# JAPAN TOBACCO INC.: business model and financials

> Latest period: FY ending Dec 2025, consolidated, IFRS
> Unit: JPY millions
> Sources: 有価証券報告書－第41期(2025/01/01－2025/12/31) (S100XSSA)
> Page: https://vizora.meequs.com/en/company/japan-tobacco
> Retrieved: 2026-09-30T21:13:42.008Z

## Company

JT, founded in 1949, is a company in Tobacco listed on TSE Prime. It has 52,867 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | JAPAN TOBACCO INC. |
| Ticker | 2914 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/2914.T) |
| Listing | TSE Prime |
| Head office | 東京都港区虎ノ門四丁目1番1号 |
| Representative (per filing) | 代表取締役副社長 中野 恵 |
| Founded | Jun 1949 |
| Share capital | ¥100B |
| Employees (consolidated) | 52,867 |
| Average salary (parent only) | ¥10M |
| Fiscal year end | December |
| Website | www.jti.co.jp (https://www.jti.co.jp/) |
| Corporate number | 4010401023000 |
| EDINET | E00492 |
| Industries (Vizora) | Tobacco, Processed Foods |

> Profile source: annual securities report (S100XSSA, filed 2026-03-23). As of filing

## Key points (generated from figures)

- About 95% of JT's sales come from Tobacco, with Processed Food and Other making up much of the rest.
- Out of every ¥100 of sales, about ¥25 is left as operating profit.
- Revenue changed +13.4% from the prior year, operating profit +175.9%.

## Company structure

- Segment revenue mix: Tobacco 95.3%、Processed Food 4.6%、Other 0.1%
- Revenue → net income: ¥3467675000000 → ¥513214000000
- Net income → operating cash flow: ¥513214000000 → ¥514056000000（difference ¥842000000）
- Main uses of operating cash flow: CapEx ¥162386000000 / dividends ¥356853000000 / buybacks ¥1622000000
- Change in cash: ¥-253415000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥3.47T |  |
| Operating income | ¥867B | Margin 25.0% |
| Net income | ¥510.2B | Margin 14.7% |
| Free cash flow | ¥351.7B |  |
| Largest business | Tobacco | of segment revenue 95.3% |
| Employees (consolidated) | 52,867 |  |
| EPS | ¥287.36 |  |
| Diluted EPS | ¥287.33 |  |
| Book value per share | ¥753.52 |  |
| Equity ratio | 48.5% | Derived from disclosed figures |
| Shares outstanding | 2,000,000,000 |  |
| Treasury shares | 224,199,500 |  |
| Shareholders | 912,124 |  |
| Average salary (parent only) | ¥10M | Filing company only |
| Cash ratio | 9.9% | Cash ÷ revenue 24.0% |
| ROE | 13.0% | Derived from disclosed figures |
| ROA | 6.1% | Derived from disclosed figures |

## Notable figures

- FY2025, employees -1% while operating income rose 176%
- FY2025, one segment accounts for 99% of positive segment profit
- FY2025, operating income keeps 25 per ¥100 of revenue

## What changed in 5 years

| Metric | FY ending Dec 2020 | FY ending Dec 2025 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥2092561000000 | ¥3467675000000 | +65.7% |
| Operating income | ¥469054000000 | ¥867038000000 | +84.8% |
| Operating margin | 22.4% | 25.0% | +2.6 pp |
| Employees | 58,300 people | 52,867 people | -9.3% |
| Cash and equivalents | ¥538844000000 | ¥831135000000 | +54.2% |

### Change in segment revenue mix

Span: FY ending Dec 2020 → FY ending Dec 2025. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 国内たばこ → 事業再編・廃止 | 26.5% |
| 加工食品 → 加工食品 | 4.6% |
| 加工食品 → 事業再編・廃止 | 2.5% |
| 海外たばこ → 事業再編・廃止 | 62.4% |
| 医薬 → 事業再編・廃止 | 3.8% |
| その他 → その他 | 0.1% |
| その他 → 事業再編・廃止 | 0.0% |
| 新設・再編 → たばこ | 95.3% |

