Japan Tobacco, Inc.

Japan Tobacco, Inc.

Japan Tobacco, Inc.

Overview
Date Founded

1985

Headquarters

2-2-1 Toranomon,Minato-Ku,Tokyo 105-8422

Type of Company

Public

Employees (Worldwide)

58K

Industries

Tobacco
Wholesale: Consumer Non-Durables/Sundries
Restaurants
Food
Beverages
Livestock & Animals

Company Description

Japan Tobacco, Inc. engages in the manufacture and sale of tobacco, pharmaceutical and processed food products. It operates through the following business divisions: Domestic Tobacco, Overseas Tobacco, Pharmaceutical, and Processed Food. The Domestic Tobacco division deals with the production and sale of tobacco products in domestic areas. The Overseas Tobacco division manufactures and markets tobacco products worldwide. The Pharmaceutical division develops, manufactures, and sells prescription drugs. The Beverage division manufactures and sells coffee and flavored water drinks. The Processed Food division offers processed food products that include frozen noodles, frozen and packed cooked rice and frozen baked bread, and seasonings. The company was founded on April 1, 1985 and is headquartered in Tokyo, Japan.

Website
Executives & Employees

President & Chief Executive Officer

Chief Financial Officer, Representative Director & Executive Vice President

Executive Deputy President

Executive Deputy President & Representative Director

Managing Executive Officer & Head-China Division

Chief Strategy Officer

Chief Human Resources Officer

Representative Director, Executive Vice President & Head-Compliance

Head of Beverage Business

Executive Officer, Head-Planning & IT

Board of Directors

Independent Outside Director at The Ogaki Kyoritsu Bank Ltd.

Outside Director at LIXIL Group Corp.

President & Chief Executive Officer at Japan Tobacco, Inc.

Chairman at Dai-Ichi Life Insurance Co., Ltd.

Chief Financial Officer, Representative Director & Executive Vice President at Japan Tobacco, Inc.

Representative Director, Executive Vice President & Head-Compliance at Japan Tobacco, Inc.

Chief Strategy Officer at Japan Tobacco, Inc.

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Japan Tobacco, Inc.
Owners & Shareholders
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GIC-IM is an active, prudent manager which aims to enhance the worldwide purchasing power of Singapore's reserves through their 'integrated diversity' investment strategy where GIC operates as a single integrated organization while fully exploiting their in-house asset class expertise and experience. They invest globally in a range of asset classes including equities, fixed-Income, real estate, private equity, infrastructure, marketable alternatives and natural resources.The firm's Board of Directors sets the policy asset mix and decides on a policy portfolio which specifies the allocation of funds to eligible asset classes. Investment decisions are based on analysis of fundamentals in line with long-term sustainable performance.The GIC-IM management team decides how to implement the asset policy mix in terms of the various investment strategies, proportion of funds to be actively/passively managed, allocation of risk capital and the selection of managers. The firm's portfolio managers then construct portfolios based on considerations of currency management, country selection, industry/sector allocation, yield curve management and security selection.

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NAM-J is an active, value-oriented manager with a global perspective and a medium- to long-term outlook. Their investment philosophy emphasizes multi-faceted research shared internationally throughout the group, and local expertise contributed by their overseas offices. Their strong research capabilities, supported and integrated globally by proprietary systems, include fundamental analysis, company visits, market research, credit analysis, macroeconomic projections and quantitative analysis. Their global asset allocation strategy is determined by an investment committee at the group level.The firm uses a variety of strategies including active, passive and active quantitative. Their funds are invested in domestic and global equity and fixed-income, as well as in Japanese money market instruments. The majority of their investments are in equity, complemented by a substantial minority of bonds and investments in private placement funds. The firm manages a range of Japanese ETFs including sector funds.NAM-J's investment process is team-based and combines bottom-up and top-down strategies, with a bias towards stockpicking.

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Daiwa AM is an active, mid-to long-term manager which seeks to identify hidden values which are not yet fully recognized in the market through a balanced approach emphasizing fundamental and quantitative analysis. They conduct in-house research and have a strong global research network.The firm’s basic assumption is that the market is not fully efficient and they employ a coherent investment process through organizational support at each phase of their 'Plan', 'Do' and 'Review' policy. They pursue stable excess mid-to long-term returns through suitable risk control, which they separate from investment management to ensure that the risk control system adequately monitors their investment process. Daiwa AM’s research team analysts and portfolio managers discuss, evaluate and communicate market events and investment opinions, seeking to maximize portfolio performance. Company visits are important components of their bottom-up research process and are a primary source for their fundamental analysis.

