Business Plan 2026
Every year, the JT Group publishes a three-year rolling business plan reflecting the changing operating environment, including economic trends, geopolitical risks and the competitive landscape.
Business Plan 2026 covers the three years from 2026 to 2028. Given the increasing uncertainty and complexity in our business environment, we will build a business foundation for sustainable future profit growth through optimal leveraging of our resources on a global scale and aggressive business investment.
Operating environment outlook 2026-2028
Tobacco business
We anticipate that conditions throughout the tobacco business will remain highly uncertain owing to a variety of factors. This includes increasingly stark geopolitical risks on the global economy and trends in the real economies of various countries, including foreign currency exchange as well as interest rate fluctuation risks and hyperinflation in certain markets. In addition to the decline in total combustibles industry volume and ongoing down-trading, we expect business conditions will continue to face factors, such as intensifying competition in RRP (Reduced-Risk Products), including Heated Products, and the imposition of stricter smoking-related regulations.
Processed food business
Cost conditions in Japan are projected to perdure owing to such factors as the surge in labor and logistics costs, fluctuations in the costs of raw materials, and the impact on demand resulting from price increases attributable to these factors. Outside Japan, business opportunities are expected to increase against the backdrop of the rising popularity of Japanese cuisine.
Resource allocation policy
Resource allocation policy based on the 4S model and
the JT Group Purpose
Prioritize business investments*1 for sustainable profit growth in the medium-to long-term
Strike a balance between profit growth through business investments and shareholder returns
Shareholder return policy
Enhance shareholder returns by delivering medium-to long-term profit growth while maintaining a strong financial base*2
Target a dividend payout ratio of approximately 75%*3, a competitive level*4 in the capital markets
Consider implementing a share buy-backs, mainly taking into account the Company's financial outlook for the respective year and mid-term capital needs
Group profit targets
Medium-to long-term targets
Mid to high single digit annual average AOP growth rate (consolidated basis) at constant currency
Outlook for the business plan period
We foresee a high-single-digit annual average AOP growth rate (consolidated basis) at constant currency for the business plan period, driven by continued profit growth in the tobacco business.
Roles and targets for each business
Tobacco business
Core driver of profit growth
We foresee a high-single-digit annual average AOP growth rate at constant currency over the three-year period of the business plan given efforts to improve combustibles profitability and prioritize resources behind Heated Products to establish a second RRP profit growth engine.
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Processed food business
Complement the Group's profit growth
We project a mid-single-digit annual average AOP growth rate over the three-year period of the business plan due to top-line growth driven by business scale expansion in Japan and overseas and further improvements in profitability.
Integrated Report
2026