Difference between revisions of "Japan Tobacco International"

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==Products==
 
==Products==
 
===Key Portfolio===
 
===Key Portfolio===
Japan Tobacco International portfolio includes leading international brands in cigarettes and fine cut, such as Winston, MEVIUS, Camel and LD, as well as in Reduced-Risk Products, such as Ploom TECH and Logic. <ref>Japan Tobacco International, [https://www.jt.com/investors/results/annual_report/pdf/2017/annual.fy2017_E_all.pdf Annual Report FY2017], p.2, Accessed September 2018 </ref> In 2017, the comapany's flagship brands accounted for more than 72 percent of Japan Tobacco International's sales. According to the company's website, Japan Tobacco International have approximately 14 percent global market share. <ref>https://www.jti.com/about-us/what-we-do/our-brands</ref>
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Japan Tobacco International portfolio includes leading international brands in cigarettes and fine cut, such as Winston, MEVIUS, Camel and LD, as well as in Reduced-Risk Products, such as Ploom TECH and Logic. <ref>Japan Tobacco International, [https://www.jt.com/investors/results/annual_report/pdf/2017/annual.fy2017_E_all.pdf Annual Report FY2017], p.2, Accessed September 2018 </ref> In 2017, the comapany's flagship brands accounted for more than 72 percent of Japan Tobacco International's sales. According to the company's website, Japan Tobacco International have approximately 14 percent global market share. <ref>Japan Tobacco International website, [https://www.jti.com/about-us/what-we-do/our-brands Our brands], 2018, Accessed September 2018 </ref>
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 +
Japan Tobacco is the market leader in Japan, which is one of the largest markets in the world, generating about 40 percent of the company's consolidated adjusted operating profit. During 2017, the company's share of market reached 61.3 percent, due the solid performance of the company's core brands, such as MEVIUS and Natural American Spirit. In 2017, Japan Tovbacco launched Ploom shops and expanded the sales of Ploom TECH in Tokyo.<ref>Japan Tobacco International website, [https://www.jt.com/investors/results/annual_report/pdf/2017/annual.fy2017_E_all.pdf Annual Report FY2017], p.2, Accessed September 2018 </ref>
  
 
====Volume of Cigarettes by Region====
 
====Volume of Cigarettes by Region====

Revision as of 14:50, 12 October 2018

Japan Tobacco International was formed in 1999 when the parent company JT Group acquired the non US operations of R.J. Reynolds. In 2007, Japan Tobacco International acquired UK based Gallaher, doubling in size and adding 11,000 new employees. [1] According to company's website, 2017 marked 19th consecutive year of profit growth for the company. [2]

Company Overview

Japan Tobacco, Inc. engages in the manufacture and sale of tobacco, pharmaceutical, beverage and processed food products. It operates through the following segments: Domestic Tobacco Business, International Tobacco Business, Pharmaceutical Business, Beverage Business, Processed Food Business and Others. The Domestic Tobacco Business segment deals with the production and sale of tobacco products in domestic areas. [3]

The JT Act provides that the Government of Japan must continue to hold over one-third of all of the issued shares except for the class shares, which have no voting right against all matters that can be resolved at our shareholders’ meeting. [4]

Key Executives

Name Position Bio[5]
Eddy Pirard President and Chief Executive Officer Eddy Pirard is a Belgian national, appointed President and Chief Executive Officer in April 2017.

A career in tobacco

Eddy joined Gallaher in January 1998 as Head of Business Development. He left the company after a few years to start up an entrepreneurial venture in the e-procurement area, before rejoining Gallaher in 2002 to create and lead its cigar division. In 2004, he became Managing Director of the Other Tobacco Products (OTP) division.

Following the JTI acquisition of Gallaher in 2007, Eddy was appointed President for the UK and Ireland region. He was promoted to the position of Regional President for Western Europe in 2010.

Prior to his current role, Eddy was appointed Executive Vice President for Business Development, Corporate Affairs and Corporate Communications in 2014.

