Japan Tobacco : JT Applies to Amend Retail Prices of Tobacco Products in Japan in Response to a Planned Excise Tax Increase

FOR IMMEDIATE RELEASE

Tokyo, July 31, 2020

JT Applies to Amend Retail Prices of Tobacco Products in Japan

in Response to a Planned Excise Tax Increase

Japan Tobacco Inc. (JT) (TSE:2914) today announces that it has applied to the Ministry of Finance for approval* to amend the retail prices of its tobacco products in Japan in conjunction with the planned excise tax increase on October 1, 2020 and the increase of excise tax on tobacco vapor products. The Company has applied for the retail price amendment for a total of 224 products, including 136 cigarette products, 16 cigarillo products, three pipe tobacco products, three cut tobacco products, 18 snuff tobacco products and 48 tobacco vapor products.

The Japanese domestic tobacco market continues to experience decreasing sales volumes due to structural factors including the aging and declining adult population together with increasingly stringent smoking restrictions. As a result, the costs for maintaining the product quality and services are rising. Under these circumstances, while JT has been implementing cost optimization measures in line with a projected further decline of sales volume, it has become even more challenging to maintain the same quality and services that meet our consumer's satisfaction.

In this context, JT has applied to amend the retail prices of cigarettes, which exceeds the excise tax hike of cigarettes (1.0 yen per stick), revised tax structure for tobacco vapor products and light weight cigarillos, while taking into account further increases in costs. JT, in principle, has decided to apply for 50 yen increase in the retail price per pack, however such increase varies among different brands and products, to ensure that the quality of each product will be maintained and that consumer expectations continue to be met.

The proposed retail prices will take effect on October 1, 2020, subject to approval from the Ministry of Finance.

JT will strive to continue to improve the quality of its products and services, in line with the expectations of its consumers.

Cigarettes		Unit: JPY
Representative Products	Current Price	New Price
Natural American Spirit	530	570
Seven Stars and Peace (20)	510	560
MEVIUS and Pianissimo	490	540
Winston	450	500
Camel	400	450

Tobacco Vapor Products		Unit: JPY
Representative Products	Current Price	New Price
MEVIUS for Ploom TECH	490	540
MEVIUS for Ploom TECH+	500	550
MEVIUS for Ploom S	490	540
Camel for Ploom S	460	500
Cigarillos		Unit: JPY
Representative Products	Current Price	New Price
Camel Cigars	360	400
Wakaba Cigars	360	410
Echo Cigars	350	400

• In Japan, under the Tobacco Business Act, list prices for any tobacco products must be approved by the Ministry of Finance. Retailers are permitted to sell tobacco products only at list prices approved by the Minister of Finance.
• Details of the retail price amendment are shown in the Appendix
• This document has been prepared for the purpose of providing fair information to investors.

It is not for the purpose of promoting sales to customers or promoting smoking.

###

Japan Tobacco Inc. is a leading international tobacco company with operations in more than 130 countries. With approximately 62,000 employees, it manufactures and sells some of the world's best-known brands including Winston, Camel, MEVIUS and LD. The JT Group is committed to investing in Reduced-Risk Products (RRP) and currently markets its tobacco vapor products under the Ploom brand and various e-cigarette products under its Logic brand. The Group is also present in the pharmaceutical and processed food businesses. For more information, visit https://www.jt.com/.

Contact:	Dinesh Babu Thotakura, General Manager
	Media and Investor Relations Division
	Japan Tobacco Inc.
	Tokyo: [phone]
	E-mail: [e-mail]

(Appendix)

