Employer Branding in JTI in Kazakhstan

Communications KZCoffeeMania, Almaty, 2013

JTI Employer Brand

Our Company at a glance

Employer Brand 2

© Copyright JTI 2012 Employer Brand 3

JTI today

25,000employees (approx.)

90offices

22factories

6research &development centers

5tobacco processingfacilities

• JTI is the JT Group’sinternational tobacco businesswith a global market share ofalmost 10%

• JTI employs people in 69countries around the world

• JT is a leading international 3rd

largest tobacco product company

• The Company’s adjusted net salesare USD 11.21 billion*

© Copyright JTI 2012


JT Group cigarette volume• We sold 534 billion cigarettes(1) andgenerated USD 11.2 billion in net sales

• JTI is the fastest growing internationaltobacco company over a ten year period

• We are the growth engine of theJT Group, and generated in excess of80% of the Group’s volume

(1) Cigarettes or equivalent units

Employer Brand 4

In 2011Our numbers

JT 20%

JTI 80%


JTI in Kazakhstan

JTI position in Kazakhstan #2, share of market 40,7%

JTI operates from 1999, 1st production line in 1993

Direct investments in Kazakhstan economics more than USD 130 millions, more than USD400 millions of taxes

1 factory in Almaty, 2 offices in CAM

JTI position in Kyrgyzstan and Mongolia #1, share of market 54% in Kyrgyzstan and 24%in Mongolia

Employer Brand 5

Global framework

Employer Brand 6


• Develop a global employer brand platform and bringconsistency in messaging and activation across JTI countries

• Engage JTI employees to live the brand and share our values

• Become a well-known employer of choice for both internal andexternal audiences

Employer Brand 7

JTI Employer Brand Objectives

Local deployment objectives

• Enhance understanding of us as an employer among ourexisting workforce

• Give JTI clear differentiation for recruitment purposes

• Create business advantage


What we wanted to achieve

Consistency

Concept

Credibility

Costefficiency

8

• Historical andgeographical

• Based onvalues, EESand businessstrategy

• Consistentdelivery andshaping theculture

• Production• Recruitment• Turnover


Our Values: Enterprising - Open - Challenging

Our goal is clear:To be the most successful and

respected tobacco company in the world

We thrive ondiversity

We strive forexcellence

We drive action witha long-term view

JTI Brand architecture

EVPHow our goal and values translate into what we wantto be known for by current and potential employees

Why we do this

Employer Brand 10


Headcount about 1000 employees in Kazakhstan and CAM(Market and GSC)

Healthy turnover not more than 10%

39% of employees resigned in 2012 had tenure 4-7 years

Internal promotion more than 60%

Short term assignments ( orderedabroad, other JTI countries): 0employees in 2009, 3 employeesin 2011, 5 employees in 2012, 6employees in 2013


External Trends and JTI Path

Key challenges

• Post-crisis labour market recovery• Challenging recruitment environment

• Local companies are becoming more professionaland attractive

• Regional labour market is underdeveloped

• Competition for talents is increasing• Leadership competencies are rare

• Local companies pay premium to the best talent

• Quality of University education is decreasing,expectations of graduates are increasing

• Negative perception of the tobaccobusiness is growing

Employer Brand 12

War for talent, shortage of skilful resources, industry specifics…

Key outcomes

All these challenges are not new for us;they only prove that our path is well-defined:

• Promote JTI as a great place to work

• Sustain exemplary employeeengagement and develop talent

• Become the most successful andrespected tobacco company acrossCentral Asia markets

© Copyright 2012, Towers Watson. 13

Overall engagement level at 90%Very high scores – improvements in all three dimensions since 2009

I believe strongly in the goals andobjectives of JTI.

I fully support the values for which JTIstands.

Most employees here act as ambassadorsof the company.

5%

5%

8%

96%

97%

88%

I would recommend JTI to a friend as agood place to work.

I am proud to tell others that I work forJTI.

This company is highly regarded by itsemployees.

94%

94%

87%

6%

6%

5%

I am willing to put in a great deal of effort beyond what isnormally expected to help this company succeed.

My company inspires me to do my best work.

My work gives me a sense of personal accomplishment.

97%

88%

83%

7%

3%

1%

EnterprisingOpenChallenging

Business

Employer Branding in JTI in Kazakhstan