Previous experience

Eddy began his career in consumer marketing at Procter & Gamble in 1986. In 1991, he joined McKinsey & Co, where he specialized in fast moving consumer goods and worked across a wide range of disciplines in both Europe and the US.

Eddy holds a Business degree from Hautes Études Commerciales (HEC) in Belgium and a Master's in Business Administration from Harvard Business School.

Koji Shimayoshi Deputy CEO and Executive Vice President Business Development and Corporate Strategy Koji Shimayoshi is a Japanese national, appointed to his current role in January 2018.

A career in tobacco

Koji joined our parent company JT (Japan Tobacco) in 1993. After holding a series of management positions, he became Director of the Manufacturing Division in 2005, then moved to the Tobacco Business Planning Division, Tobacco Business Headquarters in 2007, where he was promoted to Senior Director in 2008.

In 2012 he was made Vice President of Human Resources and subsequently appointed Senior Vice President, Human Resources in 2015. He then returned to the Tobacco Business Planning Division, Tobacco Business Headquarters in January 2017, as the Senior Vice President, Business Development & Corporate Strategy, before moving to JTI’s headquarters in Geneva in October 2017.

Koji holds a Master’s Degree in Engineering, Metal Science and Technology from Kyoto University.

Roland Kostantos Chief Operating and Financial Officer Roland Kostantos is a Canadian and Greek national. He was appointed Chief Operating and Financial Officer in April 2017.

A career in tobacco

Roland joined RJR-Macdonald Inc. as a finance supervisor in 1987 and then held a number of positions before being promoted to Vice President Finance & Chief Financial Officer in 1996.

In 1998, Roland moved to Geneva as Vice President Financial Planning & Analysis and subsequently held various headquarter finance positions including the role of Chief Financial Officer for the Europe Region in 2002. In 2006 he was promoted to the position of Vice President Finance, Corporate Controller.

Prior to his current assignment, Roland was appointed in 2009 to the position of Senior Vice President Finance, Information Technology and Chief Financial Officer.

Previous experience

Roland holds an Honors Bachelor of Business Administration from Wilfrid Laurier University and earned his Chartered Accountant designation in 1985 while articling with the accounting and audit service firm of Clarkson Gordon (now Ernst & Young).

Stefan Fitz Regional President, Asia Pacific Stefan Fitz is an Austrian national, appointed Regional President Asia Pacific in September 2010.

A career in tobacco

Stefan was a key driver of the integration of Austria Tabak into Gallaher, and was appointed Managing Director Central Europe for Gallaher in 2001.

In 2007, Stefan was appointed Regional President, Central Europe.

Previous experience

Stefan started his career working for Henkel Austria in 1992, before joining Austria Tabak in 1995 as Managing Director of the International Business. He was promoted to General Manager, Tobacco Division, in 1999.

Stefan graduated from the Vienna Business University.

Marchant Kuys Regional President, Americas Marchant Kuys is a South African national, promoted to our Executive Committee as Regional President of the Americas in January 2016.

A career in tobacco

Marchant joined us in 2001 as Finance Director for South Africa before being promoted to the position of General Manager in 2003.

In 2006, he was appointed as Director General of the Ukraine, Caucasus, Moldova, Belarus and Central Asia markets. When JTI acquired Gallaher in 2007, Marchant was appointed as General Manager for Ukraine, overseeing the integration of the Gallaher business in that country.

In 2010, Marchant was appointed to the position of General Manager of Taiwan.

Previous experience

Marchant has more than 25 years of experience in Finance and General Management in Southern Africa, Eastern Europe & Asia.

He earned his Chartered Accountant designation after an apprenticeship with Coopers & Lybrand, beginning in 1985.

In 1990 he began his commercial career with finance management positions at Cadbury Schweppes, progressing through the organization before joining Avis Fleet Services as Finance Director in 1998.

Marchant holds a business degree and a post-graduate diploma in Accounting from the University of Port Elizabeth.