Details of the retail price amendments

	No.			Category			Name			Current			New			Number of units /
							Price			Price			weight per pack
1			Cigarettes		Mevius	490		540		20
2			Cigarettes		Mevius Box	490		540		20
3			Cigarettes		Mevius 100's Box	490		540		20
4			Cigarettes		Mevius Lights	490		540		20
5			Cigarettes		Mevius Lights Box	490		540		20
6			Cigarettes		Mevius Lights 100's Box	490		540		20
7			Cigarettes		Mevius Super Lights	490		540		20
8			Cigarettes		Mevius Super Lights Box	490		540		20
9			Cigarettes		Mevius Super Lights 100's Box	490		540		20
10			Cigarettes		Mevius Extra Lights	490		540		20
11			Cigarettes		Mevius Extra Lights Box	490		540		20
12			Cigarettes		Mevius Extra Lights 100's Box	490		540		20
13			Cigarettes		Mevius One	490		540		20
14			Cigarettes		Mevius One Box	490		540		20
15			Cigarettes		Mevius One 100's Box	490		540		20
16			Cigarettes		Mevius Gold 6	490		540		20
17			Cigarettes		Mevius Gold One 100's	490		540		20
18			Cigarettes		Mevius Gold Impact 6 100's Slim	490		500		20
19			Cigarettes		Mevius Gold Impact One 100's Slim	490		500		20
20			Cigarettes		Mevius Gold Impact One 100's	490		540		20
21			Cigarettes		Mevius Premium Menthol FROZEN 8	490		540		20
22			Cigarettes		Mevius Premium Menthol FROZEN 5	490		540		20
23			Cigarettes		Mevius Premium Menthol FROZEN One	490		540		20
24			Cigarettes		Mevius Premium Menthol FROZEN One 100's	490		540		20
25			Cigarettes		Mevius Premium Menthol Option Purple 8	490		540		20
26			Cigarettes		Mevius Premium Menthol Option Purple 5	490		540		20
27			Cigarettes		Mevius Premium Menthol Option Purple One 100's	490		540		20
28			Cigarettes		Mevius Premium Menthol Option Purple 5 100's Slim	490		500		20
29			Cigarettes		Mevius Premium Menthol Option Purple One 100's Slim	490		500		20
30			Cigarettes		Mevius Premium Menthol Option Yellow 8	490		540		20
31			Cigarettes		Mevius Premium Menthol Option Yellow 5	490		540		20
32			Cigarettes		Mevius Premium Menthol Option Yellow One 100's	490		540		20
33			Cigarettes		Mevius Premium Menthol Option Red 8	490		540		20
34			Cigarettes		Mevius Premium Menthol Option Red 5	490		540		20

	No.			Category			Name			Current			New			Number of units /
							Price			Price			weight per pack
35			Cigarettes		Mevius Premium Menthol Option Red One 100's	490		540		20
36			Cigarettes		Mevius Premium Menthol Option Muscat Green 5 100's Slim	490		500		20
37			Cigarettes		Mevius Premium Menthol Option Muscat Green One 100's Slim	490		500		20
38			Cigarettes		Mevius 100's Slim Box *4	490		500		20
39			Cigarettes		Mevius Super Lights 100's Slim Box *4	490		500		20
40			Cigarettes		Mevius One 100's Slim Box *4	490		500		20
41			Cigarettes		Seven Stars	510		560		20
42			Cigarettes		Seven Stars Box	510		560		20
43			Cigarettes		Seven Stars 10 Box	510		560		20
44			Cigarettes		Seven Stars 7 Box	510		560		20
45			Cigarettes		Seven Stars 4	510		560		20
46			Cigarettes		Seven Stars Menthol 12 Box	510		560		20
47			Cigarettes		Seven Stars Menthol 5 Box	510		560		20
48			Cigarettes		Winston Caster White 5	450		500		20
49			Cigarettes		Winston Caster White 5 Box	450		500		20
50			Cigarettes		Winston Caster White 3	450		500		20
51			Cigarettes		Winston Caster White 3 Box	450		500		20
52			Cigarettes		Winston Caster White One Box	450		500		20
53			Cigarettes		Winston Caster White One 100's Box	450		500		20
54			Cigarettes		Winston Cabin Red 8 Box	450		500		20
55			Cigarettes		Winston Cabin Red 8 100's Box	450		500		20
56			Cigarettes		Winston Cabin Red 5 Box	450		500		20
57			Cigarettes		Winston Cabin Red 2 Box	450		500		20
58			Cigarettes		Winston Cabin Red One 100's Box	450		500		20
59			Cigarettes		Winston Compact Blue 6 Box	410		450		19
60			Cigarettes		Winston Compact Blue 3 Box	410		450		19
61			Cigarettes		Winston Compact Blue One Box	410		450		19
62			Cigarettes		Winston Inazma Menthol 8 Box	450		500		20
63			Cigarettes		Winston Inazma Menthol One 100's Box	450		500		20
64			Cigarettes		Winston Sparkling Menthol 5 Box	450		500		20
65			Cigarettes		Winston Sparkling Menthol One 100's Box	450		500		20
66			Cigarettes		Winston	450		500		20
67			Cigarettes		Winston Compact Blue 6 Box *4	390		430		18
68			Cigarettes		Winston Compact Blue 3 Box *4	390		430		18
69			Cigarettes		Winston Compact Blue One Box *4	390		430		18
70			Cigarettes	Hope (10)	260		280		10

