Japan Tobacco Inc. · TSE:2914
Japan Tobacco — Q2 2021 Earnings Presentation
17 slides from Japan Tobacco's earnings presentation, Jul 30, 2021
Slide 1: 2021 Second-Quarter Results
2021 Second-Quarter 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
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 Second-Quarter Results
2021 Second-Quarter Results
Slide 4: 2021 Second-Quarter Consolidated Results
2021 Second-Quarter Consolidated Results Adjusted Operating Profit (AOP) at constant FX: +26.9% vs. PY Jan-Jun • Robust performance driven by our international tobacco business （JPY BN） vs. PY 2021 • On-going stronger industry volume due to travel restrictions Reported Revenue Revenue 1,144.5 +11.1%
Slide 5: Japanese-domestic tobacco business: Volume Performance and Financial Results
Japanese-domestic tobacco business : Volume Performance and Financial Results Industry Volume Volume (BnU) Jan-Jun 2021 • RMC ：decreased due to higher RRP adoption, price hike as well as natural decline • RRP ：increased due to ongoing changes in consumer behavior impacted by COVID-19 Industry JT SoM
Slide 6: Ploom X
Ploom X • Our new HTS device Ploom X launched in Japan in July • Pre-launch sale at the CLUB JT online shop from July 26 • Available soon at our Ploom Shop from August 3 • Also available at convenience stores and select tobacco retail stores across Japan from August 17 • Offers rich taste with the “
Slide 7: International tobacco business: Volume Performance and Financial Results
International tobacco business: Volume Performance and Financial Results Topline Performance Volume (BnU) • Stronger domestic industry volume mainly in high margin markets Jan-Jun due to travel restrictions vs. PY • Solid momentum continued driven by share gains in our key markets 2021 • Pricing gai
Slide 8: Pharmaceutical and Processed food businesses: Financial Results
Pharmaceutical and Processed food businesses: Financial Results Pharmaceutical Business • Revenue: almost flat as lower overseas royalty income was offset by the revenue growth of our consolidated subsidiary, Torii Pharmaceutical Jan-Jun (JPY BN) vs. PY 2021 • AOP: declined due to recognition of los
Slide 9: Full-year forecast
Full-year forecast
Slide 10: Consolidated Revised Forecast
Consolidated Revised Forecast Adjusted Operating Profit (AOP) at constant FX: revised upward to +2.0% vs the initial forecast and +7.2% growth YoY • Contribution from the international tobacco business FY2021 vs. (JPY BN) Revised Initial vs. PY Revenue forecast forecast • The growth in international
Slide 11: Japanese-domestic tobacco business: Revised Forecast
Japanese-domestic tobacco business: Revised Forecast Volume assumptions Revised volume assumptions • Total tobacco industry volume and RRP market size: revised upward reflecting robust results in the first half • RMC industry volume: revised downward considering RRP consumer applications FY2021 revi
Slide 12: International tobacco business: Revised Forecast
International tobacco business: Revised Forecast Revised volume assumptions Volume assumptions FY2021 revised • Revised upward mainly due to the robust results in the first half FY2021 initial forecast forecast • On the other hand, our shipment volume in the second half is expected to see a year-on-
Slide 13: Pharmaceutical and Processed food businesses: Revised Forecasts
Pharmaceutical and Processed food businesses: Revised Forecasts Pharmaceutical Business • Revenue: revised upward due to overseas royalty income better than the initial forecast FY2021 vs. (JPY BN) Revised Initial vs. PY • AOP: remains unchanged due to recognition of losses forecast forecast associa
Slide 14: Closing remarks
Closing remarks
Slide 15: Closing remarks
Closing remarks • Revised 2021 full year guidance upward considering the robust performance in the first half • Strengthening our presence in the HTS category with the introduction of Ploom X, starting with a focus Shareholders on Japan and followed by other markets • On track to combining the exist
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