Segment revenue source references: 8 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Tobacco | 4 years | +12.1% | ¥3305407000000 | 28.8% | 2 |
| Processed Food | 5 years | +1.3% | ¥159513000000 | 5.4% | 2 |
| Other | 5 years | +2.2% | ¥2756000000 | -2125.1% | 2 |

## Income statement（FY ending Dec 2025, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 3,467,675 | 100.0% | S100XSSA |
| Cost of revenue | 1,519,091 | 43.8% | S100XSSA |
| Gross profit | 1,948,585 | 56.2% | S100XSSA |
| SG&A | 1,178,162 | 34.0% | S100XSSA |
| Operating income | 867,038 | 25.0% | S100XSSA |
| Pretax income | 739,786 | 21.3% | S100XSSA |
| Income tax | 238,711 | 6.9% | S100XSSA |
| Net income | 513,214 | 14.8% | S100XSSA |
| Net income attributable to owners | 510,175 | 14.7% | S100XSSA |

## Per ¥100 of revenue（FY ending Dec 2025）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 44 |
| SG&A | 34 |
| Other operating | -3 |
| Operating income | 25 |
| (Ref.) Net income | 15 |

### Margin funnel

Gross margin 56.2% → Operating margin 25.0% → Net margin 14.7%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +13.4%; Core profit growth: +175.9%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 13.09×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Dec 2024 → FY ending Dec 2025、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 3,056,709 | 3,467,675 | 410,966 | +13.4% |
| Gross profit | 1,677,425 | 1,948,585 | 271,160 | +16.2% |
| Operating income | 314,223 | 867,038 | 552,815 | +175.9% |
| Net income attributable to owners | 179,240 | 510,175 | 330,935 | +184.6% |
| Operating cash flow | 630,011 | 514,056 | -115,955 | -18.4% |
| Free cash flow | 479,644 | 351,670 | -127,974 | -26.7% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Dec 2016 | 2,143,287 | — | — | 421,695 | 376,549 | — | S100L0QQ |
| FY ending Dec 2017 | 2,139,653 | — | — | 392,409 | 419,212 | — | S100NPS5 |
| FY ending Dec 2018 | 2,215,962 | — | — | 385,677 | 461,389 | — | S100QG4E |
| FY ending Dec 2019 | 2,175,626 | 502,355 | 23.1% | 348,190 | 540,410 | 407,040 | S100L0QQ |
| FY ending Dec 2020 | 2,092,561 | 469,054 | 22.4% | 310,253 | 519,833 | 411,213 | S100NPS5 |
| FY ending Dec 2021 | 2,324,838 | 499,021 | 21.5% | 338,490 | 598,909 | 495,991 | S100QG4E |
| FY ending Dec 2022 | 2,657,832 | 653,575 | 24.6% | 442,716 | 483,799 | 384,391 | S100T3QS |
| FY ending Dec 2023 | 2,841,077 | 672,410 | 23.7% | 482,288 | 566,317 | 449,749 | S100VH9B |
| FY ending Dec 2024 | 3,056,709 | 314,223 | 10.3% | 179,240 | 630,011 | 479,644 | S100XSSA |
| FY ending Dec 2025 | 3,467,675 | 867,038 | 25.0% | 510,175 | 514,056 | 351,670 | S100XSSA |

## People and productivity（FY ending Dec 2025, consolidated, IFRS）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥65.6M |
| Operating income per employee (consolidated) | ¥16.4M |
| Net income per employee (consolidated) | ¥9.7M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 55,381 | 52,640 | 53,239 | 53,593 | 52,867 |
| Average salary (parent company) | ¥9M | ¥9M | ¥9.3M | ¥9.5M | ¥10M |
| Average age (parent company) | 43.4 years | 41.1 years | 41.4 years | 41.3 years | 41.0 years |
| Average tenure (parent company) | 18.3 years | 15.4 years | 15.2 years | 15.0 years | 14.7 years |

