Japan Tobacco : JT Group 2021 Second Quarter Investor Conference Presentation
07/30/2021 | 02:11am EDT
2021 Second-Quarter Results
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 details of each term, please refer to annotations on slide 16 and 17.
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 and results of operations. In some cases, you can identify forward-looking statements by terms such as "may", "will", "should", "would", "expect", "intend", "project", "plan", "aim", "seek", "target", "anticipate", "believe", "estimate", "predict", "potential" or the negative of these terms or other similar terminology. These statements are not guarantees of future performance and are subject to various risks and uncertainties. Actual results, performance or achievements, or those of the industries in which we operate, may differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. In addition, these forward-looking statements are necessarily dependent upon assumptions, estimates and data that may be incorrect or imprecise and involve known and unknown risks and uncertainties. Forward-looking statements regarding operating results are particularly subject to a variety of assumptions, some or all of which may not be realized.
Risks, uncertainties or other factors that could cause actual results to differ materially from those expressed in any forward-looking statement include, without limitation:
increase in awareness of health concerns related to smoking;
regulatory developments; including, without limitation, tax increases and restrictions on sales, marketing, packaging, labeling and use of tobacco products, privately imposed restrictions and governmental investigations;
litigation around the world alleging adverse health and financial effects resulting from, or relating to, tobacco products;
our ability to further diversify our business beyond the traditional tobacco industry;
our ability to successfully expand internationally and make investments outside Japan;
competition, changing consumer preferences and behavior;
our ability to manage impacts derived from business diversification or business expansion;
economic, regulatory and political changes, such as nationalization, terrorism, wars and civil unrest, in countries in which we operate;
fluctuations in foreign exchange rates and the costs of raw materials; and
Adjusted Operating Profit (AOP) at constant FX: +26.9% vs. PY
Robust performance driven by our international tobacco business
On-goingstronger industry volume due to travel restrictions
Increased driven by volume growth and price/mix contributions from the international tobacco business
AOP (On reported basis) and Operating profit
Increase in profit driven by strong topline
Limited FX headwinds
Improved financing costs
Note: The results for fiscal year 2021 on a reported basis shown above have been adjusted to include the impact of hyperinflationary accounting, which has been applied since Q3 2020, in accordance with the requirements stipulated in IAS 29. Starting from Q1 2021, results on a constant FX basis have been calculated to exclude amounts of revenue and profit that have increased due to hyperinflation in certain markets.