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 The sum of revenues in the pharmaceutical business, processed food business, and others, as well as the core revenue in the tobacco business, which is computed using the same foreign exchange rates as in the equivalent period in the previous fiscal year. Results at constant FX are provided additionally and are not an alternative to financial reporting under International Financial Reporting Standards (IFRS).
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 Reduced-Risk Products (RRP)-related revenue, as a part of core revenue, represents all the sale of RRP, principally consumables, devices and the related accessories.

Tobacco Business

Term Definition
Cigarettes Also known as Ready-Made-Cigarettes (RMC)
Cigarillo Products rolled in tobacco-based paper with a similar format to ready-made cigarettes and classified as “cigars” under the Tobacco Business Act of Japan.
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, waterpipe, heated tobacco products, oral and E-Vapor
Combustibles industry volume Industry volume of combustibles by number of sticks based on the internal estimates.
Combustibles volume The shipment volume of combustibles which excludes contract manufactured products, snus, waterpipe, heated tobacco products and E-Vapor.
E-Vapor Products which consumers use by heating its nicotine-based liquid without using tobacco leaf. One closed tank capsule is equivalent to 20 sticks of cigarettes. A 10ml open tank refill is equivalent to 100 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.
GFB (Global Flagship Brands) GFB includes four Brands namely Winston, Camel, MEVIUS and LD
GFB volume GFB (Global Flagship Brands) volume is the volume of GFB combustibles and GFB snus which are Winston, Camel, MEVIUS and LD.
Heated tobacco products (HTP) Products that contain tobacco leaf and create a tobacco-enriched vapor by heating the tobacco without any combustion.
Heated tobacco sticks (HTS) High temperature heated tobacco products. One stick is equivalent to a stick of cigarettes.
HTS volume Heated tobacco sticks (HTS) sales volume. This excludes RRP devices, RRP related accessories, etc.
Infused tobacco capsules (Infused) Low temperature heated tobacco products. One pack of consumables is equivalent to 20 sticks of cigarettes.
Oral RRP consumables 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 pouch of snus or nicotine pouches 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 heated tobacco sticks (HTS), infused-tobacco capsules (Infused), E-Vapor and Oral.
RRP industry volume Industry volume of Reduced-Risk Products (RRP) by number of sticks based on the internal estimates. One pack of consumables is equivalent to 20 sticks of cigarettes.
RRP volume Reduced-Risk Products (RRP) sales volume in cigarette-stick equivalent. This also excludes RRP devices, RRP related accessories, etc.
Total tobacco industry volume Industry volume by number of sticks based on internal estimates.
Total volume The volume of tobacco-based products which excludes contract manufactured products, waterpipe, RRP devices and related accessories.