JT’s Consolidated Financial Results for FY2013

1
FOR IMMEDIATE RELEASE Tokyo, April 24, 2014
JT’s Consolidated Financial Results for FY2013
Results for FY2013
 At constant FX, adjusted EBITDA and adjusted EPS increased 7.5% and 15.7% respectively,
exceeding the Business Plan 2013 targets amid a challenging operating environment. Revenue
and earnings reached record highs.
 Revenue and adjusted EBITDA grew 13.2% and 20.9% respectively driven by strong top-line
growth in the tobacco businesses and the depreciation of the Japanese Yen. Profit attributable
to owners of the parent increased 24.6%.
 International Tobacco Business: At constant FX, adjusted EBITDA in US Dollars achieved
double-digit growth of 11.3%, driven by a robust price/mix and market share gains in most key
markets. Core revenue and adjusted EBITDA in Japanese Yen grew 27.3% and 31.6%
respectively due to the depreciation of the currency against the US Dollar.
 Japanese Domestic Tobacco Business: Adjusted EBITDA grew 7.4% due to steady market
share growth driven by key brands centered on Mevius and a one-off increase in demand ahead
of the consumption tax (VAT) hike in April 2014.
 The Company’s Board is recommending a total dividend per share of ¥96, including a first halfyear dividend per share of ¥46 with a forecast dividend payout ratio of 40.8% for this fiscal year.
“Business Plan 2014”
 Under the 4S model, a source of competitive advantage, the Company prioritized business
investment for sustainable profit growth in the mid- to long-term, while pursuing the competitive
level of return to shareholders through profit growth.
 Adjusted Operating Profit growth rate: Mid to high single digit growth per annum in the mid- to
long-term at constant FX
 Dividend payout ratio: 50% for the fiscal year 2015, while pursuing a competitive level in
comparison with global FMCG players of no less than 50%
 Adjusted EPS growth rate: High single digit growth per annum in the mid- to long-term at
constant FX
 For the like-for-like comparison, the Company shows its forecasts for the 12 month period from
January 1, 2014 to December 31, 2014. Adjusted operating profit at constant FX is forecast to
increase 6.0%, due to solid top-line growth in the International Tobacco Businesses.
 Revenue and adjusted operating profit are forecast to grow 2.4% and 1.6% respectively for the
12 months. Profit attributable to owners of the parent is expected to decrease 16.6% due to
lower gains from real estate asset disposals and provisions relating to measures to strengthen
the competitiveness of the Japanese Domestic Tobacco Business.
 For the fiscal year 2014, a transitional period for the change in accounting period, the Company
intends to increase a total dividend per share to ¥100.2
Mitsuomi Koizumi, President and Chief Executive Officer of JT, commented:
“Our International Tobacco Business reached double-digit EBITDA growth at constant currency
against a backdrop of an increasingly challenging environment, once again demonstrating the
strength of our business fundamentals. Domestically, Mevius has shown steady market share gains,
establishing a solid market presence in the growing menthol segment.
This year we continued to take a number of strategic initiatives to expand product and geographic
portfolios and consolidate our core business, as shown by the successful completion of the global
rebranding of Mevius, the acquisition of a stake in Russia’s leading tobacco distributor, and the
introduction of the unique tobacco vaporizer Ploom in several markets.
The “4S” model is the source of our competitive advantage and uniqueness, enabling us to achieve
sustainable growth. Adaptability to the changing operating environment is another key for
continuous success. Guided by these principles, we will continue to place a top priority on business
investments, while creating additional value for our products and operations and aiming to exceed
the expectations of all our stakeholders.” 3
Consolidated Financial Results for FY2013
Unit: Billions of Yen
 Revenue
Revenue increased 13.2% driven by a strong price/mix which more than offset the overall
volume decline in the International Tobacco Businesses and the depreciation of the Japanese
currency.
 Adjusted EBITDA
Adjusted EBITDA increased 20.9% due to a strong price/mix in the International Tobacco
Business and depreciation of the Japanese currency. At constant FX, adjusted EBITDA grew
7.5%.
 Profit Attributable to Owners of the Parent
Profit attributable to owners of the parent grew 24.6%, due to an increase in adjusted EBITDA.
 Dividends
The Company’s Board is recommending a second half-year dividend per share of ¥50.
Accordingly, a total dividend per share of ¥96 is now forecast, including the payment of a first
half-year dividend of ¥46. This amounts to a forecast dividend payout ratio of 40.8% for this
fiscal year.
FY2012
(A)
FY2013
(B)
Difference
(B)-(A)
Net Change
(%)
Revenue 2,120.2 2,399.8 279.6 13.2
Adjusted EBITDA
622.0 751.7 129.8 20.9
Operating profit
532.2 648.3 116.0 21.8
Profit attributable to owners
of the parent 343.6 428.0 84.4 24.6
At constant FX:
Adjusted EBITDA
622.0 668.3 46.4 7.54
Results by Business Segment
 International Tobacco Business (Financial results for January 1 – December 31, 2013)
Units: Billions of Cigarettes, Billions of Yen
Jan-Dec 2012 Jan-Dec 2013 Net change (%)
Total shipment volume
436.5 416.4 -4.6%
GFB shipment volume
268.8 266.6 -0.8%
Core revenue
943.1 1,200.7 27.3%
Adjusted EBITDA
343.2 451.6 31.6%
Total shipment volume decreased 4.6 % primarily due to significant industry contraction and trade
inventory adjustments in a number of markets. Despite GFB shipment volume growth in Austria, the
Caucasus markets, Czech Republic, Germany, Hungary, Kazakhstan, Middle East and African
markets, Romania, South East Asia markets, Sweden, Taiwan and Turkey, GFB shipment volume
declined 0.8%. Year-on-year market share increased in France, Italy, Spain, Taiwan, Turkey and
the UK. In Russia total share of value and GFB share of market continued to grow.
Core revenue and adjusted EBITDA in US Dollars at constant FX increased 6.1% and 11.3%
respectively, driven by a strong price/mix which more than offset the 4.6% overall volume decline.
On a reported basis, core revenue and adjusted EBITDA grew 3.9% and 7.5% respectively. In
Japanese Yen, core revenue and adjusted EBITDA increased 27.3% and 31.6% respectively, as a
result of the currency depreciation against the US Dollar
1
.
