Japan Tobacco Inc. · TSE:2914
Japan Tobacco — 9M 2021 Earnings Presentation
17 slides from Japan Tobacco's earnings presentation, Oct 29, 2021
Slide 1: 2021 Nine-Month Results
2021 Nine-Month Results Naohiro Minami 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 term
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: 2021 Nine-Month Results
2021 Nine-Month Results
Slide 4: 2021 Nine-Month Consolidated Results
2021 Nine-Month Consolidated Results Adjusted Operating Profit (AOP) at constant FX: +21.9% vs. PY Jan-Sep （JPY BN） vs. PY • Driven by the continued robust performance in both tobacco businesses 2021 Reported Revenue • Increase fueled by a favorable price/mix contribution and volume growth from Reve
Slide 5: Japanese-domestic tobacco business: Volume Performance and Financial Results
Japanese-domestic tobacco business : Volume Performance and Financial Results Volume (BnU) Jan-Sep 2021 Industry Volume Figures in parentheses are year-on-year comparisons. • RMC：decline due to increased RRP adoption, price hike in 2020 as well as natural Industry JT SoM/SoS* attrition • RRP：YoY gro
Slide 6: Ploom X's Performance
Ploom X's Performance • Our new HTS device Ploom X was launched in Japan in July and rolled out nationwide in August Reference: Share of Segment* of JT RRP and Ploom X/Ploom S refills • Stronger device sales performance *JT estimate off-take base share on 7-day moving average • Market share trend So
Slide 7: International tobacco business: Volume Performance and Financial Results
International tobacco business: Volume Performance and Financial Results Shipment volume Volume (BnU) • Resilient industry volume in several markets Jan-Sep • Solid momentum continued driven by share gains, notably in our key markets vs. PY 2021 Core Revenue and AOP Total shipment volume 348.9 +5.7%
Slide 8: Pharmaceutical and Processed food businesses: Financial Results
Pharmaceutical and Processed food businesses: Financial Results Pharmaceutical Business • Revenue: lower overseas royalty income offset the revenue growth at our consolidated subsidiary, Torii Pharmaceutical Jan-Sep (JPY BN) vs. PY 2021 • AOP: declined due to lower revenue, increased R&D and SG&A ex
Slide 9: Full-year forecast
Full-year forecast
Slide 10: Consolidated Revised Forecast
Consolidated Revised Forecast AOP at constant FX: revised significantly upward to +11.9% vs FY2021 vs. previous forecast and to +19.9% YoY, respectively (JPY BN) Revised Previous vs. PY forecast Forecast Revenue and AOP Reported • Revenue revised upward reflecting the updated forecasts of the intern
Slide 11: Japanese-domestic tobacco business: Revised Forecast
Japanese-domestic tobacco business: Revised Forecast Revised volume assumptions FY2021 FY2021 Volume assumptions Previous forecast Revised forecast • Total/RMC industry volume: revised upward given robust a decrease of an upper a decrease of a middle performance through September Total* 3% range 3%
Slide 12: International tobacco business: Revised Forecast
International tobacco business: Revised Forecast Revised volume assumptions FY2021 FY2021 Volume assumptions Previous forecast Revised forecast • Revised upward due to continued solid market share Total shipment to be almost flat an increase by momentum, notably in our key markets, with a stronger t
Slide 13: Pharmaceutical and Processed food businesses: Revised Forecasts
Pharmaceutical and Processed food businesses: Revised Forecasts Pharmaceutical Business • Both revenue and AOP revised upward FY2021 vs. (JPY BN) Revised Previous vs. PY - Overseas royalty income exceeding expectations forecast forecast - An increase in revenue at Torii Pharmaceutical - Deferred R&D
Slide 14: Closing remarks
Closing remarks
Slide 15: Closing remarks
Closing remarks • Revised forecast upward for 2021 • In the HTS category, focus on gaining market share in Japan with Ploom X • To this end, available supply of devices will be prioritized towards Japan for the remainder Shareholders of the year • Uncertainties under consideration in the business pl
Slide 16: 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 17: Definitions
<Definitions> Total tobacco industry volume: Industry volume in Japan market by number of sticks based on the internal (Japanese-domestic tobacco business) estimate. This includes cigarettes, little cigars, RRP and others RMC: Ready made cigarettes (Japanese-domestic tobacco business) RMC industry v