Year over year: Employees (consolidated) -1.4% · Revenue (consolidated) +13.4%

## Segments（FY ending Dec 2025, consolidated, IFRS、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Tobacco | 3,305,407 | 95.3% | 952,161 | 28.8% |
| Processed Food | 159,513 | 4.6% | 8,589 | 5.4% |
| Other | 2,756 | 0.1% | -58,569 | -2125.1% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Tobacco | 95.3% | 99.1% | 3.8 | 28.8% |
| Processed Food | 4.6% | 0.9% | -3.7 | 5.4% |
| Other | 0.1% | — | — | -2125.1% |

Loss-making segment (excluded from profit shares): Other -58,569 JPY mn

Segment → industry: Tobacco → Tobacco / Processed Food → Processed Foods

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Dec 2025, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 514,056 | 14.8% | S100XSSA |
| Capital expenditure | 162,386 | 4.7% | S100XSSA |
| Free cash flow | 351,670 | 10.1% | 算出 |
| Investing cash flow | -264,986 | -7.6% | S100XSSA |
| Financing cash flow | -475,471 | -13.7% | S100XSSA |
| Dividends paid | 356,853 | 10.3% | S100XSSA |
| Share buyback | 1,622 | 0.0% | S100XSSA |
| Change in cash | -253,415 | -7.3% | S100XSSA |
| Cash and equivalents | 831,135 | 24.0% | S100XSSA |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 721,731 | 866,885 | 1,040,206 | 1,084,567 | 831,135 | S100T3QS, S100VH9B, S100XSSA |
| Total assets | 5,774,209 | 6,548,078 | 7,282,097 | 8,370,732 | 8,419,240 | S100QG4E, S100T3QS, S100VH9B, S100XSSA |
| Net assets | 2,886,081 | 3,616,761 | 3,912,491 | 3,848,727 | 4,115,389 | S100T3QS, S100VH9B, S100XSSA |
| Share capital | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | S100QG4E, S100T3QS, S100VH9B, S100XSSA |
| Property, plant and equipment | 755,843 | 775,957 | 821,499 | 907,700 | 979,800 | S100QG4E, S100T3QS, S100VH9B, S100XSSA |
| Goodwill | 2,060,965 | 2,446,063 | 2,616,440 | 2,914,254 | 2,923,096 | S100QG4E, S100T3QS, S100VH9B, S100XSSA |
| Current assets | 2,321,289 | 2,723,591 | 3,259,561 | 3,577,572 | 3,711,097 | S100QG4E, S100T3QS, S100VH9B, S100XSSA |
| Total liabilities | 2,888,128 | 2,931,317 | 3,369,605 | 4,522,005 | 4,303,851 | S100QG4E, S100T3QS, S100VH9B, S100XSSA |
| Equity attributable to owners of parent | 2,809,258 | 3,540,435 | 3,830,156 | 3,766,623 | 4,086,933 | S100QG4E, S100T3QS, S100VH9B, S100XSSA |
| Retained earnings | 2,863,843 | 3,089,909 | 3,192,323 | 3,036,905 | 3,213,555 | S100QG4E, S100T3QS, S100VH9B, S100XSSA |
| Treasury stock | -490,899 | -490,183 | -489,194 | -488,579 | -489,744 | S100QG4E, S100T3QS, S100VH9B, S100XSSA |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 10% | S100XSSA |
| Property, plant and equipment | 11% | S100XSSA |
| Intangibles and goodwill | 35% | — |
| Other assets | 44% | S100XSSA |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 51% | S100XSSA |
| Equity | 49% | S100XSSA |

### Balance sheet history

| Metric | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 5,774,209 | 6,548,078 | 7,282,097 | 8,370,732 | 8,419,240 |
| Equity | 2,886,081 | 3,616,761 | 3,912,491 | 3,848,727 | 4,115,389 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 721,731 | 866,885 | 1,040,206 | 1,084,567 | 831,135 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 28.3% | S100XSSA |
| Fixed assets ÷ total assets | 11.6% | S100XSSA |
| Goodwill ÷ parent equity | 71.5% | S100XSSA |