 Japanese Domestic Tobacco Business
Units: Billions of Cigarettes, Billions of Yen
FY2012 FY2013 Net change (%)
Total sales volume 116.2 120.1 3.3
Core revenue 654.0 676.2 3.4
Adjusted EBITDA
281.3 302.1 7.4
Total sales volume grew 3.3% due to steady growth in market share led by key brands and a one-off
increase in demand preceding the consumption tax (VAT) hike, which is estimated to account for
approximately 40% of a month’s sales volume. The growth of total sales volume positively affected
core revenue and adjusted EBITDA, which grew 3.4% and 7.4% respectively. The adjusted EBITDA
growth was additionally supported by lower promotion expenditure.
Mevius remains the main driving force of the total market share gain to 61.0% (FY2012:
59.6%). For the 12-month period since its rebranding in February 2013, total sales volume
improved for the first time since 1998 (with the exception of the temporary impact of the March 2011
earthquake). The release of new products, “Mevius Premium Menthol Option” and “Mevius
Premium Menthol Spread,” contributed to the Company’s stronger presence in the growing menthol
segment. 5
 Pharmaceutical Business
Unit: Billions of Yen
The revenue growth was due to increased milestone payments related to progress in R&D of
original JT compounds that have been out-licensed, and higher royalty revenue. Other contributing
factors were sales growth of Remitch
®
Capsules, an anti-pruritus drug for hemodialysis patients, and
an anti-HIV drug, Truvada
®
Combination Tablets by Torii Pharmaceutical, as well as a one-off
increase in demand ahead of the consumption tax (VAT) hike. In total, these factors increased
revenue by ¥11.3 billion. Adjusted EBITDA improved by ¥7.3 billion to -¥5.4 billion.
Key achievements in FY2013:
 JT
Stribild
®
Combination Tablets (anti-HIV): launched in Japan in May 2013
Riona
®
Tablets 250mg (Hyperphophatemia): received manufacturing and marketing approval
in Japan in January 2014 and will be launched in Japan in May 2014
 Torii Pharmaceutical
Cedartolen
®
sublingual drop (cedar pollinosis): received manufacturing and marketing
approval in Japan in January 2014
 Outlicensed to partners
Mekinist™
(melanoma): received the US Food and Drug Administration’s approval in May
2013 and launched in the US in June 2013
Vitekta™
(HIV infection): received the European Medicines Agency’s approval in November
2013
 Beverage Business
Unit: Billions of Yen
Despite the increase in total sales volume of the Company’s beverage products, revenue declined
¥1.0 billion to ¥184.5 due to lower revenue from vending machines. Adjusted EBITDA decreased
¥3.7 billion due to lower revenue and increased expenses of reinforcing the vending machine
operations and initiatives to strengthen brand equity.
 Processed Food Business

Unit: Billions of Yen
Sales of staple food products have shown steady growth, but, as a result of the closure in December
2012 of the processed fishery products business, revenue declined ¥11.8 billion. Excluding this
negative effect, revenue grew ¥4.3 billion. Affected by higher raw materials costs due to the
depreciation of the Japanese Yen, adjusted EBITDA increased ¥0.1 billion, driven by growth in
staple food products.
FY2012 (A) FY2013 (B)
Difference
(B) – (A)
Revenue 53.2 64.4 11.3
Adjusted EBITDA -12.7 -5.4 7.3
FY2012 (A) FY2013 (B)
Difference
(B) – (A)
Revenue 185.5 184.5 -1.0
Adjusted EBITDA 12.4 8.7 -3.7
FY2012 (A) FY2013 (B)
Difference
(B) – (A)
Revenue 168.7 156.9 -11.8
Adjusted EBITDA 7.4 7.5 0.16
“Business Plan 2014”
 Management Principle
Under the “4S” model, the Company will balance the interests of consumers, shareholders,
employees and wider society, and fulfil our responsibilities towards them, aiming to exceed their
expectations. The 4S model has allowed us to achieve sustainable profit growth in the past years.
The Company firmly believes that the 4S model will increase the company’s value in the mid- to
long-term, and consequently is in the best interests of all stakeholders.
The Company prioritizes business investments for sustainable future profit growth in the mid- to
long-term, while pursuing a competitive level of return to shareholders in comparison with global
FMCG players through profit growth.
 Mid- to Long-Term Targets
The Company will continuously strive to achieve mid to high single digit growth per annum in
adjusted operating profit at constant FX in the mid- to long-term. It aims to achieve a consolidated
dividend payout ratio of 50% for the fiscal year 2015, while pursuing a competitive level in
comparison with global FMCG players of no less than 50%. It also aims for a high single digit
adjusted EPS growth per annum in the mid- to long-term at constant FX. Share buy-backs may be
considered from the perspective of properly managing the adjusted EPS growth rate.
 Mid- to Long-Term Directional Guidance
The Tobacco businesses continue to be the Company’s core profit generator and profit growth
engine, aiming for mid to high single digit adjusted operating profit growth per annum in the mid- to
long-term. The Japanese domestic tobacco business remains a highly competitive platform of
profitability, while the International Tobacco Business strengthens its role as the Group’s profit
growth engine.
The Pharmaceutical business will strive to establish a stronger profit platform through maximization
of each product value and promotion of R&D for the next generation of strategic compounds.
The Beverage business will strengthen its business foundation to achieve further growth in order to
contribute to the Group’s profit.
The Processed Food business will strive to achieve operating profit margins on a par with or above
the industry average to grow its profit contribution to the Group.
Shareholders
Employees Society
Consumers 7
Changes as of FY2014
 Change of Key Performance Indicator
In order to further improve the management of business investments and their return, the Company
has changed one of its key performance indicators from adjusted EBITDA to adjusted operating
profit, as of April 1, 2014. For our investors this change will also simplify the process of comparison
with other industry players.
Adjusted Operating profit:
Operating profit + Amortization of acquired intangibles + Adjusted items (income and costs)*
*Adjusted items = impairment losses on goodwill ± restructuring income and costs ± others
 Change of the Accounting Period
As previously announced on January 30, 2014, JT Group will change the closing date of its
accounting period from March 31 to December 31. Consequently, the fiscal year 2014 on a reported
basis is a transitional period for the change, and will cover only nine months from April 1, 2014 to
December 31, 2014. However, the change does not concern the international affiliates, as they are
already operating on a January 1 to December 31 accounting period basis.
Important notice: for the purpose of fair comparison, in its forecast the Company refers to the fiscal
year 2014 as a full calendar year from January 1 to December 31, 2014.
Consolidated Forecast for the 12 month period ending December 31, 2014
The Company forecasts a 6.0% growth in adjusted operating profit at constant FX due to the top-line
growth in the International Tobacco Business and maintaining the level of profit in the Japanese
Domestic Tobacco Business. On a reported basis, revenue and adjusted operating profit are
forecast to increase 2.4% and 1.6% respectively, affected by the appreciation of the US Dollar
against local currencies. Profit attributable to the owners of the parent is expected to decline 16.6%
as a result of lower gains from real estate asset disposals and provisions related to the set of
measures aimed at strengthening the competitiveness of the Japanese Domestic Tobacco Business
announced in October 2013.