Recent Transactions
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Japan Tobacco, Inc. purchases National Tobacco Enterprise (Ethiopia) Share Co.

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Japan Tobacco, Inc., JT International (Philippines), Inc. purchase Mighty Corp.

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Soda Aromatic Co., Ltd., Toray Industries, Inc. purchase Fuji Flavor Co., Ltd. /Flavor Division from Japan Tobacco, Inc.

Transaction Advisors
Legal Advisor

Advised onJTI (UK) Management Ltd., Japan Tobacco, Inc. purchase Gallaher Group Plc

Accountant

Advised onXiamen Tobacco Industry Co. Ltd. purchases Xiamen Huamei Cigarette Co. Ltd. from Japan Tobacco, Inc.

Legal Advisor

Advised onJapan Tobacco, Inc. purchases International Tobacco Business from R.J. Reynolds Tobacco Holdings, Inc.

Legal Advisor

Advised onJapan Tobacco, Inc., Philip Morris International, Inc. purchase Megapolis Distribution BV from Megapolis Investment BV

Legal Advisor

Advised onJapan Tobacco, Inc. purchases Reynolds American, Inc. /Natural American Cigarettes 9 from Reynolds American, Inc.

Legal Advisor

Advised onJapan Tobacco, Inc., Philip Morris International, Inc. purchase Megapolis Distribution BV from Megapolis Investment BV

Advisors & Consultants
Legal Advisor

Shareholder at Greenberg Traurig LLP

Clients

Since 1987, Gilead Sciences has worked to discover, develop and commercialize medications to advance the care of patients suffering from life-threatening diseases in areas of unmet medical need. In 25 years, Gilead has become a leading biopharmaceutical company with a portfolio of 15 marketed products, a growing pipeline of investigational drugs and approximately 5,000 employees in offices across four continents. Gilead's therapeutic areas of focus include HIV/AIDS, hepatitis, serious respiratory, cardiovascular, and metabolic conditions, cancer and inflammation

Novartis AG is a holding company, which engages in the development, manufacture, and marketing of healthcare products. It operates through the following segments: Innovative Medicines, Alcon, Sandoz, and Corporate. The Innovative Medicines segment researches, develops, manufactures, distributes and sells patented pharmaceuticals, and is composed of two business units: Novartis Oncology and Novartis Pharmaceuticals. The Alcon segment researches, develops, manufactures, distributes and sells eye care devices and vision care. The Sandoz segment develops, manufactures and markets finished dosage form medicines as well as intermediary products including active pharmaceutical ingredients. The Corporate segment refers to group management and central services. The company was founded on February 29, 1996 and is headquartered in Basel, Switzerland.

AstraZeneca Plc is a holding company, which engages in the research, development and manufacturing of pharmaceutical products. The company produces and commercializes medicines for gastrointestinal, cardiovascular, neuroscience, respiratory and inflammation, oncology, and infectious diseases. Its pipeline consists of azd 4831, azd 8601, medi 0382, tagrisso bloom, durvalumab, selumetinib, lyparza polo, epanova, farxiga and brilinta. The company distributes its products under the following brands: Atacand, Crestor, Onglyza, Nexium, Entocort, Losec, Merrem/Meronem, Carbocaine, Citanest, Diprivan, Marcaine/Sensorcaine. AstraZeneca was founded on April 6, 1999 and is headquartered in London, the United Kingdom.

Key Stats and Financials As of 2017
Market Capitalization
$5.35T
Total Enterprise Value
$7.06T
Earnings Per Share
$219.1
Revenue
$2.14T
Net Profit
$392B
EBITDA
$671B
EBITDAMargin
31.35%
Total Debt
$756B
Total Equity
$2.84T
Enterprise Value Sales
3.3x
Enterprise Value EBITDAOperating
10.52x
TEVNet Income
17.99x
Debt TEV
0.11x
Three Year Compounded Annual Growth Rate Of Revenue
-9.35%
Five Year Compounded Annual Growth Rate Of Revenue
0.18%
Investments
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Yoshimura Food Holdings KK operates as a holding company which engages in the food business. It manufactures and sells food ingredients, chilled and processed food, noodles, processed meat, sake, liquor, fish pastes and frozen goods, and others. The company was founded by Motohisa Yoshimura on March 18, 2008 and is headquartered in Tokyo, Japan.

