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 those with the potential to reduce the risks associated with smoking and include E-Vapor (E-cigarettes) and T-Vapor (Tobacco Vapor) products.
At the JT Group, we are committed to developing, testing and bringing to market these new and innovative products for sustainable growth.
E-Vapor (E-cigarettes) E-vapor products are electronic devices that typically contain nicotine-based liquid. The liquid is heated electronically and released as a vapor and there is no combustion involved. "Logic" is our flagship e-cigarette brand.
T-Vapor (Tobacco vapor) T-vapor products, such as Tobacco-Infused Vapor and Heated Tobacco, contain tobacco and create a tobacco-enriched vapor that can be inhaled. Importantly, the tobacco is not combusted during the use of such products.
Tobacco-Infused Vapor Tobacco-Infused Vapor products do not involve combustion or direct heating of the tobacco. Our Tobacco-Infused Vapor product, Ploom TECH, has low-temperature heating technology, which enables the products to offer a clear taste with no smoke, smoke smell or ash and no negative impact on the surrounding air quality.
Heated Tobacco Heated Tobacco products involve direct heating of the tobacco but not combustion. They are more similar to conventional cigarettes and can offer a rich tobacco flavor with less smell and no ash.

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.