Unit: Billions of Yen
Forecast at constant FX
Jan-Dec 2013
Actual
(A)
Jan-Dec 2014
Forecast
(B)
Change from 2013
Actual
(B)-(A)
Revenue
2,372.2 2,430.0
57.8
(2.4%)
Adjusted operating
profit 613.0 623.0
10.0
(1.6%)
Operating profit
643.3 554.0
-89.3
(-13.9%)
Profit attributable to
owners of the parent 443.6 370.0
-73.6
(-16.6%)
Adjusted operating
profit 613.0 650.0 37.0 (6.0%)8
 International Tobacco Business
2
: Mainly due to ongoing industry contraction in Europe and
Russia, both total and GFB shipment volume
3
are forecast to decrease 3.0% and 1.7%
respectively. However, the Company is committed to delivering double-digit growth in adjusted
operating profit at constant FX in US Dollars resulting from revenue growth led by robust
pricing. In Japanese Yen, core revenue and adjusted operating profit are forecast to increase
3.9% and 3.4% respectively
 Japanese Domestic Tobacco Business: In the fiscal year 2014 overall demand is expected to
decline 3% to 4% including a temporary slow-down following the tax hike in April. Intensified
competition is also expected as a result of the price amendments by the industry players. Total
sales volume is forecast to decline 3.5% to 112.5 billion, with a 1.4% lower revenue. However,
the influence of declining demand is expected to be mitigated by a number of brand equity
strengthening initiatives aimed at retaining consumers as well as cost reductions, to help
maintain the existing level of profit.
 Pharmaceutical Business: Due to an expected increase in royalty revenues related to higher
sales of original JT compounds that have been out-licensed, as well as increased sales by Torii
Pharmaceutical, revenue is forecast to grow to ¥63.0 billion. Adjusted operating profit is
forecast to improve to -¥13.0 billion, due to higher revenue partly offset by higher R&D
expenditure.
 Beverage Business: Further focus on the sales growth of the two flagship brands, “Roots” and
“Momono Tennen-sui”, is expected to result in a ¥4.2 billion increase of revenue to ¥188.0
billion. Adjusted operating profit is forecast to improve to -¥1.5 billion.
 Processed Food Business: As a result of sales growth in staple food products, driven by
higher added value, revenue is forecast to grow ¥7.8 billion to ¥165.0. Despite higher raw
materials costs and the depreciation of the Japanese Yen, adjusted operating profit is forecast
to improve to ¥3.0 billion due to increased sales from staple food products and continuous costsaving initiatives.
###
Japan Tobacco Inc. is a leading international tobacco product company. Its products are sold in over 120 countries and its
internationally recognized brands include Winston, Camel, Mevius and Benson & Hedges. With diversified operations, JT
is also actively present in pharmaceuticals, beverages and processed foods. The company’s revenue was ¥2.399 trillion
(US$23,318 million(*)) in the fiscal year ended March 31, 2014.
*Translated at the rate of ¥102.92 per $1, as of March 31, 2014
Notes:
1
January – December Japanese Yen exchange rates against US Dollar: ¥79.81 (2012) and ¥97.73 (2013)
2
The exchange rate assumptions for US $1.00 are; Ruble 36.00, UK Sterling 0.60, Euro 0.72, Swiss Franc 0.88, Taiwan
Dollar 30.30, Turkish Lira 2.30, Ukrainian Hryvnia 10.00 and ¥100.00. Appreciation of the Japanese Yen and the Swiss
Franc against the US Dollar negatively affects the consolidated financial result numbers. Conversely, appreciation of the
other currencies against the US Dollar has a positive effect.
3
Following a recent assessment of trends in fine cut consumption, the conversion rate from tons to cigarette equivalent
units for High Volume Tobacco has been adjusted. 2013 figures for Total and GFB shipment volume have been restated
accordingly.
Additional definitions are provided at http://www.jt.com/investors/media/definitions/index.html.
Contact: Ryohei Sugata, General Manager
Dmitry Krivtsov, Associate General Manager
Media and Investor Relations Division
Japan Tobacco Inc. Tokyo: +81-3-5572-4292
E-mail: [email protected] for FY2013
(April 1, 2013 through March 31, 2014)
1. Summary of Business Performance (unit: JPY billion,%) 4.Consolidated financial position data (unit: JPY billion)
Revenue 2,120.2 2,399.8 +279.6 +13.2% Total Assets 3,852.6 4,611.4 +758.9
Operating profit 532.2 648.3 +116.0 +21.8% Total Equity 1,892.4 2,596.1 +703.7
Profit before income taxes 509.4 636.2 +126.8 +24.9% Equity attributable to owners of the parent company 1,806.5 2,505.6 +699.1
Profit 351.4 435.3 +83.8 +23.9% BPS(attributable to owners of parent company) (yen) 993.98 1,378.57 +384.59
Profit(attributable to owners of parent company) 343.6 428.0 +84.4 +24.6%
Basic EPS(yen) 181.07 235.48 +54.42 +30.1% 5.Liquidity

(unit: JPY billion)
Diluted EPS(yen) 180.98 235.35 +54.37 +30.0%
Adjusted EBITDA
*1
622.0 751.7 +129.8 +20.9%
Adjusted profit 329.7 410.4 +80.7 +24.5% Liquidity 168.3 259.3 91.0
Adjusted EPS(yen)
*2
173.64 225.68 +52.04 +30.0% *: Liquidity=cash and deposits+marketable securities+securities purchased under repurchase agreements
DPS(yen) 68.00 96.00 +28.00 +41.2% 6.Interest-bearing debt
*
(unit: JPY billion)
Payout ratio 37.6% 40.8% +3.2%pt +0.0%
ROE(attributable to owners of parent company) 20.0% 19.9% -0.1%pt -
Interest-bearing debt 327.2 375.9 48.6
