JTI – Business Profile and Scope

1. Reduction of noise exposure in Mack & Pack area from JT International Manufacturing (Romania) S.A. 1

2. JTI – Business Profile and Scope JT International (JTI) is an operating division of Japan Tobacco Inc.(JT) JTI was formed in 1999, when JT acquired the international business of the RJ Reynolds company With around 12.000 employees and operations in more than 40 countries, JTI is a company with a truly global reach JTI built a robust Global EHS Organization for delivering continuous improvement in environment, health and safety. 2

3. Why EHS ? 1.WE have an ethical obligation !In OUR hands is the health of our employees and the wellbeing of future generations ! 2.We have to fulfill demands of our stakeholdersAngajati Share holdersCustomers Partners Society Environment 3

4. JTI – Global Policy The JTI EHS policy consists of 7 commitments and the associated key requirements for our business. These requirements explain what we will do to meet the policy commitments •  POLICY REQUIREMENTS • Safety • Use risk assessments as the basis to identify, assess and control workplace hazard and risk. • Investigate injuries and cases of occupational illness. • Monitor and report health and safety performance • Implement improvement plans that are committed to eliminating occupational injury and illness • POLICY COMMITMENT • Responsibility… • Compliance … • Communication … • Safety: JTI will provide a safe and healthy work environment for our employees and aim to eliminate all occupational injuries and illnesses • Environmental Impact… • Lifecycle … • Integration … 4

5. JTI Manufacturing Romania Policy • We want to be Number 1 in our role as attractive and irreplaceable partners • To achieve this objective, we live by these principles: • We ensureand deliver on time the best quality products for our customers, providing exemplary services in compliance with the ISO 9001:2000 Standard and also considering in everything we do the impact of our products and services on the environment; • We manufacture at profitable production costs by making efficient use of resources, including natural ones, taking preventing action to protect the environment, in compliance with the legal requirements and the ISO 14001 Standard; • We ensure, maintain and improve the environment, health and safety at all work places, for all the employees, in order to achieve the corporate objectives in compliance with the legal provisions, company procedures and the OHSAS 18001 Standard; • We permanently control and improve the processes, organization and technologies we use, applying the Kaizen philosophy and best practices; • We maintain close working, consultation and involvement relation with all our partners, in the spirit of the Corporate Code of Conduct, and of the Policies and Procedures Manual – Internal Regulations, in order to achieve permanently the objectives and fulfill the global mission, vision and policy of JTI; • We maintain open communication with all partners, with all those involved in our area of business and we comply with the globally applicable International Marketing Standards and the specific EHS policies; • We introduce our objectives to our partners and we promote them based on their qualifications, skills and responsibility. • US FOR US • Bucharest, October 22th, 2004 5

6. Factory timelines 1994 Start up production, 2 M&P lines 1996 New Factory Project started 1997 Primary started up on BS 1998 M&P relocation in new area 1999 Primary adapted to core grades ISO 9002 Certification 2000 Name change to JTI ISO 14001 Certification 2001J.M. Juran Award granted 2002 CRES line installed 2003 ISO 9001-2000 and 14001 Re-certification 2004 OHSAS 18001 start-up 2005 OHSAS 18001 Certification

7. JTI Manufacturing Romania – Implementation OHSAS 18001 • Initial Preparation • - team establish • - training sessions • - risk analisys (MERA method) • - elaborate and implement the new policy of integrated • management system: QEHS • Implementation • - audits & processes documentation • - training • Finalize Integrated Q&EHS Manual • Management analysis • Certification phase 7

8. JTI Manufacturing Romania - Health and Safety issues 1. Exposure to noise (M&P area) - tolerable 2. Possible accidents with fork-lift trucks transportation and production moving equipments (PRIMARY, CRES and storage area) – minor 3. Exposure to dust emission (CRES-packing) – minor 4. Possible accidents by humane faults (M&P - routine operations, absence of communication, inadequate operations) – minor 5. Possible contact to hot areas – minor 6. Possible accidents by inadequate storage area – minor 7. Possible accidents by electrocution – minor 8

9. What is the risk level of JTI Manufacturing Romania ? Legend: MERA Method 9

10. JTI Manufacturing Romania Management attitude vis a vis Noise Technical Measures – Indoor noise reduction-Baffles and wall absorber panels have to be installed in production area - Recommendations of noise level reduction at equipments Organizational Measures- Marking the areas with high level of noise- Distribution and utilization of EIP- Informing and training the employees regarding negative effects of noise exposure through incorect utilization of EIP- Reduction of noise exposure through recreation breaks in special roomsMedical Measures - Annual medical examinations 10

