Basic Agreement to transfer shares of JT s subsidiaries conducting vending machine operation business and JT beverage brands

Similar documents
First quarter demonstrated solid progress toward full year target

First Quarter confirms steady progress towards full year target

First Half results demonstrated solid business performance

JTI continues delivering revenue and double-digit earnings growth

First Half results confirm steady business performance

What is the overview of consolidated financial results for FY2015 Third Quarter?

JT Reports 2017 Financial Results and 2018 Consolidated Forecasts

JTI new head office in Geneva: Currently under construction, the new JTI headquarters in Geneva is an innovative structure, designed to inspire our

Announcement Concerning Results of Tender Offer (First) for Shares of Message Co., Ltd. (Stock Code: 2400)

Financial Information

Overview of Consolidated Financial Results for the 9 months ended December 31 st, 2012 and Full-term Forecasts for FY 3/2013

Adjusted operating profit grows steadily driven by robust pricing in the International Tobacco Business

Summary of Consolidated Financial Results for the Fiscal Year Ended December 31, 2015 <under Japanese GAAP> (UNAUDITED)

Financial Results for the Fiscal Period from March 1, 2018 to August 31, 2018

Overview of Business and Trends in Principal Management Benchmarks

FOR IMMEDIATE RELEASE Tokyo, June 5, Documents presented at the Investor Conference in London

1. Financial Highlights 1 2. Consolidated Balance Sheets 2 3. Consolidated Statements of Income and

Japan Tobacco Inc. Annual Report FY2013. Year ended March 31, 2014

Translation. March 19, To Whom It May Concern:

FOR IMMEDIATE RELEASE

Business Plan Mitsuomi Koizumi President and CEO

Creation of Kansai Mirai Financial Group. Kansai Mirai Financial Group, Inc.

FACTBOOK For the fiscal year ended March 31, 2014

Solid start toward mid-to-high single digit growth in adjusted operating profit at constant FX

Consolidated Financial Results for the Fiscal Year Ended October 31, 2018

Japan Tobacco Inc. Fact Sheets FY2017

Sapporo Holdings and Pokka Corporation Enter Into Basic Agreement on Capital and Business Alliance

Notice regarding the making of SMBC Friend Securities into a wholly-owned subsidiary of SMFG

Fact Sheets. Japan Tobacco Inc. FY2015

Supplementary Material on Consolidated Financial Results for the First Nine Months of the Fiscal Year Ending December 31, 2015

FAC T BOOK. Fiscal year ended March 31, Hakuten CO., LTD. 2173/JASDAQ. Creating a future through shared smiles. CONTENTS

I. Details of amendments to CONSOLIDATED FINANCIAL REPORT FOR THE THREE MONTHS ENDED JUNE 30, 2018<Japanese GAAP>

JT s Consolidated Financial Results for FY2013 First Quarter

Group Companies (as of March 31, 2018)

Asahi Group Holdings, Ltd.

Asahi Group Holdings, Ltd.

Financial Information

Summary of Financial Results for the Three months Ended December 31, 2016 [Japanese GAAP]

Strategic Joint Business in Leasing and Auto Leasing Businesses between Sumitomo Corporation Group and Sumitomo Mitsui Financial Group

Gulliver International Co., Ltd.

Establishment of a Joint Holding Company for Business Integration (Share Exchange) July 29, 2009

Commencement of Discussions for Operational Integration with Pokka Corporation through Reorganization in the Group

Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2018 [Japanese GAAP] (Consolidated)

Represent -ative. Contact

MCUBS MIDCITY INVESTMENT CORPORATION SUMMARY OF FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2018

JT Posts Record Net Sales and EBITDA for the Fiscal Year that Ended March 2009

1. Revisions to the Distribution Amount Forecast for the 8th Fiscal Period

Notice of Secondary Offering of Shares and Change in Parent Companies

Fina nc i a l. Consolidated Eleven-Year Financial Summary 058 Management s Discussion and Analysis of Financial Condition and Business Results

AEON DELIGHT and CERTO Sign Merger Agreement

Notice of an Absorption-Type Merger (Simplified Merger and Short-Form Merger) and Absorption-Type Company Split of Consolidated Subsidiaries

Consolidated Financial Results for the Fiscal Year Ended March 31, 2012 <under IFRS>

Aozora Announces Capital and Business Alliance for Joint Venture Internet Bank with GMO Internet, Inc.

