Japan Tobacco Inc. · TSE:2914
Japan Tobacco — H1 2022 Earnings Presentation
18 slides from Japan Tobacco's earnings presentation, Jul 29, 2022
Slide 1: JT Group 2022 Six-month Results
JT Group 2022 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: 2022 Six-Month Results
2022 Six-Month Results
Slide 4: 2022 Six-Month Consolidated Results
2022 Six-Month Consolidated Results 2022 Core revenue at constant FX: +3.7% vs. 2021 (JPY BN) vs. 2021 Adjusted operating profit (AOP) at constant FX: +8.0% vs. Jan-Jun 2021 Reported • Driven by stronger pricing contributions in our tobacco business Revenue 1,266.8 +10.7％ Revenue on a reported basis
Slide 5: Tobacco Business: Volume Performance
Tobacco Business: Volume Performance Total volume Volume (BnU) (+) Volume growth in EMA, driven by strong momentum in Iran and Poland, as well as continued recovery in Global 2022 Travel Retail from easing travel restrictions vs. 2021 Jan-Jun (-) Industry volume contraction mainly in France, the Phi
Slide 6: Tobacco Business: Financial Results
Tobacco Business: Financial Results Core revenue and AOP Financials (JPY BN) • Core Revenue increased driven by a robust price/mix contribution in our key markets partially offset by a negative volume contribution in some high margin markets such as 2022 vs. 2021 Japan and the UK Jan-Jun • AOP incre
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 • Volume declined in combustibles, partially • Market share gains driven by Winston • Winston and Sobranie drove both total offset by an increase in RRP • Combustibles industry volume contraction volume growth
Slide 8: Tobacco Business: Updates on Ploom X Progress in Japan Market
Tobacco Business: Updates on Ploom X Progress in Japan Market • Since the national launch of Ploom X in August 2021, our HTS market share has grown steadily achieving 7.6% within the HTS segment Japan market: market share evolution • In the second half the year, we will be leveraging learnings from
Slide 9: Pharmaceutical and Processed Food Businesses: Financial Results
Pharmaceutical and Processed Food Businesses: Financial Results Pharmaceutical Business • Revenue increased by 6.1% 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-Jun Ce
Slide 10: Full-year Revised Forecast
Full-year Revised Forecast
Slide 11: Update on the Russian Market and Impacts on the Revised Forecasts
Update on the Russian Market and Impacts on the Revised Forecasts Overview of Russian market • Fully committed to complying with all applicable sanctions while continuing business operations • Given the continued challenging and complex environment, continuing to evaluate various options for the Rus
Slide 12: Consolidated Revised Forecasts
Consolidated Revised Forecasts Core revenue at constant FX: +0.9% vs. the initial forecast and +0.7% vs. 2021 • Upward revision driven by stronger pricing contributions in the FY2022 vs. tobacco business (JPY BN) Revised Initial vs. 2021 forecasts forecasts Adjusted operating profit (AOP) at constan
Slide 13: Tobacco Business: Revised Forecasts
Tobacco Business: Revised Forecasts Volume Volume assumptions • Initial forecast is unchanged FY2022 • First half momentum to be largely offset by an expected steeper Initial forecast Revised forecast decline in the second half of 2022 • The continued easing of COVID-related travel restrictions a de
Slide 14: Pharmaceutical and Processed food businesses: Financial Forecasts
Pharmaceutical and Processed food businesses: Financial Forecasts Pharmaceutical Business • Revenue: +1.2% vs. the initial forecast Upward revision due to an upswing in royalty income fueled by FX tailwinds and stronger revenue at Torii FY2022 vs. Pharmaceutical （JPY BN） Revised Initial vs. 2021 for
Slide 15: Closing Remarks
Closing Remarks
Slide 16: Closing Remarks
Closing Remarks First half results • Strong performance driven by robust pricing in the tobacco business 2022 Full-year revised forecasts Shareholders • Downward revision of AOP at constant FX driven by higher cost related to increasing energy prices and inflation • Upward revision of AOP and profit
Slide 17: Definitions
<Definitions> Adjusted operating profit (AOP): Adjusted operating profit = 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 a
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