Japan Tobacco Inc. · TSE:2914
Japan Tobacco — FY2025 Earnings Presentation
34 slides from Japan Tobacco's earnings presentation, Feb 12, 2026
Slide 1: 2025 Investor Meeting
Japan Tobacco Inc. 2025 Investor Meeting Please be reminded that the figures shown on these slides may differ from those shown in the financial statements as they are intended to facilitate the reader’s understanding of individual businesses.
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. These statements appear in a number of places in this document and include statements regarding the intent, belief, or current and future expectations of our management with respect to our business, financial condition
Slide 3: Agenda
Agenda JT Group Business Plan 2026 ◼ FY2025 Overview ◼ The JT Group Purpose and the Management Principle (4S Model) 01 ◼ Resource Allocation and Shareholder Return Policies Takehiko Tsutsui JT Group CEO ◼ Sustainability ◼ Targets for medium to long term and Business Environment Assumptions ◼ Busines
Slide 4: Business Plan 2026
JT Group Business Plan 2026 Takehiko Tsutsui JT Group CEO
Slide 5: FY2025 Overview
FY2025 Overview An exceptional year driving record-high results across all indicators1 • Driven by the business investments we have made to date, Consolidated Adjusted Operating we delivered record-high financial results, paving the way for Profit (AOP) at constant FX1 sustainable growth into the fu
Slide 6: Strategy has delivered sustainable profit growth and enhanced shareholder returns
Our strategy aligned with the Purpose and the Management Principle has delivered sustainable profit growth and enhanced shareholder returns (JPY Bn) (JPY) 3,500 234 250 188 194 194 3,000 200 140 150 2,500 3,467.7 3,149.8 100 2,841.1 2,657.8 500 2,324.8 902.2 50 727.8 728.0 751.9 610.4 442.7 482.3 46
Slide 7: The JT Group Purpose and the Management Principle - 4S Model
The JT Group Purpose and the Management Principle - 4S Model The JT Group Purpose The 4S Model “We strive to fulfill our responsibilities to our valued consumers, shareholders, employees and the wider society, carefully considering the respective interests of these four key stakeholder groups, and e
Slide 8: JT Group Resource Allocation
JT Group Resource Allocation The JT Group Purpose and the 4S Model continue to guide our resource allocation Resource Allocation Policy • Prioritize business investments1 for sustainable profit growth in the mid- to long-term by • Prioritizing the tobacco business, especially Combustibles and Heated
Slide 9: Sustainability
Sustainability © Copyright JT 2026 9
Slide 10: Business Plan 2026: Pursue sustainable profit growth
Business Plan 2026 Pursue sustainable profit growth over the medium to long term JT Group’s mid- to long-term growth algorithm: Mid to high single digit* Outlook for the plan period 2026-2028 High single digit* Tobacco Business: Processed Food Business: the core driver of profit growth complementing
Slide 11: Business Plan 2026: Tobacco Business - Strategy
Business Plan 2026 Tobacco Business - Strategy • Top-line growth driven by robust pricing contribution and market share gains Combustibles • Profit margin improvement through focused investments and cost reduction Footprint Overview (As of Dec 2025) 28 • Strengthen strategic investment in Heated Pro
Slide 12: Tobacco Business – Continue efforts towards achieving JT's RRP Ambitions
Business Plan 2026 Tobacco Business – Continue efforts towards achieving JT’s RRP Ambitions* Accelerating top-line growth • Increase further the RRP-related revenue growth rate in the current business plan period • Invest approx. JPY 800 Bn over the three-year period from 2026 to 2028 • Accelerate P
Slide 13: Focus on FY 2025 Performance
JT Group - Tobacco Business Focus on FY 2025 Performance Eddy Pirard JTI President & CEO
Slide 14: Outstanding performance in 2025 across all KPIs
Outstanding performance in 2025 across all KPIs Total Volume +2.2% Clear strategic focus and execution excellence deliver best-in-class Core Revenue1) +14.6% revenue & AOP growth Adjusted OP1) +23.5% Prioritizing Ploom Increasing returns in Combustibles • Successful Ploom AURA launches, • GFB volume
Slide 15: Robust RRP top-line growth driven by Ploom
Robust RRP top-line growth driven by Ploom RRP KPIs (2025 vs. PY) • Both total RRP volume and revenue grew by +28% more than 20% versus prior year +24% • Fueled by ongoing Ploom growth, with volume increasing by close to 40% • Increased investment behind Ploom to accelerate top-line momentum • Selec
Slide 16: Ploom continued to gain share across global markets
Ploom continued to gain share across global markets Ploom SoS in Heated Products 1) Selected markets - Ploom SoS in Heated Products 1) Slovakia Czech R. Kazakhstan 15.7% 6.6% 6.5% 4.2% 5.4% 3.4% 4.3% 12.5% Dec’24 Dec’25 Dec’24 Dec’25 Dec’24 Dec’25 Poland Serbia Switzerland 10.7% 3.2% 2.6% 1.9% 1.2%
Slide 17: Ploom AURA strengthens consumer experience and adoption
Ploom AURA strengthens consumer experience and adoption International Markets Ploom AURA – Consumer Metrics Ongoing transition to Ploom AURA # of Ploom users EVO sticks SoS NPS +34 % +3.0 % in +13 points 7 months Before launch After launch May’25 Dec’25 Ploom X Ploom AURA (Dec’24) (Dec’25) Advanced
Slide 18: GFB volume growth underpins our Combustibles performance