Consolidated Financial Results for the Second Quarter of Fiscal Year 2018

FLASH REPORT May 8, 2014

Announcement of Results of Tender Offer for Shares of DAIKYO INCORPORATED (Securities Code: 8840)

Announcement Regarding the Company Split (Simplified Absorption-type Company Split) with a Consolidated Subsidiary, and Change of Sub-subsidiary

(2) Consolidated Financial Position Total assets Net assets Equity ratio

Financial Results for FY2015 Q3 January 1 to September 30, 2015

JT Group 2018 Third Quarter Investor Conference Presentation

Overview of Consolidated Financial Results for 1H FY 3/2010 and Full-term Forecasts for FY 3/2010

Summary of Consolidated Financial Results for the First Nine Months of the Fiscal Year Ending December 31, 2017 <under Japanese GAAP> (UNAUDITED)

The purchaser has assured DIC that the work will become available for viewing by the public.

Combination of Operations and Reorganization to Strengthen the Consumer Finance Business

Asahi Group Holdings, Ltd.

NOTICE OF THE 58TH ANNUAL MEETING OF SHAREHOLDERS

Announcement Regarding Results of the Tender Offer for the Shares of Calsonic Kansei Corporation (Securities Code: 7248) by CK Holdings Co., Ltd.

Notice of Determination of Provisional Terms and Conditions for an Initial Public Offering of Shares

Announcement of Results and Conclusion of Share Repurchase Tender Offer and Change of Major Shareholder

January 7, To whom it may concern,

(Reference Translation) April 27, 2018

Supplementary Material on Consolidated Financial Results for the First Nine Months of the Fiscal Year Ending December 31, 2017

Aozora Bank, Ltd. and Shinsei Bank, Limited Announce Agreement to Merge

September 15, For Immediate Release

Operating Income. (Note) Comprehensive income: 20,851 million yen [10.2%] (FY Q), 18,922 million yen [16.9%] (FY 2017.

Stock Exchange Listing: Tokyo (Code: 8331) Toshikazu Okubo, Executive Officer & General Manager, Corporate Planning Division

Consolidated Financial Results for the First Quarter of Fiscal Year 2017

Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2017 [Under Japanese GAAP]

Title and name of representative: Mitsuomi Koizumi, President, Chief Executive Officer and Representative Director

Notice of Board of Directors Resolution for the Issuance of Stock Acquisition Rights

(Delay) Notice of issue of new shares through third-party allotment and borrowing of funds

Step Two JTSB Shareholders. Merger of the three companies. 3. Allotments in connection with the Joint Share Transfer (share transfer ratio)

Summary of Consolidated Financial Results for the First Half Ended September 30, 2008

AMENDMENT TO THE TENDER OFFER STATEMENT

New Group s Financial Targets, Integration Effects and Strategies for Three Core Business Lines

Financial Summary of First Two Quarters of Fiscal Year Ending July 2018 (Japanese GAAP) (Consolidated)

Sumitomo Mitsui Financial Group, Inc.

March 28, To whom it may concern. Sumitomo Mitsui Trust Holdings, Inc. (Securities Code: 8309 TSE, NSE)

FOR IMMEDIATE RELEASE Tokyo, February 9, 2010

Consolidated Financial Results for the Six Months Ended September 30, 2016 [Japanese GAAP]

Announcement of Business Consolidation by Stock Transfer

To Our Shareholders JUKI CORPORATION. Business Report for the 95th Business Term. (From April 1, 2009 through March 31, 2010) Security code: 6440

(English Language Translation)

Consolidated Financial Statements for the First Three Quarters of the Fiscal Year Ending December 31, 2011 November 8, 2011

Re: Issuance of Stock Acquisition Rights

Japan Finance Organization for Municipalities. Source: JFM photographic library. Takeji Takei Senior Executive Director October 2011

Nissin Foods Holdings Co., Ltd. Notice of the 63nd Ordinary General Meeting of Shareholders

March 28, Yasuhiro Sato, President & Group CEO. Stock Exchange)

ASAHI Group Holdings, LTD.