Jorge da Motta Regional President, Middle East, Near East, Africa, Turkey and Worldwide Duty Free Jorge da Motta is a dual South African/ Belgian national, appointed as Regional President, Middle East, Near East, Africa, Turkey and Worldwide Duty Free in February 2016.

A career in tobacco

Jorge joined us in Tanzania in 2005 as Sales and Marketing Director and progressed to General Manager later that year. In 2007, he moved to Moscow to lead the Sales and Marketing function for us in Russia, and in 2010, he moved further east to Hong Kong as Regional Sales and Marketing Vice President for the Asia Pacific Region. In 2013, Jorge was appointed General Manager for the UK. He moved to Geneva in 2014 when he was appointed as Regional President of Central Europe.

Previous experience

Jorge began his career in 1982 as a marketing trainee at Cadbury in South Africa. Over the next 19 years, he held several increasingly senior positions with many multinationals including Kimberly Clark, SAB Miller and Frito-Lay.

Jorge holds a Bachelor of Commerce degree from the University of the Witwatersrand in South Africa.

Kevin Tomlinson Regional President, Eastern Europe Kevin Tomlinson is a British national, appointed Regional President of Eastern Europe in October 2017.

A career in tobacco

Kevin, a tobacco industry veteran, joined R.J. Reynolds International in 1996 from Rothmans International.

Kevin has held senior management positions in Ukraine, Caucasus and Moldova, Belarus and Central Asian markets. In 2006 he was appointed our General Manager for Russia, playing a key role in securing and maintaining its industry leadership position.

He was appointed Regional President of the CIS+ region in 2013. In October 2017 the CIS+ region was expanded and renamed Eastern Europe.

Kevin holds a Bachelor of Arts degree from Durham University.

Vassilis Vovos Regional President, Western Europe Vassilis Vovos is a Greek national, appointed Regional President of Western Europe in 2014.

A career in tobacco

Vassilis started his career working for R.J. Reynolds Tobacco Greece in 1991, where he held various positions in the Brand Marketing department. He was appointed Marketing Director in 1995.

In 1997, he moved to R.J. Reynolds International in Paris, and became Senior Director, then VP Marketing & Strategic Planning for the Southern Europe & Northern Africa Region.

After the acquisition of R.J. Reynolds International by Japan Tobacco Inc. in 1999, he joined the JTI Geneva headquarters as VP Marketing & Sales Europe until he was appointed Vice-President and Deputy General Manager for France in 2001.

From April 2002 he was General Manager of France, until his promotion to the position of Regional President for Central Europe in 2010.

Vassilis holds a Bachelor of Science in Mechanical Engineering from the Thessalonica Polytechnic School in Greece, and a Masters in Business Administration from the University of Illinois in Chicago.

Name Postition Bio From Source

Board Members

Name Position Bio [6]
Yasutake Tango Chairman of the Board Mr. Tango began his career at Japan’s Ministry of Finance in 1974. He served as Executive Secretary to Prime Minister Junichiro Koizumi from 2001 to 2006, and in 2008 was appointed Director-General of the Budget Bureau. He was promoted to Administrative Vice Minister of the Ministry of Finance in 2009.

Mr. Tango became Chairman of the Board of Directors of JT in 2014 after having served as Corporate Auditor for The Yomiuri Shimbun Holdings from 2010 to 2012.

He also serves as Outside Director for The Ogaki Kyoritsu Bank, Ltd. and is Chairman and Principal of Kaisei Junior & Senior High School, one of Japan’s leading preparatory schools.

Mr. Tango is a graduate of the University of Tokyo’s Faculty of Law. He is a keen hiker and outdoor enthusiast.

Masamichi Terabatake Representative Director and President, Chief Executive Officer Mr. Terabatake joined JT in 1989 and held senior positions in the Manufacturing Division before becoming Director of Corporate Planning in 1998. He played a key role in the acquisition of R.J. Reynolds International (RJRI), and relocated to Geneva in 1999 to lead the JT International-RJRI Integration Project following the transaction.

