Glossary

Financial

Term Definition
Adjusted Operating Profit Adjusted Operating Profit = Operating profit + amortization cost of acquired intangibles arising from business acquisitions + adjustment items (income and costs).
*Adjustment items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others

Tobacco Business

Term Definition
Reduced-Risk Products (RRP) Reduced-Risk Products (RRP) are products with potential to reduce the risks associated with smoking such as E-Vapor (E-cigarettes) and T-Vapor (Tobacco Vapor).
E-Vapor products heat a liquid that usually contains nicotine, but no tobacco, creating a vapor that can be inhaled.
T-Vapor products contain tobacco which is heated rather than combusted during use to produce an inhalable vapor.
At the JT Group, we are committed to developing, testing and bringing to market such new and innovative products for sustainable growth.

International Tobacco Business

Term Definition
Clusters The international markets are divided into four distinctive clusters; South and West Europe, North and Central Europe, CIS+, and Rest-of-the-World. Please note that these four clusters are specifically designed to provide insight into our business for guidance purposes only and do not reflect JTI's management structure.
Core Revenue Revenue including waterpipe tobacco and RRP, but excluding revenue from distribution, contract manufacturing and other peripheral businesses.
Core Revenue
per thousand cigarettes
Core revenue per thousand cigarettes is based on total shipment volume as defined below, excluding joint ventures, and core revenue as defined above, excluding waterpipe tobacco.
GFB (Global Flagship Brands) 4 Brands (Winston, Camel, MEVIUS and LD)
Share of value Share of total retail value of the market. Total retail value of the market is computed by multiplying volume and retail sales price.
Total shipment volume Including fine cut, cigars, pipe tobacco, snus and kretek, but excluding contract manufactured products, waterpipe tobacco and RRP.

Japanese Domestic Tobacco Business

Term Definition
Core Revenue Excluding revenue from distribution of imported tobacco in the Japanese Domestic Tobacco Business, among others, but including revenue from domestic duty free and the China business, as well as RRP Related Revenue.
RRP Related Revenue RRP related revenue, as a part of core revenue, represents the sale of RRP including principally the device and the related accessories.
JT Cigarette Sales Volume Not including sales volume from domestic duty free, the China business and RRP
RRP sales volume 1 pack corresponds to 20 cigarettes
(excluding RRP devices, RRP related accessories, etc.)

Processed Food Business

Term Definition
Staple food products Frozen noodles, frozen and packed cooked rice and frozen baked bread.