(Reference) (unit: JPY billion,%) *: Interest-bearing debt = short-term bank loans + CP + bonds + long-term borrowings + lease obligation
7.Consolidated cash flows data (unit: JPY billion,%)
Cash flows from operating activities 466.6 396.5 -70.1 -15.0%
Cash flows from investing activities -147.9 -163.5 -15.5 -
Cash flows from financing activities -569.5 -145.2 +424.3 -
*1 Cash and cash equivalents, beginning of the year 404.7 142.7 -262.0 -64.7%
*2
Cash and cash equivalents, end of the year
*1
142.7 253.2 +110.5 +77.4%
FCF
*2
316.0 212.6 -103.5 -32.7%
*3 *1
2.Breakdown of Revenue (unit: JPY billion,%) *2
Revenue 2,120.2 2,399.8 +279.6 +13.2%
Japanese domestic tobacco 687.1 710.3 +23.2 +3.4% 8.Capital expenditures (unit: JPY billion,%)
Core revenue
*1
654.0 676.2 +22.2 +3.4%
International tobacco
*2
1,010.7 1,270.0 +259.4 +25.7%
Core revenue
*3
943.1 1,200.7 +257.6 +27.3% Capital expenditures 137.4 156.2 +18.7 +13.6%
Pharmaceutical 53.2 64.4 +11.3 +21.2% Japanese domestic tobacco 71.2 49.1 -22.1 -31.1%
Beverage 185.5 184.5 -1.0 – 0.5% International tobacco

37.5 78.5 +41.0 +109.4%
Processed foods 168.7 156.9 -11.8 – 7.0% Pharmaceutical 5.8 3.9 -1.9 -33.0%
Others 15.0 13.6 -1.4 – 9.1% Beverage 12.0 14.6 +2.6 +21.7%
(Reference) (unit: USD million,%) Processed foods 4.6 4.9 +0.3 +6.6%
Other/Elimination and corporate 6.3 5.1 -1.2 -18.9%
* :International tobacco business: 12M ended Dec. 2012 and 12M ended Dec .2013
9.Business data
【Japanese domestic tobacco business】
JT sales volume

116.2 120.1 +3.9 +3.3% BNU
*1 Total demand 195.1 196.9 +1.8 +0.9% BNU
*2 :International tobacco business: 12M ended Dec. 2012 and 12M ended Dec .2013 JT market share 59.6% 61.0% +1.4%pt
*3 JT net sales after tax per 1,000 cigarettes 5,502 5,485 -17 – 0.3% JPY
*
*4
【International tobacco business】
Total shipment volume

436.5 416.4 -20.2 – 4.6% BNU
GFB shipment volume 268.8 266.6 -2.2 – 0.8% BNU
3.Adjusted EBITDA by business segment
*1
(unit: JPY billion,%) JPY/USD rate for consolidation 79.81 97.73 +17.92 -18.3% JPY
RUB/USD rate for consolidation 31.07 31.84 +0.77 -2.4% RUB
GBP/USD rate for consolidation 0.63 0.64 +0.01 +1.3% GBP
Consolidated Operating profit 532.2 648.3 +116.0 +21.8% EUR/USD rate for consolidation 0.78 0.75 -0.02 +3.3% EUR
Adjustment
*3
89.8 103.5 +13.7 – CHF/USD rate for consolidation 0.94 0.93 -0.01 +1.2% CHF
Adjusted EBITDA
*1
622.0 751.7 +129.8 +20.9% TWD/USD rate for consolidation 29.57 29.68 +0.11 -0.4% TWD
Japanese domestic tobacco Operating profit 241.3 258.1 +16.8 +7.0% *
Adjustment
*3
40.0 44.0 +4.0 -
Adjusted EBITDA
*1
281.3 302.1 +20.8 +7.4% <Pharmaceutical business>
International tobacco Operating profit
*2
289.4 376.4 +87.0 +30.1%
Adjustment
*2*3
53.8 75.2 +21.5 – R&D expenses 30.7 30.5 -0.2 – 0.8%
Adjusted EBITDA
*1*2
343.2 451.6 +108.4 +31.6%
Pharmaceutical Operating profit -16.2 -9.0 +7.2 – <Beverage business>
Adjustment
*3
3.4 3.6 +0.2 -
Adjusted EBITDA
*1
-12.7 -5.4 +7.3 – Sales of JT products 32.25 32.68 +0.43 +1.3%
Beverage Operating profit 2.3 -2.1 -4.4 – Roots 18.54 17.85 -0.69 – 3.7%
Adjustment
*3
10.1 10.8 +0.7 -
Adjusted EBITDA
*1
12.4 8.7 -3.7 – 30.2%
Processed Foods Operating profit -5.8 -0.2 +5.6 -
Adjustment
*3
13.2 7.7 -5.5 – Number of beverage vending machines
*
262,000 266,000 +4,000
Adjusted EBITDA
*1
7.4 7.5 +0.1 +1.5% JT-owned 39,000 44,000 +5,000
Other/Elimination Operating profit 21.2 25.0 +3.9 +18.4% Combined 83,000 82,000 -1,000
Adjustment
*3
-30.7 -37.8 -7.1 – Others 140,000 140,000 +0
Adjusted EBITDA
*1
-9.6 -12.7 -3.2 – *
(Reference) (unit: USD million,%)
10.Number of employees*
Number of employees (consolidated basis) 49,507 51,563 +2056
11,043 11,022 – 21
*1 24,397 26,731 +2334
1,744 1,787 +43
*2 :International tobacco business: 12M ended Dec. 2012 and 12M ended Dec. 2013 4,912 5,035 +123
*3 6,563 6,096 – 467
848 892 +44
*4 Number of employees (parent company) 8,925 8,774 – 151
* :
As of end of
Mar.2013
As of end of
Mar.2014
Change
FY2012 FY2013 Change
Rates of
Change
-In accordance with the revised IAS 19, retrospective applications have been made to FY2012 figures at constant currency and to FY2012 reported figures.
-This retrospective did not have a material impact on the condensed interim consolidated financial statements.
FY2012 FY2013 Change
Rates of
Change
As of end of
Mar.2013
As of end of
Mar.2014
Change
As of end of
Mar.2014
Change
FY2012 FY2013 Change
As of end of
Mar.2013
Adjusted EPS at constant rates of exchange(yen)
*2
*3 173.64 200.96 +27.32
Adjusted EBITDA at constant rates of exchange
*3
622.0 668.3 +46.4 +7.5%
Rates of
Change
FY2012 FY2013 Change
Rates of
Change
Foreign currency translation adjustments on cash
and cash equivalents
-11.2 22.7 +33.9 -
12,362 +708.0 +6.1%
Included in “Cash and cash equivalents” at the end of this quarter is ¥42.1 billion (IRR 1,255.3 billion) held by the Group’s Iranian
subsidiary, JTI Pars PJS Co.. Due to international sanctions and other factors imposed on Iran, the subsidiary’s ability to remit funds outside
of Iran is restricted.
:FCF is total of cash flows from operating activities and investing activities excluding the following items;
Cash flows from interest and dividends received and its tax effect / interest paid and its tax effect in operating activities.
