Operator

Thank you very much for participating in the Investor Meeting for Q1 2026 results at Japan Tobacco Inc. today. Before we start the meeting, I'd like to ask you to make sure that your display name is accurate. Thank you for your cooperation. It's now pleasure to introduce our CFO, Mr. Furukawa, please.

Hiromasa Furukawa
Senior VP, CFO & Corporate Communications

Good afternoon. I am Hiromasa Furukawa, CFO of the JT Group. Thank you very much for joining us today for JT Group's First Quarter 2026 Earnings Briefing. I will begin by explaining the consolidated results for the first quarter, marking a strong start to the year. As shown on the slide, both revenue and AOP recorded significant increases on both constant FX and reported basis, mainly driven by a robust quarter in the tobacco business. AOP at constant FX, our key profit management indicator, increased by 20.5% year-on-year, resulting in strong operating profit and profit growth.

The FX impact was positive, mainly driven by depreciation of several currencies, including the Russian Ruble against the Japanese Yen. Operating profit increased by 24.7% year-on-year, driven by the increase in AOP as well as a reduction in amortization cost of intangible assets arising from past acquisitions included in the adjustment items. Profit increased by 27.3% year-on-year, driven by operating profit growth. In addition, financial