Japan Tobacco Inc. · TSE:2914
Japan Tobacco — JT Investor Conference 2018
9 slides from Japan Tobacco's conference presentation, Jun 5, 2018
Slide 1: JTI's Growth Strategy: The role of acquisitions
JTI’s Growth Strategy The role of acquisitions Eddy Pirard JTI President & Chief Executive Officer 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
Slide 2: 10 years of focused acquisitions
This presentation contains images of our products in some slides. Those slides have been included exclusively to illustrate JT Group’s strategy or performance to our investors. They are not to be used for any other purpose. © Copyright JT 2018 London – June 5, 2018 JT Investor Conference 3 10 years
Slide 3: To balance our volume base / To support our GFB expansion
To balance our volume base M&A Volume impact JTI Total Volume mix progression (cumulative) +76 BnU 29% 41% Other markets 38 71% 59% Top-10 27 markets 2008-2017 2007 2017 © Copyright JT 2018 London – June 5, 2018 JT Investor Conference 5 Note: JTI’s top-10 markets based on total volume. To support ou
Slide 4: To fuel our growth in emerging markets
To fuel our growth in emerging markets Emerging markets (2017 vs. 2007) Total GFB Core Adjusted Volume Volume Revenue Op. Profit +12% +54% +30% +7% ©C Copy opyrig right i ht JT 201 Copyright 2018 8 London London – June Jun 5, Ju 5, 2018 2018 JT Inv IInvestor nvest estor tor Conf C Conference onferen
Slide 5: Clear priorities driving our business development efforts
Clear priorities driving our business development efforts Strategic Priorities Business Development Matrix Concept Prioritized Target Target opportunities Strengthen our base High Target Medium Strategic fit Target Target Expand our footprint Target Target Target Low Target Enhance our portfolio Low
Slide 6: Proven track record of successful integration
Proven track record of successful integration Since 2015 ATI bolstered our existing footprint and performance in Iran Market Total GFB Core Share* Volume Volume Revenue +17pp x3 x4 x3 JTI Iran performance - 2017 vs. 2014 © Copyright JT 2018 London – June 5, 2018 JT Investor Conference 11 * SoM based
Slide 7: Proven track record of successful integration: Fluxo in Brazil
Proven track record of successful integration The FLUXO acquisition in 2015 strongly enhanced our in-market capabilities in Brazil Market Winston GFB Core Share* Volume Volume Revenue +1.4pp x20 x6 x6 JTI Brazil - 2017 vs. 2015 © Copyright JT 2018 London – June 5, 2018 JT Investor Conference 13 * Mo
Slide 8: Recent acquisitions will contribute to our sustainable profit growth
Recent acquisitions will contribute to our sustainable profit growth SoM Annualized 5Y industry Market Strategic fit gain volume gain value potential* Philippines Increasing scale to boost GFB growth +23pp +16 BnU +50% Indonesia Gaining kretek capabilities and scale +2pp +7 BnU +40% Ethiopia Enterin
Slide 9: Closing remarks
Closing remarks • Acquisitions broadened our footprint, contributing to JTI’s profit progression • Recent acquisitions will strengthen our business and financial base • Attractive opportunities remain for further expansion, organically & through M&A • On track to deliver on our FY18 targets, with re