Cash flows from purchase of short-term investment securities, proceeds from sale and redemption of short-term investment securities,
purchase of investment securities, proceeds from sale of investment securities, payments into time deposits, proceeds from withdrawal of
time deposits and others in investing activities ( those from purchase/sale of securities held for business operation are not included here).
2012
Jan-Dec
2013
Jan-Dec
Change
Rates of
Change
FY2012 FY2013 Change
Rates of
Change
:Sales volume of domestic duty-free and China business is excluded, which was 3.1 billion for FY2012 and 3.4 billion for
FY2013, respectively.
2012
Jan-Dec
2013
Jan-Dec
Change
Rates of
Change
:Total shipment volume includes fine cut, cigars, pipe tobacco and snus but excludes contract manufactured products and waterpipe tobacco products
:Constant currency measures are computed by restating current year results at the previous year’s foreign currency
exchange rates. In 2013, market results, subject to highly volatile currency, significant currency devaluation and/or highly
inflationary environments, are reported at actual/assumed exchange rates for figures both on a reported and at constant
rates of exchange. Accordingly, 2012 results at constant rates of exchange have been restated for such markets. Results
at constant rates of exchange should be considered in addition to, not as a substitute for, results reported in accordance
with IFRS.
FY2012 FY2013 Change
Rates of
Change
FY2012 FY2013 Change
Rates of
Change
:Excluding revenue from the distribution business of imported tobacco
:Includes revenue from waterpipe tobacco, but excludes revenues from distribution, contract manufacturing and other
peripheral businesses.
International tobacco
Core revenue
*3 11,817 12,273 +457.0 +3.9%
International tobacco Core revenue
at constant rates of exchange
*3*4 11,655
FY2012 FY2013 Change
Rates of
Change
2012
Jan-Dec
2013
Jan-Dec
Change
Rates of
Change
(unit: JPY billion,%)
FY2012 FY2013 Change
Rates of
Change
(unit: million case,%)
Japanese domestic tobacco
International tobacco
Pharmaceutical
Beverage
Processed foods
As of end of
Mar.2013
As of end of
Mar.2014
Change
:Adjusted EBITDA = Operating profit + depreciation and amortization ± adjustment items (income and costs)*
*Adjustment items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others
:Depreciation and amortization ± adjustment items (income and costs)*
*Adjustment items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others
:Beverage vending machines include vending machines for cans and packs, etc. and for cups owned by
other companies and operated by our subsidiary. “JT-owned” vending machines are owned by JT.
“Combined” vending machines are owned by our subsidiaries or affiliates ,and focus on selling JT brand
Beverage but also sell non-JT brand Beverage.
As of end of
Mar.2013
As of end of
Mar.2014
International tobacco Adjusted EBITDA Change
*1
4,300 4,623 +322.6 +7.5%
International tobacco Adjusted EBITDA
at constant rates of exchange
*1*4 4,145 4,614 +468.7 +11.3%
Other/Corporate
Number of employees is counted at working base, unless otherwise indicated.
:Constant currency measures are computed by restating current year results at the previous year’s foreign currency
exchange rates. In 2013, market results, subject to highly volatile currency, significant currency devaluation and/or highly
inflationary environments, are reported at actual/assumed exchange rates for figures both on a reported and at constant
rates of exchange. Accordingly, 2012 results at constant rates of exchange have been restated for such markets. Results
at constant rates of exchange should be considered in addition to, not as a substitute for, results reported in accordance
with IFRS.
+15.7%
:FY2012-Actual
FY2013- Regarding international tobacco business, at the same foreign exchange rates between local currency vs USD and
JPY vs USD as FY2012
:Adjusted EBITDA = Operating profit + depreciation and amortization ± adjustment items (income and costs)*
*Adjustment items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others
:Adjusted EPS = (Profit or loss attributable to owners of the parent company ± adjustment items (income and costs)* ±
tax and minority interests adjustments) / (weighted-average common shares + increased number of ordinary shares under
subscription rights to shares)
*Adjustment items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± othersResults for FY2013
(April 1, 2013 through March 31, 2014)
10.Account titles of P/L (unit: JPY billion) (unit: JPY billion)
Revenue 2,120.2 2,399.8 +279.6 Financial income 5.5 8.4 +2.9
Cost of sales 899.4 980.0 +80.5 Dividend income 1.4 1.5 +0.2
Gross profit 1,220.8 1,419.9 +199.1 Interest income 3.8 6.4 +2.6
Other Operating profit 42.2 55.6 +13.5 Foreign exchange gain - - -
Other 0.4 0.4 +0.1
Financial costs 28.4 20.4 -7.9
Others 7.0 10.7 +3.7 Interest expenses 10.1 8.6 -1.5
Pension/post retirement benefit 5.8 5.8 +0.1
Foreign exchange loss 11.3 4.7 -6.6
SG&A 733.5 828.9 +95.5 Other 1.2 1.2 +0.1
Advertising expenses 20.6 21.7 +1.2 Profit before income taxes 509.4 636.2 +126.8
Promotion expenses 137.5 147.8 +10.3 Income taxes 157.9 200.9 +43.0
Freight and storage cost 27.1 27.1 -0.0 Profit 351.4 435.3 +83.8
Commissions 41.2 49.3 +8.1 Owners of the parent company 343.6 428.0 +84.4
Employee benefits expenses 241.5 275.8 +34.3 Non-controlling interests 7.9 7.3 -0.5
R&D expenses 56.9 57.1 +0.2
Depreciation and amortization 59.1 68.8 +9.7 *1
Impairment losses 3.2 2.4 -0.8
*2 :International tobacco business: 12M ended Dec. 2012 and 12M ended Dec. 2013
Others 137.2 159.7 +22.5
Operating profit 532.2 648.3 +116.0
Depreciation and amortization 116.5 132.9 +16.5
Adjustment items (income) -34.2 -44.0 -9.8
Adjustment items (costs) 7.5 14.6 +7.0
Adjusted EBITDA
*1
622.0 751.7 +129.8
Japanese domestic tobacco Operating profit 241.3 258.1 +16.8
Depreciation and amortization 41.1 44.4 +3.3
Adjustment items (income) -1.2 -1.1 +0.1
Adjustment items (costs) 0.2 0.7 +0.6
Adjusted EBITDA
*1
281.3 302.1 +20.8
International tobacco Operating profit
*2
289.4 376.4 +87.0
Depreciation and amortization
*2
51.1 63.7 +12.6
Adjustment items (income)
*2
-0.4 - +0.4
Adjustment items (costs)
*2
3.1 11.5 +8.4
Adjusted EBITDA
*1*2
343.2 451.6 +108.4
Pharmaceutical Operating profit -16.2 -9.0 +7.2
Depreciation and amortization 3.4 3.6 +0.2
Adjustment items (income) - - -
Adjustment items (costs) - - -
Adjusted EBITDA
*1
-12.7 -5.4 +7.3
Beverage Operating profit 2.3 -2.1 -4.4
Depreciation and amortization 10.1 10.8 +0.7
Adjustment items (income) - - -
Adjustment items (costs) - - -
Adjusted EBITDA
*1
12.4 8.7 -3.7
Processed Foods Operating profit -5.8 -0.2 +5.6
Depreciation and amortization 7.1 6.9 -0.2
Adjustment items (income) - -0.2 -0.2
Adjustment items (costs) 6.0 1.0 -5.0
Adjusted EBITDA
*1
7.4 7.5 +0.1
Others/Elimination Operating profit 21.2 25.0 +3.9
Depreciation and amortization 3.6 3.5 -0.2
Adjustment items (income) -32.6 -42.6 -10.0
Adjustment items (costs) -1.7 1.4 +3.1
Adjusted EBITDA
*1
-9.6 -12.7 -3.2
FY2012 FY2013 Change FY2012 FY2013 Change
-In accordance with the revised IAS 19, retrospective applications have been made to FY2012 figures at constant currency and to FY2012 reported figures.
