Japan Tobacco

1. Regulatory Risk: The tobacco industry is subject to extensive regulation, both domestically and internationally. Japan Tobacco must comply with applicable laws and regulations, including those governing the production, promotion and sale of tobacco products, those relating to the taxation and prevention of illegal trade of tobacco products, and those concerning health warnings. Japan Tobacco also faces the risk of new or revised regulations.

2. Litigation Risk: Japan Tobacco has faced various civil, criminal, and administrative lawsuits related to the Tobacco Business Law. It is exposed to significant financial and reputational risks if it is found liable for these lawsuits.

3.Business Competition Risk: Japan Tobacco faces stiff competition from domestic and foreign tobacco companies. This could have a negative impact on market share, pricing power, and profitability.

4. Political Risk: Political risk relates to the instability of political factors in Japan Tobacco's business environments. Such risks may result in trade prohibitions, changes in the laws and regulations, or other unfavorable conditions for the company’s business operations.

5. Currency Risk: Japan Tobacco has business operations in many countries and is exposed to foreign exchange risk. Volatility in exchange rates could adversely affect the company's financial performance and profitability.