JTI inside

1(10) autumn 2012

Best corporate media of Ukraine 2012

Ukraine Magazine

Turning challenges into opportunities

Тема номеру

Contents

EES 2012 Welcome to INSIDE Ukraine, the proud and privileged successor of Field Express

12 Our achievements

16 Cover story

24 Event

Year of Quality: Spring Season and final ceremony

Antoine Ernst comments on the results of Employee Engagement Survey 2012

Celebrating the 170th anniversary of the Kremenchuk factory

28 Person

30 Team

34 Joint efforts

BDS: Not just fine numbers

Constructors of thought

Sales Takeoff in Kremenchuk

4 Facts

36 Event

40 My town

Company and industry news

Regional teambuildings

City on the Dnipro

21 Career

38 Hobby

42 Useful

Growing together

Freeing from concerns

News from IT team

INSIDE Ukraine is for us as well as from us. Unifying understanding, celebrating, sharing new ideas. Whether in the field or in the office, regardless of department, seniority, nationality, gender or language, we are JTI, and we are INSIDE Ukraine.

INSIDE Ukraine benefits from the new look and feel of the JTI brand; the editorial team will continue to bring to us illustrations of our clear goal: to be the most respected and successful tobacco company. Spiced up by life examples of our common values: Challenging, Enterprising, Open.

INSIDE Ukraine does not hide challenges, it deals with them.

It focuses on turning issues into new opportunities.

INSIDE Ukraine is learning. What we have seen from the infamous September 16, 2012 date (introduction of tobacco control law 3778) is exceptional professionalism, service towards our retail partners, great teamwork between all functions. It is maturity, excellence and responsibility.

INSIDE Ukraine is you, is me, is us. Committed and engaged we are to do the right things, very well, learning with and from others. Having fun whilst always searching and (increasingly) finding a better way, every day. For a better tomorrow. For you, for us, for JTI. Budmo! Hey hey hey to INSIDE Ukraine!

Antoine Ernst 2 | INSIDE | 10’ 2012

Publisher: JT International Company Ukraine JSC Address: 30a Spaska Str., Kyiv Executor: IM Ukraine Publishing Ltd. Address: 33 Vorovskogo Str., Kyiv

Not for sale To be distributed exclusively among employees of JT International Company Ukraine JSC

INSIDE Ukraine Magazine team: Oleksandra Kryshtapovych Vasyl Gubarets Antonina Filonenko Send your suggestions to Oleksandra.Kryshtapovych@jti.com

10’ 2012 | INSIDE | 3

Тема номеру

Contents

EES 2012 Welcome to INSIDE Ukraine, the proud and privileged successor of Field Express

12 Our achievements

16 Cover story

24 Event

Year of Quality: Spring Season and final ceremony

Antoine Ernst comments on the results of Employee Engagement Survey 2012

Celebrating the 170th anniversary of the Kremenchuk factory

28 Person

30 Team

34 Joint efforts

BDS: Not just fine numbers

Constructors of thought

Sales Takeoff in Kremenchuk

4 Facts

36 Event

40 My town

Company and industry news

Regional teambuildings

City on the Dnipro

21 Career

38 Hobby

42 Useful

Growing together

Freeing from concerns

News from IT team

INSIDE Ukraine is for us as well as from us. Unifying understanding, celebrating, sharing new ideas. Whether in the field or in the office, regardless of department, seniority, nationality, gender or language, we are JTI, and we are INSIDE Ukraine.

INSIDE Ukraine benefits from the new look and feel of the JTI brand; the editorial team will continue to bring to us illustrations of our clear goal: to be the most respected and successful tobacco company. Spiced up by life examples of our common values: Challenging, Enterprising, Open.

INSIDE Ukraine does not hide challenges, it deals with them.

It focuses on turning issues into new opportunities.

INSIDE Ukraine is learning. What we have seen from the infamous September 16, 2012 date (introduction of tobacco control law 3778) is exceptional professionalism, service towards our retail partners, great teamwork between all functions. It is maturity, excellence and responsibility.

INSIDE Ukraine is you, is me, is us. Committed and engaged we are to do the right things, very well, learning with and from others. Having fun whilst always searching and (increasingly) finding a better way, every day. For a better tomorrow. For you, for us, for JTI. Budmo! Hey hey hey to INSIDE Ukraine!

Antoine Ernst 2 | INSIDE | 10’ 2012

Publisher: JT International Company Ukraine JSC Address: 30a Spaska Str., Kyiv Executor: IM Ukraine Publishing Ltd. Address: 33 Vorovskogo Str., Kyiv

Not for sale To be distributed exclusively among employees of JT International Company Ukraine JSC

INSIDE Ukraine Magazine team: Oleksandra Kryshtapovych Vasyl Gubarets Antonina Filonenko Send your suggestions to Oleksandra.Kryshtapovych@jti.com

10’ 2012 | INSIDE | 3

Facts

Facts

Double visit

INSIDE Online and INSIDE Engage

On September 11 Tom McCoy, Chief Operating Officer, and Martin Braddock, President CIS+, visited Ukraine on occasion of pre-ASP and the Kremenchuk Factory’s 170th Anniversary.

Global news and communication on new Intranet platforms in JTI After the refreshing of JTI Brand, goal and values the next step that followed was elaboration of a common approach to internal communications. Now all the new and updated communication tools move under the global umbrella called INSIDE.

Following good tradition, our guests always seize an opportunity to talk to the employees, and this time was no exception. Tom addressed employees of the Head Office and regional offices saying that we as a market have been growing successfully for the past 12 years as we saw nothing impossible and were always challenging ourselves to reach the set goals.

Consequently, such an attitude brought good results: we are the 4th largest JTI market in the world, despite unstable environment.

INSIDE Online is the state-of-the art platform for news, information on the company, projects, functions and departments, as well as business applications. In various sections of INSIDE Online users can learn about our brands, policies and procedures, find reports and documents, both global and local ones.

Global Intranet is available on http:// intranet.jti.com.

Naturally, Tom paid attention to the law 3778, accepting that although it is challenging, JTI in other countries is working under even sometimes tougher conditions, and, of course, this is “Not the end of the world”. To help with this, he encouraged best practices sharing with other markets. In the end of the event, Tom answered questions from employees.

Colleagues from regional offices and Kremenchuk factory watched the live broadcast of the ceremony and addresses from our guests.

On September 12, our Factory celebrated its 170th Anniversary.

Tom McCoy, Sergey Lavrikov, Factory Director, and Toichi Sakata, Ambassador of Japan in Ukraine, took part in the ceremony. Oleg Babayev, Mayor of Kremenchuk, and Volodymyr Onyshchenko, Deputy Head of Poltava oblast Council, also congratulated factory employees who organized special art mob on this occasion.

Live video broadcast to the Head Office and regional offices was arranged so that all employees could share this memorable event.

4 | INSIDE | 10’ 2012

Please note that the older version of the Ukrainian Intranet – Oasis – is still functioning. It can be accessed via a direct link http://oasis.kie.ua/.

Starting September 21st, a corporate social networking platform INSIDE Engage is also functioning. This platform is aimed at promoting communication between the Geneva HQ and the markets, as well as at identifying good ideas and collaborating on their global implementation. Therefore, the main tools

of this network are Communities built around common interests, Discussions and Microblogs.

In his address regarding the launch of INSIDE Engage CIS+ President Martin Braddock said: “As many of you know, JTI trialed a social business networking platform in Ukraine since December 2010 with positive feedback. We will build on this experience adding value to our day-to-day lives and contributing to JTI’s success.”

The platform is available at engage.jti.com or via link in your INSIDE Online profile.

Enjoy using the platform!

Help for retail partners

Factory`s anniversary – a reason for all to celebrate

Every regional team got a sweet present to celebrate the anniversary with (celebration in Region 6 is on the picture)

You can find interesting information about the events and projects in our region on the regional site INSIDE CIS+ (http://intranet.jti.com/HQ/ Regions/CIS).

Since October 1st, a phone hotline in JTI has been providing support for our retail partners after the Law 3778 came into force.

The hotline was set up by joint efforts of Pillar I, Pillar II, Corporate Affairs and Legal Departments.

The project was implemented in a very short time: the decision was made on Friday, September 28th, and it was the next Monday morning, on October 1st, that Pillar I and Pillar II started receiving calls to a designated phone number set up with the help of IT team.

The team that created and now keeps maintaining the hotline includes Nataliia Kharchenko, Julia Yashchenko, Kateryna Mytrofanova, Andriy Brant, Svitlana Oleksiienko, Svitlana Kostyukova, Volodymyr Chereda, Tetyana Chernobay, Iuliia Sopilo, Olga Klymova, Anna Boitsova (left to right, top to bottom on the photo), Andrii Ieroshenko.

10’ 2012 | INSIDE | 5

Facts

Facts

Double visit

INSIDE Online and INSIDE Engage

On September 11 Tom McCoy, Chief Operating Officer, and Martin Braddock, President CIS+, visited Ukraine on occasion of pre-ASP and the Kremenchuk Factory’s 170th Anniversary.

Global news and communication on new Intranet platforms in JTI After the refreshing of JTI Brand, goal and values the next step that followed was elaboration of a common approach to internal communications. Now all the new and updated communication tools move under the global umbrella called INSIDE.

Following good tradition, our guests always seize an opportunity to talk to the employees, and this time was no exception. Tom addressed employees of the Head Office and regional offices saying that we as a market have been growing successfully for the past 12 years as we saw nothing impossible and were always challenging ourselves to reach the set goals.

Consequently, such an attitude brought good results: we are the 4th largest JTI market in the world, despite unstable environment.

INSIDE Online is the state-of-the art platform for news, information on the company, projects, functions and departments, as well as business applications. In various sections of INSIDE Online users can learn about our brands, policies and procedures, find reports and documents, both global and local ones.

Global Intranet is available on http:// intranet.jti.com.

Naturally, Tom paid attention to the law 3778, accepting that although it is challenging, JTI in other countries is working under even sometimes tougher conditions, and, of course, this is “Not the end of the world”. To help with this, he encouraged best practices sharing with other markets. In the end of the event, Tom answered questions from employees.

Colleagues from regional offices and Kremenchuk factory watched the live broadcast of the ceremony and addresses from our guests.

On September 12, our Factory celebrated its 170th Anniversary.

Tom McCoy, Sergey Lavrikov, Factory Director, and Toichi Sakata, Ambassador of Japan in Ukraine, took part in the ceremony. Oleg Babayev, Mayor of Kremenchuk, and Volodymyr Onyshchenko, Deputy Head of Poltava oblast Council, also congratulated factory employees who organized special art mob on this occasion.

Live video broadcast to the Head Office and regional offices was arranged so that all employees could share this memorable event.

4 | INSIDE | 10’ 2012

Please note that the older version of the Ukrainian Intranet – Oasis – is still functioning. It can be accessed via a direct link http://oasis.kie.ua/.

Starting September 21st, a corporate social networking platform INSIDE Engage is also functioning. This platform is aimed at promoting communication between the Geneva HQ and the markets, as well as at identifying good ideas and collaborating on their global implementation. Therefore, the main tools

of this network are Communities built around common interests, Discussions and Microblogs.

In his address regarding the launch of INSIDE Engage CIS+ President Martin Braddock said: “As many of you know, JTI trialed a social business networking platform in Ukraine since December 2010 with positive feedback. We will build on this experience adding value to our day-to-day lives and contributing to JTI’s success.”

The platform is available at engage.jti.com or via link in your INSIDE Online profile.

Enjoy using the platform!

Help for retail partners

Factory`s anniversary – a reason for all to celebrate

Every regional team got a sweet present to celebrate the anniversary with (celebration in Region 6 is on the picture)

You can find interesting information about the events and projects in our region on the regional site INSIDE CIS+ (http://intranet.jti.com/HQ/ Regions/CIS).

Since October 1st, a phone hotline in JTI has been providing support for our retail partners after the Law 3778 came into force.

The hotline was set up by joint efforts of Pillar I, Pillar II, Corporate Affairs and Legal Departments.

The project was implemented in a very short time: the decision was made on Friday, September 28th, and it was the next Monday morning, on October 1st, that Pillar I and Pillar II started receiving calls to a designated phone number set up with the help of IT team.

The team that created and now keeps maintaining the hotline includes Nataliia Kharchenko, Julia Yashchenko, Kateryna Mytrofanova, Andriy Brant, Svitlana Oleksiienko, Svitlana Kostyukova, Volodymyr Chereda, Tetyana Chernobay, Iuliia Sopilo, Olga Klymova, Anna Boitsova (left to right, top to bottom on the photo), Andrii Ieroshenko.

10’ 2012 | INSIDE | 5

Facts

Facts

Responsible Smoking with pocket ashtrays

Compensations and Benefits seminars

In June our company gave out pocket ashtrays in Hydropark, on Trukhaniv island, in Taras Shevchenko park and in Kyoto park. The project was endorsed by the Kyiv City Administration.

In June the Compensations and Benefits team held a number of seminars for management in the regions.

The key issues covered at the seminars were the salary structure and its components, JTI’s principles of defining pay levels and their revisions, the changeable part of the salary (what it depends on and how it is calculated), the basic benefits and the peculiarities of compensations. The participants of the seminars also delved into the main principles of HAY method of job evaluation. The main criteria of job evaluation, according to this method are: Accountability – the level of influence on company’s business or function

Problem-Solving – the complexity of decision-making Know-How – knowledge, skills and experience required for good performance on the job.

Under HAY methodology, each one of these criteria is evaluated with a certain number of points known as HAY points.

Insurance company representatives were present at each seminar and helped to look at the peculiarities of medical insurance in our company. They commented on complicated issues and problems.

Apart from the theory, the seminars were also about actual practice. Its participants turned into HR employees for a while.

They created compensation scenarios, calculated employee’s PIR (Position In the Range, in %) and even made job offers to potential “candidates”.

Comp&Ben Team (Anna Morozova, Tetyana Karachevtseva and Maryna Zatsarynska) say that the seminars yielded real benefit. Now it is much more often that common terminology is used by the employees and better compensation scenarios are provided.

Pocket ashtrays can become useful where smoking is allowed but there are no litter bins or classic ashtrays around. They come in a variety of sizes and shapes, made of plastic or metal. The ones distributed by JTI as a part of the Responsible Smoking project are made of recycled carton and, unlike plastic or metal ones, are environmentally friendly. They have 5 slots for cigarette ends and can be reused. Hopefully, we helped to make Kyiv cleaner!

Ideas for CIS+ Bringing Ideas to Life Initiative selected

According to the results of voting on MyJTI, three best ideas were selected to represent Ukraine at the CIS+ Bringing Ideas to Life initiative.

The winners are Oleksandr Netepenko, BDS – 78 votes (Sales Project Dashboard), Andrіy Davnichenko, IT – 29 votes (Electronic mobile phone network reports), Olena Punegova, Pillar III – 22 votes (Optimization of document flow) These ideas will be submitted to the region.

Regional team and ExCom members will review them and identify the winners of the regional contest.

Congratulations to the winners! Thank you to all idea originators who keep creating and moving the company forward.

6 | INSIDE | 10’ 2012

All the participants were awarded certificates of training completion (West Division participants on the photo)

10’ 2012 | INSIDE | 7

Facts

Facts

Responsible Smoking with pocket ashtrays

Compensations and Benefits seminars

In June our company gave out pocket ashtrays in Hydropark, on Trukhaniv island, in Taras Shevchenko park and in Kyoto park. The project was endorsed by the Kyiv City Administration.

In June the Compensations and Benefits team held a number of seminars for management in the regions.

The key issues covered at the seminars were the salary structure and its components, JTI’s principles of defining pay levels and their revisions, the changeable part of the salary (what it depends on and how it is calculated), the basic benefits and the peculiarities of compensations. The participants of the seminars also delved into the main principles of HAY method of job evaluation. The main criteria of job evaluation, according to this method are: Accountability – the level of influence on company’s business or function

Problem-Solving – the complexity of decision-making Know-How – knowledge, skills and experience required for good performance on the job.

Under HAY methodology, each one of these criteria is evaluated with a certain number of points known as HAY points.

Insurance company representatives were present at each seminar and helped to look at the peculiarities of medical insurance in our company. They commented on complicated issues and problems.

Apart from the theory, the seminars were also about actual practice. Its participants turned into HR employees for a while.

They created compensation scenarios, calculated employee’s PIR (Position In the Range, in %) and even made job offers to potential “candidates”.

Comp&Ben Team (Anna Morozova, Tetyana Karachevtseva and Maryna Zatsarynska) say that the seminars yielded real benefit. Now it is much more often that common terminology is used by the employees and better compensation scenarios are provided.

Pocket ashtrays can become useful where smoking is allowed but there are no litter bins or classic ashtrays around. They come in a variety of sizes and shapes, made of plastic or metal. The ones distributed by JTI as a part of the Responsible Smoking project are made of recycled carton and, unlike plastic or metal ones, are environmentally friendly. They have 5 slots for cigarette ends and can be reused. Hopefully, we helped to make Kyiv cleaner!

Ideas for CIS+ Bringing Ideas to Life Initiative selected

According to the results of voting on MyJTI, three best ideas were selected to represent Ukraine at the CIS+ Bringing Ideas to Life initiative.

The winners are Oleksandr Netepenko, BDS – 78 votes (Sales Project Dashboard), Andrіy Davnichenko, IT – 29 votes (Electronic mobile phone network reports), Olena Punegova, Pillar III – 22 votes (Optimization of document flow) These ideas will be submitted to the region.