-This retrospective did not have a material impact on the condensed interim consolidated financial statements.
Share of profit of investments accounted for using
the equity method
2.8 1.7 -1.1
Gain on sale of tangible fixed assets,
intangible assets and investment properties
35.2 45.0 +9.8
Loss on sale of tangible fixed assets and
investment properties
9.3 9.5 +0.2
impairment losses of investments in associates - 9.7 +9.7
:Adjusted EBITDA = Operating profit + depreciation and amortization ± adjustment items (income and costs)*
*Adjustment items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± othersResults for FY2013
(April 1, 2013 through March 31, 2014)
11.Account titles of B/S (unit: JPY billion) (unit: JPY billion)
Current assets 1,213.1 1,484.4 +271.2 Current liabilities 1,113.0 1,250.5 +137.5
Cash and cash equivalents 142.7 253.2 +110.5 Trade and other payables 312.7 354.7 +42.0
Cash and deposits 121.8 239.0 +117.2 Notes and accounts payable 173.5 190.4 +17.0
Short-term investment 21.0 14.3 -6.7 Other payables 71.3 73.3 +2.0
Trade and other receivables 387.8 440.2 +52.4 Other 68.0 91.0 +23.0
Notes and accounts receivable 368.0 430.2 +62.3 Bonds and borrowings※4 44.3 195.6 +151.3
Other 21.5 12.3 -9.1 Income taxes payable 85.7 77.2 -8.6
Allowance for doubtful accounts -1.6 -2.3 -0.7 Other financial libilities※4 8.6 9.5 +0.9
Inventories 473.0 551.0 +77.9 Provisions 5.3 7.4 +2.1
Merchandise and finished goods 133.1 160.2 +27.1 Other current liabilities※5 656.3 606.2 -50.1
Leaf tobacco 292.0 334.3 +42.3
Other 47.9 56.4 +8.6
Other financial assets※1 29.1 17.3 -11.8 Non current liabilities 847.2 764.8 -82.3
Other current assets 177.9 220.7 +42.8 Bonds and borrowings※4 270.4 166.2 -104.2
Prepaid tobacco excise taxes 130.3 176.3 +45.9 Other financial liabilities※4 18.8 17.7 -1.1
Prepaid expenses 9.5 11.3 +1.8 Retirement benefit liabilities 342.6 340.5 -2.1
Consumption taxes payable 10.6 12.5 +1.9 Provisions 4.8 5.2 +0.5
Other 27.4 20.6 -6.8 Other non-current liabilities※5 113.2 126.5 +13.3
Non-current assets held for sale 2.6 2.0 -0.6 Deferred tax liabilities 97.3 108.7 +11.4
Non-current assets 2,639.4 3,127.1 +487.6 Liabilities 1,960.1 2,015.4 +55.2
PP&E 672.3 780.0 +107.7 Equity 1,892.4 2,596.1 +703.7
Cost 1,535.7 1,721.1 +185.4 Share capital 100.0 100.0 -
Capital surplus 736.4 736.4 -0.0
Treasury shares -344.6 -344.5 +0.1
Land, buildings and structures 307.3 331.3 +24.0 Other components of equity -155.4 251.1 +406.5
Cost 615.7 654.0 +38.3 Retained earnings 1,470.1 1,762.6 +292.4
Non-controlling interests 85.9 90.5 +4.6
Total liabilities and equity 3,852.6 4,611.4 +758.9
Machinery and vehicles 271.2 311.9 +40.7
Cost 720.2 811.1 +90.9 ※4
Derivative liabilities 3.8 4.9 +1.0
Tools, furniture and fixtures 65.3 68.7 +3.5 Short-term borrowings 23.8 21.9 -1.9
Cost 171.4 188.0 +16.6 Commercial paper - - -
Current portion of long-term borrowings 20.5 1.2 -19.2
Current portion of bonds - 172.4 +172.4
Construction in progress 28.5 68.0 +39.5 Long-term borrowings 33.2 35.0 +1.9
Cost 28.5 68.0 +39.5 Bonds 237.2 131.1 -106.1
Other 23.6 22.4 -1.2
Goodwill※2 1,316.5 1,584.4 +268.0 ※5 Other liabilities(current & non-current) 769.5 732.7 -36.8
Cost 1,316.5 1,584.4 +268.0 Tobacco excise taxes payable 285.8 291.4 +5.6
Tobacco special excise taxes payable 14.5 10.0 -4.5
Tobacco local excise taxes payable 182.4 121.5 -60.9
Intangible assets 348.8 385.1 +36.3 Consumption taxes payable 85.4 91.7 +6.3
Cost 933.1 1,041.5 +108.4 Provision for bonuses 45.5 52.6 +7.2
Compensated absences 19.8 21.5 +1.7
Other 136.3 144.0 +7.7
Trademark※3 287.6 321.2 +33.6
Cost 733.7 824.7 +90.9
Software 31.9 34.4 +2.5
Cost 111.6 123.9 +12.3
Other 29.3 29.5 +0.2
Cost 87.7 92.9 +5.2
Investment property 59.0 61.4 +2.4
Retirement benefit assets 14.8 16.5 +1.7
Other financial assets※3 71.8 92.6 +20.8
Deferred tax assets 133.3 100.9 -32.4
Total assets 3,852.6 4,611.4 +758.9
※1 Other financial assets(current & non-current) 100.9 109.9 +9.0
Derivative assets 4.1 8.6 +4.5
Equities 46.7 53.7 +7.0
Bonds 15.7 7.2 -8.5
Time deposits 5.3 1.5 -3.8
Other 38.2 47.2 +9.0
Allowance for doubtful accounts -9.1 -8.3 +0.8
※2
※3 Trademark International tobacco business 284.9 318.7 +33.8
Liabilities directly associated with non-current
assets held-for-sale
0.1 0.1 -0.0
Accumulated depreciation and
accumulated impairment losses
-863.4 -941.1 -77.7
As of end of
Mar.2013
As of end of
Mar.2014
Change
As of end of
Mar.2013
As of end of
Mar.2014
Change
+46.9
Accumulated depreciation and
accumulated impairment losses
-449.0 -499.1 -50.2
Accumulated depreciation and
accumulated impairment losses
-308.3 -322.7 -14.3
Bonds and borrowings(including other financial liabilities)
(current & non-current)
342.1
Accumulated depreciation and
accumulated impairment losses
-106.1 -119.2 -13.2
Accumulated depreciation and
accumulated impairment losses
- - -
388.9
Accumulated depreciation and
accumulated impairment losses
Goodwill
processed food cash-generating unit
25.4 25.4 -
Accumulated depreciation and
accumulated impairment losses
-58.3 -63.4 -5.0
Investments accounted for using the equity
method
22.9 106.1 +83.2
-584.2 -656.4 -72.1
-In accordance with the revised IAS 19, retrospective applications have been made to FY2012 figures at constant currency and to FY2012 reported figures.
