Japan Tobacco Inc. · TSE:2914
Japan Tobacco — Q2 2024 Earnings Presentation
18 slides from Japan Tobacco's earnings presentation, Aug 2, 2024
Slide 1: JT Group 2024 Second-Quarter Results
JT Group 2024 Second-Quarter Results Hiromasa Furukawa 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 deta
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: 2024 Six-Month Results
2024 Six-Month Results
Slide 4: 2024 Second-Quarter Consolidated Results
2024 Second-Quarter Consolidated Results: Continued revenue and profit growth driven by the Tobacco business 2024 Revenue and AOP 1) (JPY BN) vs. 2023 Jan-Jun • Revenue grew, mainly driven by solid pricing contributions in the tobacco At constant FX business, more than offsetting declines in the pha
Slide 5: Tobacco Business Volume Performance
Tobacco Business Volume Performance: Continued share gains drove volume momentum 2024 Combustibles （BnU） vs. 2023 Jan-Jun • On-going market share momentum across the footprint Total volume 274.9 +2.0% • GFB volume grew by 4.0% fueled by Winston and Camel • Strong volume growth in the EMA cluster - S
Slide 6: Tobacco Business Financial Performance
Tobacco Business Financial Performance: Pricing fueled top line growth 2024 （JPY BN） vs. 2023 Volume Jan-Jun • Total volume growth is offset by an unfavorable geographic Core revenue 1,391.8 +14.3% mix resulting in a negative financial contribution at constant FX 1,303.9 +7.1% Price/Mix AOP 472.1 +4
Slide 7: Tobacco Business Results by Cluster
Tobacco Business Results by Cluster ASIA WESTERN EUROPE EMA +2.8％ +19.1％ -0.2% +15.1％ -1.2% +5.1% -2.8% -2.1％ -3.8％ Total CR AOP Total CR AOP Total CR AOP Volume Volume Volume Total Volume Total Volume Total Volume • Market share gains in the Philippines and • Market share gains in several markets,
Slide 8: Tobacco Business RRP volume
Tobacco Business RRP volume: Steady volume growth in launched markets RRP volume, BnU Outside Japan Japan • Ploom is now available in 21 markets • Steady increase in RRP volume in overseas +25.5% markets, supported by geo-expansion 5.2 • RRP volume increased driven by continuous 1.0 consumer and tra
Slide 9: Tobacco Business Ploom global overview
Tobacco Business Ploom global overview: Solid HTS segment share growth continued Ploom SoS in HTS1) 2) 11.0 11.4 Japan 10.7 10.9 Japan 9.4 9.6 • Increase in Ploom awareness through 8.2 effective promotion and marketing 7.7 8.0 7.3 activities. June’24 SoS reached 11.5% 6.6 Outside Japan 4.0 4.2 3.5 •
Slide 10: Pharmaceutical and Processed Food Businesses Financial Results
Pharmaceutical and Processed Food Businesses Financial Results Pharmaceutical Business Revenue 2024 vs. 2023 （JPY BN） Jan-Jun variance • Decrease mainly due to absence of one-time compensation gains from licensed compounds received in 2023, despite sales growth in the area of skin diseases and aller
Slide 11: Full-year Revised Forecasts
Full-year Revised Forecasts
Slide 12: 2024 Consolidated Revised Forecasts
2024 Consolidated Revised Forecasts FY2024 vs. Revised upward, both at constant FX and (JPY BN) Revised Initial vs. 2023 Revenue and AOP forecasts forecasts reported At constant FX • Revenue: • Revised upward in all business segments Core revenue 2,856.0 +20.0 +4.7% • Favorable foreign exchange impa
Slide 13: Tobacco Business: Financials Forecasts Revised Upward
Tobacco Business: Financials Forecasts Revised Upward Volume FY2024 Volume Unchanged vs. initial forecast Initial forecast assumption Revised forecast A decrease of (+) Market share gains in combustibles Total (+) RRP volume growth, fueled by Ploom volume Unchanged -1.0% to -0.5% vs. 2023 (-) Combus
Slide 14: Pharmaceutical and Processed Food Businesses Revised Forecasts
Pharmaceutical and Processed Food Businesses Revised Forecasts Pharmaceutical Business FY2024 vs. Revenue +4.5 BN vs. the initial forecast vs. 2023 (JPY BN) Revised Initial forecasts (abs) forecasts • Upward revision at Torii Pharmaceutical and increase in overseas royalty income due to JPY deprecia
Slide 15: Closing remarks
Closing remarks
Slide 16: Closing remarks
Closing remarks 2024 Jan-Jun results • Strong top-line growth driven by solid pricing contributions in the tobacco business • Accelerated RRP contribution in both volume and revenue • Robust performance of the processed food business supporting the overall profit growth Share holders 2024 full-year
Slide 17: Definitions
＜Definitions＞ Operating profit + amortization cost of acquired intangibles arising from business acquisitions + adjusted items (income andcosts)* Adjusted operating profit(AOP)︓ * Adjusted items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others Constant FX
Slide 18: Definitions
＜Definitions＞ Total volume︓ The volume of tobacco-based products which excludes contract-manufactured products, waterpipe, RRP devices and related accessories. The shipment volume of combustibles which excludes contract-manufactured products, snus, waterpipe, heated tobacco products and Combustibles