Regional team and ExCom members will review them and identify the winners of the regional contest.

Congratulations to the winners! Thank you to all idea originators who keep creating and moving the company forward.

6 | INSIDE | 10’ 2012

All the participants were awarded certificates of training completion (West Division participants on the photo)

10’ 2012 | INSIDE | 7

Facts

Facts

Walking together Starting May 24th, JTI Ukraine employees joined their efforts in the Global Corporate Challenge project – world’s largest workplace health and wellness program.

16

weeks – duration of GCC

222

JTI Ukraine employees participated

36

teams were competing in GCC

9 421 km

walked by XSteps – the winning team

JTI took part in it globally and was represented by 366 teams from all markets.

For 16 weeks all the participants were wearing pedometers, trying to walk as many steps as possible, swim more laps in the pool or ride longer on a bike, taking special pride in their team’s progress.

GCC winners who were the most successful were announced in September.

They are Vadym Lymanskyi (1 913 km), Viktor Shemchuk (1 876) and Darya Pryvalova (1 874 km). The winning team XSteps (Lesia Yerema, Andrii Ieroshenko, Charles Chevallier, Dmitriy Nazaruk and Viktor Shemchuk) together traveled 9 421 km!

Congratulations to winners and participants!

JTI Ukraine – partner of Normandy Artist exhibition Our company supported the Normandy Artists exhibition hosted by the National Arts Museum of Ukraine.

57 works selected by the collection’s curators for exposition in Ukraine are real pearls representing various art styles from the 19th century including realism, romanticism, impressionism and post-impressionism. Among them – the masterpieces by Claude Monet, PierreAuguste Renoir and other famous French artists. Every picture is connected to Normandy in one way or another. Some works depict episodes from the artists’ lives or places were the pictures were drawn.

In Ukraine, the exhibition was organized by the Ministry of Culture of Ukraine, Embassy of France, French Institute, Normandy Artists curators, Les Flux des Arts Association, and National Arts Museum of Ukraine.

8 | INSIDE | 10’ 2012

Oleg Hubskyy – one of the Top 3 drivers in Ukraine JTI Ukraine Car fleet safety trainer Oleg Hubskyy became one of the winners of the Best Driver contest held by Autocenter magazine.

Having answered all the test questions correctly, Oleg won the pre-selection stage on Kyiv.

Then he took part in the final round that consisted of four races.

The contestants were competing in smoothness, reverse driving, driving at a high speed.

The last stage was a real slalom with maneuvering at a high speed, parallel parking and other challenges. Oleg won the second place in the contest, having performed at a very high level. Oleg says: “The Best Driver contest proved that what matters most in driving is not the speed but the skills and the ability to see clearly what you are going to do next”.

Volodymyr Trutenko featured in Segodnya special project R5 Regional manager Volodymyr Trutenko gave an interview to Segodnya newspaper as a part of special project dedicated to profession of trade marketers.

In this interview Volodymyr shared his own experience of being a trade marketer at JTI, as well as his thoughts on the further career growth. He also gave advice to those who want to try themselves as trade marketers.

6

place of JTI Ukraine in taxpayers rating according to Korrespondent weekly (issue 35 of September 7th)

650

mln USD – total tax paid by JTI in 2011

The interview is available in News group on MyJTI.

10’ 2012 | INSIDE | 9

Facts

Facts

Walking together Starting May 24th, JTI Ukraine employees joined their efforts in the Global Corporate Challenge project – world’s largest workplace health and wellness program.

16

weeks – duration of GCC

222

JTI Ukraine employees participated

36

teams were competing in GCC

9 421 km

walked by XSteps – the winning team

JTI took part in it globally and was represented by 366 teams from all markets.

For 16 weeks all the participants were wearing pedometers, trying to walk as many steps as possible, swim more laps in the pool or ride longer on a bike, taking special pride in their team’s progress.

GCC winners who were the most successful were announced in September.

They are Vadym Lymanskyi (1 913 km), Viktor Shemchuk (1 876) and Darya Pryvalova (1 874 km). The winning team XSteps (Lesia Yerema, Andrii Ieroshenko, Charles Chevallier, Dmitriy Nazaruk and Viktor Shemchuk) together traveled 9 421 km!

Congratulations to winners and participants!

JTI Ukraine – partner of Normandy Artist exhibition Our company supported the Normandy Artists exhibition hosted by the National Arts Museum of Ukraine.

57 works selected by the collection’s curators for exposition in Ukraine are real pearls representing various art styles from the 19th century including realism, romanticism, impressionism and post-impressionism. Among them – the masterpieces by Claude Monet, PierreAuguste Renoir and other famous French artists. Every picture is connected to Normandy in one way or another. Some works depict episodes from the artists’ lives or places were the pictures were drawn.

In Ukraine, the exhibition was organized by the Ministry of Culture of Ukraine, Embassy of France, French Institute, Normandy Artists curators, Les Flux des Arts Association, and National Arts Museum of Ukraine.

8 | INSIDE | 10’ 2012

Oleg Hubskyy – one of the Top 3 drivers in Ukraine JTI Ukraine Car fleet safety trainer Oleg Hubskyy became one of the winners of the Best Driver contest held by Autocenter magazine.

Having answered all the test questions correctly, Oleg won the pre-selection stage on Kyiv.

Then he took part in the final round that consisted of four races.

The contestants were competing in smoothness, reverse driving, driving at a high speed.

The last stage was a real slalom with maneuvering at a high speed, parallel parking and other challenges. Oleg won the second place in the contest, having performed at a very high level. Oleg says: “The Best Driver contest proved that what matters most in driving is not the speed but the skills and the ability to see clearly what you are going to do next”.

Volodymyr Trutenko featured in Segodnya special project R5 Regional manager Volodymyr Trutenko gave an interview to Segodnya newspaper as a part of special project dedicated to profession of trade marketers.

In this interview Volodymyr shared his own experience of being a trade marketer at JTI, as well as his thoughts on the further career growth. He also gave advice to those who want to try themselves as trade marketers.

6

place of JTI Ukraine in taxpayers rating according to Korrespondent weekly (issue 35 of September 7th)

650

mln USD – total tax paid by JTI in 2011

The interview is available in News group on MyJTI.

10’ 2012 | INSIDE | 9

Facts

MyJTI Digest

Kyoto city authorities honor JTI Ukraine

Recommended groups:

This way Kyoto authorities acknowledged JTI Ukraine’s contribution to strengthening twinning relations between Kyiv and Kyoto and promoting Japanese culture in Ukraine.

On October 16, Oleksandr Kogut, Corporate Affairs Director, JTI Ukraine, visited Kyoto, where he received a special prize and a Certificate from the City Mayor Daisaku Kadokawa.

At a special ceremony that took place on Kyoto administrative Memorial Day Mr. Kadokawa said: “JTI Ukraine has contributed very much to the twinning relations projects between Kyoto and Kyiv.

This contribution enhanced both cities’ friendship that has existed for long time.

The Company has also contributed a lot to the development of Kyoto City which is an international culture and tourist center.”

globally and in Ukraine. JTI Ukraine has closely cooperated on this matter with Ukraine-Japan Center and the Embassy of Japan. In 2011-2012, JTI Ukraine supported a number of charity concerts at the National Opera of Ukraine and at the open air concert area “Spivoche Pole”, contributed to the development of the Kyoto park in Kyiv having planted there a 987-meters long alley of 240 sakura trees, and initiated creation of Kaizen Club in Ukraine, an institution promoting Kaizen, Japanese philosophy of continuous improvement, among Ukrainian businesses.

LCP – a group dedicated to the professional development program in our company – Local Career Path. This group would be of use for LCP participants and those interested in career opportunities in JTI as well. The group contains information on benefits of participation in the program, selection criteria and stages, results from the past years.

Star Makers – everything you need to know about the Star Makers project for managers.

There you can find descriptions and schedules of program modules, lists of Star Makers participants, as well as ask questions about certain modules or the participation in the program as a whole.

English Speaking Club – join to follow the schedule of native speaker sessions and get good advice on learning English.

Supporting Japanese culture and arts projects has been one of the Company’s Corporate Philanthropy priorities both

Premises of the former Cherkasy tobacco factory serve local community Several organizations have already moved to the properties of the former Cherkasy tobacco factory that JTI Ukraine donated to the city of Cherkasy in November 2011.

Since August 2012, Cherkasy Center of Administrative service has been operating there. It is a one-stop center for those who require necessary administrative services and permits. Quick services rendered in spacious halls, transparent offices, representations of 15 regional permit centers – all of this brings the level of service for Cherkasy city community to a new height.

Video and stories from the contestants – in JTI’s got talent group on MyJTI: December 3d-12th – second round of voting: choosing a winner by voting in a group on MyJTI December 13th – New Year performances from the finalists and announcement of the winner Gran-prix – trip to Lapland for two!

This time the choice of the winner is up to you! Vote for the most talented one!

The city`s House of Culture is also occupying part of the premises with its 16 art groups and clubs. Also, a new dance hall is set up there.

Serhiy Odarych, Mayor of Cherkassy, said: “I am grateful to JTI Ukraine for their partnership and a significant contribution to the development of the city. We are pleased that owners of the former tobacco factory almost immediately decided to donate huge premises to the city’s community. Cases of such productive cooperation are still quite rare in Ukraine, and JTI Ukraine should serve as an example of socially responsible business to local entrepreneurs.”

10 | INSIDE | 10’ 2012

10’ 2012 | INSIDE | 11

Facts

MyJTI Digest

Kyoto city authorities honor JTI Ukraine

Recommended groups:

This way Kyoto authorities acknowledged JTI Ukraine’s contribution to strengthening twinning relations between Kyiv and Kyoto and promoting Japanese culture in Ukraine.

On October 16, Oleksandr Kogut, Corporate Affairs Director, JTI Ukraine, visited Kyoto, where he received a special prize and a Certificate from the City Mayor Daisaku Kadokawa.

At a special ceremony that took place on Kyoto administrative Memorial Day Mr. Kadokawa said: “JTI Ukraine has contributed very much to the twinning relations projects between Kyoto and Kyiv.

This contribution enhanced both cities’ friendship that has existed for long time.

The Company has also contributed a lot to the development of Kyoto City which is an international culture and tourist center.”

globally and in Ukraine. JTI Ukraine has closely cooperated on this matter with Ukraine-Japan Center and the Embassy of Japan. In 2011-2012, JTI Ukraine supported a number of charity concerts at the National Opera of Ukraine and at the open air concert area “Spivoche Pole”, contributed to the development of the Kyoto park in Kyiv having planted there a 987-meters long alley of 240 sakura trees, and initiated creation of Kaizen Club in Ukraine, an institution promoting Kaizen, Japanese philosophy of continuous improvement, among Ukrainian businesses.

LCP – a group dedicated to the professional development program in our company – Local Career Path. This group would be of use for LCP participants and those interested in career opportunities in JTI as well. The group contains information on benefits of participation in the program, selection criteria and stages, results from the past years.

Star Makers – everything you need to know about the Star Makers project for managers.

There you can find descriptions and schedules of program modules, lists of Star Makers participants, as well as ask questions about certain modules or the participation in the program as a whole.

English Speaking Club – join to follow the schedule of native speaker sessions and get good advice on learning English.

Supporting Japanese culture and arts projects has been one of the Company’s Corporate Philanthropy priorities both

Premises of the former Cherkasy tobacco factory serve local community Several organizations have already moved to the properties of the former Cherkasy tobacco factory that JTI Ukraine donated to the city of Cherkasy in November 2011.

Since August 2012, Cherkasy Center of Administrative service has been operating there. It is a one-stop center for those who require necessary administrative services and permits. Quick services rendered in spacious halls, transparent offices, representations of 15 regional permit centers – all of this brings the level of service for Cherkasy city community to a new height.

Video and stories from the contestants – in JTI’s got talent group on MyJTI: December 3d-12th – second round of voting: choosing a winner by voting in a group on MyJTI December 13th – New Year performances from the finalists and announcement of the winner Gran-prix – trip to Lapland for two!

This time the choice of the winner is up to you! Vote for the most talented one!

The city`s House of Culture is also occupying part of the premises with its 16 art groups and clubs. Also, a new dance hall is set up there.

Serhiy Odarych, Mayor of Cherkassy, said: “I am grateful to JTI Ukraine for their partnership and a significant contribution to the development of the city. We are pleased that owners of the former tobacco factory almost immediately decided to donate huge premises to the city’s community. Cases of such productive cooperation are still quite rare in Ukraine, and JTI Ukraine should serve as an example of socially responsible business to local entrepreneurs.”

10 | INSIDE | 10’ 2012

10’ 2012 | INSIDE | 11

Our achievements

Our achievements

Year of Quality: Spring Season

Ganna Semenova

Serhiy Glushechko

Pillar 1

Information Technologies

Camel 1-2-1 activation team

Upgrade to Windows 7 / Siebel 8

The winners of the Spring season of the Year of Quality were announced on the 11th of September. Tom McCoy, Chief Operating Officer, and Martin Braddock, President CIS+, awarded certificates for Spring winners. The draw in which fate decided who gets the main prize – a trip to Japan – was held the same day.

Olga Klymova

Olena Smirnova

Pillar 1

Pillar 2

Camel 1-2-1 activation team

Smart Contract Application

Anna MorozovA

Yulia Moskalenko

Vladyslav Greziev

Human Resources

Pillar 1

Pillar 2

Organization and high quality execution of EURO 2012 hosting

Continuous support and dedication to MyJTI project

Market execution and improvement of Camel cassette LEP and enhancing it at a local level

Smart Contract Application

Andrey Avramchuk

Iryna Suchkova

Yuriy Kostin

Roman Lomaka

Information Technologie

Legal

Information Technologies

Pillar 3

Continuous support and dedication to MyJTI project

Effective compliance to regulations on non-residents’ status/registration

Smart Contract Application

Summer Project 2012, Odessa

Svitlana Kostyukova

Nataliya Shubina

Katerina Kushnir

Elena Bogdan

Pillar 1

Pillar 2 New approach to KPIs for 1-2-1 in HoReCa

High quality organization of Sobranie presence at the Jazz Festival in Lviv

Upgrade to Windows 7 / Siebel 8

Management of «Chernivtsi 2012» project within the «West Division Break Through»

Myroslava Polishchuk Human Resources

12 | INSIDE | 10’ 2012

Pillar 2

Pillar 3

10’ 2012 | INSIDE | 13

Our achievements

Our achievements

Year of Quality: Spring Season

Ganna Semenova

Serhiy Glushechko

Pillar 1

Information Technologies

Camel 1-2-1 activation team

Upgrade to Windows 7 / Siebel 8

The winners of the Spring season of the Year of Quality were announced on the 11th of September. Tom McCoy, Chief Operating Officer, and Martin Braddock, President CIS+, awarded certificates for Spring winners. The draw in which fate decided who gets the main prize – a trip to Japan – was held the same day.

Olga Klymova

Olena Smirnova

Pillar 1

Pillar 2

Camel 1-2-1 activation team

Smart Contract Application

Anna MorozovA

Yulia Moskalenko

Vladyslav Greziev

Human Resources

Pillar 1

Pillar 2

Organization and high quality execution of EURO 2012 hosting

Continuous support and dedication to MyJTI project

Market execution and improvement of Camel cassette LEP and enhancing it at a local level

Smart Contract Application

Andrey Avramchuk

Iryna Suchkova

Yuriy Kostin

Roman Lomaka

Information Technologie

Legal

Information Technologies

Pillar 3

Continuous support and dedication to MyJTI project

Effective compliance to regulations on non-residents’ status/registration

Smart Contract Application

Summer Project 2012, Odessa

Svitlana Kostyukova

Nataliya Shubina

Katerina Kushnir

Elena Bogdan

Pillar 1

Pillar 2 New approach to KPIs for 1-2-1 in HoReCa

High quality organization of Sobranie presence at the Jazz Festival in Lviv

Upgrade to Windows 7 / Siebel 8

Management of «Chernivtsi 2012» project within the «West Division Break Through»

Myroslava Polishchuk Human Resources

12 | INSIDE | 10’ 2012

Pillar 2

Pillar 3

10’ 2012 | INSIDE | 13

Our achievements

Our achievements

Olena Panicheva

Igor Panov

Anastasiya Zaugolna

Andrii Ieroshenko

Pillar 2

Pillar 3

Pillar 3

Pillar I

Distribution Drive Trade Program at noncontracted territory that helps to raise distribution target by 5 p.p.

New order scheme implementation which allowed better shipment planning and more effective usage of financial resources

Camping park in Donetsk, 50 000 people

Pillar 1 Marketing Meeting August 6-8, 2012.

Oleksandr Netepenko

Dmytro Rudenko

Pillar 3

Pillar 3

Sales Project dashboard

Improving position of JTI in Modern Trade channel

Konstiantyn Konstantynov

Maryna Pestryakova

Pillar 3

Pillar 3

Installation of glass cubes with counters

High level negotiations on contracting Horeca channel

Olexander Bondziak

Ilona Strona

Pillar 3

PPO

Effective realization of joint program between JTI & Megapolis on Winston XStyle distribution building

Incremental saving via procurement process optimization (from 10% to 4,5 %)

Andriy Shevchuk

Daria Pryvalova

Pillar 3

PPO

West Division group on MyJTI

Launch of Merchandising Catalogue in Ukraine

14 | INSIDE | 10’ 2012

During the long-awaited draw Tom McCoy and Martin Braddock both took out two lucky names and thus Svitlana Oleksiienko, Natalia Kharchenko, Olena Zolotaryova and Volodymyr Tryguba will travel to Japan, specifically to Tokyo and Kyoto, in order to learn more about Kaizen and see it in practice.