-This retrospective did not have a material impact on the condensed interim consolidated financial statements.
Goodwill
International tobacco cash-generating unit
1,274.0 1,541.9 +267.9
Accumulated depreciation and
accumulated impairment losses
-446.1 -503.4 -57.3
Accumulated depreciation and
accumulated impairment losses
-79.8 -89.6 -9.8
Accumulated depreciation and
accumulated impairment losses
- - - 2014 Forecasts
【Jan-Dec Like for Like basis】
(as of April 24, 2014)
1. Summary of Business Performance (unit: JPY billion,%) 4.Business data
Revenue 2,372.2 2,430.0 +57.8 +2.4% JT sales volume

116.5 112.5 -4.0 – 3.5% BNU
Operating profit 643.3 554.0 -89.3 – 13.9% *: Sales volume of domestic duty-free and China business is excluded
Profit(attributable to owners of the parent) 443.6 370.0 -73.6 – 16.6%
Basic EPS(yen)
*1
242.12 203.57 -38.55 – 15.9%
Adjusted Operating profit
*2
613.0 623.0 +10.0 +1.6%
(参考) 903,271,662
Total shipment volume
*1
417.5 405.0 -12.5 – 3.0% BNU
GFB shipment volume 267.5 263.0 -4.5 – 1.7% BNU
JPY/USD rate for consolidation 97.73 100.00 +2.27 -2.3% JPY
RUB/USD rate for consolidation 31.84 36.00 +4.16 -11.6% RUB
*1 GBP/USD rate for consolidation 0.64 0.60 -0.04 6.6% GBP
*2 EUR/USD rate for consolidation 0.75 0.72 -0.03 4.6% EUR
CHF/USD rate for consolidation 0.93 0.88 -0.05 5.3% CHF
*3 TWD/USD rate for consolidation 29.68 30.30 +0.62 -2.0% TWD
*1:
2.Breakdown of Revenue (unit: JPY billion,%)
Revenue 2,372.2 2,430.0 +57.8 +2.4%
Japanese domestic tobacco 690.5 681.0 -9.5 – 1.4%
Core revenue
*1
656.3 646.0 -10.3 – 1.6%
International tobacco 1,270.0 1,319.0 +49.0 +3.9%
Core revenue
*2
1,200.7 1,247.0 +46.3 +3.9%
Pharmaceutical 58.2 63.0 +4.8 +8.3%
Beverage 183.8 188.0 +4.2 +2.3%
Processed Food 157.2 165.0 +7.8 +5.0%
Others 12.6 12.5 -0.1 – 0.4%
(Reference) (unit: USD million,%)
*1
*2
*3
3.OP & Adjusted Operating profit by business segment
*1
(unit: JPY billion,%)
Consolidated Operating profit 643.3 554.0 -89.3 – 13.9%
Japanese domestic tobacco 235.6 181.0 -54.6 – 23.2%
International tobacco 376.4 398.0 +21.6 +5.7%
Pharmaceutical -13.7 -13.0 +0.7 -
Beverage -2.1 -1.5 +0.6 -
Processed Food 0.7 3.0 +2.3 +306.5%
Other/Elimination 46.3 -14.5 -60.8 – 131.3%
Adjusted Operating profit
*1
613.0 623.0 +10.0 +1.6%
Japanese domestic tobacco
*1
234.6 234.5 -0.1 – 0.1%
International tobacco
*1
410.8 425.0 +14.2 +3.4%
Pharmaceutical
*1
-13.7 -13.0 +0.7 -
Beverage
*1
-2.1 -1.5 +0.6 -
Processed Food
*1
0.6 3.0 +2.4 +387.8%
Other/Elimination
*1
-17.3 -26.0 -8.7 -
(Reference) (unit: USD million,%)
*1
*2
-FY2014, a transitional period for the change in accounting period, will cover nine months from April 1, 2014 to December 31, 2014. The same change in the accounting period will be applied to those of the
Company’s consolidated subsidiaries whose current closing date is other than December 31.
-Based on the assumption that the fiscal year of the Company and all of its consolidated subsidiaries is 12 months from January to December, consolidated earnings forecasts for the year ending December 31,
2014 (on Jan-Dec Like for Like basis) will be as follows.
:2013-Actual
2014-at the same foreign exchange rates between local currency vs USD at 2013
:Adjusted Operating profit = Operating profit + Amortization of acquired intangibles + Adjusted items (income and costs)*
*Adjusted items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others
:FY2013-Actual
FY2014- Regarding international tobacco business, at the same foreign exchange rates between local currency vs USD and
JPY vs USD as FY2013
International tobacco Adjusted Operating profit
*1
4,206 4,230 +24 +0.6%
International tobacco Adjusted Operating profit at
constant rates of exchange
*1*2 4,206 4,630 +424 +10.1%
Rates of
Change
:Excluding revenue from the distribution business of imported tobacco
2013 2014 Change
Rates of
Change
2013
Jan-Dec basis
2014
Jan-Dec basis
Change
:Includes revenue from waterpipe tobacco, but excludes revenues from distribution, contract manufacturing and other
peripheral businesses.
