Japan Tobacco Inc. · TSE:2914
Japan Tobacco — FY2022 Earnings Presentation
13 slides from Japan Tobacco's earnings presentation, Feb 14, 2023
Slide 1: Tobacco Business 2022 Results & 2023 Outlook
Tobacco Business 2022 Results & 2023 Outlook Eddy Pirard JTI Chief Executive Officer
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 | Outstanding results across all metrics
2022 | Outstanding results across all metrics • Tobacco business strengthened its role as JT group’s profit growth engine • Volume was broadly stable, driven by continued market share gains and double-digit RRP volume growth • Robust pricing despite challenging macroeconomic environment • Solid core
Slide 4: Excellence in operations and brand building fueled share gains
Excellence in operations and brand building fueled share gains SoM in Top-30 (2022 vs. PY) • Total market share gains fueled by combustibles globally and HTS in Japan +1.3pp • Importantly, in combustibles: • 2/3 of our top-30 markets grew share • Share increased in both RMC and FCT +0.6pp • GFB mark
Slide 5: Resilient volume supported by GFB in combustibles
Resilient volume supported by GFB in combustibles Volume (2022 vs. PY) • Stable combustibles volume as market share gains offset combustibles industry +10.3% 1) volume decline estimated at c. 1.5% • GFB volume grew once again to 69% of total volume: • Winston and Camel volume increased double-digit
Slide 6: Strong price/mix in a challenging environment
Strong price/mix in a challenging environment 1) Price/mix variance, ¥Bn • Sustainable combustibles pricing model delivered a record year and +140.0 compensated unexpected cost increases • All clusters contributed a positive +111.9 price/mix, with main drivers being: • Russia, Turkey, Romania & Pola
Slide 7: All clusters contributed to growth
All clusters contributed to growth Performance (2022 vs. PY) • Asia strengthened and broadened the Western Europe EMA base of markets contributing to growth Asia • Share momentum driven by GFB • Western Europe grew despite unwinding SoM 1) +0.5pp +0.3pp +1.0pp of COVID-19 trends: • Share gains and s
Slide 8: UK | Undisputed market leadership
UK | Undisputed market leadership Performance over last five years • Significant growth over the last 5-years • Consolidated #1 position in RMC and FCT +4.7pp 45.1% • Grew core revenue and profit with solid pricing #1 player 1) SoM +8.5pp 20.1% • In 2022, unwind of COVID impact resulted in volume re
Slide 9: Philippines | An impressive growth story
Philippines | An impressive growth story 200 Progress since 2016 1 180 0.9 • Robust organic market share growth post 160 Mighty 140 0.8 Mighty acquisition 140 acquisition 0.7 Price • Total share reached 37%, up from 7% 120 per pack 1) 0.6 • Winston’s share, the #3 brand, more than 100 0.5 doubled 80
Slide 10: Japan | Strengthened leadership in combustibles…
Japan | Strengthened leadership in combustibles… 1) Share in combustibles 65.0 20.0 • Combustibles industry volume remained 18.0 under pressure following consecutive 60.4% price increases 60.0 16.0 57.2% 14.0 • Well laddered portfolio recovering share 55.0 12.0 in combustibles to protect profit pool
Slide 11: Japan | …and accelerating progress in HTS
Japan | …and accelerating progress in HTS 1) Share in HTS • Encouraging performance for Ploom X since launch in 2021 • Ploom experience enhanced by new device and consumables 8.2% • Share within the HTS segment reached 8.2% in Japan, fueled by: • Introduction of new flavored SKUs • Competitive devic
Slide 12: Ploom X expansion to accelerate in 2023
Ploom X expansion to accelerate in 2023 Ploom X launches • Ploom X already available across Japan and London UK • Over 1.2 million Ploom users in 2022 • Accelerated expansion plan for Ploom X • Emphasis on established HTS markets • 2023 launch plans skewed to second half 10+ in 2023 • Significant in
Slide 13: Business Plan 2023 for the Tobacco Business
Business Plan 2023 for the Tobacco Business 2023 Focus Area 3-year Business Plan 2023 Accelerated RRP investments in HTS Volume forecast stable • Drive additional share gains in Japan • Continued market share gains expected to partly offset industry size decline in combustibles • Ploom X rollout in