11. Indoor noise reduction Project initated by JTI Manufacturing Romania • Realisation of study for identification of solutions for noise level reduction • Realisation of study by Germany company, FOCOS – Karlsruhe GERMANY, beeing coordonate by Prof. Dr. Ing. Tarık AKYOL • Elaboration of necessary documentations for obtaining the finances • Acquisition and instalation of fonoabsorber materials 11

12. Indoor Noise Reduction Project in JTI Manufacturing Romania 12

13. Elements for project realisation • “European Directive 2003/10/EC dated 6 February 2003 “on the minimum health and safety requirements regarding the exposure of workers to the risks arising from physical agents (NOISE)” sets target values for all EU-Countries • Assuming that the Romanian legislative regulation will be compatible with those of EU-Directive the target values can be set as follows: • Absolute exposure limit: 87 dB(A) • Upper exposure action limit: 85 dB(A) • Lower exposure action limit: 80 dB(A) • The trend regarding workers health and safety requirements is to reduce the existing limits further • Thus in this conclusion the set value is assumed to be below 80 dB(A) 13

14. “Noise Reduction Project” steps: Step1: Measurements, data collection and preliminary analysis Step 2: Simulation and design work Step 3: Engineering of machine specific solutions

15. Noise map for Mack & Pack area 15

16. Measurements Conclusions Actions to be concluded: • Baffles and wall absorber panels have to be installed in production area 16

17. dB(A) Performance  0 Absorber m² Reduction of noise level till 5 dBA through instalation of 4000 m2 of baffles and wall absorber panels 17

18. Reduction of noise level under 80 dBA can be realised only by implementing of two recommendations dB(A) ~1 dB Absorber m² 18

19. 2. Recommendations of noise level reduction at equipments • 1: Internal Covering • The airborne noise coming from internal noise sources of the machine must be “trapped” inside the machine. • For ventilation openings a barrier from acoustically absorbing material must be placed in front of the opening • Under the machines a layer of absorptive material must be placed to prevent reflections from the highly reflective surface • 2: Sealing and Partial Absorption • Steel cover can be used to encapsulate stand alone noise sources • Absorptive material must be placed inside the cover • Covers must be isolated against vibration coming from the noise source • 3: Maintenance • Review lubrication plan,look for alternative suppliers • Check and adjust looseness 19

20. Isolation of noise sources 20

21. Isolation of noise sources 21

22. Organizational Measures • Marking the areas with high level of noise • Distribution and utilization of EIP • Informing and training the employees regarding negative effects of noise exposure through incorect utilization of EIP • Reduction of noise exposure through recreation breaks in special rooms 22

23. Marking the areas with high level of noise 23

24. Distribution of ear plugs, hearing protectors 24

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26. Medical Measures Annual medical examinations for all the JTI Romania employees depending on identified risk on working place:- general clinical examination - neurologic examination - psychological examination- ORL - cardiography- audiometry- oscillometry- PFV - vision test and chromatic - glucohemiaThe employees’ number monitorized for audiometry:2003: 181 2004: 181 2005: 188 26

27. High specialized partners 27

28. Solid Base in relation JTI Manufacturing Romania - CNPAS The law no. 346 / 2002, regarding assurance for injury and illness - art. 63: ”Art. 63. - Personalul tehnic al asigurătorului, care desfăşoară activităţi de prevenire a accidentelor de muncă şi a bolilor profesionale, precum şi personalul medical specializat în medicina muncii au următoarele atribuţii: ………   b) acordă consultanţă cu privire la măsurile şi mijloacele de prevenire a accidentelor de muncă şi bolilor profesionale; ………    d) acordă asistenţă tehnică angajatorilor pentru elaborarea instrucţiunilor de prevenire;    e) cercetează accidentele cu incapacitate temporară de muncă şi stabilesc caracterul de muncă al acestora în conformitate cu prevederile prezentei legi; ………    g) recomandă măsuri de prevenire şi controlează aplicarea lor;    h) propun asigurătorului majorări sau reduceri ale contribuţiei pentru stimularea activităţii de prevenire;    i) stabilesc programe de prevenire în baza situaţiilor concrete identificate la locurile de muncă;    j) consiliază angajatorii cu privire la securitatea şi sănătatea în muncă.“ 28

29. Together for employees JTI Manufacturing Romania – CNPAS ! • Investment proposal formulated by JTI Manufacturing Romania to JTI HQ Geneva (september 2005) • “JTI Manufacturing Romania request to invest 202.000 USD in order to reduce the noise level in Mack&Pack area. • The law no. 346 / 2002, regarding assurance for injury and illness - art. 63, lit.h: • ” …propose to the insurer, the increases or reductions of contribution for stimulation of preventing activity …” • JTI Manufacturing Romania requests reduction of contribution to injury and illness assurances with the necessary money for sustaining the project 29

30. Thank you anticipate for your support! 30