GFB volume growth underpins our Combustibles performance Combustibles volume variance (2025 vs. PY) • Combustibles volume increased within an industry volume declining by 2.7%1) • 50+ markets grew volume +4.9% • Successful Vector integration +4.3% +2.8% • GFB volume grew for the 7th consecutive year
Slide 19: Pricing exceeded historical average
Pricing exceeded historical average … Total Tobacco Price/mix, % 1) • Exceptional Combustibles pricing, above +10.8% historical average • Driving +15% revenue growth 2) • More than offsetting impacts from ongoing inflationary pressure & down-trading +8.0% • Key pricing contributors per cluster inclu
Slide 20: Strong Combustibles ROI improvement
… leading to a strong Combustibles ROI improvement Comb. Profit Margin variance, ppt 1) • Significant increase in Combustibles profit margin fueled by pricing and strategic drive +3.4ppt on ROI • Quality top-line growth led by continuous investment behind brand equity building, focused on GFBs +1.2p
Slide 21: 2026 Outlook for the Tobacco business
2026 Outlook for the Tobacco business RRP – further accelerate consumer acquisition • Drive top-line expansion leveraging the ongoing roll-out of Ploom AURA and a broader EVO sticks portfolio • Continue to profitably explore other RRP categories • Increase investments in commercial initiatives and c
Slide 22: 2025 Results & 2026 Forecasts
JT Group 2025 Results & 2026 Forecasts Hiromasa Furukawa JT Group Chief Financial Officer
Slide 23: 2025 Consolidated Results: Record Highs Across All Indicators
2025 Consolidated Results: Record Highs Across All Indicators (JPY BN) FY2025 vs. 2024 Revenue・AOP At constant FX • Outstanding growth driven by the tobacco business, delivering strong organic performance alongside the inclusion of VGR 1) Core revenue*1 3,347.8 +13.9% 1)VGR= Vector Group Ltd. Curren
Slide 24: Tobacco Business Financial Results
Tobacco Business Financial Results: Over 20% profit growth driven by top-line performance (JPY BN) FY2025 vs. 2024 Volume • Positive volume contribution, mainly driven by the EMA Core revenue 3,184.4 +14.6% cluster, including the VGR contribution at constant FX 3,185.5 +14.6% Price/Mix AOP 952.2 +20
Slide 25: Processed Food Business Financial Results
Processed Food Business Financial Results Processed Food Business Revenue vs. 2024 (JPY BN) FY2025 variance • Increase driven by price revisions in the frozen and ambient foods business Revenue 159.5 +2.3 AOP AOP 8.6 +0.5 • Increase mainly driven by revenue growth offset the higher raw material cost
Slide 26: 2026 Consolidated Financial Forecasts
2026 Consolidated Financial Forecasts: Aiming for high single digit AOP growth at constant FX (JPY BN) FY2026 vs. 2025*1 Core revenue・AOP • Strong business momentum in the tobacco business expected to Revenue 3,697.0 +6.6% continue, resulting in Core revenue and AOP increasing year-on-year Core reve
Slide 27: Tobacco Business: Volume Outlook and Financial Forecasts
Tobacco Business: Volume Outlook and Financial Forecasts Volume FY2026 Volume assumption A decrease of • Sustained momentum in Combustibles market share gains, Total volume approx.1.0% to Flat combined with RRP volume growth, expected to partially offset vs. 2025 global Combustibles industry volume
Slide 28: Processed Food Business Financial Forecasts
Processed Food Business Financial Forecasts Processed Food Business Revenue vs. 2025 (JPY BN) FY2026 variance • Increase mainly driven by price revisions in the frozen and ambient foods business Revenue 170.0 +10.5 AOP • Decrease mainly due to higher raw material costs, despite expected AOP 8.0 -0.6
Slide 29: Shareholder Returns
Shareholder Returns Profit growth drives higher dividend per share Total shareholder return outperforming TOPIX 【Trend of dividends per share (JPY)】 【TSR (%)】 ※Benchmark date: the end of December, 2020 242 234 350 +6.6% 313.5 194 194 300 188 250 228.2 150 154 154 198.2 140 140 200 142.2 213.2 150 16
Slide 30: Closing Remarks
Closing Remarks Takehiko Tsutsui JT Group CEO
Slide 31: Closing Remarks
Closing Remarks • Strengthening our capability through consistent, forward-looking business investments over the years • Record-high results supported by strong momentum in the tobacco business, despite a challenging business environment Shareholders • In the Business Plan 2026, continue to pursue o
Slide 32: Reference: Canada Adjustment
Reference: Canada Adjustment • The Company’s local subsidiary, JTI-Macdonald Corp. (hereinafter referred to Consolidated as “JTI-Mac”), was a party to ten health care cost recovery cases brought by the Canadian provinces and eight class actions where plaintiffs were seeking damages for harm allegedl
Slide 33: Definitions
＜Definitions＞ Adjusted operating profit Operating profit + amortization cost of acquired intangibles arising from business acquisitions + adjusted items (income and costs) *. (AOP) *Adjusted items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others Constant F
Slide 34: Definitions
＜Definitions＞ Total volume The volume of tobacco-based products which excludes contract-manufactured products, RRP devices and related accessories. Combustibles volume The shipment volume of combustibles which excludes contract-manufactured products and RRP. RRP volume RRP sales volume in cigarette-