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Tuesday, November 24, 2009

3 months Ago ,JT INTERNATIONAL BERHAD MAINTAINS MARKET SHARE GAINS

JT INTERNATIONAL BERHAD MAINTAINS MARKET SHARE GAINS

JT International Berhad’s Second Quarter Financial Results

For The Year Ending 31st December 2009

Second Quarter Results For Period Under Review

JT International Berhad registered consolidated revenue of RM288.9 million for the second quarter ended 30th June 2009, a 10.0% increase as compared with RM262.7 million achieved in the corresponding quarter last year. The increase in revenue was attributed to higher cigarette prices offset partially by lower sales volume. The Group also registered profit before tax of RM40.8 million, a 2.9% increase as compared with RM39.6 million achieved in the corresponding quarter last year due to higher cigarette prices and lower marketing expenditure, offset by lower sales volume and lower interest income.

First Half Results For Period Under Review

For the first half-year ended 30th June 2009, the Group posted consolidated revenue of RM580.4 million and profit before tax of RM85.7 million, a 12.9% and 4.8% increase as compared with revenue of RM514.0 million and profit before tax of RM81.7 million respectively achieved in the corresponding period in 2008. The increase in revenue and profit before tax was mainly driven by the factors mentioned above. JT International Berhad managed to improve its performance, strengthening its market share to 18.3% from 17.1% registered during the same period last year (source: AC Nielsen Retail Audit report). This growth was driven primarily by Value segment leader Winston, which increased its market share to 9.4% from 8.2% registered during the same period last year.

Tobacco Industry Outlook

In the first half-year ended 30th June 2009, overall tobacco industry volume – as measured by the Confederation of Malaysian Tobacco Manufacturers – declined 11.7% against the same period last year. This decrease was driven in part by the challenging economic conditions, which continues to accelerate the growth of extremely low priced cigarettes and illegal cigarettes.

The continued growth of illegal cigarettes will exert further negative pressure on the sales volume of the legitimate cigarette manufacturers. Current estimates are that in early 2009, as many as one in every three cigarette packets sold in Malaysia is illegal. JT International Berhad will continue to work closely with the Government on this very serious issue in order to curb the growth of illegal cigarettes. Notwithstanding, JT International Berhad is encouraged by the increased enforcement by various Government agencies to combat this serious threat, and will continue to cooperate fully with the authorities in this ongoing fight against the illegal cigarette trade.

One of the key factors driving the growth of illegal cigarettes is high taxation, and it is hoped that the Government will take this into account and give due consideration to the tobacco industry’s recommendations for a moderate and structured tax increase policy in the future.

Despite the anticipated challenges ahead, JT International Berhad is committed to maintain its competitiveness and to deliver a satisfactory overall performance for the current financial year through continued effective investment behind its global flagship brands: Winston, Mild Seven and Camel.

Ends.

JTI – Japan Tobacco International - is a subsidiary of Japan Tobacco Inc. (JT), the world’s third largest international manufacturer of tobacco products. JTI produces three of the top five worldwide cigarette brands: Winston, Mild Seven and Camel. Other international brands include Silk Cut, Sobranie of London, Glamour and LD. With headquarters in Geneva, Switzerland, and net sales of USD 10.6 billion in the fiscal year ended December 31, 2008, JTI has 23,000 employees and operations in 120 countries. JT International Berhad is the Malaysian arm of Japan Tobacco International.

For further information, please contact:

Shareen Rahmat

Corporate Affairs

JT International Berhad

Tel: 03 - 2094 9011

Fax: 03 - 2095 0049

Email: corporateaffairs.malaysia@jti.com


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