Japan Tobacco Inc. · TSE:2914
Japan Tobacco — FY2021 Earnings Presentation
12 slides from Japan Tobacco's earnings presentation, Feb 14, 2022
Slide 1: 2021 International Tobacco Business Results & 2022 Tobacco Business Outlook
2021 International Tobacco Business Results & 2022 Tobacco Business Outlook Eddy Pirard JTI President & 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: 2021 | Industry leading performance across all KPIs
2021 | Industry leading performance across all KPIs 2021 performance (USD basis) • Record* organic volume growth, driven by 31.8% • continued market share gains +29.6% • resilient industry volume, mainly driven by lower illicit trade • Robust price/mix contribution fueled +4.7pp strong core revenue
Slide 4: Strategic focus strengthened business fundamentals
Strategic focus strengthened business fundamentals COMBUSTIBLES REDUCED RISK PRODUCTS • Accelerated market share gains across the • Prioritized investment behind HTS majority of our markets • Focus on markets that matter • Solid and resilient pricing underpinned robust core revenue growth • Building
Slide 5: Volume fueled by strong combustible market share growth
Volume fueled by strong combustible market share growth … 1) 2) JTI combustible SoM, vs PY JTI SoS, vs PY • Significant share of market gains Philippines +5.1pp • Increases in 29 of our top-30 markets France +1.8pp • Industry leading share gains, notably in +3.7pp France, the Philippines, Romania, R
Slide 6: Driven by GFBs leading to solid total tobacco share gains
… Driven by GFBs leading to solid total tobacco share gains JTI volume, vs PY • 7th consecutive year of GFB volume growth with: GFB • Winston increasing in over 60 markets • Camel growing in over 50 markets +10.5% +10.1% +24.1% • GFBs accounted for 68% of total volume 1) Total tobacco SoM in Top-30,
Slide 7: Resilient price/mix continued to fuel top-line growth
Resilient price/mix continued to fuel top-line growth 1) JTI price/mix variance, $MM +690 • Pricing model continued to deliver despite +684 a challenging competitive environment • All clusters registered positive price/mix • Main drivers: Canada, the Philippines, Russia, Turkey and the UK • Mix cont
Slide 8: Europe | On-going share gains led by strong brand equity
Europe | On-going share gains led by strong brand equity Europe Focus on the UK +1.6pp +1.1pp +1.3pp +0.6pp 1) 1) SoM SoM 43.5% 44.8% 45.4% 22.5% 23.6% 20.9% 2019 2020 2021 2019 2020 2021 • Resilient industry volume in the first half • Industry volume increased due to COVID- related travel restricti
Slide 9: Russia | Consolidated our leading combustible position and ...
Russia | Consolidated our leading combustible position and ... Total tobacco industry evolution1) • Resilient industry volume despite large excise tax increase, supported by: • lower illicit trade resulting from pandemic-related +9% +6% travel restrictions -3% • larger HTS category Volume Price/mix
Slide 10: Russia | Continued HTS momentum and trade expansion
Russia | … Continued HTS momentum and trade expansion 1) • Ploom reached 4.1% segment share in December • Ahead of the Ploom X launch in 1H22 • On-going collection of consumer and trade insights • Launched new Winston by Ploom sticks offering a greater taste profile • Number of outlets selling Ploom
Slide 11: Business Plan 2022 for the Tobacco Business
Business Plan 2022 for the Tobacco Business 2022 Assumptions 3-year Business Plan 2022 Accelerated RRP investments in HTS Volume forecast flat • Drive share gains in Japan • Continued market share gains expected to offset • Rollout Ploom X internationally based on industry size decline in combustibl
Slide 12: One Tobacco | Significant operational and commercial benefits
One Tobacco | Significant operational and commercial benefits Before International Tobacco Domestic Tobacco • Enhanced competitiveness in RRP, notably in HTS by unifying and maximizing global resources One Tobacco business • Combined resources and talents under Total volume one management, e.g., R&D