	No.			Category			Name			Current			New			Number of units /
							Price			Price			weight per pack
71			Cigarettes		Hope Lights	260		280		10
72			Cigarettes		Hope Super Lights	260		280		10
73			Cigarettes		Hope Menthol	260		280		10
74			Cigarettes		Peace (50)	1300		1400		50
75			Cigarettes		Peace (10)	260		280		10
76			Cigarettes		Peace (20)	510		560		20
77			Cigarettes		Peace Lights Box	510		560		20
78			Cigarettes		Peace Super Lights Box	510		560		20
79			Cigarettes		Peace Aroma Royal 100's Box	550		600		20
80			Cigarettes		Peace Aroma Crown 100's Box	550		600		20
81			Cigarettes		Peace Aroma Infinity	540		590		20
82			Cigarettes	Camel Box	400		450		20
83			Cigarettes		Camel Lights Box	400		450		20
84			Cigarettes		Camel Lights Box *2	400		450		20
85			Cigarettes		Camel Menthol Lights Box	400		450		20
86			Cigarettes		Salem Lights Box	490		540		20
87			Cigarettes		Natural American Spirit Organic Leaf Turquoise	530		570		20
88			Cigarettes		Natural American Spirit Organic Leaf Gold	530		570		20
89			Cigarettes		Natural American Spirit Organic Leaf One	530		570		20
90			Cigarettes		Natural American Spirit Perique Box	530		570		20
91			Cigarettes		Natural American Spirit Organic Mint	530		570		20
92			Cigarettes		Natural American Spirit Organic Mint Light	530		570		20
93			Cigarettes		Natural American Spirit Organic Mint Ultra Light	530		570		20
94			Cigarettes		Natural American Spirit Organic Mint One	530		570		20
95			Cigarettes		Natural American Spirit Light	530		570		20
96			Cigarettes		Natural American Spirit Ultra Light	530		570		20
97			Cigarettes		Natural American Spirit Agate	530		570		20
98			Cigarettes		Natural American Spirit Organic Mint (14) *4	380		400		14
99			Cigarettes		Natural American Spirit Organic Mint Light (14) *4	380		400		14
100			Cigarettes		Natural American Spirit Organic Mint Ultra Light (14) *4	380		400		14
101			Cigarettes		Natural American Spirit Organic Mint One (14) *4	380		400		14
102			Cigarettes		Pianissimo Aria Menthol	490		540		20
103			Cigarettes		Pianissimo Pétil Menthol	490		540		20
104			Cigarettes		Pianissimo Fram Menthol	490		540		20
105			Cigarettes		Pianissimo Lucia Menthol	490		540		20
106			Cigarettes		Pianissimo Precia Menthol	490		540		20

