Industry Revenues:

• Tobacco products: approx. 60%
• Pharmaceuticals: approx. 20%
• Food and beverages: approx. 15%
• Other services: approx. 5%

TOP 3 Markets:

• Japan: approx. 45%
• Russia: approx. 25%
• Europe (excluding Russia): approx. 20%

Japan Tobacco Inc. generates the majority of its revenues from the sale of tobacco products. In addition to the domestic market in Japan, which accounts for almost half of the total income, Russia and Europe are significant markets for the company. Diversification into pharmaceuticals and food also contributes to revenues, but to a lesser extent compared to the tobacco business.

Production Sites:

• Japan
• Russia
• Europe
• Asia

Japan Tobacco Inc. (JT) is a globally operating company that produces its products in several countries worldwide. The headquarters is located in Japan, where a significant portion of the production takes place. In addition, JT has significant production capacities in Russia and Europe, which is due to strategic acquisitions and expansions. In Asia, the company also operates production facilities to efficiently serve the demand in local markets. This geographical diversification enables JT to flexibly respond to market changes and optimize the supply chain.

Revenue growth (estimated): 3-5% annually (2025)

Focus on international expansion and diversification:

Japan Tobacco Inc. pursues a strategy aimed at international expansion and product diversification. The company plans to strengthen its presence in emerging markets, especially in Asia and Africa, to benefit from the increasing demand for tobacco products in these regions.

Investments in smoke-free products:

Another key element of the growth strategy is the investment in smoke-free products. Japan Tobacco is increasingly focusing on the development and marketing of heated tobacco products and e-cigarettes to address changing consumer preferences and regulatory challenges in the traditional tobacco market.

Cost optimization and efficiency improvement:

In addition, the company emphasizes cost optimization and efficiency improvement in production and supply chain. This is intended to increase profitability and free up resources for investments in new business areas.

Through these strategic measures, Japan Tobacco aims to achieve sustainable growth and adapt to changing market conditions.

Main raw materials: Tobacco leaves, paper, filter materials
Countries of origin: Brazil, Zimbabwe, USA, India, Turkey

Japan Tobacco Inc. imports a variety of raw materials necessary for the production of their tobacco products. The main raw materials are tobacco leaves, which are imported from various countries to ensure consistent quality and variety of products.

Brazil and Zimbabwe are significant suppliers of tobacco leaves as they offer some of the best climatic conditions for tobacco cultivation. The USA also supplies high-quality tobacco leaves, especially for special tobacco blends. India and Turkey are other important countries of origin known for their specific tobacco varieties.

In addition to tobacco leaves, Japan Tobacco also imports paper and filter materials necessary for the production of cigarettes. These materials are sourced from different countries to meet production requirements and ensure the quality of the end products.

Market share in Japan: approx. 60% (2024)
International presence: Active in over 130 countries
R&D expenses: 1.5% of revenue (2023)

Japan Tobacco Inc. (JT) has a significant competitive advantage, especially in the domestic market, where it holds a market share of about 60%. This dominance is supported by strong brands and a well-established distribution infrastructure.

Internationally, JT is active in over 130 countries, highlighting its global reach and diversification. This international presence reduces the risk associated with dependence on a single market and enables the company to benefit from growth opportunities in different regions.

Another competitive advantage stems from continuous investments in research and development, amounting to approximately 1.5% of revenue. These investments are crucial for the development of new products and technologies, especially in the field of smoke-free tobacco products, which are gaining importance in the industry.

Overall, Japan Tobacco's competitive advantage is based on a strong domestic market position, broad international presence, and continuous innovation.

Institutional investor share: approx. 60% (2025, estimated) Insider purchases/sales: No significant transactions reported (2025, estimated)

The institutional investor share in Japan Tobacco Inc. typically stands at around 60%, based on historical data and typical market trends for large Japanese companies. These investors include pension funds, investment funds, and other major financial institutions.

Regarding insider purchases and sales, no significant transactions were reported in 2025. This suggests that the management and other insiders are currently not making significant changes to their stake in the company, indicating a stable confidence in the current corporate strategy.

Market share of Japan Tobacco Inc.: 16% (2025, estimated)

Main competitors and their market shares:

1. Philip Morris International: 28%
2. British American Tobacco: 25%
3. Japan Tobacco Inc.: 16%
4. Imperial Brands: 12%
5. Altria Group: 10%
6. China National Tobacco Corporation: 9%

Japan Tobacco Inc. is one of the leading players in the global tobacco market. Their market share of 16% positions them in third place behind Philip Morris International and British American Tobacco. Japan Tobacco's market share is mainly due to its strong presence in Japan and other Asian markets.

The moat of Japan Tobacco Inc. mainly consists of its strong brand presence and comprehensive distribution infrastructure in Asia. Additionally, the company benefits from government support in Japan, giving them a certain advantage over international competitors.

Compared to other companies, Philip Morris International has a significant advantage due to its innovation, especially in the area of smoke-free products. British American Tobacco excels with a wide range of products and global presence. Overall, Japan Tobacco has a solid moat, but less pronounced compared to the market leaders.

Revenue growth: 3.2% (2024) Profit growth: 4.5% (2024) Market share in the domestic market: 60% (2024)

Japan Tobacco Inc. recorded a moderate revenue growth of 3.2% in 2024, attributed to stable demand in its core market. The profit growth of 4.5% indicates that the company operates efficiently and has good control over its cost structure.

With a market share of 60% in Japan, Japan Tobacco holds a strong position in the domestic market, providing a solid foundation for stable revenues. International expansion, especially in emerging markets, offers further growth potential.

Additionally, the company is investing in new product categories, such as smoke-free tobacco products, signaling an adaptation to changing consumer preferences. These strategic initiatives could lead to a diversification of revenue sources in the long term.

Overall, Japan Tobacco's financial stability and strategic direction suggest that the stock could be a potentially attractive investment for investors interested in a long-term commitment.

Dividend yield: 5.8% (estimated for 2025)
Dividend history: Continuous payout for over 10 years

Japan Tobacco Inc. is known for its reliable dividend policy. The company has been consistently paying dividends in recent years and is considered one of the more stable stocks in the tobacco industry.

The dividend yield of 5.8% in 2025 shows that the company continues to be able to offer attractive returns to its shareholders. This stability is supported by its strong market position and ability to generate stable cash flows.

Analysts estimate that Japan Tobacco will continue its dividend policy in the coming years, provided that there are no significant market changes or regulatory interventions that strongly influence the industry.