Operating Income. (Note) Comprehensive income: 27,090 million yen [29.9%] (FY Q), 20,851 million yen [10.2%] (FY 2018.

Transcription:

FOR IMMEDIATE RELEASE Tokyo, May 25, 2015 Basic Agreement to transfer shares of JT s subsidiaries conducting vending machine operation business and JT beverage brands Japan Tobacco Inc. (JT) (TSE: 2914) announced today that it has concluded a basic agreement with Suntory Beverage & Food Limited (SBF) to transfer all shares JT currently holds in its subsidiaries conducting vending machine operation business Japan Beverage Holdings Inc. (JB) and JT A-Star Co., Ltd. (JTA). The agreement also includes the transfer of JT beverage brands Roots and Momono Tennensui. 1. Outline of the basic agreement with SBF 1) Date of the agreement: May 25, 2015 2) Parties of the agreement: JT (seller), SBF (buyer) 3) Subjects of transfer: a. Shares of JB currently held by JT (70.5%), all shares of JTA, shares of Japan Beverage Ecology Inc. currently held by JT (49.7%) b. Roots and Momono Tennensui beverage brands 4) Transfer value: approximately 150 billion yen The above value may be adjusted in accordance with the terms and conditions of the definitive agreement to be concluded. 2. Rationale of the basic agreement Since the announcement on February 4, 2015 concerning the decision to withdraw from the manufacture and sale of JT beverage products, targeting the end of September 2015, JT has considered various options for JB and JTA Groups to realize continuous growth and maximize their business value. JT has also been aiming to transfer its beverage brands, which have enjoyed long-term support from consumers. In the Japanese beverage market, JB and JTA Groups have demonstrated high level of competitiveness. They have established solid presence as an independent operator through their high-quality beverage vending machine operation, paper cup machine and retail businesses. 1

SBF has been known for its strong presence in the Japanese beverage market, unique product line-up and marketing excellence. It therefore has the ability to leverage in the best possible way the high level of quality service and competitiveness fostered by JB and JTA Groups, as well as the brand value of Roots and Momono Tennensui. In the light of that JT decided to conclude the basic agreement to transfer the shares and brands to SBF. According to the agreement the companies will move forward with the required procedures. SBF has set out a basic policy to maintain JB and JTA Groups existing businesses and current business relationships after the transfer. JB and JTA Groups will continue to strive for further business growth as part of SBF. 3. Overview of the subsidiaries subject to change 1) Overview of JB 1 Name Japan Beverage Holdings Inc. 2 Address 24-1, Nishi-shinjuku 1-chome, Shinjuku-ku, Tokyo 3 Representative President & CEO Kazuhisa Inoue 4 Business Planning and implementation of Group-wide strategy Sale of a variety of foods and beverages via vending machines 5 Paid in capital 500 million (Number of shares outstanding: 32,846,487 shares) 6 Foundation July 1, 2010 7 Major shareholder and Japan Tobacco Inc. (70.5%) 8 Relationship with JT Capital JT holds 70.5% of the voting rights in JB Four of six JB s members of the Board are former JT s member of the Board, executive officer, current and former employees. One of four audit & supervisory board members is a former JT employee Business JT leases vending machines and sells beverage products to JB 9 JB s operating results and financial position over the past three years (non-consolidated) Fiscal Year FY2012 FY2013 FY2014* Net assets 56,058 million 57,252 million 58,482 million Total assets 88,291 million 91,337 million 93,904 million Net assets per share 1,706.68 1,743.04 1,780.49 Net sales 160,376 million 159,317 million 120,445 million Operating income 5,731 million 2,801 million 2,487 million Ordinary income 5,530 million 2,650 million 2,267 million Net income 3,343 million 1,598 million 1,435 million Net income per share 101.80 48.66 43.70 *Due to change in accounting period, fiscal year ending December 31, 2014, was 9 months long 2