	No.			Category			Name			Current			New			Number of units /
							Price			Price			weight per pack
107			Cigarettes		Pianissimo Dia's Menthol	490		540		20
108			Cigarettes		Pianissimo Icene Menthol 5	490		540		20
109			Cigarettes		Pianissimo Icene Menthol One	490		540		20
110			Cigarettes		Pianissimo Bevel	490		540		20
111			Cigarettes		Hi-Lite	450		490		20
112			Cigarettes		Hi-Lite Menthol	450		490		20
113			Cigarettes	Uruma	450		500		20
114			Cigarettes		Peace Virginia Leaf of Japan	550		600		20
115			Cigarettes		Peace Virginia Leaf of America	550		600		20
116			Cigarettes		Peace Virginia Leaf of Brazil	550		600		20
117			Cigarettes	Seven Stars Nippon Leaf Daruma *4	530		580		20
118			Cigarettes		Camel Natural Box *3	490		520		20
119			Cigarettes		Camel Natural Lights Box *3	490		520		20
120			Cigarettes		Winston Compact Menthol Purple One Box *3	410		450		19
121			Cigarettes		Winston Compact Menthol Purple 5 Box *3	410		450		19
122			Cigarettes		Seven Stars Menthol 8 Box *3	510		560		20
123			Cigarettes		Mevius Gold 6 100's *3	490		540		20
124			Cigarettes		Mevius Gold 3 100's *3	490		540		20
125			Cigarettes		Winston Inazma Menthol 5 Box *3	450		500		20
126			Cigarettes		Winston Sparkling Menthol 8 Box *3	450		500		20
127			Cigarettes		Winston mini Bitter Red 12 *3	400		450		20
128			Cigarettes		Winston mini Straight Blue 8 *3	400		450		20
129			Cigarettes	Winston mini Sweet White One *3	400		450		20
130			Cigarettes		Pianissimo Temore 6 *3	500		540		20
131			Cigarettes		Pianissimo Temore One *3	500		540		20
132			Cigarettes		Wakaba *3	450		500		20
133			Cigarettes	Echo *3	440		490		20
134			Cigarettes		Golden Bat *3	420		470		20
135			Cigarettes	Seven Stars (10) *3	260		280		10
136			Cigarettes		Natural American Spirit Agate (10)	270		290		10
137			Tobacco vapor		MEVIUS REGULAR for Ploom TECH	490		540			2.8g/2.5g
					*1
138			Tobacco vapor		MEVIUS REGULAR for Ploom TECH *2	490		540			2.8g/2.5g
					*1
139			Tobacco vapor	MEVIUS MENTHOL for Ploom TECH	490		540			2.8g/2.5g
				*1

	No.			Category			Name			Current			New			Number of units /
							Price			Price			weight per pack
140			Tobacco vapor	MEVIUS MENTHOL for Ploom TECH *2	490		540			2.8g/2.5g
				*1
141			Tobacco vapor	MEVIUS BROWN for Ploom TECH	490		540			2.8g/2.5g
				*1
142			Tobacco vapor	MEVIUS RED COOLER for Ploom TECH	490		540			2.8g/2.5g
				*1
143			Tobacco vapor	MEVIUS PURPLE COOLER for Ploom TECH	490		540			2.8g/2.5g
				*1
144			Tobacco vapor	MEVIUS MIX GREEN COOLER for Ploom TECH *3	490		540			2.8g/2.5g
				*1
145			Tobacco vapor	Pianissimo Gold for Ploom TECH *3	490		540			2.8g/2.5g
				*1
146			Tobacco vapor	Pianissimo Aria Menthol for Ploom TECH	490		540			2.8g/2.5g
				*1
147			Tobacco vapor	Pianissimo Pink Cooler for Ploom TECH	490		540			2.8g/2.5g
				*1
148			Tobacco vapor	Pianissimo Yellow Cooler for Ploom TECH *3	490		540			2.8g/2.5g
				*1
149			Tobacco vapor	MEVIUS MILD for Ploom TECH+	500		550			3.0g/3.0g
				*1
150			Tobacco vapor	MEVIUS MILD for Ploom TECH+ *2	500		550			3.0g/3.0g
				*1
151			Tobacco vapor	MEVIUS ROAST for Ploom TECH+	500		550			3.0g/3.1g
				*1
152			Tobacco vapor	MEVIUS COLD MINT for Ploom TECH+	500		550			3.0g/3.1g
				*1
153			Tobacco vapor	MEVIUS COLD MINT for Ploom TECH+ *2	500		550			3.0g/3.1g
				*1
154			Tobacco vapor	MEVIUS CLEAR MINT for Ploom TECH+	500		550			3.0g/3.1g
				*1
155			Tobacco vapor	MEVIUS CLEAR MINT for Ploom TECH+ *2	500		550			3.0g/3.1g
				*1
156			Tobacco vapor	MEVIUS GOLD ROAST for Ploom TECH+	500		550			3.0g/3.1g
				*1
157			Tobacco vapor		MEVIUS GOLD CLEAR MINT for Ploom TECH+	500		550			3.0g/3.1g
					*1

