Japan Tobacco Inc. · TSE:2914
Japan Tobacco — 9M 2023 Earnings Presentation
19 slides from Japan Tobacco's earnings presentation, Oct 31, 2023
Slide 1: 2023 Nine-Month Results
JT Group 2023 Nine-Month 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 details
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 Nine-Month Results
2023 Nine-Month Results
Slide 4: 2023 Nine-Month Consolidated Results: CR and AOP grew both at constant FX and reported basis
2023 Nine-Month Consolidated Results: CR and AOP grew both at constant FX and reported basis 2023 Revenue and AOP* (JPY BN) vs. 2022 Jan-Sep • Solid pricing contribution in the tobacco business more than At constant FX offset the impact of higher input costs within the supply chain and higher invest
Slide 5: Tobacco Business Volume Performance: Strong first half momentum continued
Tobacco Business Volume Performance: Strong first half momentum continued 2023 Combustibles Solid volume growth fueled by continued （BnU） vs. 2022 Jan-Sep market share gains • Strong volume growth in the EMA cluster - Higher industry volume in Turkey Total volume 410.6 +2.1% - Continued recovery in
Slide 6: Tobacco Business Financial Results & Drivers: Solid profit growth driven by strong pricing contribution
Tobacco Business Financial Results & Drivers: Solid profit growth driven by strong pricing contribution 2023 （JPY BN） vs. 2022 Volume Jan-Sep • Unfavorable market mix despite total volume growth Core revenue 1,891.3 +7.4% Price/Mix at constant FX 1,866.7 +6.0% • Pricing benefits in multiple markets,
Slide 7: Tobacco Business: Overview of the Clusters Performance
Tobacco Business: Overview of the Clusters Performance ASIA WESTERN EUROPE EMA 0.2% 13.1% 11.7% 10.7% 8.7% 5.4% -1.7% -7.8% -4.2% Total CR AOP Total CR AOP Total CR AOP Volume Volume Volume AOP performance AOP performance AOP performance Growth drivers Growth drivers Growth drivers • Market share ga
Slide 8: Tobacco Business: Key Markets Takeaway
Tobacco Business: Key Markets Takeaway ASIA WESTERN EUROPE Japan The UK Industry size Total volume SoM Industry size Total volume SoM +0.7% +2.3% +0.6ppt -16.4% -19.2% -0.9ppt Industry dynamics YTD Industry dynamics YTD • Total industry volume was almost flat, as the RRP growth • Total industry volu
Slide 9: Tobacco Business: Ploom X Japan Overview
Tobacco Business: Ploom X Japan Overview • Ploom X continued to gain share of segment despite intense competition • New “Ploom X ADVANCED” to further attract and retain users Japan market: quarterly market share evolution within HTS segment* 12 10.5% 10 9.3% 9.5% 7.2% 7.9% 8.1% 8 7.2% 7.6% 6.5% 6 4.
Slide 10: Tobacco Business: Ploom X Global Overview
Tobacco Business: Ploom X Global Overview • Assuming Ploom X availability in 28 markets by the end of 2024 - Geo-expansion plan for 2023 is on track Ploom X geo-expansion HTS industry Before composition* Launch schedule Jan-Mar Apr-Jun Jul-Sep Oct-Nov 2023 Poland 10.3% Warsaw / mid-September Hun
Slide 11: Pharmaceutical and Processed Food Businesses: Financial Results
Pharmaceutical and Processed Food Businesses: Financial Results Pharmaceutical Business Revenue 2023 vs. 2022 （JPY BN） Jan-Sep variance • increased driven by one-time income from the licensing of patented JT compounds as well as sales growth in the area of skin diseases and allergens at Torii Pharma
Slide 12: Full-year Revised Forecast
Full-year Revised Forecast
Slide 13: 2023 Consolidated Revised Forecasts
2023 Consolidated Revised Forecasts FY2023 vs. Revised upward vs. previous forecasts （JPY BN） Revised Previous vs. 2022 Revenue and AOP forecasts forecasts both on a constant FX and reported basis At constant FX • Revised upward reflecting strong year-to-date performance in the tobacco business Core
Slide 14: Tobacco Business: Revised Forecasts
Tobacco Business: Revised Forecasts Volume Volume assumption Revised upward to approx. +1.5% FY2023 Previous forecast Revised forecast • Reflecting robust industry volume in several markets, notably in Turkey, solid market share momentum and the accelerated recovery An increase of approx. A decrease
Slide 15: Pharmaceutical and Processed Food Businesses: Revised Forecasts
Pharmaceutical and Processed Food Businesses: Revised Forecasts Pharmaceutical Business FY2023 vs. Revenue +JPY 2.0 BN vs. previous forecast vs. 2022 （JPY BN） Revised Previous variance forecasts forecasts • Increase driven by upward revenue assumption at Torii Pharmaceutical and an upswing in overse
Slide 16: Closing Remarks
Closing Remarks
Slide 17: Closing Remarks
Closing Remarks 2023 actuals and forecasts • Strong set of results driven by all business segments and notably a solid pricing contribution in the tobacco business • Confident in achieving the revised forecasts for the fiscal year 2023 Towards 2024 Share • Continued investments to drive the Ploom X
Slide 18: Definitions
＜Definitions＞ Operating profit + amortization cost of acquired intangibles arising from business acquisitions + adjusted items (income and costs)* Adjusted operating profit(AOP)： * Adjusted items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others Constant FX
Slide 19: 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