Congratulations to the winners!

10’ 2012 | INSIDE | 15

Our achievements

Our achievements

Olena Panicheva

Igor Panov

Anastasiya Zaugolna

Andrii Ieroshenko

Pillar 2

Pillar 3

Pillar 3

Pillar I

Distribution Drive Trade Program at noncontracted territory that helps to raise distribution target by 5 p.p.

New order scheme implementation which allowed better shipment planning and more effective usage of financial resources

Camping park in Donetsk, 50 000 people

Pillar 1 Marketing Meeting August 6-8, 2012.

Oleksandr Netepenko

Dmytro Rudenko

Pillar 3

Pillar 3

Sales Project dashboard

Improving position of JTI in Modern Trade channel

Konstiantyn Konstantynov

Maryna Pestryakova

Pillar 3

Pillar 3

Installation of glass cubes with counters

High level negotiations on contracting Horeca channel

Olexander Bondziak

Ilona Strona

Pillar 3

PPO

Effective realization of joint program between JTI & Megapolis on Winston XStyle distribution building

Incremental saving via procurement process optimization (from 10% to 4,5 %)

Andriy Shevchuk

Daria Pryvalova

Pillar 3

PPO

West Division group on MyJTI

Launch of Merchandising Catalogue in Ukraine

14 | INSIDE | 10’ 2012

During the long-awaited draw Tom McCoy and Martin Braddock both took out two lucky names and thus Svitlana Oleksiienko, Natalia Kharchenko, Olena Zolotaryova and Volodymyr Tryguba will travel to Japan, specifically to Tokyo and Kyoto, in order to learn more about Kaizen and see it in practice.

Congratulations to the winners!

10’ 2012 | INSIDE | 15

Тема Coverномеру story

Тема Cover номеру story

What was your first impression when you received the results of the EES 2012?

A great participation rate of 98%! It is a clear message that employees of JTI, we all believe that our voice, our opinion matters.

This is trust. The process started in 2009 led to a serious review of findings and development of actions, all driven by what we said in the survey. We all took it seriously, because it is our life, because we care. We therefore trust that our opinion is not collected for mere statistical reasons, but to pursue progress, every day.

What about the results, are you satisfied with them?

With an overall engagement score of 91%, we are all happy. And it confirms that JTI is great company to work for, to work with and to grow.

How are these results related to the outcomes of EES 2009?

Because I care In June this year we answered questions of the Employee Engagement Survey.

Later, everyone could have a look at its results in the group ‘Because I care’ on MyJTI, and now we would like to discuss them with Antoine Ernst, GM of JTI Ukraine. What was his impression of the results? What areas should we consider for improvement as an organization and individuals? In his interview, Antoine will answer these and many other questions.

16 | INSIDE | 10’ 2012

In 2009, when the first engagement survey was held, the team went beyond the good results reported in the summary and identified two essential opportunities, grouped under a broad “communication” label: one, was to recognize and leverage good ideas for improvement, regardless of their origin; two, was to address an information gap between our employees in the field and the ones working in Kyiv. The collective effort led to great results. As a matter of fact, the highest progress recorded by employees in the 2012 engagement survey was in these areas of focus. It means three things: the areas of focus are very relevant; the programs put in place are of great quality, employees noticed them and are now part of our life in JTI. What did it lead to?

Managing teams remotely is always an interesting challenge. It was assessed that Kyiv employees had an easier access to information than the field, with a direct daily

exposure to JTI values, objectives, strategies.

Most of the communication efforts were addressed to Kyiv HQ, when 65% of JTI employees are in the field. This simple contradiction had to be addressed…

In early 2010, BITL (Bringing Ideas to Life) was created with the attempt to listen and capture good ideas, regardless of their origin. Many ideas of improvement came out. Some obvious and simple (I tend to favor this category of ideas commonly called “low hanging fruit”), such as the decision to launch the JTI Ukraine internal magazine (Field Express and now renamed INSIDE Ukraine). This idea led to another one:

If you look at it, many other initiatives continued to fill the gaps and gradually became part of our normal life in JTI. For example, the Quality Award that recognizes effort and ideas adding value to JTI on the business side. Or, take “JTI’s got talent” which celebrates the personal passions and excellence of our employees.

Russia introduced live broadcasting of senior executives’ visits and addresses to employees. A great idea which we have implemented now in Ukraine, allowing our teams in the field to watch live Martin Braddock’s comments and views on the new regulation, Tom McCoy’s speech to employees and Quality Awards ceremony.

The more we all share the same understanding of our business dynamics, key drivers, competitive analysis and brands performance or opportunities, the higher the chances are for us to succeed. we need to communicate better with our retail partners, and we created JTI Partner. Another obvious one was the need to collect innovation ideas through idea management system , something that GSC (driven by the Kaizen spirit) has been doing for many years. And it is during the BITL session that the topic of corporate social networking was first discussed, which led to the creation of MyJTI for Ukraine, and more generally to INSIDE Engage now globally available.

So, basically the efforts were made to improve communication in its broader sense…

All of these efforts are about bridging communication gaps. For example, transformation of Sales & Marketing into C&TM started back in 2010, at the same time with many other communication related projects. The theme of C&TM Management conference in 2011 in Georgia was “stronger together”. That is the main point. That is how we will meet our objective of being the most respected and successful tobacco company.

Any of these sessions are complemented

by Questions and Answers. Instant messages are sent to Kyiv from the field so our guests could provide answers, insights. Anyone can see how important and relevant the value “Open” is for us…

The more we all share the same understanding of our business dynamics, key drivers, competitive analysis and brands performance or opportunities, the higher the chances are for us to succeed. We have been working to ensure broader business comprehension, which led to the Ukrainian Management Dashboard (u.MD). The weekly monitoring is now a key element of our communication, whether internally, between functions, between field and office, but also between Ukraine and the CIS+ region.

In spring this year, our hosts and hostesses welcoming visitors during the Euro 2012 football championship had a JTI polo-shirt with a motto on the back: “Because I care”. It is a good summary of the spirit of JTI and our engagement in making JTI a great place to be.

10’ 2012 | INSIDE | 17

Тема Coverномеру story

Тема Cover номеру story

What was your first impression when you received the results of the EES 2012?

A great participation rate of 98%! It is a clear message that employees of JTI, we all believe that our voice, our opinion matters.

This is trust. The process started in 2009 led to a serious review of findings and development of actions, all driven by what we said in the survey. We all took it seriously, because it is our life, because we care. We therefore trust that our opinion is not collected for mere statistical reasons, but to pursue progress, every day.

What about the results, are you satisfied with them?

With an overall engagement score of 91%, we are all happy. And it confirms that JTI is great company to work for, to work with and to grow.

How are these results related to the outcomes of EES 2009?

Because I care In June this year we answered questions of the Employee Engagement Survey.

Later, everyone could have a look at its results in the group ‘Because I care’ on MyJTI, and now we would like to discuss them with Antoine Ernst, GM of JTI Ukraine. What was his impression of the results? What areas should we consider for improvement as an organization and individuals? In his interview, Antoine will answer these and many other questions.

16 | INSIDE | 10’ 2012

In 2009, when the first engagement survey was held, the team went beyond the good results reported in the summary and identified two essential opportunities, grouped under a broad “communication” label: one, was to recognize and leverage good ideas for improvement, regardless of their origin; two, was to address an information gap between our employees in the field and the ones working in Kyiv. The collective effort led to great results. As a matter of fact, the highest progress recorded by employees in the 2012 engagement survey was in these areas of focus. It means three things: the areas of focus are very relevant; the programs put in place are of great quality, employees noticed them and are now part of our life in JTI. What did it lead to?

Managing teams remotely is always an interesting challenge. It was assessed that Kyiv employees had an easier access to information than the field, with a direct daily

exposure to JTI values, objectives, strategies.

Most of the communication efforts were addressed to Kyiv HQ, when 65% of JTI employees are in the field. This simple contradiction had to be addressed…

In early 2010, BITL (Bringing Ideas to Life) was created with the attempt to listen and capture good ideas, regardless of their origin. Many ideas of improvement came out. Some obvious and simple (I tend to favor this category of ideas commonly called “low hanging fruit”), such as the decision to launch the JTI Ukraine internal magazine (Field Express and now renamed INSIDE Ukraine). This idea led to another one:

If you look at it, many other initiatives continued to fill the gaps and gradually became part of our normal life in JTI. For example, the Quality Award that recognizes effort and ideas adding value to JTI on the business side. Or, take “JTI’s got talent” which celebrates the personal passions and excellence of our employees.

Russia introduced live broadcasting of senior executives’ visits and addresses to employees. A great idea which we have implemented now in Ukraine, allowing our teams in the field to watch live Martin Braddock’s comments and views on the new regulation, Tom McCoy’s speech to employees and Quality Awards ceremony.

The more we all share the same understanding of our business dynamics, key drivers, competitive analysis and brands performance or opportunities, the higher the chances are for us to succeed. we need to communicate better with our retail partners, and we created JTI Partner. Another obvious one was the need to collect innovation ideas through idea management system , something that GSC (driven by the Kaizen spirit) has been doing for many years. And it is during the BITL session that the topic of corporate social networking was first discussed, which led to the creation of MyJTI for Ukraine, and more generally to INSIDE Engage now globally available.

So, basically the efforts were made to improve communication in its broader sense…

All of these efforts are about bridging communication gaps. For example, transformation of Sales & Marketing into C&TM started back in 2010, at the same time with many other communication related projects. The theme of C&TM Management conference in 2011 in Georgia was “stronger together”. That is the main point. That is how we will meet our objective of being the most respected and successful tobacco company.

Any of these sessions are complemented

by Questions and Answers. Instant messages are sent to Kyiv from the field so our guests could provide answers, insights. Anyone can see how important and relevant the value “Open” is for us…

The more we all share the same understanding of our business dynamics, key drivers, competitive analysis and brands performance or opportunities, the higher the chances are for us to succeed. We have been working to ensure broader business comprehension, which led to the Ukrainian Management Dashboard (u.MD). The weekly monitoring is now a key element of our communication, whether internally, between functions, between field and office, but also between Ukraine and the CIS+ region.

In spring this year, our hosts and hostesses welcoming visitors during the Euro 2012 football championship had a JTI polo-shirt with a motto on the back: “Because I care”. It is a good summary of the spirit of JTI and our engagement in making JTI a great place to be.

10’ 2012 | INSIDE | 17

Cover story

Cover story

Employee Engagement Survey 2012.

Key data

The most grown results:

EES 2009

EES 2012

85

85 58 71

77 47

participation rate

Sufficient effort is made to get the opinions and thinking of employees in my company

engagement rate

Results in categories Category

JTI Ukraine 2012 , pp

Average scores across all categories

77

Rewards

80

Training & Development

79

Collaboration

87

2

Operating Efficiency

92

2

Empowerment

80

1

Performance Management

77

1

Organizational Direction & Change

90

-1

Survey Follow-Up

80

0 0

Leadership

85

0

-2

Engagement

91

Immediate Management

86

18 | INSIDE | 10’ 2012

1

7 4

16

4

0 -1

6

-2

83

83

83

72

69

75

5

-3

12 5 10

9

vs TW Ukraine National norm*

vs FMCG Companies norm*

vs High performing companies norm*

7 8

0 -2

JTI Ukraine

13

0

-1

JTI usually promotes qualified internal employees before hiring people from outside the company

33

1

3

-3

vs JTI TW Ukraine National Norm* , pp

vs JTI CIS+ 2012 , pp

vs JTI Ukraine 2009 , pp

Communication

pp – percentage point

Matching pay to performance

More details on the results of Employee Engagement Survey 2012 can be found in “Because I care” group on MyJTI

-3 * Norms compiled on the basis of EES surveys conducted by Towers Watsons in Astra Zeneca, AXA, Bayer, BNP Paribas, BAT, Carlsberg, Danone, KPMG, Nokia, SC Johnson, Siemens, Tetra Pack and UniCredit Group

10’ 2012 | INSIDE | 19

Cover story

Cover story

Employee Engagement Survey 2012.

Key data

The most grown results:

EES 2009

EES 2012

85

85 58 71

77 47

participation rate

Sufficient effort is made to get the opinions and thinking of employees in my company

engagement rate

Results in categories Category

JTI Ukraine 2012 , pp

Average scores across all categories

77

Rewards

80

Training & Development

79

Collaboration

87

2

Operating Efficiency

92

2

Empowerment

80

1

Performance Management

77

1

Organizational Direction & Change

90

-1

Survey Follow-Up

80

0 0

Leadership

85

0

-2

Engagement

91

Immediate Management

86

18 | INSIDE | 10’ 2012

1

7 4

16

4

0 -1

6

-2

83

83

83

72

69

75

5

-3

12 5 10

9

vs TW Ukraine National norm*

vs FMCG Companies norm*

vs High performing companies norm*

7 8

0 -2

JTI Ukraine

13

0

-1

JTI usually promotes qualified internal employees before hiring people from outside the company

33

1

3

-3

vs JTI TW Ukraine National Norm* , pp

vs JTI CIS+ 2012 , pp

vs JTI Ukraine 2009 , pp

Communication

pp – percentage point

Matching pay to performance

More details on the results of Employee Engagement Survey 2012 can be found in “Because I care” group on MyJTI

-3 * Norms compiled on the basis of EES surveys conducted by Towers Watsons in Astra Zeneca, AXA, Bayer, BNP Paribas, BAT, Carlsberg, Danone, KPMG, Nokia, SC Johnson, Siemens, Tetra Pack and UniCredit Group

10’ 2012 | INSIDE | 19

Тема номеру Cover story

Will the 2012 survey lead to similar efforts? What do you think about overall engagement?

A 91% engagement score shows we are a great company. The Tower Watsons survey compares our company results to the results of local and global competitors and FMCG companies. Our scores on all measurements are second to none. This is a good starting point. But there is always room to improve. For example, why would a category have lower score than another?

We just talked about communication.

Our action and programs led to a massive improvement vs. 2009. And our score is

in addition to a large set of management and functional training catalogue which are here to complement and help the employees who want to develop themselves. It starts with the genuine interest of the employee in developing him- or herself and through constructive and regular dialogues between manager and subordinate.

Now that we have results, what would be the follow-up?

Each member of the management team went through their department’s results.

It was accompanied by the meeting

I have noted three areas where we must do better: no fear to speak in JTI, strong relation and support from immediate management and speed of decision making.

11 points higher than high performance companies. But is a score of 77% of satisfaction sufficient? Without doubt, the answer is no. A simple process is therefore to look at any measures which are below 80% and assess how the organization would benefit from a higher appreciation by employees.

sessions across all departments, where the results were constructively explained, and areas of strength and development identified in open discussions.

In December the management team will extract the common areas for improvements in a discussion, which will lead to specific programs.

As an example, Rewards and Training & Development categories are slightly below or close to 80%.

Would these be areas of focus?

Ahead of this discussion, is there anything that you personally feel we should focus on?

Definitely. Being successful is closely linked to the ability of having great and engaged talent. Excellence in Rewards and T&D is a prerequisites.

On the Rewards measurement (80%), we spare no effort to improve the understanding of the JTI compensation and benefits philosophy, P75 and pay for performance concepts. The score shows that JTI is highly competitive in terms of reward and benefits and that high performance triggers higher reward. Training & Development (79%) is closely linked to our ability to enhance our performance. We have strong tools and processes (LCP, Star Makers, MBA)

20 | INSIDE | 10’ 2012

I have noted three areas where we must do better: 1. “Safe to speak in JTI”. On one hand, 98% of JTI employees participated in the survey, that’s great. On the other hand, 35% of people don’t seem to agree that “most of the time it is safe to speak up in this company” (21% say it is not safe, 14% “don’t know”). This score is in line or better than reference benchmarks. But I am still puzzled by the message it sends. That’s a contradiction to what JTI wants to be and how JTI wants to be perceived. So I just need to understand what it means and how

we can improve employees’ sense of safety when providing ideas, suggestions for improvements, reporting concerns, etc.

2. “Immediate management”. Answers linked to “immediate management” also registered lower scores. Over 50% of employees have been in a new job or new responsibility for less than 18 months; therefore 50% of employees changed supervisors during the same period. This logically creates certain stress and anxiety for both groups.

Flexibility, agility, responsiveness are great qualities we need to maintain.

But can we do a better job in preparing manager and subordinate for the changes? I should think so. In late 2011, we have introduced “Manager as Developer” as a key management focus for that very reason. The 2012 survey simply shows that we are focusing on the right challenges. Our challenge is to rapidly deploy capabilities and skills to reinforce the sense of partnership for success – both collective and individual – between a manager and a subordinate.

3. Time to take decision also received a relatively low score. We need to be responsible, compliant, follow the law and our internal guidelines. But we often misused them to excuse our delay in decision making. The values of Enterprising and Challenging are clear invitations for anyone to do what’s right, most effectively and fight against any unnecessary bureaucracy hindering creativity, flexibility and personal engagement.

These three areas: no fear to speak out, strong relation and support from immediate management and speed of decision making are closely interlinked.

