D capabilities in each of its businesses as the source of our long-term competitiveness and business growth, and considers such competencies to be important management assets that are indispensable for realizing the JT Group Purpose of “Fulfilling Moments, Enriching Life.”

Based on this recognition, we are working to increase the competitiveness of our products and services by leveraging our strong brand equity, founded on the high quality and innovative features of our products in addition to our robust R&D capabilities.

Moreover, for intellectual property derived from our R&D activities, a dedicated division has been established for each business to protect and utilize such assets in accordance with the environment and strategies of each business. Furthermore, we respect the intellectual property rights of other companies by taking thorough risk management measures to ensure that our products do not infringe on the rights of third parties. At the same time, we take strict measures against any imitation of our products or infringement of our intellectual property rights by third parties.

Tobacco business

In the tobacco business, the R&D Group has been established to advance science and technology to develop novel products that can cause a stir among consumers. It is also engaged in technological innovation and product development to realize a society where both smokers and non-smokers can live together amiably.

In recent years, we have focused on R&D in the Reduced-Risk Products (RRP) category, which we see as a pillar that will drive future business growth, and are conducting R&D in multiple areas, such as RRP devices, tobacco raw materials, taste and flavor, and consumer preferences, as well as undertaking co-creation with R&D group members at our various bases around the world. In addition, to strengthen our patent portfolio in the RRP category, we are actively filing applications globally and obtaining patent rights, focusing on elemental technologies for our own RRP and proprietary technologies. As for the intellectual property management system of the tobacco business, the divisions in charge of intellectual property cooperate globally to address the needs of the business.

We have a full lineup of highly competitive brands, including 2 of the top 10 brands of combustibles in terms of global share of sales volume. To further bolster our brand value, we will strengthen our technological capabilities and brand equity that we have cultivated over the years, and focus on developing products that meet the changing needs of consumers in a timely and flexible manner.

Pharmaceutical business

In the pharmaceutical business, we are developing innovative drugs that address true unmet medical needs from the patient’s standpoint by getting to the root of the disease, with the goal of delivering original new drugs to patients around the world who are suffering from diseases sooner than ever before.

In addition to in-house research and development centered on JT’s Central Pharmaceutical Research Institute, we are promoting collaboration and networking with external research institutions, and are engaged in overseas research and clinical development based on Akros Pharma Inc.

in the United States. Among our innovative new drugs developed to date are elvitegravir, an HIV integrase inhibitor, which is one of the active ingredients in the anti-HIV drug Genvoya, and trametinib, the active ingredient in the world’s first MEK inhibitor Mekinist, a treatment for melanoma.

Processed food business

In the processed food business, we hold several brands that have long been enjoyed by consumers, including frozen udon noodles, which have a 51-year history, packed cooked rice, oyster sauce, and tsukune skewers. Recognizing that these brands are important assets to embody our Business Purpose of “Bring Joy to Meals and Fun to the Table,” we are leveraging our brand equity for cultivating new brands such as BEYOND FREE.

In addition, advanced technologies are required to mass-produce delicious processed foods safely and with high quality. For example, distinctive technologies include processing technologies to reproduce artisanal techniques and technologies to ferment and cultivate micro-organisms with high efficiency. The Food Research Institute, established in 2022, manages intellectual property in a comprehensive manner, incorporating unique intellectual property and know-how into the value chain, and strategically utilizing it in research and development for both risk management and new value creation.

We will continue to position our intellectual capital, including our brand and intellectual property, as important assets for our business as a source of medium- to long-term value creation, and we will continue to take on the challenge of creating new value.

Creating value through intellectual capital

We interviewed supervisors on the front lines of business to find out how the JT Group provides consumers with value, leveraging the intellectual capital it has accumulated in the Reduced-Risk Products (RRP) category.

Manabu Yamada

Global Tobacco Business R&D-JPN RRPDC
Vice President (as of the end of March 2025^*1)

Taishi Muratani

Global Tobacco Business Marketing RRP
Product & Brand
Ploom Brand Director

What does your business consist of today?

YamadaAt the RRP Development Center (RRPDC), we design and develop RRP devices as one of the departments responsible for JT Group R&D. For example, Ploom X is made up of a number of different parts, including an outer shell, internal structural components, a heating engine, electrical circuits, firmware, communication technology and a smartphone app, with specialists in each area conducting development in collaboration with one another. Even after the launch of the product, we continuously conduct product maintenance based on feedback from market and manufacturing departments.

MurataniWe, the Marketing RRP Product & Brand team, while considering the needs of consumers^*2 in Japan, mainly develop product and communication strategies for the JT Group’s heated tobacco products (HTP), such as Ploom and WITH, and deliver the products to consumers.

Specifically, in collaboration with the responsible departments of JTI in Switzerland, the headquarters of our tobacco business, we work to strengthen the equity of the HTP brands. That is to say, we develop products and brand communications that enhance brand value.

