JTI SWITZERLAND

JTI SWITZERLAND

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JTI SwitzerlandJTI Switzerland

JTI has been manufacturing tobacco products in the Wiggertal area for over 45 years. The local market organization and the production facility in Dagmersellen (canton of Lucerne) employ 326 people. Switzerland plays a key role for our company: its international headquarters is located in Geneva.

The foundations of today‘s JTI were laid with the sale of R.J. Reynolds to Japan Tobacco Inc. in 1999. This was followed by the takeover of a British firm, Gallaher, in 2007. Since then, our company has seen continuous growth. Our portfolio now includes internationally known cigarette brands, such as Camel and Winston. We are also developing next-generation products, such as Logic and Nordic Spirit, to meet new customer demands.

Our activities focus on meeting the needs of our customers, shareholders, employees and society at large. The aim is to satisfy all four interest groups. We firmly believe that this is the right way to achieve sustainable growth.

32 6EMPLOYEES

54


As a manufacturer of tobacco products, we are aware of our special responsibility to society. Because of this, we have for years been pushing for a nationwide minimum age of 18 for the purchase of cigarettes and e-cigarettes.

In addition, we have subjected ourselves to strict self-regulation. But because tobacco is a legal product, advertising aimed at adults must continue to be permitted.

In our day-to-day operations, we always adhere to six principles:

1. Openness about the risks of smoking

2. Transparency about our products

3. Commitment to Reduced-Risk Products

4. Youth smoking prevention programs

5. Accommodation between smokers and non-smokers

6. Respect for local norms and cultures

1 8MINIMUM AGE

76


Tobacco is our passion. JTI has produced some legendary brands in the course of its history. One smoker in five in Switzerland chooses one of our brands. Two of the four best-selling brands in Switzerland, Winston and Camel, are in our portfolio.

Cigarettes:

23%MARKET SHARE

Fine-cut tobacco:

Reduced-Risk Products:

98


Thanks to its excellent general business conditions and free-trade agreements, Switzerland is one of the world’s leading exporters. Some 86% of our cigarette production go abroad. The total value of the industry’s exports is comparable to that of cheese.

The Dagmersellen production facility has been continually expanded over the years and is one of JTI‘s most modern plants worldwide. In the last 16 years, JTI has invested around CHF 250 million in Switzerland. With increasing automation inDagmersellen, productivity has also continued to grow: approximately 53 million cigarettes now leave the factory daily.

8 6%EXPORT

1110


Swiss industry is known to be highly innovative; consumers, too, are open to trying out new products. There is therefore a strong demand for sustainably grown, additive-free tobacco, such as that of Natural American Spirit.

Interest in Reduced-Risk Products* is also high in Switzerland. JTI is one of the world’s leading e-cigarette suppliers. In 2018, JTI became the first international company in Switzerland to launch an e-cigarette – Logic Pro. The launch of Logic Compact followed in 2019. This latest generation of evaporator stands for design, ease of use and flavor. To grow further in this segment, Japan Tobacco Group is investing 2 billion US dollars worldwide between 2015 and 2020. In 2019, JTI introduced Nordic Spirit, its first tobacco-free nicotine pouches, to the entire Swiss market. In 2019, JTI was among the top 100 patent applicants at the European Patent Office with 223 patent applications.

* JTI defines Reduced-Risk Product as those with the potential to reduce the risks associated with smoking.

2 BNUSD

INVESTMENT

1312


The tobacco industry’s total contribution towards the economy is put at CHF 6.3 billion annually, or 1% of gross domestic product. Around 8.9 billion cigarettes are sold in Switzerland every year, providing the federal government with over CHF 2 billion in revenue. This amount goes entirely towards the funding of the AHV old age and survivors’ insurance program.

Directly and indirectly, the tobacco sectorcreates over 11,400 jobs in Switzerland.Tobacco products are sold at 13,500 salesoutlets. JTI works closely with 155 tobaccofarmers in Switzerland. Around 1,147 tonnes are harvested from a total of 460 hectares annually.

2BILLION

CHF TOBACCO TAXES

1514


Over 1,200 internationally active companies have their headquarters in Switzerland. One of these is JTI. In total, we employ 1,448 people here.

JTI has won several Top Employer awards. In 2020 we were recognized as a top employer in Switzerland, Europe and globally. Every year, the Top Employers Institute certifies employers in Switzerland and throughout the world. Criteriainclude staff development, talent management, employment conditions and corporate culture. In 2017, JTI also received the Swiss Employers Award, presented on the basis of assessment by employees. JTI is training just short of a dozen apprentices as commercial, logistics and systems operation apprentices. It does not merely pay lip service to diversity: people from a total of 26 nations work at the Dagmersellen site.

2 6NATIONALITIES

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Our keen sense of responsibility is manifest not only in our everyday activities, where we lobby for an 18-year minimum age limit for the purchase of tobacco, but also in our commitment to society in general. This is part of our corporate culture.

We are committed to matters of social, artistic and environmental importance. Through national and regional partnerships, we support 45 projects throughout Switzerland. The focus is on long-term cooperation. This involves providing more than financial support: many of our employees play an active role in such initiatives as Clean-up Day.

4 5PROJECTS

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For us, sustainability is a key factor, all the way down the value chain. Our initiatives relating to environmental, health and safety matters promote the wellbeing of our employees and foster environmentally sustainable production.

We support best agricultural practices, projects for clean drinking water and the fight against child labor. We also aim at targets for reduced waste, water usage and energy consumption, and encourage a culture of health and safety awareness in our production facilities.

At Dagmersellen, we have reduced CO2 emissions by 38 % since 2007. In addition, a sensible waste recycling system was implemented, which produces a nutrient-rich natural fertilizer from tobacco dust, filter briquettes and filter rods – more than 369 tonnes per year. We have also set up a recycling system for the capsules used in our new devices, Logic Pro and Logic Compact, and take back the empty products.

-3 8 % CO2 EMISSION

jti.com

JT International AGBaselstrasse 65, Postfach6252 DagmersellenTelefon +41 62 748 01 11

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JTI SWITZERLAND