One way or the other, directly or indirectly, I see only benefits for all of us, and for our business, to set ourselves aggressive goals to improve upon them.

Because it is our life. Because it is our company. Because we care.

Career

Growing Together 66

candidates for participation in LCP (2012)

25

LCP participants were selected

Our company believes in helping its employees grow by offering them different tools, including the main one, Dialogue, as well as special programs like LCP. What opportunities are there today?

Yuliya Bobrova, Career Planning Manager for employees in the Sales Department of JTI Ukraine, provides insight into the tools of career growth in the company.

Text: Yuliya Bobrovа

100%

of participants managed projects as a part of the development program

100%

manager positions in Sales department filled by internal candidates

Dialogue as a foundation

your individual business objectives, development objectives, and later evaluate your performance during the year. Your objectives (both for your present position and for future promotions) are the basis for forming an individual development plan.

We offer a wide range of trainings and seminars, both internal and external, that will help you move along your chosen track.

Probably everyone remembers well the company’s employee selection process: ability tests, personal questionnaire, competency interviews. JTI is even more zealous at training and developing its personnel and creating systems based on the Dialogue – an individual yearly evaluation process. Through an open dialogue with your manager, you formulate

Dialogue as a primary tool for career planning is undergoing constant improvement. We are pleased to announce that starting 3 December 2012, a new version of Dialogue will be launched, which will save your individual business objectives, development objectives, individual development plan, resume and competencies profile in a global system.

At JTI we are convinced that the best managers are the ones who have grown up in the company, understand how the business works, and share its values. The best proof is the fact that during 2011 and 2012, 100% of management positions were filled by internal candidates.

10’ 2012 | INSIDE | 21

Career

Career

Yuliya Bobrovа: I am convinced from my own experience that the company offers the opportunity to grow and improve professionally. When I came to work at JTI temporarily as a receptionist, I realized that it was a unique opportunity to work as part of a young team with all the development chances available in an international company. I knew that I was responsible for my own growth, and when I was appointed a permanent position, I continued improving my skills. My previous experience in recruiting turned out to be useful when I started recruiting for JTI. At my new post, I was involved in an international project aimed at implementing a global recruiting system in Ukraine and gained project management experience.

In May 2012, I was appointed Career Planning Manager for employees in the Sales Department.

This position was created to make career planning in the Sales Department more effective, finding employees who show great promise and creating conditions to encourage their growth. Today my primary objective is to show you the possible directions of your career development in the Sales Department, as well as in other departments.

Forming the Talent Pool You should remember that the Dialogue form can be used to discuss not only the results of your activity but also your own career expectations. That’s important, considering that the company is constantly updating its pool of candidates for managerial positions.

Biannually the work of employees who show great promise is discussed, as well as their mobility and readiness to transfer to new positions. This is how potential successors for key managerial positions are chosen. In the Sales this process occurs on the divisional level with the involvement of the Divisional Director, Regional Managers, and Area Managers, as well as HR and ST&D. Through close cooperation with the team of regional training specialists, personnel development becomes more effective.

This team determines your potential, gives 22 | INSIDE | 10’ 2012

you theoretical training, and helps you put it into practice and, naturally, evaluate your success.

The company offers English lessons.

Depending on your needs, there are several options, including lessons with full or partial refund by the company payment for language lessons (50% off ).

English Speaking Club meets regularly, not only in the Head office, but also in several regions (R6 and R5). Twenty five of our employees study English using the popular Rosetta Stone interactive platform. Also, in October English lessons started for the company drivers as well.”

Consult your Learning and Development team member to find out what options would work for you. Even if you don’t use English much at your job right now, plan ahead, and don’t think that you’ll be able to learn it in a day, week, or even a month when your dream job comes up. In other words, don’t put off until tomorrow what you can do today.

The Path to Success

LCP program participants who have been promoted know from their own experience that personal initiative, amplified by tools for effective development, leads to success. They share their impressions of the program.

In 2009 JTI successfully began a professional development program for Sales Department employees called Local Career Path (LCP). In 2010 it won the first place in the Work Relations category at a national Corporate Social Responsibility contest among international companies.

The LCP Program was created to identify ambitious Sales Department employees who show great promise and also to encourage continued professional and career growth.

Since its inception, the program has changed and became more effective.

For example, in 2012 the HR department updated the key criteria for evaluating employees. This was done in order to implement a standard approach to evaluating personnel globally. To be enrolled into the LCP Program, one must meet the requirements, i.e. demonstrate a positive attitude, successful growth in work relationships, readiness to take on more responsibility, ability to execute more complicated tasks, and a desire to improve.

What happens to participants in the program once they have been selected by these criteria? They receive a growth plan for the year based on the results of an independent evaluation.

These individual plans may include training sessions, long-term training, participation in cross functional projects, and short-term assignments.

All of these components should prepare an employee for his/her next position.

In 2012, four LCP participants received promotions to permanent positions in Pillar III, five received temporary assignments in different departments of our company, and two employees received promotions when the list of program participants was being finalized.

All program participants study English, manage cross functional projects, and will participate in a special development program by the end of the year.

Sergiy Voronov,

Kostyantyn Dіachenko,

Regional Manager, R2

Regional Manager, R4

The LCP Program provides a powerful incentive for employee growth. I’m not just talking about the training programs, project work, or improving one’s English. First of all, it gives an incentive for self-growth for the person who has attained certain accomplishments and receives a clear message, “We are counting on you and are ready to help you in your continued growth.”

Personally, for me LCP was a great influence; it encouraged me to reach new heights and to seek unorthodox solutions. I also want to point out how the program helped me develop my skills in project work. That was a new experience that at present is helping me get results.

First of all, participation in the program helped me believe in myself and my own efforts.

Everyone knows that the preliminary selection for participating in LCP consists of several stages, and just making it into the list is an accomplishment! Besides that, it’s a wonderful opportunity to get outside of your own zone of responsibility and learn new things about the company as well as about business processes.

One of the areas of LCP is participation in cross functional projects. I believe this is an excellent opportunity to get additional experience, gain new skills, get to know new people, and find out more about how different functions interact.

Together, all of these help one climb the career ladder and become a professional.

Manager as a Star Maker Since the company understands that in order to develop talent, it needs to create a favorable environment, a lot of efforts are focused on working with managers.

In 2011 the Star Makers project was launched to help managers develop their ability to manage a team and discover talent within it. The project received quite a bit of positive feedback, so it will continue this year.

Future Star Makers will attend four modules: Managing People, Managing a Team, Coaching on the Job, and Task-Setting and Performance Management. Twenty-six new managers, along with those who missed some modules last year, will be able to improve their understanding of leadership and their responsibility to develop their team.

Eduard Mamedov

Galyna Sysak

a CCC-agent. In 2009 she joined the training and development team for the LCP Program. In 2012 Galyna began heading the Training and Development Department for the Caucasus.

Heights We Reach

Eduard Mamedov is a Divisional Director.

Eduard joined our team in 2000 as a Trade Marketer. After working in several positions, including position of Regional Manager in R8, he became a National Retail Channel Communications Manager.

In June 2010, Eduard began heading the Central Division.

Each one of you can grow professionally and build your career in our company in Ukraine as well as abroad. Here are some encouraging examples:

Galyna Sysak is the Training and Development Manager of JTI Caucasus (Georgia, Armenia, Azerbaijan). Galyna started her career with JTI in 2003 as

Many other could be named as well. All you need to join this list is a desire to work and grow. If you are ready to learn new things and study, your ability will grow considerably. The process of personal and professional growth is continuous and never-ending!

10’ 2012 | INSIDE | 23

Career

Career

Yuliya Bobrovа: I am convinced from my own experience that the company offers the opportunity to grow and improve professionally. When I came to work at JTI temporarily as a receptionist, I realized that it was a unique opportunity to work as part of a young team with all the development chances available in an international company. I knew that I was responsible for my own growth, and when I was appointed a permanent position, I continued improving my skills. My previous experience in recruiting turned out to be useful when I started recruiting for JTI. At my new post, I was involved in an international project aimed at implementing a global recruiting system in Ukraine and gained project management experience.

In May 2012, I was appointed Career Planning Manager for employees in the Sales Department.

This position was created to make career planning in the Sales Department more effective, finding employees who show great promise and creating conditions to encourage their growth. Today my primary objective is to show you the possible directions of your career development in the Sales Department, as well as in other departments.

Forming the Talent Pool You should remember that the Dialogue form can be used to discuss not only the results of your activity but also your own career expectations. That’s important, considering that the company is constantly updating its pool of candidates for managerial positions.

Biannually the work of employees who show great promise is discussed, as well as their mobility and readiness to transfer to new positions. This is how potential successors for key managerial positions are chosen. In the Sales this process occurs on the divisional level with the involvement of the Divisional Director, Regional Managers, and Area Managers, as well as HR and ST&D. Through close cooperation with the team of regional training specialists, personnel development becomes more effective.

This team determines your potential, gives 22 | INSIDE | 10’ 2012

you theoretical training, and helps you put it into practice and, naturally, evaluate your success.

The company offers English lessons.

Depending on your needs, there are several options, including lessons with full or partial refund by the company payment for language lessons (50% off ).

English Speaking Club meets regularly, not only in the Head office, but also in several regions (R6 and R5). Twenty five of our employees study English using the popular Rosetta Stone interactive platform. Also, in October English lessons started for the company drivers as well.”

Consult your Learning and Development team member to find out what options would work for you. Even if you don’t use English much at your job right now, plan ahead, and don’t think that you’ll be able to learn it in a day, week, or even a month when your dream job comes up. In other words, don’t put off until tomorrow what you can do today.

The Path to Success

LCP program participants who have been promoted know from their own experience that personal initiative, amplified by tools for effective development, leads to success. They share their impressions of the program.

In 2009 JTI successfully began a professional development program for Sales Department employees called Local Career Path (LCP). In 2010 it won the first place in the Work Relations category at a national Corporate Social Responsibility contest among international companies.

The LCP Program was created to identify ambitious Sales Department employees who show great promise and also to encourage continued professional and career growth.

Since its inception, the program has changed and became more effective.

For example, in 2012 the HR department updated the key criteria for evaluating employees. This was done in order to implement a standard approach to evaluating personnel globally. To be enrolled into the LCP Program, one must meet the requirements, i.e. demonstrate a positive attitude, successful growth in work relationships, readiness to take on more responsibility, ability to execute more complicated tasks, and a desire to improve.

What happens to participants in the program once they have been selected by these criteria? They receive a growth plan for the year based on the results of an independent evaluation.

These individual plans may include training sessions, long-term training, participation in cross functional projects, and short-term assignments.

All of these components should prepare an employee for his/her next position.

In 2012, four LCP participants received promotions to permanent positions in Pillar III, five received temporary assignments in different departments of our company, and two employees received promotions when the list of program participants was being finalized.

All program participants study English, manage cross functional projects, and will participate in a special development program by the end of the year.

Sergiy Voronov,

Kostyantyn Dіachenko,

Regional Manager, R2

Regional Manager, R4

The LCP Program provides a powerful incentive for employee growth. I’m not just talking about the training programs, project work, or improving one’s English. First of all, it gives an incentive for self-growth for the person who has attained certain accomplishments and receives a clear message, “We are counting on you and are ready to help you in your continued growth.”

Personally, for me LCP was a great influence; it encouraged me to reach new heights and to seek unorthodox solutions. I also want to point out how the program helped me develop my skills in project work. That was a new experience that at present is helping me get results.

First of all, participation in the program helped me believe in myself and my own efforts.

Everyone knows that the preliminary selection for participating in LCP consists of several stages, and just making it into the list is an accomplishment! Besides that, it’s a wonderful opportunity to get outside of your own zone of responsibility and learn new things about the company as well as about business processes.

One of the areas of LCP is participation in cross functional projects. I believe this is an excellent opportunity to get additional experience, gain new skills, get to know new people, and find out more about how different functions interact.

Together, all of these help one climb the career ladder and become a professional.

Manager as a Star Maker Since the company understands that in order to develop talent, it needs to create a favorable environment, a lot of efforts are focused on working with managers.

In 2011 the Star Makers project was launched to help managers develop their ability to manage a team and discover talent within it. The project received quite a bit of positive feedback, so it will continue this year.

Future Star Makers will attend four modules: Managing People, Managing a Team, Coaching on the Job, and Task-Setting and Performance Management. Twenty-six new managers, along with those who missed some modules last year, will be able to improve their understanding of leadership and their responsibility to develop their team.

Eduard Mamedov

Galyna Sysak

a CCC-agent. In 2009 she joined the training and development team for the LCP Program. In 2012 Galyna began heading the Training and Development Department for the Caucasus.

Heights We Reach

Eduard Mamedov is a Divisional Director.

Eduard joined our team in 2000 as a Trade Marketer. After working in several positions, including position of Regional Manager in R8, he became a National Retail Channel Communications Manager.

In June 2010, Eduard began heading the Central Division.

Each one of you can grow professionally and build your career in our company in Ukraine as well as abroad. Here are some encouraging examples:

Galyna Sysak is the Training and Development Manager of JTI Caucasus (Georgia, Armenia, Azerbaijan). Galyna started her career with JTI in 2003 as

Many other could be named as well. All you need to join this list is a desire to work and grow. If you are ready to learn new things and study, your ability will grow considerably. The process of personal and professional growth is continuous and never-ending!

10’ 2012 | INSIDE | 23

Event

170 years of innovations and quality Kremenchuk factory is not only the main production facility of JTI Ukraine, but also 170 years of history, so closely tied to the events that shook the world. The factory coped with the challenges and developed, having become, ultimately, a part of our company.

Event

Enineering Manager, JT International GMBH (previously Project manager at JTI Ukraine Kremenchuk) I joined JTI in 2003 while I was still a student. Over the next 6 years I worked in manufacturing, in one team with many people, always learning from their experience and feeling their support. Managing projects and working together with such people were the most interesting things in my career at the Kremenchuk factory.

My congratulations to all the factory workers! Dynamic development and stability of the factory depend on our common performance!

It is unlikely that Samiylo Duruncha who established a tobacco factory in Kremenchuk in 1842 could predict all the transformations which were to happen to his business. The Duruncha family ran the factory successfully (there were 8 of them by 1907), and exported tobacco products to Europe. During Soviet times the factory was nationalized and changes were introduced into the production process under a motto of overall industrialization.

It was Kremenchuk factory where cigarette production process was first made automatic in 1935.

The Centennial anniversary of the factory was not a festive celebration: during the hard years of World War II the factory was partly evacuated to Kazakhstan where it kept on working and supplying the battlefront with its products. The new life at the factory was connected with its reconstruction after the war was over and building up the production capacities during the next decades.

The next significant change happened a year after the factory celebrated its 150th anniversary: in 1993 its management agreed on establishing a joint venture with the representatives of R.J.Reynolds Tobacco International (USA). This agreement became the cornerstone of the stable economic development of the factory that followed.

24 | INSIDE | 10’ 2012

expenditures, technology efficiency, percentage of rejected products in manufacturing, employee suggestion rates.

Olexander Zhurba

Finally, the year of 1999 was a turning point for the enterprise when it was purchased by JTI. It was the beginning of a whole new era – with new ideas and opportunities, constant improvement. Starting from this point, the factory underwent a number of makeovers which introduced innovations in all the production processes. Today the products of the factory are sold in Ukraine and in 5 CIS countries. In February of 2012 the Kremenchuk factory was listed as one of the Top 3 JTI factories after the estimation of 9 indicators including production

JTI is the largest foreign investor in Poltava region. In 2011 alone the taxes paid by the factory to the state budget amounted to over USD 36, 9 bn.

The factory takes care of workplace safety and environment. Its efforts aimed at improvement of the environmental situation in Kremenchuk were recognized by the city authorities. Effective and consistent approach of the factory to ecology, workplace safety and quality is proved by international standard certificates (ISO 9001, ISO 14001, OHSAS 18001).

JTI is renowned in Kremenchuk as a responsible employer with a balanced human resources policy, employment package and a competitive salary.

The key focus now is the professional development of employees and increasing opportunities for career advancement. Today the factory unites over 700 professionals around a common goal – to be the most successful and respected tobacco company in the world.

Natalia Khomenko

Manufacturing Services Director, Liggett-Ducat CJSC (previously PPO Manager at JTI Ukraine Kremenchuk) Having once entered the factory to join the project of a cigarette manufacturing shop opening, I stayed here for almost 10 years. We have experienced a lot of interesting things in this time! I can be sure in saying that the factory and the large family of my colleagues taught me a lot and made me a better professional. I am very grateful for that!

Best wishes to my dear Kremenchuk colleagues!

Stay young in spirit and reach everything you aim for!

10’ 2012 | INSIDE | 25

Event

170 years of innovations and quality Kremenchuk factory is not only the main production facility of JTI Ukraine, but also 170 years of history, so closely tied to the events that shook the world. The factory coped with the challenges and developed, having become, ultimately, a part of our company.

Event

Enineering Manager, JT International GMBH (previously Project manager at JTI Ukraine Kremenchuk) I joined JTI in 2003 while I was still a student. Over the next 6 years I worked in manufacturing, in one team with many people, always learning from their experience and feeling their support. Managing projects and working together with such people were the most interesting things in my career at the Kremenchuk factory.

My congratulations to all the factory workers! Dynamic development and stability of the factory depend on our common performance!