Returning to Japan in 2002 as Vice President of the Tobacco Business Manufacturing Division, Mr. Terabatake was directly involved in the formulation of JT’s medium-term plan for April 2003 to March 2006. “Plan V”, as it was known, remains a case study in JT’s ability to anticipate changes in the operating environment and take decisive action, building profitability and expanding globally.

Mr. Terabatake became Vice President of JT’s Corporate Strategy Division in 2008. He was promoted to Senior Vice President and Chief Strategy Officer in 2011, and two years later returned to Geneva as Deputy CEO and Executive Vice President of Corporate Strategy at JT International. Emerging Products was added to his portfolio in 2014, and in 2017 he was appointed to JT’s Global Tobacco Strategic Committee, a new initiative to facilitate the growth of JT Group’s tobacco business. He was appointed President and CEO of JT in January 2018.

Mr. Terabatake is a graduate of Kyoto University’s Faculty of Engineering. In his free time he enjoys fishing and playing golf.

Mutsuo Iwai Representative Director and Executive Vice President Mr. Iwai joined JT (Japan Tobacco and Salt Public Corporation) in 1983, and over the past thirty-five years has held senior positions across divisions and business units. In 1997, he was part of the committee that developed the 4S Model, which identifies and commits to serving JT’s four stakeholder groups. More than 20 years later, the model’s principles still guide the Group’s strategic direction. In 2002 and 2003, he again played a key role in the formulation of JT’s management strategy, contributing to the development of “Plan V”, JT’s pivotal medium-term plan for April 2003 to March 2006.

Mr. Iwai served as Vice President of the Corporate Planning Division in 2003. He was appointed to the Board in June 2006 and promoted to Executive Vice President and President of the Food Business. After serving a series of management positions, including Senior Vice President and Chief Strategy Officer, he moved to Switzerland in 2011 to take a position at JT International. Returning to Japan in 2013, he became Senior Executive Vice President and Chief Strategy Officer.

Mr. Iwai took up his current position as Executive Vice President, Representative Director, and President, Tobacco Business Headquarters in March 2016. He is also Chairman of JT International Group Holding B.V.

Mr. Iwai is a graduate of the University of Tokyo’s Faculty of Economics. He enjoys cigars and listening to classical music.

Naohiro Minami Representative Director and Executive Vice President Mr. Minami joined JT in 1986. In 2005 he was promoted to Vice President, Accounting Division and Controller, positions he continued to hold when he became Deputy Chief Financial Officer in 2010. He was appointed Senior Vice President and CFO in 2012. As a senior executive, Mr. Minami has helped ensure consistent management across the group since JT’s acquisition of Gallaher in 2007.

Mr. Minami was instrumental in laying the groundwork for JT’s adoption of International Financial Reporting Standards in 2012. The initiative placed JT among Japan’s earliest adopters of IFRS and addressed investor demand for a common benchmark with which to evaluate the company against overseas peers.

Mr. Minami was appointed Executive Vice President in January 2018, and became a Representative Director in March 2018.

Mr. Minami is a graduate of Doshisha University’s Faculty of Law. In his leisure time he enjoys driving and reading.

Kiyohide Hirowatari Representative Director and Executive Vice President Mr. Hirowatari joined JT in 1989. From 1995 to 1997, he was seconded to Japan’s Ministry of Finance where he was involved in industrial policy planning and analysis. Returning to JT in 1997, he worked for 17 years in the Legal Division, playing key roles in numerous M&A and other strategic transactions in the tobacco, food & beverage, and pharmaceutical sectors. In 2010 he was promoted to Vice President of the Legal Division, and became a Senior Vice President in 2012. He also served as Chief Legal Officer from 2012 to 2014.

In January 2015, Mr. Hirowatari was appointed Senior Vice President, Head of Business Planning Division at the Tobacco Business, and in January 2017 became Senior Vice President of the Human Resources Division. He was appointed Executive Vice President in January 2018, and became a Representative Director in March 2018.

Mr. Hirowatari is a graduate of Hitotsubashi University’s Faculty of Law. He enjoys American football and is an avid supporter of college football.

