Japan Tobacco Inc. · TSE:2914
Japan Tobacco — FY2020 Earnings Presentation
16 slides from Japan Tobacco's earnings presentation, Feb 9, 2021
Slide 1: JT Group 2020 Results & 2021 Forecast
JT Group 2020 Results & 2021 Forecast 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 detail
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: 2020 Results
2020 Results
Slide 4: 2020 Financial Results
2020 Financial Results Adjusted Operating Profit (AOP) at constant FX: +5.5% vs. PY • Led by growth in the International tobacco business Revenue (JPY BN) FY2020 vs. PY • Decreased mainly due to lower revenue in the Japanese-domestic tobacco, Pharmaceutical and Processed food businesses Reported • R
Slide 5: Japanese-domestic tobacco business: Volume Performance
Japanese-domestic tobacco business: Volume Performance Industry volume variance • RMC: decreased due to impact from COVID-19, natural decline, (BnU) Industry JT volume SoM/SoS price hikes, regulatory changes and increase in RRP consumer 155.0 72.7 46.9％ applications Total Tobacco* （-4.2％） （-7.8%） （-
Slide 6: Japanese-domestic tobacco business: Financial Results
Japanese-domestic tobacco business: Financial Results Top-line Performance （＋）Positive RMC price contribution （JPY BN） FY2020 vs. PY • October 2020 price hike impact Core revenue 515.7 -9.3% （－）Negative RMC volume variance （－）Lower RRP-related revenue AOP 168.1 -10.2% • Increase in refill sales volu
Slide 7: International tobacco business: Volume Performance and Financial Results
International tobacco business: Volume Performance and Financial Results Core revenue and Adjusted Operating Profit (Reported) (BnU) FY2020 vs. PY • Flat vs. the previous year led by a strong price/mix variance and robust volume performance in high-margin markets despite Total shipment volume 435.7
Slide 8: Pharmaceutical and Processed food businesses: Financial Results
Pharmaceutical and Processed food businesses: Financial Results Pharmaceutical Business • Revenue decreased, mainly due to lower overseas royalty income • AOP increased driven by lower R&D expenditures post-completion of (JPY BN) FY2020 vs. PY clinical testing and profit growth at Torii Pharmaceutic
Slide 9: 2021 Forecast
2021 Forecast
Slide 10: 2021 Consolidated Financial Forecast
2021 Consolidated Financial Forecast AOP at constant FX: +5.1% vs. PY 2021 Outlook for COVID-19 impact • Profit increase in the tobacco business is our growth driver • Moderate recovery in worldwide economies Revenue • Impact on demand for tobacco and processed food • Increase in revenue in the Japa
Slide 11: Japanese-domestic tobacco business: Volume Outlook and Financial Forecast
Japanese-domestic tobacco business: Volume Outlook and Financial Forecast Outlook for COVID-19 impact on demand Industry volume variance • Despite lifting the state of emergency in June, impact • RMC: decrease mainly due to price hikes, natural decline and RRP growth likely to continue but lower tha
Slide 12: International tobacco business: Volume Outlook and Financial Forecast
International tobacco business: Volume Outlook and Financial Forecast Core revenue and AOP (Reported) Volume FY2021 • Solid price-mix contribution and market share gains offset by a decrease in the mid unfavorable currency movements Total shipment volume 3% range a decrease of approx. GFB shipment v
Slide 13: Pharmaceutical and Processed food business: Financial Forecast
Pharmaceutical and Processed food business: Financial Forecast Pharmaceutical business • Revenue to decrease mainly due to lower overseas royalty income, partially offset by an increase in revenue in our subsidiary, Torii (JPY BN) FY2021 vs. PY Pharmaceutical, and non-recurring, one-time income from
Slide 14: Closing remarks
Closing remarks FY2020 Results • Despite the impact of the COVID-19, the results are strong, due mainly to efficient cost management in the correct priority order Shareholders FY2021 Outlook • Our Japanese-domestic tobacco business will return to a profit growth. Our International tobacco business w
Slide 15: 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 16: 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