It is unlikely that Samiylo Duruncha who established a tobacco factory in Kremenchuk in 1842 could predict all the transformations which were to happen to his business. The Duruncha family ran the factory successfully (there were 8 of them by 1907), and exported tobacco products to Europe. During Soviet times the factory was nationalized and changes were introduced into the production process under a motto of overall industrialization.

It was Kremenchuk factory where cigarette production process was first made automatic in 1935.

The Centennial anniversary of the factory was not a festive celebration: during the hard years of World War II the factory was partly evacuated to Kazakhstan where it kept on working and supplying the battlefront with its products. The new life at the factory was connected with its reconstruction after the war was over and building up the production capacities during the next decades.

The next significant change happened a year after the factory celebrated its 150th anniversary: in 1993 its management agreed on establishing a joint venture with the representatives of R.J.Reynolds Tobacco International (USA). This agreement became the cornerstone of the stable economic development of the factory that followed.

24 | INSIDE | 10’ 2012

expenditures, technology efficiency, percentage of rejected products in manufacturing, employee suggestion rates.

Olexander Zhurba

Finally, the year of 1999 was a turning point for the enterprise when it was purchased by JTI. It was the beginning of a whole new era – with new ideas and opportunities, constant improvement. Starting from this point, the factory underwent a number of makeovers which introduced innovations in all the production processes. Today the products of the factory are sold in Ukraine and in 5 CIS countries. In February of 2012 the Kremenchuk factory was listed as one of the Top 3 JTI factories after the estimation of 9 indicators including production

JTI is the largest foreign investor in Poltava region. In 2011 alone the taxes paid by the factory to the state budget amounted to over USD 36, 9 bn.

The factory takes care of workplace safety and environment. Its efforts aimed at improvement of the environmental situation in Kremenchuk were recognized by the city authorities. Effective and consistent approach of the factory to ecology, workplace safety and quality is proved by international standard certificates (ISO 9001, ISO 14001, OHSAS 18001).

JTI is renowned in Kremenchuk as a responsible employer with a balanced human resources policy, employment package and a competitive salary.

The key focus now is the professional development of employees and increasing opportunities for career advancement. Today the factory unites over 700 professionals around a common goal – to be the most successful and respected tobacco company in the world.

Natalia Khomenko

Manufacturing Services Director, Liggett-Ducat CJSC (previously PPO Manager at JTI Ukraine Kremenchuk) Having once entered the factory to join the project of a cigarette manufacturing shop opening, I stayed here for almost 10 years. We have experienced a lot of interesting things in this time! I can be sure in saying that the factory and the large family of my colleagues taught me a lot and made me a better professional. I am very grateful for that!

Best wishes to my dear Kremenchuk colleagues!

Stay young in spirit and reach everything you aim for!

10’ 2012 | INSIDE | 25

Event

Event

Thank You for Professionalism and Loyalty

September - launch of Sobranie King Size Super Slims production (this is the fifth Global Flagship Brand produced at the factory) Besides being one of the largest taxpayers in the Poltava Region, how else is the factory involved in Kremenchuk community life?

The factory acknowledges its social responsibility and role in the life of the community, especially here in Kremechuk, where over half of JTI’s Ukraine employees live and work.

Sergei Lavrikov, JTI Ukraine Kremenchuk Factory Director, believes that the anniversary year is a special one for the factory. He is convinced that the company’s workers have made the greatest contribution to this.

In July the factory was chosen from among the largest companies in Kremenchuk to receive a special award from the mayor for improving the environmental situation of the city. This is the recognition of the factory`s efforts to install modern air purification equipment a year before the award.

February - Safety Day (one year without accidents) March - launch of the King Size Super Slims format April - launch of the Camel Curve packaging May - the factory’s women’s football team won the CIS championship; the factory received the Golden Certificate in the Kaizen 5S3R Program What has impressed you most over the 170-year history of the factory?

The 170th anniversary is a significant date for the Kremenchuk factory, which is probably one of the oldest factories in our company.

What impressed me the most were the state-of-the-art facilities and equipment that were upgraded in 1999 when the factory 26 | INSIDE | 10’ 2012

was purchased by JTI. Practically everything was modernized – the cigarette and tobacco departments, administrative office, auxiliary facilities, warehouses on the factory’s premises, and the main warehouses in Zanasyp.

What sets our factory apart from the other JTI factories?

Today the factory is constantly being improved, produces 105 million cigarettes

June - Suggestion number 3000 was submitted via Kaizen Suggestion System July – launch of the Track and Trace program at the level of cartons August - JTI trade marketers from Poltava and Kremenchuk Regions and factory volunteers participated in the joint Takeoff Project (more details on p. 34).

Materials courtesy of Olha Naumochkina, Internal Communications Specialist, JTI Ukraine, Kremenchuk

a day, and adheres to the highest level of quality at every stage of production, from the warehouse operations and handling the raw materials to delivering the product to the market.

This 170th year turned out to be full of exciting events, each one making the factory special:

170 white and green balloons going into the skies lifted up celebration spirit in everyone

Guests of the anniversary ceremony, including Oleh Babayev, Kremenchuk Mayor, and Volodymyr Onishchenko, Deputy Head of Poltava region Council, emphasized a significant contribution of the Kremenchuk factory to the local community.

One of the sakura trees growing now in Kremenchuk Park of Peace was planted by Tom McCoy, JTI Operations Director, and Olexander Bulavin, Production maintenance engineer. It was Olexander who presented the best idea from CIS+, submitted in Suggestion System.

The factory, in partnership with the authorities of the Avtozavodskiy district of the city, completed a project to plant sakura trees. We hope that this gift will contribute to the over-all development of the city and that the beautiful sakura blossoms will be a pleasant sight by many generations to come.

What plans for the future of the factory can you share with us?

The primary future objectives of the factory focus on attaining a high level of safety, quality, and service for our clients and optimal cost of our products.

Let’s look at, for example, safe production.

We have created a task force, conducted an audit within the framework of a global safety program, and developed a plan for 2013 that foresees 394 improvements of existing work stations.

Most importantly, we work as one amazing team of professionals. I would like to take this opportunity to thank each factory employee for their professionalism, loyalty, and work attitude!

The Peace Gong symbolizing the unity of all countries rang for the participants of the ceremony. It was also a sign of honor to the visit of Toichi Sakata, Ambassador of Japan in Ukraine

An impressive art mob from factory workers became a pleasant surprise for anniversary ceremony participants

10’ 2012 | INSIDE | 27

Event

Event

Thank You for Professionalism and Loyalty

September - launch of Sobranie King Size Super Slims production (this is the fifth Global Flagship Brand produced at the factory) Besides being one of the largest taxpayers in the Poltava Region, how else is the factory involved in Kremenchuk community life?

The factory acknowledges its social responsibility and role in the life of the community, especially here in Kremechuk, where over half of JTI’s Ukraine employees live and work.

Sergei Lavrikov, JTI Ukraine Kremenchuk Factory Director, believes that the anniversary year is a special one for the factory. He is convinced that the company’s workers have made the greatest contribution to this.

In July the factory was chosen from among the largest companies in Kremenchuk to receive a special award from the mayor for improving the environmental situation of the city. This is the recognition of the factory`s efforts to install modern air purification equipment a year before the award.

February - Safety Day (one year without accidents) March - launch of the King Size Super Slims format April - launch of the Camel Curve packaging May - the factory’s women’s football team won the CIS championship; the factory received the Golden Certificate in the Kaizen 5S3R Program What has impressed you most over the 170-year history of the factory?

The 170th anniversary is a significant date for the Kremenchuk factory, which is probably one of the oldest factories in our company.

What impressed me the most were the state-of-the-art facilities and equipment that were upgraded in 1999 when the factory 26 | INSIDE | 10’ 2012

was purchased by JTI. Practically everything was modernized – the cigarette and tobacco departments, administrative office, auxiliary facilities, warehouses on the factory’s premises, and the main warehouses in Zanasyp.

What sets our factory apart from the other JTI factories?

Today the factory is constantly being improved, produces 105 million cigarettes

June - Suggestion number 3000 was submitted via Kaizen Suggestion System July – launch of the Track and Trace program at the level of cartons August - JTI trade marketers from Poltava and Kremenchuk Regions and factory volunteers participated in the joint Takeoff Project (more details on p. 34).

Materials courtesy of Olha Naumochkina, Internal Communications Specialist, JTI Ukraine, Kremenchuk

a day, and adheres to the highest level of quality at every stage of production, from the warehouse operations and handling the raw materials to delivering the product to the market.

This 170th year turned out to be full of exciting events, each one making the factory special:

170 white and green balloons going into the skies lifted up celebration spirit in everyone

Guests of the anniversary ceremony, including Oleh Babayev, Kremenchuk Mayor, and Volodymyr Onishchenko, Deputy Head of Poltava region Council, emphasized a significant contribution of the Kremenchuk factory to the local community.

One of the sakura trees growing now in Kremenchuk Park of Peace was planted by Tom McCoy, JTI Operations Director, and Olexander Bulavin, Production maintenance engineer. It was Olexander who presented the best idea from CIS+, submitted in Suggestion System.

The factory, in partnership with the authorities of the Avtozavodskiy district of the city, completed a project to plant sakura trees. We hope that this gift will contribute to the over-all development of the city and that the beautiful sakura blossoms will be a pleasant sight by many generations to come.

What plans for the future of the factory can you share with us?

The primary future objectives of the factory focus on attaining a high level of safety, quality, and service for our clients and optimal cost of our products.

Let’s look at, for example, safe production.

We have created a task force, conducted an audit within the framework of a global safety program, and developed a plan for 2013 that foresees 394 improvements of existing work stations.

Most importantly, we work as one amazing team of professionals. I would like to take this opportunity to thank each factory employee for their professionalism, loyalty, and work attitude!

The Peace Gong symbolizing the unity of all countries rang for the participants of the ceremony. It was also a sign of honor to the visit of Toichi Sakata, Ambassador of Japan in Ukraine

An impressive art mob from factory workers became a pleasant surprise for anniversary ceremony participants

10’ 2012 | INSIDE | 27

Person

Person

Not just fine numbers

function, which analyses global trends in the market. And in JTI Ukraine the management’s idea was, on the one hand, to use the incredible mass of available data, and on the other – to unite people engaged in analytical work.

Do you find that uniting all analytical functions into a single unit in C&TM has already brought some benefits?

"Not just fine numbers make up the essence of work of the BDS department”, Svetlana Rizhik, Business Decision Support Director for JTI Ukraine believes. In an interview to INSIDE Ukraine she shared her experience of work at JTI, her vision of the future and the functions of her department, her impressions from work, and also spoke about her life in Ukraine.

Svetlana began to apply the knowledge of the use of mathematical methods in economics she acquired at the university immediately after her graduation, when she started working in the financial department at Unilever. Trying to develop herself further, it was there that she acquired knowledge of analysis and planning in the field of marketing. However, at the time she was not ready to move from the northern capital of Russia to Moscow together with the headquarters.

The second time Svetlana got such an offer was a year later, when she worked at R. J. Reynolds, doing planning and reporting in accordance with GAAP standards (Generally Accepted Accounting Principles). But on this occasion there were no obstacles to moving, Svetlana took the plunge and, according to her, it was not in vain: “The work at the

Svetlana Rizhik, Business Decision Support Director

Country of origin: Russia Languages: Russian, English Education: St. Petersburg State University, Faculty of Economics, specializing in economic cybernetics CMA (Certified Management Accountant) – IMA, USA (2007) 1995 - 1997: Finance Department, Unilever 1997 - 1999: Financial Analyst, R. J. Reynolds 2000 - 2006: Sales Planning and Analysis Manager, JTI Russia 2006 - 2011: Business Planning and Analysis Director, JTI Russia 28 | INSIDE | 10’ 2012

Yes, in many ways it was necessary as to avoid duplicating functions and achieve a synergy effect, thus improving the quality of recommendations that we provide for colleagues and our management. On the other hand, we wanted to integrate all the sources of information in our hands, so that people would work with a single, properly organized information flow. Prior to the creation of the Business Decision Support Department, data was gathered and analysed in different functions. Now our main projects are Dashboards and the Reporting Repository, and we get positive feedback about both.

company’s headquarters usually gives young employees plenty of development opportunities, so I never regretted this decision”.

Communication with other departments is crucial for the work of BDS. How, in your opinion, can it be optimized?

After the acquisition of R.J.R. by the JTI Company, Svetlana was tasked with consolidation of reports and planning for CIS markets. It was the time when she encountered with the Ukrainian team and planning systems in Ukraine for the first time. Expanding her horizons, Svetlana transferred from the finance department to C&TM. There, among other things, she worked on the transformation of a sales forecast into production plan requirements for the “Petro” factory, as well as on optimization of the distribution base.

Communication holds one of the leading places among our priorities. We must not just analyse fine and reasonable numbers and high-quality research, but also have a perfect understanding of the real life. That is why I am always pleased to see how BDS team constantly communicates with the people from various functions.

We work closely with Pillar III, especially the Route to Market team, because it is important to know about the changes that occur in the policy of Megapolis, as well as the latest information from the market.

Everyone in the BDS team works in the fields for some time to see with our field staff what is happening in retail outlets. The second line of work is forging closer ties with regional analysts and providing additional training for them, as we strive to improve the quality of forecasting at all levels.

A lot of interesting and challenging work was related to the acquisition of the Gallaher Company in 2007 (at that time Svetlana had been occupying the position of Business Planning and Analysis Director for a year). As she says, the integration of the Gallaher data system into the JTI system was a daunting project: the logistics and management structure of the companies were completely different. At the same time, there was a need to create a sales database which could be used for both analysis and planning.

By the way, the richness and quality of the market and sales data were the first things to impress Svetlana on our market when she began to work at JTI Ukraine in 2011.

How did it happen that you moved to Ukraine?

Starting with 2006 I worked as the Business Planning and Analysis Director. My work consisted of three functions: demand, supply chain and customer service planning. This department existed within the Finance Department, but we have always worked very closely with the C&TM. In 2011 I learned from my manager about a vacancy in Ukraine, which seemed very interesting to me in terms of professional development. We often talked about how important and useful it is to communicate with the C&TM, especially with the Strategic Insights

young people work here. Our department is new and that is why we had a lot of new employees joining our team. They are usually young people who speak one or two foreign languages, are well versed in information technology and, most importantly – they are eager to work and accept the challenges.

What is changing in the work of BDS with the tightening legislative restrictions on tobacco products?

And what impressions do you have of Kyiv? You can see a bridge from your office window. Does it remind you of your native city of St. Petersburg?

Firstly, we are going to focus our efforts on trade research. It will become one of the priority areas, as trade channels will be our only way of communicating with the consumer. It is most likely that the work of BDS will shift increasingly to looking forward, that is, analysis of potential opportunities and challenges in the future, possible scenario of market development, strategic forecasting.

Really, it is somewhat similar! In fact, Kyiv is a very pleasant and comfortable city: there is no need to spend one and a half to two hours in traffic jams on the way to work, as is the case in Moscow.

In Kyiv I really like the old part of the city, because it reminds me of Europe and St. Petersburg a lot. My favourites are Lypky and the neighbourhood of Zoloti Vorota – I enjoy taking walks there.

What impressions of Ukraine would you like to share? What did you find surprising on our market, in the country, in Ukrainian people?

Do you have enough time for personal life with this pace of work and large workload?

My impressions are only positive: the atmosphere in the company is very warm; the C&TM department works as a single team. With external conditions becoming more challenging, it is crucial for us to work side-by-side. I would like to emphasize how many talented

Frankly, not always, because our projects, Dashboards in particular, were really quite large and complex, everyone had to work in a surprisingly intense mode and besides, the group was not fully staffed. However, I hope that now, with the expansion of the the BDS team, we will be able to achieve the right work-life balance.

10’ 2012 | INSIDE | 29

Person

Person

Not just fine numbers

function, which analyses global trends in the market. And in JTI Ukraine the management’s idea was, on the one hand, to use the incredible mass of available data, and on the other – to unite people engaged in analytical work.

Do you find that uniting all analytical functions into a single unit in C&TM has already brought some benefits?

"Not just fine numbers make up the essence of work of the BDS department”, Svetlana Rizhik, Business Decision Support Director for JTI Ukraine believes. In an interview to INSIDE Ukraine she shared her experience of work at JTI, her vision of the future and the functions of her department, her impressions from work, and also spoke about her life in Ukraine.

Svetlana began to apply the knowledge of the use of mathematical methods in economics she acquired at the university immediately after her graduation, when she started working in the financial department at Unilever. Trying to develop herself further, it was there that she acquired knowledge of analysis and planning in the field of marketing. However, at the time she was not ready to move from the northern capital of Russia to Moscow together with the headquarters.

The second time Svetlana got such an offer was a year later, when she worked at R. J. Reynolds, doing planning and reporting in accordance with GAAP standards (Generally Accepted Accounting Principles). But on this occasion there were no obstacles to moving, Svetlana took the plunge and, according to her, it was not in vain: “The work at the

Svetlana Rizhik, Business Decision Support Director

Country of origin: Russia Languages: Russian, English Education: St. Petersburg State University, Faculty of Economics, specializing in economic cybernetics CMA (Certified Management Accountant) – IMA, USA (2007) 1995 - 1997: Finance Department, Unilever 1997 - 1999: Financial Analyst, R. J. Reynolds 2000 - 2006: Sales Planning and Analysis Manager, JTI Russia 2006 - 2011: Business Planning and Analysis Director, JTI Russia 28 | INSIDE | 10’ 2012

Yes, in many ways it was necessary as to avoid duplicating functions and achieve a synergy effect, thus improving the quality of recommendations that we provide for colleagues and our management. On the other hand, we wanted to integrate all the sources of information in our hands, so that people would work with a single, properly organized information flow. Prior to the creation of the Business Decision Support Department, data was gathered and analysed in different functions. Now our main projects are Dashboards and the Reporting Repository, and we get positive feedback about both.

company’s headquarters usually gives young employees plenty of development opportunities, so I never regretted this decision”.

