Japan Tobacco : Financial Statements and Independent Auditor's Report

Japan Tobacco Inc.

Financial Statements and

Independent Auditor's Report

Year Ended December 31, 2022

		Index
1.	Consolidated Financial Statements	1
	(1)	Consolidated Financial Statements	1
		A. Consolidated Statement of Financial Position	1
		B. Consolidated Statement of Income	3
		C. Consolidated Statement of Comprehensive Income	4
		D. Consolidated Statement of Changes in Equity	5
		E. Consolidated Statement of Cash Flows	7
		F. Notes to Consolidated Financial Statements	9
	(2)	Others	97
2.	Nonconsolidated Financial Statements	98
	(1)	Nonconsolidated Financial Statements	98
		A. Nonconsolidated Balance Sheet	98
		B. Nonconsolidated Statement of Income	101
		C. Nonconsolidated Statement of Changes in Net Assets	102
		D. Notes to Nonconsolidated Financial Statements	104
		E. Supplementary Statements	116
	(2)	Major Assets and Liabilities	116
	(3)	Others	116
3.	Independent Auditor's Report

1. Consolidated Financial Statements

(1) Consolidated Financial Statements
A. Consolidated Statement of Financial Position
As of December 31, 2021 and 2022
				(Millions of yen)
2021		2022
Assets
Current assets
Cash and cash equivalents (Note 7)	721,731	866,885
Trade and other receivables (Note 8)	456,587	477,239
Inventories (Note 9)	563,182	691,906
Other financial assets (Note 10)	17,254	37,677
Other current assets (Note 11)	562,034	649,181
Subtotal	2,320,789	2,722,889
Assets held for sale (Note 12)	500	702
Total current assets	2,321,289	2,723,591
Non-current assets
Property, plant and equipment (Notes 13, 15)	755,843	775,957
Goodwill (Note 14)	2,060,965	2,446,063
Intangible assets (Note 14)	307,152	246,442
Investment property (Note 16)	4,985	9,495
Retirement benefit assets (Note 22)	53,177	57,792
Investments accounted for using the equity method	41,721	56,943
Other financial assets (Note 10)	108,658	140,366
Deferred tax assets (Note 17)	120,419	91,430
Total non-current assets	3,452,920	3,824,487
Total assets		5,774,209	6,548,078

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				(Millions of yen)
2021		2022
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables (Note 18)	555,777	540,089
Bonds and borrowings (Note 19)	142,901	137,308
Income tax payables	30,794	37,470
Other financial liabilities (Note 19)	28,342	40,065
Provisions (Note 20)	24,858	26,610
Other current liabilities (Note 21)		717,653		781,093
Subtotal	1,500,326	1,562,635
Liabilities directly associated with assets held for sale		-		29
Total current liabilities	1,500,326	1,562,664
Non-current liabilities
Bonds and borrowings (Note 19)	775,721	821,003
Other financial liabilities (Note 19)	43,885	41,735
Retirement benefit liabilities (Note 22)	296,176	244,116
Provisions (Note 20)	22,867	26,490
Other non-current liabilities (Note 21)	179,195	195,248
Deferred tax liabilities (Note 17)		69,959		40,061
Total non-current liabilities	1,387,803	1,368,653
Total liabilities	2,888,128	2,931,317
Equity
Share capital (Note 23)	100,000	100,000
Capital surplus (Note 23)	736,400	736,400
Treasury shares (Note 23)	(490,899)	(490,183)
Other components of equity (Note 23)	(400,086)	104,309
Retained earnings		2,863,843		3,089,909
Equity attributable to owners of the parent company	2,809,258	3,540,435
Non-controlling interests		76,823		76,326
Total equity	2,886,081	3,616,761
Total liabilities and equity		5,774,209	6,548,078

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B. Consolidated Statement of Income

Years Ended December 31, 2021 and 2022
	2021
Revenue (Notes 6, 25)
2,324,838
Cost of sales (Notes 14, 22)	(956,861)
Gross profit	1,367,976
Other operating income (Note 26)	15,622
Share of profit in investments accounted for using the	3,997
equity method
Selling, general and administrative expenses	(888,574)
(Notes 12, 13, 14, 16, 22, 27, 32)
Operating profit (Note 6)	499,021
Financial income (Notes 28, 33)	19,013
Financial costs (Notes 22, 28, 33)	(45,645)
Profit before income taxes	472,390
Income taxes (Note 17)	(132,208)
Profit for the period	340,181
Attributable to
Owners of the parent company	338,490
Non-controlling interests	1,691
Profit for the period	340,181
Earnings per share
Basic (Yen) (Note 30)	190.76
Diluted (Yen) (Note 30)	190.68

Reconciliation from "Operating profit" to "Adjusted operating profit"

(Millions of yen)

2022

2,657,832

(1,090,989)

1,566,843

20,262

8,009

(941,538)

653,575

31,147

(91,272)

593,450

(149,277)

444,174

442,716

1,458

444,174

249.45

249.36

(Millions of yen)

Operating profit

Amortization cost of acquired intangibles arising from business acquisitions

Adjustment items (income) Adjustment items (costs)

Adjusted operating profit (Note 6)

2021

499,021

68,876

(11,469)

54,006

610,434

2022

653,575

71,392

(15,865)

18,677

727,779

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