2) Overview of JTA 1 Name JT A-Star Co., Ltd. 2 Address 1-3, Chuo 1-chome, Chuo-ku, Chiba-shi, Chiba prefecture 3 Representative President & CEO Kazutomo Murata 4 Business Sales of food and beverages via vending machines 5 Paid in capital 78 million (Number of shares outstanding:156,000 shares) 6 Foundation February 2, 1972 7 Major shareholder and Japan Tobacco Inc. (100%) 8 Relationship with JT Capital JT holds 100% of the voting rights in JTA Four out of five JTA s members of the Board are current or former JT employees. The member of audit & supervisory board is a former JT employee Business JT leases vending machines and sells beverage products to JTA 9 JTA s operating results and financial position over the past three years (non-consolidated) Fiscal Year FY2012 FY2013 FY2014* Net assets 477 million 480 million 516 million Total assets 2,370 million 2,345 million 2,400 million Net assets per share 3,057.87 3,077.31 3,308.79 Net sales 5,973 million 6,021 million 4,433 million Operating income 106 million 0 million 60 million Ordinary income 102 million 15 million 60 million Net income 54 million 3 million 36 million Net income per share 347.93 19.44 231.48 *Due to change in accounting period, fiscal year ending December 31, 2014, was 9 months long 4. Overview of SBF 1 Name Suntory Beverage & Food Limited 2 Address 1-1, Kyobashi 3-chome, Chuo-ku, Tokyo 3 Representative President & CEO Nobuhiro Torii 4 Business Domestic and international food business 5 Paid in capital 168,384 million 6 Foundation September 1, 2009 7 Net assets 635,624 million (as of December, 2014) 8 Total assets 1,389,096 million (as of December, 2014) 9 Major shareholder and Suntory Holdings Limited (59.4%) 10 Relationship with JT Capital No items to report No items to report Business No items to report Related party status No items to report 3

5. Number of shares to be transferred and share ownership status before and after the transfer 1) JB shares 1 Number of shares held before change 23,163,294 shares (No. of voting rights 23,163) (Proportion of voting rights held: 70.5%) 2 Number of shares to be transferred 23,163,294 shares (No. of voting rights 23,163) 3 Number of shares held after change 0 shares (No. of voting rights 0) (Proportion of voting rights held: 0%) 2) JTA shares 1 Number of shares held before change 156,000 shares (No. of voting rights 156,000) (Proportion of voting rights held: 100%) 2 Number of shares to be transferred 156,000 shares (No. of voting rights 156,000) 3 Number of shares held after change 0 shares (No. of voting rights 0) (Proportion of voting rights held: 0%) 6. Schedule 1 Resolution of the Board of Directors 25 May, 2015 2 Date of basic agreement 25 May, 2015 3 Date of definitive agreement July 2015 (planned) 4 Transfer date The transfer date has been under discussion between the two parties, under the condition that there will be no preventing factors such as an issuance of cease and desist order after the business combination review of the deal by the Fair Trade Commission, as required by the Antimonopoly Act (scheduled for July 2015). 7. Impact on financial performance Profit attributable to owners of the parent is expected to increase by approximately 100 billion. JT s consolidated forecast for FY2015 is currently under examination. 8. Other This transfer is to be executed, under the condition that there will be no preventing factors such as an issuance of cease and desist order after the business combination review of the deal by the Fair Trade Commission, as required by the Antimonopoly Act. 4

### Japan Tobacco Inc. is a leading international tobacco company. Its products are sold in over 120 countries and its internationally recognized brands include Winston, Camel, Mevius and LD. With diversified operations, JT is also actively present in pharmaceuticals and processed foods. The company s revenue was 2.154 trillion (US$17,867 million(*)) in the fiscal year ended December 31, 2014(**). *Translated at the rate of 120.55 per $1, as of December 31, 2014 **Due to a change in the accounting period from March 31 to December 31, the fiscal year 2014 covered nine months for Japanese domestic businesses and 12 months for the consolidated subsidiaries which operate the Group s international tobacco business. On a comparable full calendar year basis, revenue was 2.433 trillion (US$20,186 million(*)). Contacts: Ryohei Sugata, General Manager Dmitry Krivtsov, Associate General Manager Media and Investor Relations Division Japan Tobacco Inc. Tokyo: +81-3-5572-4292 E-mail: jt.media.relations@jt.com 5