Communication with other departments is crucial for the work of BDS. How, in your opinion, can it be optimized?

After the acquisition of R.J.R. by the JTI Company, Svetlana was tasked with consolidation of reports and planning for CIS markets. It was the time when she encountered with the Ukrainian team and planning systems in Ukraine for the first time. Expanding her horizons, Svetlana transferred from the finance department to C&TM. There, among other things, she worked on the transformation of a sales forecast into production plan requirements for the “Petro” factory, as well as on optimization of the distribution base.

Communication holds one of the leading places among our priorities. We must not just analyse fine and reasonable numbers and high-quality research, but also have a perfect understanding of the real life. That is why I am always pleased to see how BDS team constantly communicates with the people from various functions.

We work closely with Pillar III, especially the Route to Market team, because it is important to know about the changes that occur in the policy of Megapolis, as well as the latest information from the market.

Everyone in the BDS team works in the fields for some time to see with our field staff what is happening in retail outlets. The second line of work is forging closer ties with regional analysts and providing additional training for them, as we strive to improve the quality of forecasting at all levels.

A lot of interesting and challenging work was related to the acquisition of the Gallaher Company in 2007 (at that time Svetlana had been occupying the position of Business Planning and Analysis Director for a year). As she says, the integration of the Gallaher data system into the JTI system was a daunting project: the logistics and management structure of the companies were completely different. At the same time, there was a need to create a sales database which could be used for both analysis and planning.

By the way, the richness and quality of the market and sales data were the first things to impress Svetlana on our market when she began to work at JTI Ukraine in 2011.

How did it happen that you moved to Ukraine?

Starting with 2006 I worked as the Business Planning and Analysis Director. My work consisted of three functions: demand, supply chain and customer service planning. This department existed within the Finance Department, but we have always worked very closely with the C&TM. In 2011 I learned from my manager about a vacancy in Ukraine, which seemed very interesting to me in terms of professional development. We often talked about how important and useful it is to communicate with the C&TM, especially with the Strategic Insights

young people work here. Our department is new and that is why we had a lot of new employees joining our team. They are usually young people who speak one or two foreign languages, are well versed in information technology and, most importantly – they are eager to work and accept the challenges.

What is changing in the work of BDS with the tightening legislative restrictions on tobacco products?

And what impressions do you have of Kyiv? You can see a bridge from your office window. Does it remind you of your native city of St. Petersburg?

Firstly, we are going to focus our efforts on trade research. It will become one of the priority areas, as trade channels will be our only way of communicating with the consumer. It is most likely that the work of BDS will shift increasingly to looking forward, that is, analysis of potential opportunities and challenges in the future, possible scenario of market development, strategic forecasting.

Really, it is somewhat similar! In fact, Kyiv is a very pleasant and comfortable city: there is no need to spend one and a half to two hours in traffic jams on the way to work, as is the case in Moscow.

In Kyiv I really like the old part of the city, because it reminds me of Europe and St. Petersburg a lot. My favourites are Lypky and the neighbourhood of Zoloti Vorota – I enjoy taking walks there.

What impressions of Ukraine would you like to share? What did you find surprising on our market, in the country, in Ukrainian people?

Do you have enough time for personal life with this pace of work and large workload?

My impressions are only positive: the atmosphere in the company is very warm; the C&TM department works as a single team. With external conditions becoming more challenging, it is crucial for us to work side-by-side. I would like to emphasize how many talented

Frankly, not always, because our projects, Dashboards in particular, were really quite large and complex, everyone had to work in a surprisingly intense mode and besides, the group was not fully staffed. However, I hope that now, with the expansion of the the BDS team, we will be able to achieve the right work-life balance.

10’ 2012 | INSIDE | 29

Team

Team

A Unique Structure It is with a bit of pride that we call Business Decision Support (BDS) a unique structure.

Before the creation of this department, data was collected and analyzed by different functions: Strategic Insights (Pillar I), Business Development Group (Pillar III), and Corporate Affairs. The next step in development was to combine and structure the data and gather all special information about understanding and developing the market. We needed to create conditions for joint work and comprehensive data analysis to offer the management of C&TM and the whole team quality recommendations. This is what prompted the creation of BDS. The structure of the department is largely determined by its tasks. The first function of BDS, inherited from Pillar I, is Strategic Insights. This function is represented by Liudmila Gavryliak and Galyna Velychenko.

Its primary objective is to support Pillar I and Pillar II. The second function of BDS is Volume Planning and Price Analysis. Since November, Inna Malaya-Yurlova is heading this task with Svitlana Ovsiyenko and Maksіm Belinskiy assisting. The third function is Performance and Development, carried out by Oleksandr Netepenko and Margaryta Bruk. This task includes the Reporting Repository and the Dashboards Project, the DCS reports system, and the sales support projects. Recently the functions of BDS were supplemented with Demand Planning represented by Olga Kostiuk and her team.

Constructors of thought

Our operating environment is multifaceted and changing constantly; still, it does not prevent our company from having a clear view of what is going on. A professional team – Business Decision Support – builds up the market profile just like a construction set, while all the time performing a thorough analysis of data coming from a lot of sources.

30 | INSIDE | 10’ 2012

We are offering you a closer look at the projects which came into being after the new department was created.

Ukrainian Management Dashboard: a Project with International Recognition BDS began the Ukrainian Management Dashboard Project (UMD) in September 2011 and has thus proven the benefits of the department’s innovative structure. Before, data was analyzed in different departments, presented to management in different forms. This was not always convenient, since one had to analyze reports from different functions and compare them to get the big picture. The idea behind uMD was to create

a standardized reporting system that can present at a glance what is going on at the Ukrainian market – to the Trade Marketer and to the Director in Geneva alike.

By creating Dashboards, BDS realized that the company needed information for daily decision making as well as for strategic planning. These needs are met by the new tool. Weekly Pulse, which is updated every week, is truly the pulse of the business and is indispensable in a constantly changing market. It uses DCS data and allows one to observe–almost live–how various changes (legal and price) in the market affect the performance of each

This project has already begun to yield results. Since the HQ started receiving Dashboards regularly, it has been much easier to discuss where we are, since we now speak the same “language”. We are beginning to implement this project on the Russian market, and later we will spread it to the whole CIS+. Anna Kuzmenko, who played a key role in the project when she transferred to BDS from Region 1, is participating in Dashboard implementation in the CIS+. This project is crossfunctional: Natalia Skorobogata, our colleague from Finance, is managing its implementation in the region.

By creating Dashboards, BDS realized that the company needed information for daily decision making as well as for strategic planning manufacturer and the behavior of certain cigarette brands.

There is also a monthly report informing of the major events and their outcomes. It also includes financial indicators, sales volume and market prices data, analysis of new launches and distribution. And the third part, which was the most difficult to develop, is the Strategic Compass. It changes the least often, twice a year. This is the main brand health indicator. This block also reflects key information on business environment and the major indicators from the HR department.

International recognition of UMD does not mean that the team can rest on its laurels: a solution which will be rolled out at a regional level has to be as convenient as possible. Therefore, the second stage of the project had begun: now the share of manual labor is decreasing, new options being added, such as drilldown – quick oneclick access to data across regions, brands or periods. In order to make Dashboards even closer to life at the regions, BDS together with Pillar III elaborated Sales Project Dashboards allowing standardized reports to be made for every territory.

Viktoriya Melnychuk

Glamour and Special Initiatives Lead

Previously, when data search and generalization were very time-consuming, we could only dream about a resource which would have all the necessary information available right away.

Now there is such a resource –these are the Reporting Repository and Dashboards which enable us to analyze the market through a magnifying glass. This is a great advantage for JTI, since other companies and industries do not have such an effective tool.

What also seems important to me is that the initial innovation keeps improving. Ukrainian Management Dashboard can be adjusted to the specific needs of everyone who uses it.

10’ 2012 | INSIDE | 31

Team

Team

A Unique Structure It is with a bit of pride that we call Business Decision Support (BDS) a unique structure.

Before the creation of this department, data was collected and analyzed by different functions: Strategic Insights (Pillar I), Business Development Group (Pillar III), and Corporate Affairs. The next step in development was to combine and structure the data and gather all special information about understanding and developing the market. We needed to create conditions for joint work and comprehensive data analysis to offer the management of C&TM and the whole team quality recommendations. This is what prompted the creation of BDS. The structure of the department is largely determined by its tasks. The first function of BDS, inherited from Pillar I, is Strategic Insights. This function is represented by Liudmila Gavryliak and Galyna Velychenko.

Its primary objective is to support Pillar I and Pillar II. The second function of BDS is Volume Planning and Price Analysis. Since November, Inna Malaya-Yurlova is heading this task with Svitlana Ovsiyenko and Maksіm Belinskiy assisting. The third function is Performance and Development, carried out by Oleksandr Netepenko and Margaryta Bruk. This task includes the Reporting Repository and the Dashboards Project, the DCS reports system, and the sales support projects. Recently the functions of BDS were supplemented with Demand Planning represented by Olga Kostiuk and her team.

Constructors of thought

Our operating environment is multifaceted and changing constantly; still, it does not prevent our company from having a clear view of what is going on. A professional team – Business Decision Support – builds up the market profile just like a construction set, while all the time performing a thorough analysis of data coming from a lot of sources.

30 | INSIDE | 10’ 2012

We are offering you a closer look at the projects which came into being after the new department was created.

Ukrainian Management Dashboard: a Project with International Recognition BDS began the Ukrainian Management Dashboard Project (UMD) in September 2011 and has thus proven the benefits of the department’s innovative structure. Before, data was analyzed in different departments, presented to management in different forms. This was not always convenient, since one had to analyze reports from different functions and compare them to get the big picture. The idea behind uMD was to create

a standardized reporting system that can present at a glance what is going on at the Ukrainian market – to the Trade Marketer and to the Director in Geneva alike.

By creating Dashboards, BDS realized that the company needed information for daily decision making as well as for strategic planning. These needs are met by the new tool. Weekly Pulse, which is updated every week, is truly the pulse of the business and is indispensable in a constantly changing market. It uses DCS data and allows one to observe–almost live–how various changes (legal and price) in the market affect the performance of each

This project has already begun to yield results. Since the HQ started receiving Dashboards regularly, it has been much easier to discuss where we are, since we now speak the same “language”. We are beginning to implement this project on the Russian market, and later we will spread it to the whole CIS+. Anna Kuzmenko, who played a key role in the project when she transferred to BDS from Region 1, is participating in Dashboard implementation in the CIS+. This project is crossfunctional: Natalia Skorobogata, our colleague from Finance, is managing its implementation in the region.

By creating Dashboards, BDS realized that the company needed information for daily decision making as well as for strategic planning manufacturer and the behavior of certain cigarette brands.

There is also a monthly report informing of the major events and their outcomes. It also includes financial indicators, sales volume and market prices data, analysis of new launches and distribution. And the third part, which was the most difficult to develop, is the Strategic Compass. It changes the least often, twice a year. This is the main brand health indicator. This block also reflects key information on business environment and the major indicators from the HR department.

International recognition of UMD does not mean that the team can rest on its laurels: a solution which will be rolled out at a regional level has to be as convenient as possible. Therefore, the second stage of the project had begun: now the share of manual labor is decreasing, new options being added, such as drilldown – quick oneclick access to data across regions, brands or periods. In order to make Dashboards even closer to life at the regions, BDS together with Pillar III elaborated Sales Project Dashboards allowing standardized reports to be made for every territory.

Viktoriya Melnychuk

Glamour and Special Initiatives Lead

Previously, when data search and generalization were very time-consuming, we could only dream about a resource which would have all the necessary information available right away.

Now there is such a resource –these are the Reporting Repository and Dashboards which enable us to analyze the market through a magnifying glass. This is a great advantage for JTI, since other companies and industries do not have such an effective tool.

What also seems important to me is that the initial innovation keeps improving. Ukrainian Management Dashboard can be adjusted to the specific needs of everyone who uses it.

10’ 2012 | INSIDE | 31

Team

Team

Simple and clear form in which BDS presents a wide variety of data conceals careful work of the whole department

Ease of access to all the necessary reports was the reason behind the transformation of reporting system in JTI Ukraine, resulting in Reporting Repository

Sharing Reports

be standardized and clarified for those who needed them. For this reason, it was decided to create a single Reporting Repository where reports would be posted with standard names on SharePoint platform. Reports are no longer distributed via email. Now one can subscribe to the needed reports and contact BDS team members responsible for Repository maintenance, should there be questions or problems.

At the same time, BDS has been working on other important projects, like conducting an audit of the company’s entire reporting system with the help of consultants. Representatives from ASP Consulting surveyed all employees who create, receive and use reports. The audit showed that dozens of reports were unnecessary and that the rest needed to

Alexandr Kolomiyets Trade Marketer, R1

Ukrainian Management Dashboard is a tool which I use daily.

A picture is worth a thousand words, and this is exactly the case. UMD allows us to analyze data from every retail chain and outlet, from every region or city. It is very convenient for tracking the changes in sales with new launches. The option of viewing retail chain data from previous years can help us understand the reasons behind sales volume change, When such a huge amount of data is available, our presentations (business reviews for clients, area development plans for every trade marketer) are reaching a new level.

32 | INSIDE | 10’ 2012

Mysterious motives governing consumers’ behavior stop being a mystery when analyzed by Business Decision Support team

While analyzing the market, BDS team sometimes has to look into the future and turn into prophets of new trends, not evident to others yet

Most reports in the Repository are accessible to everyone from the corporate Oasis (Oasis http://oasis.kie.ua/ - menu ProcessesReporting Repository). BDS constantly checks the reports that are submitted to make sure the naming conventions are observed. The repository is a living mechanism that must constantly be updated and perfected.

informs not only about the number of consumers, but also the market share that our brands have in each gender/age group.

This information is of strategic importance to the company. This study also analyses the percentage of consumers of tobacco products like cigars, cigarillos, and pipe tobacco – and, starting this year, electronic cigarettes.

Studies and analyses

In order to combat illicit trade in Ukraine, JTI and other tobacco companies are conducting joint research showing the percentage of consumers of cigarettes smuggled into Ukraine from other countries.

With prices constantly changing, one cannot underestimate the value of price elasticity studies observing the change of market share with the change of price.

Ad-hoc studies are conducted on a onetime basis for a specific business task. Their purpose can be to evaluate a new product, test new packaging or equipment, discover possible obstacles, or new opportunities for our brands. BDS’s objective is to develop a brief along with Pillar I and elaborate a survey, later - to analyze the results and to present a conclusion and recommendations based on them.

According to BDS Director Svitlana Rizhik, BDS and Pillar I are working as a team in this area. “Our goal is to give our colleagues at Pillar I all the possible support and give

The Strategic Insights function helps bring the business closer to the consumer by analyzing the motives and trends among smokers. Its primary task is to conduct regular and ad-hoc market research.

Regular researches include Tracker. It monitors the primary brand health indicators brand awareness, the purpose behind the purchase, and habitual and situational consumption. In addition, Tracker research shows the percentage of consumers that switched to other brands and the direction of this switching: to premium, sub-premium or value segment.

The Smoking Incidence Study is an important regular research that tracks the percentage of smokers in the population. This research

The retail audit conducted by Nielsen is another regular research that is familiar to everyone at JTI. The retail audit serves as an independent evaluation of the company performance on the market, while also allowing us to analyze the direct link between market shares and the level and quality of distribution, absolute retail prices and retail prices relative to our competitors’, and the amount of products on the market generally and at certain retail outlets.

recommendations as to what areas need to be developed further. After transferring the Strategic Insights functions from Pillar I to BDS, our relationship did not change in the slightest.”

BDS is a reliable partner for our departments in strategic as well as tactical projects. As of now this department is focusing on getting the most out of the data that has already been collected. It also aims to study new trends which have not become evident yet. These efforts are aimed at creating a competitive advantage for our company in the future.

Gordiy Didenko

Consumer Product Information Manager One of the most important tools for planning and data processing in our company is the Sales project created

by BDS team. This is where we get the data used for setting plans for sales teams. Some time ago we had to look for information in a number of sources to get a view of the market. UMD united all of them, at the same time highlighting the most important aspects.

10’ 2012 | INSIDE | 33

Team

Team

Simple and clear form in which BDS presents a wide variety of data conceals careful work of the whole department

Ease of access to all the necessary reports was the reason behind the transformation of reporting system in JTI Ukraine, resulting in Reporting Repository

Sharing Reports

be standardized and clarified for those who needed them. For this reason, it was decided to create a single Reporting Repository where reports would be posted with standard names on SharePoint platform. Reports are no longer distributed via email. Now one can subscribe to the needed reports and contact BDS team members responsible for Repository maintenance, should there be questions or problems.

