Japan Tobacco Inc. · TSE:2914
Japan Tobacco — Q1 2023 Earnings Presentation
12 slides from Japan Tobacco's earnings presentation, May 2, 2023
Slide 1: JT Group 2023 First-Quarter Results
JT Group 2023 First-Quarter Results Nobuya Kato JT Group Chief Financial Officer *Please be reminded that the figures shown on these slides may differ from those shown in the financial statements as they are intended to facilitate the reader’s understanding of individual businesses. *For details of
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. These statements appear in a number of places in this document and include statements regarding the intent, belief, or current and future expectations of our management with respect to our business, financial condition
Slide 3: 2023 First-Quarter Consolidated Results
2023 First-Quarter Consolidated Results Core revenue at constant FX: +6.2% Adjusted operating profit (AOP) at constant FX: +5.1% 2023 • Positive pricing contributions in the tobacco business (JPY BN) vs. 2022 Jan-Mar Reported Revenue on a reported basis • Increase driven by top-line growth in the to
Slide 4: Tobacco Business: Volume Performance
Tobacco Business: Volume Performance Total volume (+) Continued combustibles favorable momentum in EMA (+) On-going RRP volume growth 2023 (-) Industry volume decline in several key markets (BnU) vs. 2022 Jan-Mar Combustibles Total volume 130.2 +1.3% (+) Segment share gains in Japan (+) Higher indus
Slide 5: Tobacco Business: Financial Results & Drivers
Tobacco Business: Financial Results & Drivers Core revenue (+) Pricing benefits in multiple markets, including Russia and the U.K. (-) Negative volume contribution due to lower market mix 2023 (-) Continued downtrading in several markets including Japan (JPY BN) vs. 2022 Jan-Mar AOP (+) Top-line gro
Slide 6: Key takeaways by cluster and key market performance
Tobacco Business: Key takeaways by cluster and key market performance Cluster: Volume increases partially offset lower price/mix effects, mainly in Japan • Japan: Volume growth in HTS, fueled by Ploom X, and combustibles with MEVIUS E-series and Camel Craft ASIA capturing downtraders, cannot outweig
Slide 7: Tobacco Business: Ploom X overview in Japan
Tobacco Business: Ploom X overview in Japan • RRP, representing approx. 37% of total tobacco industry volume, grew driven by product launches and intensified sales promotions in HTS • Ploom X gained further share of segment driven by: • Ploom X device price reduction in Nov. 2022 • Relaunch of MEVIU
Slide 8: Tobacco Business: Ploom X global overview
Tobacco Business: Ploom X global overview The U.K. • HTS represented ~1%* of total tobacco industry volume • Positive consumer feedback on device quality and design, refills and price positioning Italy • HTS represented ~16%* of total tobacco industry volume • Successful launch in Milan early April
Slide 9: Pharmaceutical and Processed Food Businesses: Financial Results & Drivers
Pharmaceutical and Processed Food Businesses: Financial Results & Drivers Pharmaceutical Business • Revenue increased year-on-year driven by one-time income from licensing of patented JT compounds as well as sales growth in the area 2023 vs. 2022 of skin diseases and allergens at Torii Pharmaceutica
Slide 10: Closing Remarks
Closing Remarks 2023 Jan-Mar results • Strong performance supported by pricing contribution and market share gains in the tobacco business • Supportive profit growth in the pharmaceutical and processed food businesses 2023 full-year earnings forecasts • Guidance is unchanged as operational uncertain
Slide 11: Definitions
<Definitions> Adjusted operating profit (AOP): Operating profit + amortization cost of acquired intangibles arising from business acquisitions + adjusted items (income and costs)* * Adjusted items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others ~at consta
Slide 12: Definitions
<Definitions> Total volume: The volume of tobacco-based products which excludes contract-manufactured products, waterpipe, RRP devices and related accessories. Combustibles volume: The shipment volume of combustibles which excludes contract-manufactured products, snus, waterpipe, heated tobacco prod