	No.			Category			Name			Current			New			Number of units /
							Price			Price			weight per pack
158			Tobacco vapor		MEVIUS RED MINT for Ploom TECH+	500		550			3.0g/3.1g
					*1
159			Tobacco vapor	MEVIUS PURPLE MINT for Ploom TECH+	500		550			3.0g/3.1g
				*1
160			Tobacco vapor	MEVIUS GOLD MUSCAT GREEN MINT for Ploom TECH+	500		550			3.0g/3.1g
				*1
161			Tobacco vapor	MEVIUS GOLD YELLOW MINT for Ploom TECH+	500		550			3.0g/3.1g
				*1
162			Tobacco vapor	MEVIUS GOLD RED MINT for Ploom TECH+	500		550			3.0g/3.1g
				*1
163			Tobacco vapor		MEVIUS REGULAR for Ploom S	490		540			9.8g/5.0g
					*1
164			Tobacco vapor	MEVIUS MENTHOL for Ploom S	490		540			10.2g/5.3g
				*1
165			Tobacco vapor		MEVIUS MENTHOL COOL EFFECT for Ploom S	490		540			10.2g/5.3g
					*1
166			Tobacco vapor	MEVIUS MENTHOL PURPLE for Ploom S	490		540			10.0g/5.2g
				*1
167			Tobacco vapor	CAMEL REGULAR for Ploom S	460		500			9.8g/5.0g
				*1
168			Tobacco vapor	CAMEL MENTHOL for Ploom S	460		500			10.2g/5.3g
				*1
169			Tobacco vapor	CAMEL MENTHOL RED for Ploom S	460		500			10.2g/5.3g
				*1
170			Tobacco vapor	CAMEL MENTHOL YELLOW for Ploom S	460		500			10.0g/5.2g
				*1
171			Tobacco vapor	CAMEL MENTHOL PURPLE for Ploom S *4	460		500			10.1g/5.3g
				*1
172			Tobacco vapor	CAMEL BLACK MINT MENTHOL for Ploom S *4	460		500			10.1g/5.3g
				*1
173			Tobacco vapor	MEVIUS AZUKI for Ploom TECH	490		540			2.8g/2.5g
				*1
174			Tobacco vapor	MEVIUS MATCHA COOLER for Ploom TECH	490		540			2.8g/2.5g
				*1
175			Tobacco vapor	Pianissimo Sakura Cooler for Ploom TECH	490		540			2.8g/2.5g
				*1

	No.			Category			Name			Current			New			Number of units /
							Price			Price			weight per pack
176			Tobacco vapor	MEVIUS ENERGY SPARK MINT for Ploom TECH+	500		550			3.0g/3.1g
				*1
177			Tobacco vapor	MEVIUS ENERGY MOSCOW MULE MINT for Ploom TECH+ *4	500		550			3.0g/3.1g
				*1
178			Tobacco vapor	MEVIUS ENERGY PINA COLADA MINT for Ploom TECH+ *4	500		550			3.0g/3.1g
				*1
179			Tobacco vapor	MEVIUS MASCAT COOLER for Ploom TECH	490		540			2.8g/2.5g
				*1
180			Tobacco vapor	Pianissimo Lemon Lime Cooler for Ploom TECH	490		540			2.8g/2.5g
				*1
181			Tobacco vapor	MEVIUS VANILLA AROMA for Ploom TECH	490		540			2.8g/2.5g
				*1
182			Tobacco vapor	Pianissimo Blueberry Yogurt Cooler for Ploom TECH	490		540			2.8g/2.5g
				*1
183			Tobacco vapor	Pianissimo Morning Rose Cooler for Ploom TECH *4	490		540			2.8g/2.5g
				*1
184			Tobacco vapor	Pianissimo Midnight Jasmine Cooler for Ploom TECH *4	490		540			2.8g/2.5g
				*1
185			Cigarillos	Peace Little Cigars	550		580		20
186			Cigarillos	Camel Cigars Box	360		400		20
187			Cigarillos	Camel Cigars Lights Box	360		400		20
188			Cigarillos	Camel Cigars Menthol Box	360		400		20
189			Cigarillos	Camel Cigars Menthol Slims	330		380		20
190			Cigarillos	Camel Cigars Menthol Lights Slims	330		380		20
191			Cigarillos	Camel Cigars Ultra Lights Box	360		400		20
192			Cigarillos	Camel Cigars Menthol Lights Box	360		400		20
193			Cigarillos	Camel Cigars Menthol Ultra Lights Box	360		400		20
194			Cigarillos	Camel Cigars Menthol Ultra Lights 100's Slims	330		380		20
195			Cigarillos	Camel Cigars Menthol Berry Capsule Box *4	360		400		20
196			Cigarillos	Camel Cigars Menthol Berry Capsule Lights Box *4	360		400		20
197			Cigarillos	Wakaba Cigars	360		410		20
198			Cigarillos	Echo Cigars	350		400		20
199			Cigarillos	Golden Bat Cigars	280		370		20
200			Cigarillos	Golden Bat Cigars Menthol	280		370		20
201			Cut tobacco		Koiki Matsukawa Kizami	480		520			10.0g
202			Cut tobacco	Koiki Daruma Kizami	480		520			10.0g