At the same time, BDS has been working on other important projects, like conducting an audit of the company’s entire reporting system with the help of consultants. Representatives from ASP Consulting surveyed all employees who create, receive and use reports. The audit showed that dozens of reports were unnecessary and that the rest needed to

Alexandr Kolomiyets Trade Marketer, R1

Ukrainian Management Dashboard is a tool which I use daily.

A picture is worth a thousand words, and this is exactly the case. UMD allows us to analyze data from every retail chain and outlet, from every region or city. It is very convenient for tracking the changes in sales with new launches. The option of viewing retail chain data from previous years can help us understand the reasons behind sales volume change, When such a huge amount of data is available, our presentations (business reviews for clients, area development plans for every trade marketer) are reaching a new level.

32 | INSIDE | 10’ 2012

Mysterious motives governing consumers’ behavior stop being a mystery when analyzed by Business Decision Support team

While analyzing the market, BDS team sometimes has to look into the future and turn into prophets of new trends, not evident to others yet

Most reports in the Repository are accessible to everyone from the corporate Oasis (Oasis http://oasis.kie.ua/ - menu ProcessesReporting Repository). BDS constantly checks the reports that are submitted to make sure the naming conventions are observed. The repository is a living mechanism that must constantly be updated and perfected.

informs not only about the number of consumers, but also the market share that our brands have in each gender/age group.

This information is of strategic importance to the company. This study also analyses the percentage of consumers of tobacco products like cigars, cigarillos, and pipe tobacco – and, starting this year, electronic cigarettes.

Studies and analyses

In order to combat illicit trade in Ukraine, JTI and other tobacco companies are conducting joint research showing the percentage of consumers of cigarettes smuggled into Ukraine from other countries.

With prices constantly changing, one cannot underestimate the value of price elasticity studies observing the change of market share with the change of price.

Ad-hoc studies are conducted on a onetime basis for a specific business task. Their purpose can be to evaluate a new product, test new packaging or equipment, discover possible obstacles, or new opportunities for our brands. BDS’s objective is to develop a brief along with Pillar I and elaborate a survey, later - to analyze the results and to present a conclusion and recommendations based on them.

According to BDS Director Svitlana Rizhik, BDS and Pillar I are working as a team in this area. “Our goal is to give our colleagues at Pillar I all the possible support and give

The Strategic Insights function helps bring the business closer to the consumer by analyzing the motives and trends among smokers. Its primary task is to conduct regular and ad-hoc market research.

Regular researches include Tracker. It monitors the primary brand health indicators brand awareness, the purpose behind the purchase, and habitual and situational consumption. In addition, Tracker research shows the percentage of consumers that switched to other brands and the direction of this switching: to premium, sub-premium or value segment.

The Smoking Incidence Study is an important regular research that tracks the percentage of smokers in the population. This research

The retail audit conducted by Nielsen is another regular research that is familiar to everyone at JTI. The retail audit serves as an independent evaluation of the company performance on the market, while also allowing us to analyze the direct link between market shares and the level and quality of distribution, absolute retail prices and retail prices relative to our competitors’, and the amount of products on the market generally and at certain retail outlets.

recommendations as to what areas need to be developed further. After transferring the Strategic Insights functions from Pillar I to BDS, our relationship did not change in the slightest.”

BDS is a reliable partner for our departments in strategic as well as tactical projects. As of now this department is focusing on getting the most out of the data that has already been collected. It also aims to study new trends which have not become evident yet. These efforts are aimed at creating a competitive advantage for our company in the future.

Gordiy Didenko

Consumer Product Information Manager One of the most important tools for planning and data processing in our company is the Sales project created

by BDS team. This is where we get the data used for setting plans for sales teams. Some time ago we had to look for information in a number of sources to get a view of the market. UMD united all of them, at the same time highlighting the most important aspects.

10’ 2012 | INSIDE | 33

Joint efforts

Joint efforts

Marketing Takeoff in Kremenchuk In order for a plane to take off, you need not only a runway and a pilot, but a whole team to get a complicated piece of machinery to soar the skies. Takeoff, a comprehensive project that was launched in Kremenchuk, unites the efforts of the local marketing team and the factory workers. Now the latter can be even more involved in the success of a product that they produce.

We began the project to strengthen JTI’s position in the Kremenchuk market when we realized that the presence of the factory and its 700 workers gave us an opportunity to make a decent presentation of our production. In some sense, Kremenchuk is the face of JTI in the region, and, therefore, the city cannot

Olha Naumochkina Internal Communications Specialist, JTI Ukraine, Kremenchuk

This project has been very valuable for the workers in our factory and for our colleagues in the sales department.

It helped me to see the work of our company from a different perspective and to experience, if just for a short time, what it’s like to be part of a field team and communicate with strangers. Also I got a sense of the difficult work trade marketers do, being where they need to be rain or shine, dealing with unending lines of customers and traffic jams in order to get their job done and to represent our products professionally in retail outlets, always meeting our company’s standards.

34 | INSIDE | 10’ 2012

lag behind in terms of market share, since the company is based here. Joint discussions of the regional sales team and Kremenchuk factory managements came to the conclusion that we need to create conditions where trade marketers can combine their comprehensive knowledge of the local market with the initiative of the factory workers. The latter along with the trade marketers, are becoming the best ambassadors for our brands.

The Takeoff Project consists of several stages. One of the most interesting is the Field Visit Program, which has already drawn a considerable number of participants. We started joint field visits with trade marketers in August, as a part of the preparation to the factory`s anniversary celebration.

Over the course of the first month of the program, 40 factory workers participated.

Along with Trade Marketers Oleksiy Zharkov, Dmytro Barvinskiy, and Vitalіy Kyreiev, they visited over 100 retail outlets in Kremenchuk. During these visits, the volunteers not only observe but get involved. They enthusiastically perform any task they are assigned (making price tags, dusting off shop windows and equipment). The trade marketers are pleased to see their colleagues showing initiative and find their help very valuable. With their help, trade marketers are able to bring the retail outlets in Kremenchuk up to the new merchandising standards ahead of schedule.

enthusiasm when working in the districts where they live. Each of them takes special pride knowing that he or she participated in forming and introducing a new planogram near his or her home. This sense of being responsible neighbors to the retail outlets is now even easier to envision. The factory workers have the phone numbers of the trade marketers and regional managers, so they can report any retail outlet that falls short of our standards. The volunteers become well acquainted with these standards during their field visits.

Takeoff Project offers more than just joint visits. Through broadcasts on business TV, factory workers were able to find out more about JTI`s participation in the Euro 2012 Project, as well as about the work principles of the Sales department.

Not only do factory personnel visit retail outlets, but also vice versa. Factory visits were organized for the trade marketers.

The company has more possibilities to present our brands, mostly thanks to our new showcases to demonstrate our new products and branded meeting rooms. Even in the factory canteen Kremenchuk trade marketers can have lunch with the colleagues who helped them with their joint field visits. All of these components of the Takeoff Project worked together towards the end goal, to make the company the market leader in Kremenchuk and unite the different functions into one team, in order to make JTI the most successful and respected tobacco company in the world.

Workers in the Tobacco and Cigarette departments showed the most interest along with the Quality, Human Resources, and Customs Departments.

The program initiators point out that their colleagues show even greater

Larysa Zimovnova, Zalina Urusova, and Andriy Tymoshenko, who work in the factory, have learned well the rule that JTI brands should only appear on tidy shelves

Factory workers Tetyana Perepelytsa and Olha Naumochkina trying to write the price tags in the best way

This team of factory and Sales department representatives made Takeoff possible:

Dmytro Merkushyn, Regional Manager, R6

Kateryna Reshetnyak, Training and Development Specialist, JTI Ukraine, Kremenchuk

Olga Naumochkina, Internal Communications Specialist, JTI Ukraine, Kremenchuk

Oleksiy Zharkov, Trade Marketer, Kremenchuk

Dmytro Barvinskyi, Trade Marketer, Kremenchuk

Vitaliy Kyreiev, Trade Marketer, Kremenchuk

Dmytro Merkushyn Regional Manager, R6

“Within the framework of the Takeoff Project, we, along with the Kremenchuk factory, are conducting regular business reports for the managers and department directors, discussing and implementing new possibilities for the growth of our business. Field visits are a good support to this joint work. The Field Visit Program is the part of the project that is probably the best practical demonstration of the core values of our company: Enterprising, Open, Challenging. Due to harsh competition and limited feedback from consumers, brand presentation and professionalism in every worker are of the utmost importance. Our greatest allies in this are those we call our ambassadors, more than 700 workers of our factory in Kremenchuk.

The visits help our colleagues better understand how our products – which they are directly involved in creating – reach our consumers. In this way, we involve them in representing the JTI brand professionally and comprehensively in accordance with our values and high standards. As for us, we become better acquainted with the life of the factory and the implementation of Kaizen philosophy during production.

10’ 2012 | INSIDE | 35

Joint efforts

Joint efforts

Marketing Takeoff in Kremenchuk In order for a plane to take off, you need not only a runway and a pilot, but a whole team to get a complicated piece of machinery to soar the skies. Takeoff, a comprehensive project that was launched in Kremenchuk, unites the efforts of the local marketing team and the factory workers. Now the latter can be even more involved in the success of a product that they produce.

We began the project to strengthen JTI’s position in the Kremenchuk market when we realized that the presence of the factory and its 700 workers gave us an opportunity to make a decent presentation of our production. In some sense, Kremenchuk is the face of JTI in the region, and, therefore, the city cannot

Olha Naumochkina Internal Communications Specialist, JTI Ukraine, Kremenchuk

This project has been very valuable for the workers in our factory and for our colleagues in the sales department.

It helped me to see the work of our company from a different perspective and to experience, if just for a short time, what it’s like to be part of a field team and communicate with strangers. Also I got a sense of the difficult work trade marketers do, being where they need to be rain or shine, dealing with unending lines of customers and traffic jams in order to get their job done and to represent our products professionally in retail outlets, always meeting our company’s standards.

34 | INSIDE | 10’ 2012

lag behind in terms of market share, since the company is based here. Joint discussions of the regional sales team and Kremenchuk factory managements came to the conclusion that we need to create conditions where trade marketers can combine their comprehensive knowledge of the local market with the initiative of the factory workers. The latter along with the trade marketers, are becoming the best ambassadors for our brands.

The Takeoff Project consists of several stages. One of the most interesting is the Field Visit Program, which has already drawn a considerable number of participants. We started joint field visits with trade marketers in August, as a part of the preparation to the factory`s anniversary celebration.

Over the course of the first month of the program, 40 factory workers participated.

Along with Trade Marketers Oleksiy Zharkov, Dmytro Barvinskiy, and Vitalіy Kyreiev, they visited over 100 retail outlets in Kremenchuk. During these visits, the volunteers not only observe but get involved. They enthusiastically perform any task they are assigned (making price tags, dusting off shop windows and equipment). The trade marketers are pleased to see their colleagues showing initiative and find their help very valuable. With their help, trade marketers are able to bring the retail outlets in Kremenchuk up to the new merchandising standards ahead of schedule.

enthusiasm when working in the districts where they live. Each of them takes special pride knowing that he or she participated in forming and introducing a new planogram near his or her home. This sense of being responsible neighbors to the retail outlets is now even easier to envision. The factory workers have the phone numbers of the trade marketers and regional managers, so they can report any retail outlet that falls short of our standards. The volunteers become well acquainted with these standards during their field visits.

Takeoff Project offers more than just joint visits. Through broadcasts on business TV, factory workers were able to find out more about JTI`s participation in the Euro 2012 Project, as well as about the work principles of the Sales department.

Not only do factory personnel visit retail outlets, but also vice versa. Factory visits were organized for the trade marketers.

The company has more possibilities to present our brands, mostly thanks to our new showcases to demonstrate our new products and branded meeting rooms. Even in the factory canteen Kremenchuk trade marketers can have lunch with the colleagues who helped them with their joint field visits. All of these components of the Takeoff Project worked together towards the end goal, to make the company the market leader in Kremenchuk and unite the different functions into one team, in order to make JTI the most successful and respected tobacco company in the world.

Workers in the Tobacco and Cigarette departments showed the most interest along with the Quality, Human Resources, and Customs Departments.

The program initiators point out that their colleagues show even greater

Larysa Zimovnova, Zalina Urusova, and Andriy Tymoshenko, who work in the factory, have learned well the rule that JTI brands should only appear on tidy shelves

Factory workers Tetyana Perepelytsa and Olha Naumochkina trying to write the price tags in the best way

This team of factory and Sales department representatives made Takeoff possible:

Dmytro Merkushyn, Regional Manager, R6

Kateryna Reshetnyak, Training and Development Specialist, JTI Ukraine, Kremenchuk

Olga Naumochkina, Internal Communications Specialist, JTI Ukraine, Kremenchuk

Oleksiy Zharkov, Trade Marketer, Kremenchuk

Dmytro Barvinskyi, Trade Marketer, Kremenchuk

Vitaliy Kyreiev, Trade Marketer, Kremenchuk

Dmytro Merkushyn Regional Manager, R6

“Within the framework of the Takeoff Project, we, along with the Kremenchuk factory, are conducting regular business reports for the managers and department directors, discussing and implementing new possibilities for the growth of our business. Field visits are a good support to this joint work. The Field Visit Program is the part of the project that is probably the best practical demonstration of the core values of our company: Enterprising, Open, Challenging. Due to harsh competition and limited feedback from consumers, brand presentation and professionalism in every worker are of the utmost importance. Our greatest allies in this are those we call our ambassadors, more than 700 workers of our factory in Kremenchuk.

The visits help our colleagues better understand how our products – which they are directly involved in creating – reach our consumers. In this way, we involve them in representing the JTI brand professionally and comprehensively in accordance with our values and high standards. As for us, we become better acquainted with the life of the factory and the implementation of Kaizen philosophy during production.

10’ 2012 | INSIDE | 35

Event

Event

The values we always pursue

On the Top Regions 2 and 7 teambuilding This year the West Division had a very special Summer Regional Meeting. It all originated in a discussion in West Division Dashboard on MyJTI, which quickly generated more than 100 comments, and ultimately led to the idea to climb the highest peak of Ukraine – mount Hoverla (2061 meters high).

Regions 1 and 9 teambuilding

This, however, was not the end of it: descending from Hoverla was still ahead. It was during this descent that the only loss in the whole trip occurred: a boot gave up, but its owner did not. Everyone was climbing down with a pleasant baggage of great impressions, memories of unbelievable landscapes, their own films about the trip,

and some – with dreams about the other peaks to come!

Photo report from the Regional meeting is available in the West Division Dashboard on MyJTI. Text: Andriy Shevchuk, Trade Marketer, R2

R2 and R7 representatives met in captivating Yaremche, in the lovely Ukrainan Carpathians, and started getting ready to the climb. Though not exactly simple, the journey to the peak turned out to be enjoyable! Everyone reached the top – some on their own, some with help or encouragement – which showed the team spirit, strengthened by everyday team work. JTI flag on the highest mountain peak of Ukraine became a sign of a joint victory!

Races and puzzles Region 4 teambuilding On August 3, a so much expected event for the teams of Regions 1&9, annual summer teambuilding, took place. It has already become not just an open-air picnic, but a memorable event with its very special atmosphere. This year, new corporate values – Enterprising, Open, Challenging – inspired us.

Great place, Platium hotel complex, that hosted the event, was just perfect for playing football and tennis, bathing and tanning. But enough about it.

Right after the morning coffee Yegor Novikov and Anatoly Kunytsia presented regional teams’ half year achievements. Best performers were to be awarded with diplomas and 36 | INSIDE | 10’ 2012

presents from Eduard Mamedov and Olena Voytenko.

After the official part that was full of positive emotions, we all participated in the real boat racing.

That day all of our 4 teams and a team of judges had a chance to participate in a challenging competition devoted to our values.

All the contest stages were meant to show each value in action. So we were open while discussing our decisions, did our best to be smart and enterprising in making photo reports about us in competition. We looked for

and found challenging ways to do competition tasks, even though they might have seemed usual at the first sight. The most important, each of us felt in practice how important it is to work together for team’s success.

That boat racing was a real competition after which all tired but happy, we continued celebration at the dinner.

That day contained everything: strive for victory, well-cooperated work, competitive spirit, and positive attitude – in general, all that would constitute the values we pursue.

Text: Maryna Solomanchuk, Regional Assistant, R9

R4 Regional meeting was held in a picturesque part of Donetsk region, Svyatogirsk, on the 14th of September.

This time it was organized as a race with 5 teams consisting of all the participants, each team wearing T-shirts of its own color. Team members had to put their physical abilities to the test, trying to reach the ultimate goal – collect all pieces of a puzzle. They were skipping rope, shooting from slingshots, painting, and enjoying all of these activities a lot.

So, every team collected all the puzzle bits and was very glad in thinking that they won the race. However, in the very end it turned out that all the puzzles can be connected into a bigger one – displaying the company values we all know – “Enterprising.

Open. Challenging”. The final part of the competition proved that achieving our goal involves the efforts of all the participants. It also signified how important every employee for the company is. Only in this case will the whole company function perfectly.

The evening that followed such an enjoyable and eventful day was no less pleasant. The team and guests from Kyiv and other regions were fascinated by the spectacular bartender show and disco. Everyone got his share of fun and energy for the upcoming work, and we all saw one more time how valuable team spirit and mutual help are.