Main Kohda Outside Director of the Company Ms. Kohda has a deep understanding of the financial industry developed over a long career on the front lines of international financial and capital markets. Her career included spells at US banks and securities firms, working in fixed income trading and foreign multicurrency bond sales, before taking a new turn when she became a published author in 1995.

In parallel with her writing career, Ms. Kohda’s recognized expertise in financial markets led to her appointment to the Financial System Council of Japan’s Ministry of Finance in 2003 and the Tax Commission of the Cabinet Office of the Government of Japan in 2006. She has also served as a Visiting Professor at Shiga University’s Faculty of Economics, a member of the Policy Board of Japan’s Ministry of Land, Infrastructure and Transport, and a member of the Board of Governors of Japan Broadcasting Corporation (NHK).

Ms. Kohda has been an Outside Director to JT’s Board of Directors since June 2012. She serves concurrently as an Outside Director at LIXIL Group Corporation and an Outside Director at Japan Exchange Group, Inc. (JPX).

Koichiro Watanabe Outside Director of the Company Mr. Watanabe began his career at The Dai-ichi Mutual Life Insurance Company in 1976. He became a member of that company’s Board in 2001 and pursued a multi-stakeholder management style through company-wide social responsibility initiatives. Appointed Director, Managing Executive Officer in July 2007, Mr. Watanabe worked to accelerate the growth of the company’s global business through overseas M&A.

In 2010, Mr. Watanabe led The Dai-ichi Mutual Life Insurance Company’s reorganization as a joint-stock company and its subsequent listing on the First Section of the Tokyo Stock Exchange. He was appointed Representative Director and President of the newly formed The Dai-ichi Life Insurance Company, and in 2015 oversaw its acquisition of Protective Life Corporation. In 2016, he led Dai-ichi’s transition to a holding company structure, creating an operating framework that responds more flexibly to changes in the business environment. He became Representative Director and President of Dai-ichi Life Holdings that same year and has been Chairman of the Board at both The Dai-ichi Life Insurance Company and Dai-ichi Life Holdings since 2017.

Mr. Watanabe was appointed to JT’s Board of Directors as an Outside Director in March 2018.

Mr. Watanabe is a graduate of Tohoku University’s Faculty of Economics. In his spare time, he enjoys playing golf. He holds dan ranks in both kendo and karate.

Investments in Unconsolidated Subsidiaries ("significant" > 20 percent management control):

An unconsolidated subsidiary is a company that is owned by a parent company, but whose individual financial statements are not included in the consolidated or combined financial statements of the parent company to which it belongs. Instead, this type of company appears in the combined financial statement as an investment.[7]

(Associated undertakings and joint ventures)

Subsidiary Name Country Interest amount (percentage) Interest Type Notes
Name Country x.x% Type Note

List of Significant Subsidiaries

Subsidiary Name State or Country of Organization Region
TS Network Co., Ltd. Taito-ku, Tokyo Region
JT Logistics Co., Ltd. Chuo-ku, Tokyo Region
Japan Filter Technology Co., Ltd. Sumida-ku, Tokyo Region
Fuji Flavor Co., Ltd. Hamura-shi,Tokyo Region
JT Engineering Inc. Sumida-ku,Tokyo Region
TRUE SPIRIT TOBACCO COMPANY Minato-ku, Tokyo Region
JT International Group Holding B.V. Netherlands Region
JT International Holding B.V. Netherlands Region
JT International S.A. Switzerland Region
LLC JTI Russia Russia Region
Gallaher Ltd. U.K. Region
LLC Petro Russia Region
JTI Polska Sp. z o. o. Poland Region
JT International Germany GmbH Germany Region
JTI Tütün Urunleri Sanayi A.S. Turkey Region

2018 Forecast

The tobacco business will remain Japan Tobacco International's profit growth engine. The company also expects contribution from the pharmaceutical and processed food businesses to complement the JT Group’s profit growth. IN February 2018, the tobacco company's priorities for 2018 were identified as:

  • Accelerating investment in Reduced-Risk Products as future growth drivers of the tobacco business.
  • Enhancing business foundations in traditional tobacco products, such as cigarettes, by investing in brand equity and geographical expansion.