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Cyfuse Biomedical KK develops and manufactures cell regenerative systems. It focuses on developing arteries using patient's skin cells and three-dimensional (3D) printing. The firm's business activities encompass development, manufacturing, and sales of 3D tissue products. It also offers Regenova, a robotic system that facilitates the fabrication of 3D cellular structures by placing cellular spheroids in fine needle arrays according to pre-designed 3D data. The company was founded by Koji Kuchiishi and Koichi Nakayama on August 11, 2010 and is headquartered in Tokyo, Japan.

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PAX Labs, Inc. develops and manufactures vaporizers that contain nicotine for smokers. It is leading the reinvention of the smoking experience with its premium vaporizers, and extending the application of vapor science into new medical and nutritional applications. The firm was originally developed with a mission to make smoking obsolete and create an integrated science and technology platform with the potential to disrupt existing tobacco, medical and pharmaceutical industries. The company was founded by Adam Bowen and James Monsees in 2007 and is headquartered in San Francisco, CA.

Suppliers
Universal Corp. Wholesale: Consumer Non-Durables/Sundries | Richmond, VA

Universal Corp. engages in the processing, procuring, financing, packing, storing, shipping and trading of leaf tobacco. It operates its business through the following business segments: North America, South America, Africa, Europe, Asia, Dark Air-Cured, Oriental and Special Services. The North America, South America, Africa, Europe, and Asia segments are involved in flue-cured and burley leaf tobacco operations. The Dark Air-Cured segment includes supplying of dark air-cured tobacco to manufacturers of cigars, pipe tobacco, and smokeless tobacco products. The Oriental segment supplies oriental tobacco to cigarette manufacturers. The Special Services segment provides laboratory services, including physical and chemical product testing and smoke testing. The company was founded in 1918 and is headquartered in Richmond, VA.

Schweitzer-Mauduit International, Inc. Tobacco | Alpharetta, GA

Schweitzer-Mauduit International, Inc. engages in the provision of engineered solutions, and advanced materials for a variety of industries. It operates through the Engineered Papers and Advanced Materials and Structures segments. The Engineered Papers segment manufactures lightweight specialty papers used in manufacturing banded papers used in the production of lower ignition propensity, cigarettes, and premium specialized papers such as low volume specialized commercial and industrial commodity paper grades. The Advanced Materials and Structure segment refers to the production of resin-based plastic netting and melt blown products, machine plastic core tubes, urethane films, and resin-based rolled products. The company was founded in 1995 and is headquartered in Alpharetta, GA.

Keryx Biopharmaceuticals, Inc. Pharmaceuticals | Boston, MA

Keryx Biopharmaceuticals, Inc. engages in the manufacture, development, and commercialization of medicines for use in treating human diseases. Its product is the Auryxia tablet. The company was founded in October 1998 and is headquartered in Boston, MA.

Competitors
Philip Morris International, Inc. Tobacco - New York, New York

Philip Morris International, Inc. is a holding company, which engages in manufacturing and sale of cigarettes, tobacco and nicotine-containing products. It operates through the following geographical segments: European Union, Eastern Europe, Middles East & Africa, Asia and Latin America & Canada. The company was founded by Philip Morris in 1847 and is headquartered in New York, NY.

Imperial Brands Plc Tobacco - Bristol, BI

Imperial Brands Plc engages in the manufacture and sell of cigarettes, tobaccos, cigars, rolling papers, and tubes. It operates through the Tobacco and Logistics segments. The Tobacco segment comprises of manufacture, marketing, and sale of tobacco and tobacco-related products, including sales to the Logistics business. The Logistics segment involves the distribution of tobacco products for tobacco product manufacturers, including Imperial Tobacco. The company was founded in 1901 and is headquartered in Bristol, United Kingdom.

Altria Group, Inc. Tobacco - Richmond, VA

Altria Group, Inc. is a holding company which engages in the manufacture and sale of cigarettes in the United States. It operates through the following segments: Smokeable Products, Smokeless Products, and Wine. The Smokeable Products segment comprised of cigarettes manufactured and sold by PM USA and machine-made large cigars and pipe tobacco manufactured and sold by Middleton. The Smokeless products segment manufactured and sold by or on behalf of USSTC and PM USA. The Wine segment producer of Washington State wines, primarily Chateau Ste. Michelle and Columbia Crest, and owns wineries in or distributes wines from several other wine regions. The company was founded in 1919 and is headquartered in Richmond, VA.