Text: Alina Abuzova, Regional Assistant, R4 10’ 2012 | INSIDE | 37

Event

Event

The values we always pursue

On the Top Regions 2 and 7 teambuilding This year the West Division had a very special Summer Regional Meeting. It all originated in a discussion in West Division Dashboard on MyJTI, which quickly generated more than 100 comments, and ultimately led to the idea to climb the highest peak of Ukraine – mount Hoverla (2061 meters high).

Regions 1 and 9 teambuilding

This, however, was not the end of it: descending from Hoverla was still ahead. It was during this descent that the only loss in the whole trip occurred: a boot gave up, but its owner did not. Everyone was climbing down with a pleasant baggage of great impressions, memories of unbelievable landscapes, their own films about the trip,

and some – with dreams about the other peaks to come!

Photo report from the Regional meeting is available in the West Division Dashboard on MyJTI. Text: Andriy Shevchuk, Trade Marketer, R2

R2 and R7 representatives met in captivating Yaremche, in the lovely Ukrainan Carpathians, and started getting ready to the climb. Though not exactly simple, the journey to the peak turned out to be enjoyable! Everyone reached the top – some on their own, some with help or encouragement – which showed the team spirit, strengthened by everyday team work. JTI flag on the highest mountain peak of Ukraine became a sign of a joint victory!

Races and puzzles Region 4 teambuilding On August 3, a so much expected event for the teams of Regions 1&9, annual summer teambuilding, took place. It has already become not just an open-air picnic, but a memorable event with its very special atmosphere. This year, new corporate values – Enterprising, Open, Challenging – inspired us.

Great place, Platium hotel complex, that hosted the event, was just perfect for playing football and tennis, bathing and tanning. But enough about it.

Right after the morning coffee Yegor Novikov and Anatoly Kunytsia presented regional teams’ half year achievements. Best performers were to be awarded with diplomas and 36 | INSIDE | 10’ 2012

presents from Eduard Mamedov and Olena Voytenko.

After the official part that was full of positive emotions, we all participated in the real boat racing.

That day all of our 4 teams and a team of judges had a chance to participate in a challenging competition devoted to our values.

All the contest stages were meant to show each value in action. So we were open while discussing our decisions, did our best to be smart and enterprising in making photo reports about us in competition. We looked for

and found challenging ways to do competition tasks, even though they might have seemed usual at the first sight. The most important, each of us felt in practice how important it is to work together for team’s success.

That boat racing was a real competition after which all tired but happy, we continued celebration at the dinner.

That day contained everything: strive for victory, well-cooperated work, competitive spirit, and positive attitude – in general, all that would constitute the values we pursue.

Text: Maryna Solomanchuk, Regional Assistant, R9

R4 Regional meeting was held in a picturesque part of Donetsk region, Svyatogirsk, on the 14th of September.

This time it was organized as a race with 5 teams consisting of all the participants, each team wearing T-shirts of its own color. Team members had to put their physical abilities to the test, trying to reach the ultimate goal – collect all pieces of a puzzle. They were skipping rope, shooting from slingshots, painting, and enjoying all of these activities a lot.

So, every team collected all the puzzle bits and was very glad in thinking that they won the race. However, in the very end it turned out that all the puzzles can be connected into a bigger one – displaying the company values we all know – “Enterprising.

Open. Challenging”. The final part of the competition proved that achieving our goal involves the efforts of all the participants. It also signified how important every employee for the company is. Only in this case will the whole company function perfectly.

The evening that followed such an enjoyable and eventful day was no less pleasant. The team and guests from Kyiv and other regions were fascinated by the spectacular bartender show and disco. Everyone got his share of fun and energy for the upcoming work, and we all saw one more time how valuable team spirit and mutual help are.

Text: Alina Abuzova, Regional Assistant, R4 10’ 2012 | INSIDE | 37

Hobby

Hobby

Freeing from concerns

In such cases, parents are delegating their authority to the teacher, as the child only listens to him or her.

There are several styles and areas in karate. What makes Kyokushin Karate special?

Two hobbies are better than one, – Oleg Panchenko, Wholesale Manager, R5 proves this with his own example. Karate and snorkelling help him relax and return to work refreshed. practicing it since childhood. However, if you just want to be fit, strengthen the spirit, feel good and break away from everyday life, it is never too late. After all, karate is an attitude towards life, a certain philosophy.

Speaking of children, the Oriental martial arts are good for them because they not only develop them physically but also shape their spiritual values; strengthen their respect for the family and parents.

Workouts usually last for an hour and a half, three times a week. Those who want to practise karate more seriously, do it every day – in the morning and in the evening.

After all, as in any sport (and in any activity in general), in order to achieve something, you should be paying attention to training as much as possible.

How important is the teacher’s role in karate?

How and why did you start doing karate?

I was brought to the training session by my father when I was only five years old.

Then there were long breaks, and even the time when I worked as a coach. This year I returned to practicing this martial art, primarily in order to escape from problems 38 | INSIDE | 10’ 2012

Should adults take up karate? And how much time should be spent training?

It is extremely important. When a person comes into karate, he or she always takes something from the one he regards as a figure of authority. What is also very important is the extent to which the teacher can engage and lead both adults and children. This applies particularly to the latter, because today's children are very active, restless and often cannot concentrate on some task or exercise.

When there is more than one child in the group, the coach will need nerves of steel to help the children focus.

Karate is a sport. Everyone understands that to achieve heights in any sport you must start

There are instances when the whole family practices karate -– mother, father and a child.

and focus on building up my strength and spirit. I also brought my children into karate.

The style I practise is considered to be the toughest in karate. According to estimates, Kyokushin Karate is practised by about 100 million people worldwide, and the stories about the first practitioners have already become legends.

There are also different areas within one style.

These are sparring and kata (so-called fight with a shadow). In kata it is very important to work out and refine a correct and, at the same time, gracious technique, but there is no actual fighting. Tameshiwari is another style (better known to everyone as breaking of solid objects by hand).

In which area do you feel best?

I like all of them, because they are inseparable things. For example, you cannot move deftly in a sparring, if you cannot coordinate your body well, and this is achieved through kata.

You cannot fight without a strong blow, which comes from tameshiwari.

Why did you choose to return to karate rather than, for example, go to the gym?

I like the fact that karate sessions are attended by mixed groups, 20-year-old boys at the peak of their shape practice together with me. While trying to catch up with them, I do not give myself room to relax, as I want to do everything just as well as they do.

It is important that people are not doing this not simply in order to vent their aggression or become stronger. The main idea behind karate is to master oneself. When you only start practicing it, exercises seem quite challenging; it is hard to control your body. But gradually you begin to enjoy how you strengthen your body and spirit with each workout, overcoming yourself every time.

And how have you become interested in your second hobby – snorkelling?

Karate became a family hobby when Oleg brought his sons, Vladyslav and Denys, along for the practice

The second hobby I have is relatively new. I have been practising underwater swimming for only three years. At first, I just took a mask, a snorkel and flippers and watched the fish. Little by little, I became fascinated with underwater “hunting” for bullheads, collecting mussels and shells. It is also interesting to just swim around, look at the flora and fauna of our Black Sea. Recently I bought a wet suit, so now I do not have to limit my hobby because of the water temperature. Now I can start diving in March or April. At this time, water is especially clean and clear, and the fish are not easily frightened yet.

The main idea behind karate is to master oneself What do you find the most attractive in snorkelling?

When you dive into the water, you forget everything else, concentrate on swimming and adapting your body to an unusual state, to breathing and moving in the water. It is very interesting to study crabs, fish that look at you as if you were an alien. I once saw a flatfish, and it was probably the most impressive thing to me.

Do you already have favourite places to observe the water depths?

It is most interesting to dive in places where there are stones and underwater flora, not just sand. It is particularly interesting in the Crimea, because there are still places with untouched nature there, which is very pleasant to watch. You don’t necessarily have to travel to the Red Sea, as in Ukraine we also have a lot of places where you can explore the underwater world to your pleasure.

Of course, it is very sad when you dive and realize how badly we pollute the environment. There are too many remnants of our activity in the sea – plastic bags, nets, bottles and more. It makes me want to say to all: protect nature! Clean up your garbage and dispose of it properly, do not turn nature into a dumpster.

Do you plan to develop these hobbies further?

Yes, I want to keep doing this, because snorkelling allows me both to relax and have fun.

I would like to develop further, mastering other activities related to diving. Naturally, snorkel and flippers are inexpensive, while a wet suit is a considerable investment that helps to expand the range of possibilities. I thought about underwater photography, as well as scuba gear. I hope to make these dreams true in the future.

10’ 2012 | INSIDE | 39

Hobby

Hobby

Freeing from concerns

In such cases, parents are delegating their authority to the teacher, as the child only listens to him or her.

There are several styles and areas in karate. What makes Kyokushin Karate special?

Two hobbies are better than one, – Oleg Panchenko, Wholesale Manager, R5 proves this with his own example. Karate and snorkelling help him relax and return to work refreshed. practicing it since childhood. However, if you just want to be fit, strengthen the spirit, feel good and break away from everyday life, it is never too late. After all, karate is an attitude towards life, a certain philosophy.

Speaking of children, the Oriental martial arts are good for them because they not only develop them physically but also shape their spiritual values; strengthen their respect for the family and parents.

Workouts usually last for an hour and a half, three times a week. Those who want to practise karate more seriously, do it every day – in the morning and in the evening.

After all, as in any sport (and in any activity in general), in order to achieve something, you should be paying attention to training as much as possible.

How important is the teacher’s role in karate?

How and why did you start doing karate?

I was brought to the training session by my father when I was only five years old.

Then there were long breaks, and even the time when I worked as a coach. This year I returned to practicing this martial art, primarily in order to escape from problems 38 | INSIDE | 10’ 2012

Should adults take up karate? And how much time should be spent training?

It is extremely important. When a person comes into karate, he or she always takes something from the one he regards as a figure of authority. What is also very important is the extent to which the teacher can engage and lead both adults and children. This applies particularly to the latter, because today's children are very active, restless and often cannot concentrate on some task or exercise.

When there is more than one child in the group, the coach will need nerves of steel to help the children focus.

Karate is a sport. Everyone understands that to achieve heights in any sport you must start

There are instances when the whole family practices karate -– mother, father and a child.

and focus on building up my strength and spirit. I also brought my children into karate.

The style I practise is considered to be the toughest in karate. According to estimates, Kyokushin Karate is practised by about 100 million people worldwide, and the stories about the first practitioners have already become legends.

There are also different areas within one style.

These are sparring and kata (so-called fight with a shadow). In kata it is very important to work out and refine a correct and, at the same time, gracious technique, but there is no actual fighting. Tameshiwari is another style (better known to everyone as breaking of solid objects by hand).

In which area do you feel best?

I like all of them, because they are inseparable things. For example, you cannot move deftly in a sparring, if you cannot coordinate your body well, and this is achieved through kata.

You cannot fight without a strong blow, which comes from tameshiwari.

Why did you choose to return to karate rather than, for example, go to the gym?

I like the fact that karate sessions are attended by mixed groups, 20-year-old boys at the peak of their shape practice together with me. While trying to catch up with them, I do not give myself room to relax, as I want to do everything just as well as they do.

It is important that people are not doing this not simply in order to vent their aggression or become stronger. The main idea behind karate is to master oneself. When you only start practicing it, exercises seem quite challenging; it is hard to control your body. But gradually you begin to enjoy how you strengthen your body and spirit with each workout, overcoming yourself every time.

And how have you become interested in your second hobby – snorkelling?

Karate became a family hobby when Oleg brought his sons, Vladyslav and Denys, along for the practice

The second hobby I have is relatively new. I have been practising underwater swimming for only three years. At first, I just took a mask, a snorkel and flippers and watched the fish. Little by little, I became fascinated with underwater “hunting” for bullheads, collecting mussels and shells. It is also interesting to just swim around, look at the flora and fauna of our Black Sea. Recently I bought a wet suit, so now I do not have to limit my hobby because of the water temperature. Now I can start diving in March or April. At this time, water is especially clean and clear, and the fish are not easily frightened yet.

The main idea behind karate is to master oneself What do you find the most attractive in snorkelling?

When you dive into the water, you forget everything else, concentrate on swimming and adapting your body to an unusual state, to breathing and moving in the water. It is very interesting to study crabs, fish that look at you as if you were an alien. I once saw a flatfish, and it was probably the most impressive thing to me.

Do you already have favourite places to observe the water depths?

It is most interesting to dive in places where there are stones and underwater flora, not just sand. It is particularly interesting in the Crimea, because there are still places with untouched nature there, which is very pleasant to watch. You don’t necessarily have to travel to the Red Sea, as in Ukraine we also have a lot of places where you can explore the underwater world to your pleasure.

Of course, it is very sad when you dive and realize how badly we pollute the environment. There are too many remnants of our activity in the sea – plastic bags, nets, bottles and more. It makes me want to say to all: protect nature! Clean up your garbage and dispose of it properly, do not turn nature into a dumpster.

Do you plan to develop these hobbies further?

Yes, I want to keep doing this, because snorkelling allows me both to relax and have fun.

I would like to develop further, mastering other activities related to diving. Naturally, snorkel and flippers are inexpensive, while a wet suit is a considerable investment that helps to expand the range of possibilities. I thought about underwater photography, as well as scuba gear. I hope to make these dreams true in the future.

10’ 2012 | INSIDE | 39

My town

My town

City on the Dnipro Dnipropetrovsk deserves an assortment of epithets: it is both historic and modern, Ukrainian and cosmopolitan, an industrial center and a modern arts hub. We can have a look at its unexpected sides together with Dnipropetrovsk sales team and Valentina Shelist who replied to an announcement about the excursion project on MyJTI. As a lucky coincidence, our excursion was on the same day when the City Day celebrations were taking place.

40 | INSIDE | 10’ 2012

Trade Marketers Valentina Shelist and Oleg Paschenko managed to enter nirvana among the ancient Scythian sculptures

Trainee Antonina Filonenko with her modest shoe size does not feel shy next to the 4-meter shoe made of cooking pots in the middle of the Europe square

5 o’clock is tea time – and not only in England. If you find yourself not in London but on New Arbat in Dnipropetrovsk, make no exceptions to the rule and support a great tradition – just like Oleg Paschenko does.

The celebrations went great! After an eventful day, Liudmyla Pervomayska, Oleg Paschenko, Sergiy Ilchenko and Valentina Shelist are sending greetings from Dnipropetrovsk to all JTI employees

Potyomkin Palace is a great place for royal staging. Olena Rassolova cast as Catherine II, and the role of her royal Duke is performed by Mykola Popruga, a Trade Marketer like Olena.

10’ 2012 | INSIDE | 41

My town

My town

City on the Dnipro Dnipropetrovsk deserves an assortment of epithets: it is both historic and modern, Ukrainian and cosmopolitan, an industrial center and a modern arts hub. We can have a look at its unexpected sides together with Dnipropetrovsk sales team and Valentina Shelist who replied to an announcement about the excursion project on MyJTI. As a lucky coincidence, our excursion was on the same day when the City Day celebrations were taking place.

40 | INSIDE | 10’ 2012

Trade Marketers Valentina Shelist and Oleg Paschenko managed to enter nirvana among the ancient Scythian sculptures

Trainee Antonina Filonenko with her modest shoe size does not feel shy next to the 4-meter shoe made of cooking pots in the middle of the Europe square

5 o’clock is tea time – and not only in England. If you find yourself not in London but on New Arbat in Dnipropetrovsk, make no exceptions to the rule and support a great tradition – just like Oleg Paschenko does.

The celebrations went great! After an eventful day, Liudmyla Pervomayska, Oleg Paschenko, Sergiy Ilchenko and Valentina Shelist are sending greetings from Dnipropetrovsk to all JTI employees

Potyomkin Palace is a great place for royal staging. Olena Rassolova cast as Catherine II, and the role of her royal Duke is performed by Mykola Popruga, a Trade Marketer like Olena.

10’ 2012 | INSIDE | 41

Useful

News from IT Team All the regions now have access to corporate network via WiFi and every employee can check his or her cell phone expenditures through Call Statistics application WiFi in regional offices of JTI Ukraine Since August 2012 wireless access to corporate network is available in all the regional offices.

Now, while at the regional office, you don’t have to look for a spare network cable. Instead, it is enough just to turn on WiFi on your corporate laptop or tablet PC – the connection to a corporate network will be established automatically and you will be able to work in any place you like.

Keep in mind: if you experience troubles while connecting to the network, call GSD! 4584 – free calls from corporate cell phone numbers

Call Statistics Application While corporate WiFi is a relatively new project, Call Statistics application has been in place for a while. Still we find it necessary to remind you of it.

IT business applications team offers easy access to data allowing you to control the expenditures on corporate cell phone service – Call Statistics.

You can launch the Call Statistics application through Oasis (Processes menu).

If you are using the corporate cell phone, you can view the statistics of your spending for calls, GPRS, SMS and other cell phone services by clicking on your cell phone number.

42 | INSIDE | 10’ 2012

Further down the page you will find a graph displaying the trend of your spending for a year.

You can also view the statistics of your subordinates who use corporate cell phone numbers. You can do so by clicking on Subordinates menu located on the left.

We are planning a number of changes to Call Statistics application by the end of the year, and we are counting on your help and support in doing so. Apart from the improvements we already planned, we are also paying attention to your comments which you can send to KIEITBA@jti.com or leave them on IT team’s page on MyJTI. Text: Andriy Lonshakov, Technical analyst, Technical infrastructure and Customer services