	No.			Category			Name			Current			New			Number of units /
							Price			Price			weight per pack
203			Cut tobacco		Koiki	480		520			10.0g
204			Pipe tobacco	Natural American Spirit Organic Blend Turquoise	1260		1360			40.0g
205			Pipe tobacco	Natural American Spirit Original Blend	1180		1280			40.0g
206			Pipe tobacco	Natural American Spirit Perique Blend	1180		1280			40.0g
207			Snuff tobacco		Zerostyle Stix Blue Mint holder set	430		470			3.6g
208			Snuff tobacco		Zerostyle Stix Blue Mint refill pack (2 cartridges)	320		360			3.6g
209			Snuff tobacco		Zerostyle Stix Brown Flavor holder set	430		470			3.3g
210			Snuff tobacco		Zerostyle Stix Brown Flavor refill pack (2 cartridges)	320		360			3.3g
211			Snuff tobacco		Zerostyle Stix Pink Flavor refill pack (2 cartridges)	320		360			3.5g
212			Snuff tobacco		Zerostyle Stix Green Mint refill pack (2 cartridges)	320		360			3.3g
213			Snuff tobacco		Zerostyle Stix Blue Mint refill pack (1 cartridge)	160		180			1.8g
214			Snuff tobacco		Zerostyle Stix Brown Flavor refill pack (1 cartridge)	160		180			1.6g
215			Snuff tobacco		Zerostyle Stix Green Mint refill pack (1 cartridge)	160		180			1.6g
216			Snuff tobacco		Zerostyle Stix Pink Flavor refill pack (1 cartridge)	160		180			1.7g
217			Snuff tobacco		Zerostyle Snus Matcha Latte	500		540			6.2g
218			Snuff tobacco		Zerostyle Snus Ume	500		540			6.2g
219			Snuff tobacco		Zerostyle Snus Regular	500		540			6.8g
220			Snuff tobacco		Zerostyle Snus Apple Mint	500		540			6.8g
221			Snuff tobacco		Zerostyle Snus Vanilla	500		540			6.8g
222			Snuff tobacco		Zerostyle Snus Cool Mint	500		540			6.8g
223			Snuff tobacco		Zerostyle Snus Spice	550		590			9.0g
224			Snuff tobacco		Zerostyle Snus Black Menthol	550		590			9.0g

Notes:

1. The excise tax system was revised for Tobacco Vapor products effective from October 1, 2018. The new tax system takes into consideration the taxable weight as per the old tax system and taxable weight as per the new tax system. Therefore, weights of the product under the old system and new system are both listed as old weight / new weight.
2. JT applied retail price amendment for two products per each brand below according to their manufacturing location.
3. • Camel Lights Box
   • MEVIUS REGULAR for Ploom TECH
   • MEVIUS MENTHOL for Ploom TECH
   • MEVIUS MILD for Ploom TECH+
   • MEVIUS COLD MINT for Ploom TECH+
   • MEVIUS CLEAR MINT for Ploom TECH+
4. JT will delist the products after the stock is sold out in the retail stores.
5. JT plans to launch new products.