Profitability

Annual Trends

Fiscal year

in Billions of yen

2017 (IFRS)[8]:45 2016 (IFRS)[8]:45 2015 (IFRS)[8]:45 2014 (Jan-Dec)[8]:45 2013 (IFRS)[8]:45
Net Revenue 1,237.6 1,199.2 1,317.2 1,328.0 1,270.0
Reported Profit 325.6 301.8 346.9 379.5 376.4

Profits per Region (in xx yy)

Region 1

Geographic region covers: aa, bb, cc, dd [9]

in xx yy 2017 [10] 2016 [10] 2015 [10] 2014 [10] 2013 [10]
Net Revenues xx xx xx xx xx
Adjusted profit xx xx xx xx xx


Acquisitions

Recent acquisitions [11] Acquired Organization Name Acquiring Organization Name Announced Date Value
Mighty Corporation (Philippines) acquired by Japan Tobacco International Mighty Corporation Japan Tobacco International 2017 $936m[12]
Karyadibya Mahardhika (Indonesia) acquired by Japan Tobacco International Karyadibya Mahardhika Japan Tobacco International 2017 $1bn [13]
La Tabacarela (Dominican Republic) acquired by Japan Tobacco International[14] La Tabacarela Japan Tobacco International 2016 -
Fluxo Brasil Distribuidora do Produtos (Brazil) acquired by Japan Tobacco International[15] Fluxo Brasil Distribuidora do Produtos Japan Tobacco International 2016 -
Natural American Spirit (international, non-U.S. operations from Reynolds American Inc.) (U.S.) acquired by Japan Tobacco International Natural American Spirit (international, non-U.S. operations from Reynolds American Inc.) Japan Tobacco International 2016 600bn Yen (USD 4.94bn) [16]
Logic Technology Development LLC (U.S.) acquired by Japan Tobacco International Logic Technology Development LLC Japan Tobacco International 2015 -
Arian Tobacco Industry (Iran) acquired by Japan Tobacco International Arian Tobacco Industry Japan Tobacco International 2015 "undisclosed amount"[17]
Ploom, Inc. (U.S.) acquired by Japan Tobacco International Ploom, Inc. Japan Tobacco International 2015 "undisclosed amount"[18]
Zandera Ltd. (UK) acquired by Japan Tobacco International Zandera Ltd. Japan Tobacco International 2014 -
Megapolis (20% stake) (Russia) acquired by Japan Tobacco International Megapolis (20% stake) Japan Tobacco International 2013 -
Al Nakhla Tobacco Company S.A.E. & Al Nakhla Tobacco Company (Egypt) acquired by Japan Tobacco International Al Nakhla Tobacco Company S.A.E. & Al Nakhla Tobacco Company Japan Tobacco International 2013 -
Gryson NV (Belgium) acquired by Japan Tobacco International Gryson NV Japan Tobacco International 2012 -
Haggar Cigarette & Tobacco Factory Ltd. (North Sudan) acquired by Japan Tobacco International Haggar Cigarette & Tobacco Factory Ltd. Japan Tobacco International 2011 -
Haggar Cigarette & Tobacco Factory Ltd. (South Sudan) acquired by Japan Tobacco International Haggar Cigarette & Tobacco Factory Ltd. Japan Tobacco International 2011 -
Tribac Leaf Limited (UK) acquired by Japan Tobacco International Tribac Leaf Limited Japan Tobacco International 2009 -
Kannenberg & Cia. Ltda. (Brazil) acquired by Japan Tobacco International Kannenberg & Cia. Ltda. Japan Tobacco International 2009 -
Barker, Hall & Cotton Tabacos Ltds. (Brazil) acquired by Japan Tobacco International Barker, Hall & Cotton Tabacos Ltds. Japan Tobacco International 2009 -
Gallaher Group Plc. (remaining shares) (UK) acquired by Japan Tobacco International Gallaher Group Plc. (remaining shares) Japan Tobacco International 2007 -
AD Duvanska Industrija Senta (Serbia) acquired by Japan Tobacco International AD Duvanska Industrija Senta Japan Tobacco International 2007 -
CRES Nev Ltd.a (Russia) acquired by Japan Tobacco International CRES Nev Ltd.a Japan Tobacco International 2005 -
Austria Tabaka (Austria) acquired by Japan Tobacco International Austria Tabaka Japan Tobacco International 2001 -
Liggett-Ducata (Russia) acquired by Japan Tobacco International Liggett-Ducata Japan Tobacco International 2000 -
RJR Nabisco (non-U.S. operations) (U.S.) acquired by Japan Tobacco International RJR Nabisco (non-U.S. operations) Japan Tobacco International 1999 -
Tanzania Cigarette Company (Tanzania) acquired by Japan Tobacco International Tanzania Cigarette Company Japan Tobacco International 1995 -
Yelets Tobaccob (Russia) acquired by Japan Tobacco International Yelets Tobaccob Japan Tobacco International 1994 -
Manchester Tobaccob (UK) acquired by Japan Tobacco International Manchester Tobaccob Japan Tobacco International 1992 -
AS-Petrob (Russia) acquired by Japan Tobacco International AS-Petrob Japan Tobacco International 1992 -

