Glossary

Financials

Term Definition
~ at constant FX Constant FX is computed using the same foreign exchange rates as in the equivalent period in the previous fiscal year for the tobacco business. Results at constant FX are provided additionally and are not an alternative to financial reporting under International Financial Reporting Standards (IFRS).
Adjusted operating profit (AOP) Operating profit + amortization cost of acquired intangibles arising from business acquisitions + adjusted items (income and costs) *.
*Adjusted items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others
Core revenue Core revenue includes all revenue excluding those from distribution, contract manufacturing and other peripheral businesses.
Core revenue at constant FX (consolidated) The sum of revenues in the pharmaceutical business, processed food business, and others, as well as the core revenue at constant FX in the tobacco business.
Free cash flow (FCF) The sum of cash flows from operating activities and investing activities, excluding the following items:
  • From operating CF: Depreciation from lease transactions, interest received, dividends received, interest paid and income taxes related to these items excluding lease transactions, and other items
  • From investing CF: Purchase of investment securities (both short-term and long-term), payments into time deposits, proceeds from sale or redemption of investment securities (both short-term and long-term), proceeds from withdrawal of time deposits and other investing activities not for business operation purposes
Profit Profit attributable to owners of the parent company.
Revenue Revenue excluding tobacco excise taxes and revenue from agent transactions.
RRP-related revenue RRP-related revenue, as a part of core revenue, represents all the sale of RRP, principally consumables, devices and the related accessories.
Share of Value (SoV) Share of total retail value of the market, which is computed by multiplying volume and tax-included retail sales price.
This excludes Water pipe, pipe tobacco, cigars, E-Vapor and Oral.

Tobacco Business

Term Definition
Cigarettes Also known as RMC (ready-made-cigarettes).
Clusters The JT Group's tobacco markets are divided into three distinctive clusters; Asia, Western Europe, EMA. Please note that these three clusters are specifically designed to provide insight into our business for guidance purposes only and do not reflect the JT Group's management structure.
  • Asia cluster includes the tobacco regions of Japan and Asia Pacific
  • EMA cluster includes the tobacco regions of Eastern Europe, MENEAT, Americas and Global Travel Retail
Combustibles Combustibles include all tobacco products excluding contract-manufactured products and RRP.
Combustibles industry volume Industry volume of combustibles by number of sticks based on internal estimates.
This excludes Water pipe, pipe tobacco and cigars.
Combustibles volume The shipment volume of combustibles which excludes contract-manufactured products and RRP.
E-Vapor Products which consumers use by heating electronically a nicotine based liquid that contains no tobacco leaf. A 2ml of liquid is equivalent to 20 sticks of cigarettes.
Fine cut tobacco (FCT) Loose tobacco products also known as rolling tobacco. These can be used for both RYO (roll-your-own) cigarettes, i.e. using rolling papers, and MYO (make-your-own) cigarettes, i.e. by filling a filter tube with cut tobacco.
Global Flagship Brands (GFB) GFB includes four Brands namely Winston, Camel, MEVIUS and LD
GFB volume GFB volume is the volume of GFB combustibles and GFB snus products which are Winston, Camel, MEVIUS and LD. This excludes Winston and Camel in the US.
Heated tobacco products (HTP) Products that contain tobacco leaf and create a tobacco-enriched vapor by heating electronically the tobacco, either directly or indirectly, without any combustion.
Heated tobacco sticks (HTS) High temperature heated tobacco products. One stick is equivalent to a stick of cigarettes.
HTS volume / Ploom volume Sales volume of HTS (Ploom) in cigarette-stick equivalent. This excludes Ploom devices, Ploom related accessories, etc.
Infused tobacco capsules (Infused) Low temperature heated tobacco products. One pack of consumables is equivalent to 20 sticks of cigarettes.
Oral Products delivering nicotine in the form of a closed pouch. These pouches can contain tobacco and are known as snus. Without tobacco, these consumables are referred to as nicotine pouches. To deliver nicotine and flavor, these pouches are inserted between the consumer's lip and gum. One snus or nicotine pouch is equivalent to a stick of cigarettes.
Reduced-Risk Products (RRP) Products with the potential to reduce the risks associated with smoking. In JT's portfolio, these products include HTP, E-Vapor and Oral.
RRP industry volume Industry volume of RRP by number of sticks based on internal estimates.
This excludes E-Vapor and Oral.
RRP volume RRP sales volume in cigarette-stick equivalent. This excludes RRP devices, RRP related accessories, etc.
Total tobacco industry volume Industry volume by number of sticks based on internal estimates.
This excludes Water pipe, pipe tobacco, cigars, E-Vapor and Oral.
Total volume The volume of tobacco-based products which excludes contract-manufactured products, RRP devices and related accessories.
Water Pipe Products that vaporize water-filtered smoke produced by burning tobacco leaves. One gram of tobacco leaves used for water pipe is equivalent to a stick of cigarettes.