Japan Tobacco : Financial Statements and Independent Auditor's Report

Japan Tobacco Inc.

Financial Statements and

Independent Auditor's Report

Year Ended December 31, 2021

		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 .....................................................................................................................	94
2.	Nonconsolidated Financial Statements ................................................................................	95
	(1)	Nonconsolidated Financial Statements...................................................................	95
		A. Nonconsolidated Balance Sheet ......................................................................	95
		B. Nonconsolidated Statement of Income ............................................................	98
		C. Nonconsolidated Statement of Changes in Net Assets ....................................	99
		D. Notes to Nonconsolidated Financial Statements ...........................................	101
		E. Supplementary Statements ..............................................................................	112
	(2)	Major Assets and Liabilities .................................................................................	112
	(3)	Others ...................................................................................................................	112
3.	Independent Auditor's Report .............................................................................................	113

1. Consolidated Financial Statements

(1) Consolidated Financial Statements
A. Consolidated Statement of Financial Position
As of December 31, 2020 and 2021
				(Millions of yen)
2020		2021
Assets
Current assets
Cash and cash equivalents (Note 7)	538,844	721,731
Trade and other receivables (Note 8)	412,144	456,587
Inventories (Note 9)	539,762	563,182
Other financial assets (Note 10)	18,828	17,254
Other current assets (Note 11)		493,992		562,034
Subtotal	2,003,570	2,320,789
Non-current assets held for sale (Note 12)		348		500
Total current assets	2,003,919	2,321,289
Non-current assets
Property, plant and equipment (Notes 13, 15)	759,290	755,843
Goodwill (Note 14)	1,909,392	2,060,965
Intangible assets (Note 14)	363,604	307,152
Investment property (Note 16)	4,744	4,985
Retirement benefit assets (Note 22)	70,528	53,177
Investments accounted for using the equity method	40,230	41,721
Other financial assets (Note 10)	107,143	108,658
Deferred tax assets (Note 17)		122,534		120,419
Total non-current assets	3,377,464	3,452,920
Total assets	5,381,382	5,774,209

1

				(Millions of yen)
2020		2021
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables (Note 18)	436,540	555,777
Bonds and borrowings (Note 19)	141,469	142,901
Income tax payables	46,462	30,794
Other financial liabilities (Note 19)	27,588	28,342
Provisions (Note 20)	19,420	24,858
Other current liabilities (Note 21)	652,314	717,653
Total current liabilities	1,323,793	1,500,326
Non-current liabilities
Bonds and borrowings (Note 19)	817,412	775,721
Other financial liabilities (Note 19)	50,164	43,885
Retirement benefit liabilities (Note 22)	331,752	296,176
Provisions (Note 20)	31,338	22,867
Other non-current liabilities (Note 21)	162,982	179,195
Deferred tax liabilities (Note 17)	64,447	69,959
Total non-current liabilities	1,458,095	1,387,803
Total liabilities	2,781,888	2,888,128
Equity
Share capital (Note 23)	100,000	100,000
Capital surplus (Note 23)	736,400	736,400
Treasury shares (Note 23)	(491,507)	(490,899)
Other components of equity (Note 23)	(605,776)	(400,086)
Retained earnings	2,783,718	2,863,843
Equity attributable to owners of the parent company	2,522,834	2,809,258
Non-controlling interests	76,660	76,823
Total equity	2,599,495	2,886,081
Total liabilities and equity	5,381,382	5,774,209

2

B. Consolidated Statement of Income

Years Ended December 31, 2020 and 2021

		2020
Revenue (Notes 6, 25)	2,092,561
Cost of sales (Notes 14, 22)		(898,001)
Gross profit	1,194,560
Other operating income (Note 26)	54,924
Share of profit in investments accounted for using the	4,042
equity method
Selling, general and administrative expenses	(784,472)
(Notes 12, 13, 14, 16, 22, 27, 32)
Operating profit (Note 6)	469,054
Financial income (Notes 28, 33)	12,353
Financial costs (Notes 22, 28, 33)		(61,344)
Profit before income taxes	420,063
Income taxes (Note 17)		(108,034)
Profit for the period	312,029
Attributable to
Owners of the parent company	310,253
Non-controlling interests		1,775
Profit for the period	312,029
Earnings per share
Basic (Yen) (Note 30)	174.88
Diluted (Yen) (Note 30)	174.80
Reconciliation from "Operating profit" to "Adjusted operating profit"
		2020
Operating profit	469,054
Amortization cost of acquired intangibles arising from	63,160
business acquisitions
Adjustment items (income)	(51,978)
Adjustment items (costs)		6,716
Adjusted operating profit (Note 6)	486,952

(Millions of yen)

2021

2,324,838

(956,861)

1,367,976

15,622

3,997

(888,574)

499,021

19,013

(45,645)

472,390

(132,208)

340,181

338,490

1,691

340,181

190.76

190.68

(Millions of yen)

2021

499,021

68,876

(11,469)

54,006

610,434

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