Investments

In August 2018, Japan Tobacco purchased Akij Group (Bangladesh) for around USD1.5 billion. Reuters reported it is Japan Tobacco International's second major purchase in five months. [19]

Investments Organizational Name Funding Type Money Raised Announced Date
a b c d zz/zz/zzzz

Market Share

JT provides a self evaluation in terms of market share...

Emerging Markets

JT in emerging market...

Factory Openings and Closures

Factories...

Dividends

Table below provides review of dividend payment history since 2014: [20]

Dividend per share

in Millions YEN

2018 2017 2016 2015 2014
Interim 75 70 64 54 50
Year-end 75 (Estimated) 70 66 64 50
Annual 150 (Estimated) 140 130 118 100
Dividend payout ratio 71.3 (Estimated) 63.9 55.2 53.2 50.1

Products

Key Portfolio

Japan Tobacco International portfolio includes leading international brands in cigarettes and fine cut, such as Winston, MEVIUS, Camel and LD, as well as in Reduced-Risk Products, such as Ploom TECH and Logic. [21] In 2017, the comapany's flagship brands accounted for more than 72 percent of Japan Tobacco International's sales. According to the company's website, Japan Tobacco International have approximately 14 percent global market share. [22]

Japan Tobacco is the market leader in Japan, which is one of the largest markets in the world, generating about 40 percent of the company's consolidated adjusted operating profit. During 2017, the company's share of market reached 61.3 percent, due the solid performance of the company's core brands, such as MEVIUS and Natural American Spirit. In 2017, Japan Tovbacco launched Ploom shops and expanded the sales of Ploom TECH in Tokyo.[23]

Volume of Cigarettes by Region

Region 2017 (Billions) 2016 (Billions) 2015 (Billions) 2014 (Billions) 2013 (Billions)
South & West Europe 64.2 65.2 63.2 59.8 60.9
North & Central Europe 51.8 54.2 53.0 51.6 50.4
CIS+ 133.0 141.4 152.5 165.7 185.2
Rest-of-the-World 149.5 137.9 125.2 120.8 119.8
Total 398.5 398.7 393.9 398.0 416.4

Tobacco Sales Volume

International tobacco

For the international tobacco business, total shipment volume includes fine cut, cigars, pipe tobacco and snus, but excludes contract manufactured products, waterpipe tobacco products and emerging products.

Japanese domestic tobacco

For Japanese domestic tobacco, total sales volume excludes sales volume of Japanese domestic duty free, the Chinese business and emerging products.

