Japan Tobacco Inc. · TSE:2914
Japan Tobacco — 9M 2022 Earnings Presentation
20 slides from Japan Tobacco's earnings presentation, Oct 31, 2022
Slide 1: JT Group 2022 Nine-Month Results
JT Group 2022 Nine-Month 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 eac
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: 2022 Nine-Month Results
2022 Nine-Month Results
Slide 4: 2022 Nine-Month Consolidated Results: Robust performance across all KPIs
2022 Nine-Month Consolidated Results: Robust performance across all KPIs Core revenue at constant FX: +4.1% vs. 2021 Adjusted operating profit (AOP) at constant FX: +6.5% vs. 2021 2022 • Driven by pricing contributions in the tobacco business (JPY BN) vs. 2021 Jan-Sep Revenue and AOP on a reported b
Slide 5: Tobacco Business: Solid volume fueled by share gains and better industry volume
Tobacco Business: Solid volume fueled by share gains and better industry volume Volume Total volume (+) Strong combustibles volume momentum in EMA cluster (+) RRP volume growth continued 2022 (BnU) vs. 2021 (-) Accelerated industry volume decline in the U.K. Jan-Sep Combustibles Total volume 402.0 -
Slide 6: Tobacco Business: Financial results driven by pricing
Tobacco Business: Financial results driven by pricing Financials Core revenue and AOP • Core revenue increased due to strong pricing benefits 2022 • AOP increased driven by strong top-line growth, partially off-set (JPY BN) vs. 2021 Jan-Sep by higher input cost associated to increased energy price a
Slide 7: Tobacco Business: Key Takeaways by Cluster and Key Markets
Tobacco Business: Key Takeaways by Cluster and Key Markets Asia WE EMA Japan Italy Romania • Camel growth slows combustibles share • Total volume increased excl. inventories • Robust industry volume decline • Market share growth driven by Winston, • Market share stable despite intensified • Limited
Slide 8: Tobacco Business: Updates on Ploom X
Tobacco Business: Updates on Ploom X Japan • Continued share growth within the HTS segment driven by active sales promotions • After price-hike in October, off-take base share shows steady performance Japan market: market share evolution in HTS segment* 7.6% 7.9% 8 7.2% 6.5% 6 4.0% 4.2% 4 3.4% *JT g
Slide 9: Tobacco Business: Ploom X geo-expansion updates
Tobacco Business: Ploom X geo-expansion updates Ploom X coming to London • Launch in the Greater London region in October 2022 9 SKUs available, including 3 capsule offerings New online platform Distribution through key accounts, accredited retailers & vape stores Geo-expansion updates • Impro
Slide 10: Joint venture and strategic long-term global partnership with Altria
Joint venture and strategic long-term global partnership with Altria • Entered into a joint venture with Altria Group to market and commercialize HTS products in the U.S. with Ploom branded devices and Marlboro branded consumables. • Also signed a long-term, non-binding global memorandum of understa
Slide 11: Pharmaceutical and Processed Food Businesses: Financial Results
Pharmaceutical and Processed Food Businesses: Financial Results Pharmaceutical Business • Revenue increased year-on-year driven by sales growth at our consolidated subsidiary, Torii Pharmaceutical, from CORECTIM® 2022 Ointment in the area of skin diseases, CEDARCURE® Japanese (JPY BN) vs. 2021 Jan-S
Slide 12: Full-year Revised Forecast
Full-year Revised Forecast
Slide 13: Update on the Russian Market and Impacts on the Revised Forecasts
Update on the Russian Market and Impacts on the Revised Forecasts Business overview of Russian market • While we continue to manufacture and distribute our products, the operating environment remains very challenging • Under these circumstances, the JT Group continues to take necessary decisions to
Slide 14: Consolidated Revised Forecasts
Consolidated Revised Forecasts Core revenue at constant FX: +2.5% vs. the previous forecast and +3.3% vs. 2021 • Upward revision due to incremental volume and additional pricing FY2022 vs. effects in the tobacco business (JPY BN) Revised Previous vs. FY2021 forecasts forecasts Adjusted operating pro
Slide 15: Tobacco Business: Revised Forecasts
Tobacco Business: Revised Forecasts Volume Volume assumptions • Upward revision due to better industry volume and strong FY2022 share momentum in several markets Previous forecast Revised forecast A decrease of A decrease of Financials on a constant FX basis Total volume approx. 2% vs. 2021 approx.
Slide 16: Pharmaceutical and Processed Food Businesses: Revised Forecasts
Pharmaceutical and Processed Food Businesses : Revised Forecasts Pharmaceutical Business • Revenue: +1.2% vs. the previous forecast FY2022 vs. vs. • AOP: +10.0% vs. the previous forecast （JPY BN） Revised Previous FY2021 Both revenue and AOP revised upward due to royalty forecasts forecasts income up
Slide 17: Closing Remarks
Closing Remarks
Slide 18: Closing Remarks
Closing Remarks Nine-month results • Strong performance fueled by robust pricing and favorable FX impact due to weaker JPY 2022 Full-year revised forecasts • Upward revision due to incremental volume and additional pricing effects Shareholders • Positive FX impact on reported AOP and profit driven b
Slide 19: 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 20: 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