Our Business Purpose—Creating fulfilling moments. Creating a better future—defines why we exist as a business and how we contribute to the broader JT Group Purpose. It is also a statement to the wider society of our intent and the North Star guiding our tobacco business strategy.

Firstly, we are about “Creating fulfilling moments.” At the heart of our Business Purpose is the high quality and enjoyable experiences our consumers around the world get from or with our products. We know that what consumers want from us is constantly evolving, and we are confident that we can, and will, always find ways to deliver on these expectations.

Secondly, we are committed to “Creating a better future.” A better future for both consumers and for the wider society. We will continue to invest in and develop products with the potential to be less harmful, based on robust science, as well as looking for ways to make our products more sustainable.

The word “Creating” is an integral part of our Business Purpose statement. It signals another important third dimension. We will accelerate innovation and diversification of our product portfolio. We are committed to finding new ways to provide fulfilling moments for consumers and in doing so, creating a better future for them and the societies in which we work.

Notes:

The word, consumers, used in the context of the tobacco business means adult consumers. Minimum legal age for smoking varies in accordance with the legislation in each country.

• Please see Tobacco business for details.

Quoting our Business Purpose, “Respecting science, technology and people, we will contribute to patients’ lives” as we pursue research and development aimed at creating first-in-class small molecule drugs with global applicability. Through our efforts, we deliver new drugs to overseas patients via out-licensing and to domestic patients through our Group company, Torii Pharmaceutical Co., Ltd.

We are proud to have received manufacturing and marketing approval in Japan for CORECTIM® Ointment 0.5% and 0.25% for indications of atopic dermatitis and ENAROY® Tablets 2 mg and 4 mg for the treatment of anemia associated with chronic kidney disease, both developed by our Central Pharmaceutical Research Institute. Furthermore, we are actively strengthening our revenue base in the Japan market by applying manufacturing and marketing approval in Japan for in-licensed JTE-061 in 2023 and leveraging external resources. Additionally, we are investing actively in advanced technologies such as AI to innovate the drug discovery process, aiming to create new drugs more quickly and efficiently. Through the steadfast implementation of these initiatives, we will continue making steady progress with R&D to help ensure sustainable profit growth.

As part of our efforts to promote the new Business Purpose established in 2023, we have conducted sessions involving executives and employees to ensure alignment on the direction, in addition to proactive communication from top management. We will continue our efforts to ensure that each employee remains aligned with this Business Purpose in their daily work, contributing further to the health of patients.

• Please see Pharmaceutical business for details.

“Bringing Joy to Meals and Fun to the Table.” This is the Purpose of our processed food business.

Bringing joy and fun cannot be achieved by the food’s taste alone. It involves all value chains, such as ensuring quality, delivering safe and secure products to consumers every day, aligning with our business partners to streamline distribution, and removing dietary restrictions for consumers who lead diverse lifestyles through research and development.

We strongly recognize that each employee’s work is connected to the Business Purpose we are aiming for. In 2023, more than 3,000 employees participated in sessions across 38 locations, discussing the ideal future and the value we want to offer to consumers and society.

This year, TableMark Co., Ltd. marks the 50th anniversary of the launch of its frozen Sanuki Udon . It has been 50 years of challenges, driven by the desire to spread Sanuki udon nationwide. Fuji Foods Corp. has been a pioneer continuously proposing new foods, with Japan’s first consommé cube released in 1952 and oyster sauce. And now, we have launched the new product line BEYOND FREE to create new value in food.

We will continue to work on solving various social issues through food, and strive to move forward towards a new future where our products are chosen for your table every day.

• Please see Processed food business for details.