Product Category 2017 2016 [24] 2015 [25] 2014 (Calendar year) [26] 2013
Tobacco Units (in billions) - - - - -

Innovative Product Portfolio

Marketing and External Relations

Global Campaigns

Corporate Social Responsibility

Research and Development

Marketing to Kids

Advertisements and Bad Acts Review

Political Spending

Reporting and Regulation

Tobacco Litigation

Partners and Allies

Audit and Accounting

Banking and Finance

Consultancies

Marketing, Communications and PR Companies

Product Category 2017 2016 [27] 2015 [28] 2014 (Calendar year) [29] 2013
Tobacco Units (in billions) - 106.2 109.2 112.4 -
Name Contract Status Notes Other Clients
Name(year active) Status text on company
  • client 1
  • client 2
  • client 3
  • client 4
  • client 5

References

  1. Japan Tobacco International, About Us,Accessed September 2018
  2. Japan Tobacco International, About Us,Accessed September 2018
  3. Forbes website, June 2018, Accessed September 2018
  4. https://www.jti.com/sites/default/files/global-files/documents/jti-annual-reports/fy-2016-annual-report-fy2016-e-all.pdf, page 49, Accessed September 2018
  5. https://www.jti.com/index.php/about-us/our-business/our-leadership JTI Website, Our Leadership, accessed September 2018
  6. https://www.jt.com/about/officer/ Bio Source
  7. https://www.investopedia.com/terms/u/unconsolidated-subsidiary.asp
  8. 8.0 8.1 8.2 8.3 8.4 Japan Tobacco Inc., 2017, Japan Tobacco Inc. Annual Report FY2017 Accessed: September, 2018
  9. JTI_AR_2017
  10. 10.0 10.1 10.2 10.3 10.4 Cite error: Invalid <ref> tag; no text was provided for refs named BAT_AR_2017_Region
  11. Japan Tobacco International: To ‘be the most successful and respected tobacco company in the world’ Ross MacKenzie, Jappe Eckhardt & Ade Widyati Prastyani PUBLISHED ONLINE: 31 January 2017 https://doi.org/10.1080/17441692.2016.1273368
  12. https://www.ft.com/content/e0cc418c-8723-11e7-8bb1-5ba57d47eff7
  13. https://www.ft.com/content/e0cc418c-8723-11e7-8bb1-5ba57d47eff7
  14. https://asia.nikkei.com/Business/JT-buys-half-of-Dominican-producer-in-Latin-American-push
  15. https://asia.nikkei.com/Business/Japan-Tobacco-buys-Brazilian-cigarette-distributor
  16. https://asia.nikkei.com/Business/Japan-Tobacco-lights-up-industry-with-new-purchase
  17. https://www.ft.com/content/626e5c5a-7576-11e5-a95a-27d368e1ddf7
  18. https://www.businesswire.com/news/home/20150216005085/en/JTI-Acquires-%E2%80%9CPloom%E2%80%9D-Intellectual-Property-Rights-Ploom
  19. Japan Tobacco buying Bangladesh Akij's tobacco business for $1.5 billion, Reuters, August 2018, Accessed September 2018
  20. Japan Tobacco International,For Shareholders, March 2018, Accessed September 2018
  21. Japan Tobacco International, Annual Report FY2017, p.2, Accessed September 2018
  22. Japan Tobacco International website, Our brands, 2018, Accessed September 2018
  23. Japan Tobacco International website, Annual Report FY2017, p.2, Accessed September 2018
  24. Japan Tobacco International, 2016 Annual Report, p. 14, Accessed September 2018
  25. Japan Tobacco International, 2016 Annual Report, p. 14, Accessed September 2018
  26. Japan Tobacco International, 2016 Annual Report, p. 14, Accessed September 2018
  27. Japan Tobacco International, 2016 Annual Report, p. 14, Accessed September 2018
  28. Japan Tobacco International, 2016 Annual Report, p. 14, Accessed September 2018
  29. Japan Tobacco International, 2016 Annual Report, p. 14, Accessed September 2018

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