Japan Tobacco Inc. · TSE:2914
Japan Tobacco — H1 2023 Earnings Presentation
18 slides from Japan Tobacco's earnings presentation, Jul 31, 2023
Slide 1: JT Group 2023 Six-month Results
JT Group 2023 Six-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 each
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 Six-Month Results
2023 Six-Month Results
Slide 4: 2023 Six-Month Consolidated Results
2023 Six-Month Consolidated Results Core revenue at constant FX: +6.8% Adjusted operating profit (AOP) at constant FX: +4.7% 2023 • Positive pricing contribution in the tobacco business (JPY BN) vs. 2022 Jan-Jun Revenue and AOP on a reported basis Reported • Revenue: increase driven by revenue growt
Slide 5: Tobacco Business: Volume Performance
Tobacco Business: Volume Performance Combustibles (+) Strong volume growth in the EMA cluster • Higher industry volume in Turkey 2023 • Continued recovery in Global Travel Retail (BnU) vs. 2022 Jan-Jun • Strong momentum in several emerging markets (+) Resilient industry volume in Japan combined with
Slide 6: Tobacco Business: Financial Results & Drivers
Tobacco Business: Financial Results & Drivers Core revenue (+) Pricing benefits in multiple markets, including Russia and the U.K. (+) Volume contribution from EMA cluster, as well as Japan 2023 AOP (JPY BN) vs. 2022 Jan-Jun (+) Top-line growth (-) Negative volume variance due to worsened market mix
Slide 7: Tobacco Business: Key takeaways by cluster and key markets performance
Tobacco Business: Key takeaways by cluster and key markets performance • Japan: Volume increased both in Combustibles and RRP. In Combustibles, Camel Craft and MEVIUS E-series ASIA fueled share gains. In RRP, Ploom X grew volume and HTS share. • The Philippines: Lower total volume despite Camel shar
Slide 8: Tobacco Business: Ploom X Japan overview
Tobacco Business: Ploom X Japan overview • Ploom X continued to gain share of segment despite intense competition - Relaunch of MEVIUS SKUs in March 2023 - Ploom X device discount campaign from May to July 2023 Japan market: market share evolution in HTS segment* 10 9.3% 9.5% 7.9% 8.1% 8 7.2% 7.6% 6
Slide 9: Tobacco Business: Ploom X global overview
Tobacco Business: Ploom X global overview • On track to be present in 14 markets by the end of 2023 Ploom X geo-expansion - Assuming Ploom X availability in 28 markets by the end of 2024 • The Czech Republic - HTS represented ~15%* of total tobacco industry volume - Expect to have higher margins - S
Slide 10: Pharmaceutical and Processed Food Businesses: Financial Results
Pharmaceutical and Processed Food Businesses: Financial Results Pharmaceutical Business • Revenue increased year-on-year driven by one-time income from the licensing of patented JT compounds as well as sales growth in the area 2023 vs. 2022 of skin diseases and allergens at Torii Pharmaceutical (JPY
Slide 11: Full-year Revised Forecast
Full-year Revised Forecast
Slide 12: 2023 Consolidated Revised Forecasts
2023 Consolidated Revised Forecasts Core revenue at constant FX: +1.2% vs. the initial forecast (+3.2% vs. 2022) FY2023 vs. • Upward revision driven by improved forecasts across all businesses, notably the (JPY BN) Revised Initial vs. 2022 tobacco business, reflecting first half volume momentum and
Slide 13: Tobacco Business: Revised Forecasts
Tobacco Business: Revised Forecasts Volume Volume assumptions: revised upward to decline by approx. 1% • Includes strong first half momentum, notably in Japan, Turkey and FY2023 Global Travel Retail Initial forecast Revised forecast • Expects challenging second half due to: A decrease of A decrease
Slide 14: Pharmaceutical and Processed Food Businesses: Revised Forecasts
Pharmaceutical and Processed Food Businesses: Revised Forecasts Pharmaceutical Business • Revenue: +JPY 2.5 billion vs. the initial forecast Increase driven by revenue growth at Torii Pharmaceutical and an FY2023 vs. upswing in overseas royalty income due to JPY depreciation vs. 2022 （JPY BN） Revise
Slide 15: Closing Remarks
Closing Remarks
Slide 16: Closing Remarks
Closing Remarks 2023 consolidated first-half actuals • Strong set of results driven by pricing contributions, resilient industry volume and market share gains in the tobacco business • Additional profit growth from the pharmaceutical and processed food businesses 2023 consolidated full-year revised
Slide 17: 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 18: 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