Goodwill over 4 years: 2,060,965 → 2,923,096 JPY; total investing cash flow: -1,029,505 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 9.9% |
| Cash ÷ revenue | 24.0% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 59.3% |
| Cash vs. profit gap | 3,881 JPY mn (of net income 0.8%) |
| Shareholder returns / net income | 70.3% |
| Shareholder returns / FCF | 101.9% |
| Shareholder payments — dividends / net income | 69.9% |
| Shareholder payments — dividends / FCF | 101.5% |
| CapEx intensity (capex ÷ revenue) | 4.7% |
| Investing CF relative to operating CF | 51.5% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2021 | 14.6% | 0.40× | 5.9% | 2.06× | 12.0% | S100QG4E |
| 2022 | 16.7% | 0.43× | 7.2% | 1.94× | 13.9% | S100T3QS |
| 2023 | 17.0% | 0.41× | 7.0% | 1.88× | 13.1% | S100VH9B |
| 2024 | 5.9% | 0.39× | 2.3% | 2.06× | 4.7% | S100XSSA |
| 2025 | 14.7% | 0.41× | 6.1% | 2.14× | 13.0% | S100XSSA |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 財務大臣 | Major shareholder | 37.5% | 2025-12-31 |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 10.4% | 2025-12-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 3.5% | 2025-12-31 |
| SMBC日興証券株式会社 | Major shareholder | 1.4% | 2025-12-31 |
| THE NOMURA TRUST AND BANKING CO., LTD. AS THE TRUSTEE OF REPURCHASE AGREEMENT MOTHER FUND （常任代理人 シティバンク、エヌ・エイ東京支店） | Major shareholder | 1.3% | 2025-12-31 |
| STATE STREET BANK AND TRUST COMPANY 505001 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.3% | 2025-12-31 |
| JP MORGAN CHASE BANK 385781 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 0.9% | 2025-12-31 |
| バークレイズ証券株式会社 BNYM （常任代理人 株式会社三菱UFJ銀行） | Major shareholder | 0.8% | 2025-12-31 |
| ＪＰモルガン証券株式会社 | Major shareholder | 0.8% | 2025-12-31 |
| 日本証券金融株式会社 | Major shareholder | 0.7% | 2025-12-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for the FY ending Dec 2025 was ¥3.47T, up +13.4% from ¥3.06T.
- Operating income climbed +175.9% from ¥314.2B to ¥867B, and net income attributable to owners rose +184.6% to ¥510.2B.
- Cash generation went the other way: operating cash flow fell -18.4% to ¥514.1B, and free cash flow dropped -26.7% to ¥351.7B.

### Drivers

- The prior year carried a large provision for a lawsuit settlement in Canada; without that charge, operating income bounced back.
- Tobacco revenue grew thanks to higher prices and a richer product mix in every region, plus the acquisition of Vector Group Ltd. in the US.
- Ploom heated tobacco sales grew, led by Japan, while Winston and Camel drove cigarette volumes.
- Operating cash flow shrank mainly because JT paid the upfront part of the Canadian settlement, along with income taxes.

### Risks

- Falling demand, tax hikes, tighter rules or political shifts in key markets such as Japan, Russia and the UK could hurt results.
- Currency moves, including weaker emerging-market currencies, have been dragging on profit, and the company expects another negative currency impact next year.
- Past acquisitions left a large amount of goodwill on the books, which could lead to impairment losses if those businesses underperform.

Cited: Annual Securities Report (FY2025) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual Securities Report (FY2025) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第41期(2025/01/01－2025/12/31) | S100XSSA | 2026-03-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100XSSA,, |
| 有価証券報告書－第40期(2024/01/01－2024/12/31) | S100VH9B | 2025-03-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VH9B,, |
| 有価証券報告書－第39期(2023/01/01－2023/12/31) | S100T3QS | 2024-03-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100T3QS,, |
| 有価証券報告書－第38期(2022/01/01－2022/12/31) | S100QG4E | 2023-03-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100QG4E,, |
| 有価証券報告書－第37期(令和3年1月1日－令和3年12月31日) | S100NPS5 | 2022-03-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100NPS5,, |
| 有価証券報告書－第36期(令和2年1月1日－令和2年12月31日) | S100L0QQ | 2021-03-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100L0QQ,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).