What have been particular points of focus or difficulty regarding heated tobacco sticks (HTS) product development and cultivating brand equity for Ploom?

YamadaOur initial HTS product development basically started from nothing in terms of talent and processes for electronic device design. Even the development of taste and aroma for sticks is completely different from that of combustibles. For this reason, we started with technical analysis of competitors’ products, and developed our technology through trial and error, strengthening organizational capacity and improving operational processes. Through repeated product upgrades we have arrived where we are today, and Ploom AURA, our new device launched in late May 2025, has become the fourth generation under this brand.

From new product development to post-launch maintenance, it is essential to collaborate with a wide range of relevant parties both in-house and outside, spanning countries and regions and including various departments within R&D, the tobacco business headquarters in Switzerland, procurement and quality assurance departments, and even suppliers who are our business partners. To swiftly advance projects with close collaboration among relevant functions, communication is predominately in English. Since more than half of the members at RRPDC have been transferred from electronics-related companies in Japan, they seem to be quite surprised at first with English-based communication.

Ploom AURA JET BLACK

MurataniThe most challenging point in cultivating the brand equity of Ploom in Japan was improving consumers’ perception of the brand. We launched full-fledged sales of Ploom in 2016 as a low-temperature HTP called Ploom TECH discontinued after December 2023. While consumers liked the lighter fragrance, many of them, particularly those who enjoy cigarettes, opined that the taste experience was not satisfying enough. The impression that Ploom was a brand that lacked satisfaction in regard to taste experience had taken root among consumers from that point.

To overcome this, we improved the taste experience and launched Ploom X in 2021, our first global model with the aim of introducing it to various markets around the world. In Japan, we focused again on the great needs of consumers for taste experience. In order to meet and satisfy their expectations, we rolled out Ploom X with an evolved taste experience, along with communications focused on this advancement. As a result, we have dispelled the consumer perception that the Ploom brand lacks taste experience, and now more than 1.6 million consumers use Ploom products. To further accelerate this momentum, as Mr. Yamada mentioned, we have launched our new device, Ploom AURA, the first fully renewed model in about four years since 2021.

Can you tell us what it means to be distinctively JT and discerning when it comes to HTS product development and cultivating the Ploom brand?

YamadaFor our new device, Ploom AURA, along with an advanced new stick, we significantly redesigned the heating engine structure. At the same time, we built upon and evolved the sleek form of Ploom X, culminating in a slim design.

We believe that the core of cultivating the Ploom brand is its “flavor.” For this new device, we have upgraded the heat control technology through countless prototypes with the stick development team to maximize the “flavor” of the new stick. From this trial and error process, we have introduced four heating profiles. Consumers can choose their preferred flavor from various combinations of flavors and heating modes and enjoy it.

Additionally, the asymmetric design of Ploom X, consisting entirely of curved surfaces and lines, is a unique feature of our product. In general, straight lines and flat surfaces are desired in the design and manufacture of electronic devices. Despite this, RRPDC engineers put the utmost care into our elegant and slimmer new device, and succeeded in redesigning virtually every component. The range of color variations, built on high-quality color combinations and half-mirror technology (allowing light to pass through only when the LED is lit), help the design stand out and reflect JT’s commitment to quality.

As the technology of electronic devices and HTS is rapidly evolving, we at RRPDC are also seeking to develop our technology on a daily basis, incorporating new knowledge and technology. We will continuously create products with “JT qualities” from a consumer-centric viewpoint, so that more consumers can enjoy our products.

MurataniWhere Ploom AURA is concerned, another appealing point is the upgrade to app connectivity, which, as Mr. Yamada commented, is linked to the ability to choose heating modes. This spec is one that allows the consumer to select the heating mode using an app, and is expected to improve the experience for consumers. As I mentioned before, “flavor” is the appeal of the Ploom brand that we are focused on most today. With Ploom AURA, we will further emphasize improving taste experience as a key point of appeal, and communicate the evolution of taste experience, design, and experience to consumers.

RRPDC and all the JT Group’s efforts have been concentrated in delivering Ploom AURA to consumers. We are committed to further enhancing the value of the Ploom brand in Japan by sharing the benefits of Ploom AURA with a wide range of consumers.

In closing, please share your aspirations and thoughts for realizing the JT Group Purpose. What message would you like to leave with consumers and other stakeholders?

MurataniI think the work of branding is to highlight differentiation. I want to exaggerate our differences from others, as well as reach consumers who have yet to experience Ploom products for themselves. Our mission is to share with them a whole new way of enjoying tobacco through the Ploom brand.

In the Ploom brand, we have cherished the notion of “Pleasure: Providing and extending consumers’ pleasurable experiences.” We believe that with this approach, enhancing consumer satisfaction through the value and experience the Ploom brand offers is also tied to the JT Group Purpose of “Fulfilling Moments, Enriching Life.”

