Glossary

Financial

Term Definition
Adjusted Operating Profit (AOP) 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
Consolidated Adjusted Operating Profit at Constant FX Consolidated Adjusted Operating Profit at Constant FX uses the same foreign exchange rates between local currencies vs USD and JPY vs USD as same period in previous fiscal year for international business

Tobacco Business

Term Definition
Reduced-Risk Products (RRP) Reduced-Risk Products are the products with potential to reduce the risks associated with smoking
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 products, Ploom TECH and Ploom TECH+, have low-temperature heating technology, which enables the products to offer a clear taste with no smoke, no smoke smell, no 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 Core Revenue also includes waterpipe tobacco and RRP, but excludes 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) GFB includes four Brands namely 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 Total Shipment Volume is the cigarette shipment volume which includes fine cut tobacco, cigars, pipe tobacco, snus and kretek, but excludes contract manufactured products, waterpipe tobacco and RRP

Japanese Domestic Tobacco Business

Term Definition
Core Revenue Core Revenue, excludes revenue from distribution of imported tobacco in the Japanese Domestic Tobacco Business, among others, but includes revenue from domestic duty free, the China business, the revenue from RRP and little cigars
RRP Related Revenue RRP related revenue, as a part of core revenue, represents the sale of RRP including Domestic duty free, principally the device and the related accessories
RRP Sales Volume JT’s RRP volume excludes the volume of Domestic duty free business.
This excludes RRP devices, RRP related accessories, etc.
JT Cigarette Sales Volume JT’s cigarette volume excludes the volume of Domestic duty free and the China businesses.
This includes little cigars but excludes RRP

Processed Food Business

Term Definition
Staple Food Products Frozen noodles, frozen and packed cooked rice and frozen baked bread
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