YamadaWe at RRPDC contribute to making the JT Group Purpose a reality through the development of RRP devices, together with our diverse members from around the world. We would be very happy if Ploom AURA, our new product encapsulating our desire and cutting-edge technology, adds in even some small way to “fulfilling moments” for consumers.

*1

R&D Principal Scientist Vice President from April 2025

*2

Adult consumers: Minimum legal age for smoking varies in accordance with the legislation in each country; in Japan, smoking is not permitted for those under 20 years of age

In the midst of an era of discontinuous changes in society and the business environment, we redefined and announced the JT Group Purpose “Fulfilling Moments, Enriching Life” in 2023. The Purpose indicates the direction in which we are working to ensure the sustainability of society and the JT Group.

All efforts to fulfill the Purpose begin with each and every JT Group employee, and we recognize that they will be more important than ever to our success.

Based on this understanding, we continue to apply the principles of the JT Group Human Resource Management Philosophy as our basic approach to human capital. In defining human capital, we look at it from three angles: Our People who generate corporate activity; an Organizational Culture that encourages better corporate decisions and activities; and Ownership, which facilitates a beneficial cycle between our people and organizational culture. In addition, we have set six priority themes to steadily expand and cultivate our human capital. We regularly monitor indicators to track the progress and impacts of initiatives under each theme, while also enhancing our HR initiatives. Furthermore, we conduct an annual JT Group engagement survey* to ascertain the status of the Group as a whole and to verify and improve our initiatives.

JT Group employees will contribute to the creation of a society in which everyone can experience fulfilling moments by expanding and evolving the value we provide, exploring and creating new value, and being active as members of society beyond the boundaries of our business and organizations.

*

The survey is conducted at JT and its major subsidiaries, including the global tobacco business. In the FY2024 survey, both the participation rate of 94% (+2%) and the Employee Satisfaction (eSat) score of 78 (+1) improved from the previous survey.

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Please see Investing in our people and supporting their growth for more details on six priority themes for human capital growth.

Our people

Diversity forms the foundation of a company’s success and contributes to real sustainable growth. We try to bring our human best, which in turn empowers all Group businesses.

We are putting special effort into strategic hiring and development support for people who contribute to the growth and optimization of our existing businesses, who develop new businesses to meet the ever-changing consumer sense of fulfilling moments, and who lead the businesses and management of the Group.

To remain a company of choice for a diverse range of people, we prioritize the mental and physical health and safety of our employees with a “people come first” approach. In addition, we offer various programs to ensure work-life balance and career paths suitable for all life stages to help them work happily in JT Group workplaces.

Organizational culture

Our organizational culture, which is an expression of shared corporate values, is important for helping people from diverse backgrounds work together and steer corporate activities as members of the JT Group. We believe it is important to cultivate shared values that are deeply rooted throughout the organization and become the standards for decision-making and business practices as we continue to create unique value.

We have been building a corporate culture that encourages integrity, based on a highly tuned ethical sense and mutual assistance among employees for personal growth. While continuing to cherish this cultural tradition, we support employees in rising to new challenges and promoting collaboration within the Group and with external parties, so we can offer “fulfilling moments” despite the ever-diversifying values of society, and foster an organizational culture unique to the JT Group and the times.

Ownership

To help our diverse people make the most of their potentials and create value unique to the Group, it is important for each employee to take ownership in order to enable a mutually beneficial cycle between our people and the organizational culture.

To assure this, it is essential that each employee understands and supports the JT Group Purpose, takes ownership of the Group’s priority values and desired actions, puts them into practice and helps promote them through their own initiative.

We have formulated Values/Behaviors as guidelines on how JT Group employees should conduct themselves, and we not only encourage each and every employee to live in these actions, but we have also introduced an appraisal system that regularly reviews employees’ actual actions.

Our message

The JT Group has continued to grow while cherishing the fundamental belief that people are essential to all corporate activities — “people come first.” This people-centric mindset is the foundation of our efforts to realize the JT Group Purpose, which is embodied in the definition of human capital.

What makes the JT Group’s human capital unique is our strong recognition of Organizational Culture — one of our human capital elements — as a vital factor that evolves along with Our People. Building on the values we have long cherished, such as Integrity and Support growth, we are committed to further fostering a culture of Challenges, Inclusion and collaboration. In this way, we aim to keep moving forward, even as society and the business environment change.

To further accelerate the JT Group’s growth, we have been securing people who explore areas of new value. We are actively promoting career development within the organization through initiatives such as career roundtables and internal internship programs, while also proactively seeking external talent.

By supporting the growth of each and every employee, we will continue to open up the future of the JT Group and move steadily toward fulfilling our Purpose.

Teruaki Nakashima

Senior Manager,
Human Resources Division,
Strategy Planning