:2013-Actual
2014-at the same foreign exchange rates between local currency vs USD at 2013
Total shipment volume includes fine cut, cigars, pipe tobacco and snus, but excludes contract manufactured products
and waterpipe tobacco
International tobacco
Core revenue at constant rates of exchange
*2*3 12,273 12,800 +527 +4.3%
International tobacco
Core revenue
*2 12,273 12,400 +127 +1.0%
Rates of
Change
2013 2014
:Adjusted Operating profit = Operating profit + Amortization of acquired intangibles + Adjusted items (income and costs)*
*Adjusted items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others
2013
Jan-Dec basis
2014
Jan-Dec basis
Change
Rates of
Change
Change
Change
:Based on profit attributable to owners of the parent
Rates of
Change
2013
Jan-Dec basis
2014
Jan-Dec basis
Change
Rates of
Change
Adjusted Operating profit at constant rates of
exchange
*3 613.0 650.0 +37.0 +6.0%
【International tobacco business】
Rates of
Change
2013 2014
2014
Jan-Dec basis
Change
2013
Jan-Dec basis
2014
Jan-Dec basis
Change
Rates of
Change
【Japanese domestic tobacco business】
2013
Jan-Dec basis 2014 Forecasts
【Reported basis】
(as of April 24, 2014)
1. Summary of Business Performance (unit: JPY billion,%) 4.Consolidated cash flows data (unit: JPY billion,%)
Revenue FCF

Operating profit *:
Profit(attributable to owners of the parent)
Basic EPS(yen)
*1
Adjusted Operating profit
*2
DPS(yen)
Payout ratio
*3
5.Capital expenditures (unit: JPY billion,%)
ROE(attributable to owners of the parent)
*4
*1
*2 Capital expenditures
Japanese domestic tobacco
*3 :Payout ratio=Dividend per share/Basic EPS International tobacco

*4 :Based on Profit attributable to owners of parent company and Equity attributable to owners of the parent company Pharmaceutical
Beverage
Processed Food
2.Breakdown of Revenue (unit: JPY billion,%) Other/Elimination and corporate
*: International business: Year ended 2013 and year ending 2014
Revenue
Japanese domestic tobacco 6.Business data
Core revenue
*1
International tobacco
*2
Core revenue
*3
JT sales volume

BNU
Pharmaceutical *: Sales volume of domestic duty-free and China business is excluded
Beverage
Processed Food
Others
(Reference) (unit: USD million,%)
Total shipment volume
*2
417.5 405.0 -12.5 – 3.0% BNU
GFB shipment volume 267.5 263.0 -4.5 – 1.7% BNU
JPY/USD rate for consolidation 97.73 100.00 +2.27 -2.3% JPY
RUB/USD rate for consolidation 31.84 36.00 +4.16 -11.6% RUB
GBP/USD rate for consolidation 0.64 0.60 -0.04 6.6% GBP
EUR/USD rate for consolidation 0.75 0.72 -0.03 4.6% EUR
*1 CHF/USD rate for consolidation 0.93 0.88 -0.05 5.3% CHF
*2 TWD/USD rate for consolidation 29.68 30.30 +0.62 -2.0% TWD
*3 *1: International business: Year ended 2013 and year ending 2014
*2:
*4
3.OP & Adjusted Operating profit by business segment
*1
(unit: JPY billion,%)
Consolidated Operating profit
Japanese domestic tobacco
International tobacco
*2
Pharmaceutical
Beverage
Processed Food
Other/Elimination
Adjusted Operating profit
*1
Japanese domestic tobacco
*1
International tobacco
*1*2
Pharmaceutical
*1
Beverage
*1
Processed Food
*1
Other/Elimination
*1
(Reference) (unit: USD million,%)
*1
*2
*3
-FY2014, a transitional period for the change in accounting period, will cover nine months from April 1, 2014 to December 31, 2014. The same change in the accounting period will be applied to those of the Company’s
consolidated subsidiaries whose current closing date is other than December 31.
-For its consolidated subsidiaries whose current closing date is December 31, the accounting period will remain unchanged, covering the twelve months from January 1, 2014 to December 31, 2014.
4,206
+424
:Adjusted Operating profit = Operating profit + Amortization of acquired intangibles + Adjusted items (income and costs)*
*Adjusted items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others
International tobacco Adjusted Operating profit at
constant rates of exchange
*1*2*3 4,206 +10.1%
International tobacco Adjusted Operating profit
*1*2
4,630
4,230 +24 +0.6%
FY2014
364.0
FY2014
FCF is total of cash flows from operating activities and investing activities excluding the following items;
Cash flows from interest and dividends received and its tax effect / interest paid and its tax effect in operating activities.
Cash flows from purchase of short-term investment securities, proceeds from sale and redemption of short-term investment securities,
purchase of investment securities, proceeds from sale of investment securities, payments into time deposits, proceeds from withdrawal
of time deposits and others in investing activities ( those from purchase/sale of securities held for business operation are not included
here).
+527
+1.0%
2013 Change
12,273
:2013-Actual
2014-at the same foreign exchange rates between local currency vs USD at 2013
:Based on profit attributable to owners of the parent
:International tobacco business: Year ended 2013 and year ending 2014
:Excluding revenue from the distribution business of imported tobacco
:International tobacco business: Year ended 2013 and year ending 2014
2013
Rates of
Change
2014 Change
:Includes revenue from waterpipe tobacco, but excludes revenues from distribution, contract manufacturing and other
peripheral businesses.
FY2013
648.3
258.1
376.4
-9.0
-2.1
Total shipment volume includes fine cut, cigars, pipe tobacco and snus, but excludes contract manufactured
products and waterpipe tobacco
【Japanese domestic tobacco business】
2014
2014 Change
Rates of
Change
【International tobacco business】 2013
*1
+4.3%
FY2014
82.0
12,400 +127
676.2
1,270.0
1,200.7
FY2013 FY2014
2,399.8
648.3
428.0
2,150.0
482.0
344.0
FY2013
189.27
552.0
100.00
52.8%
13.8%
235.48
641.8
96.00
40.8%
19.9%
:Adjusted Operating profit = Operating profit + Amortization of acquired intangibles + Adjusted items (income and costs)*
*Adjusted items (income and costs) = impairment losses on goodwill ± restructuring income and costs ± others
FY2014
257.7
410.8
64.4
184.5
156.9
13.6
12,273 12,800
:2013-Actual
2014-at the same foreign exchange rates between local currency vs USD at 2013
45.0
International tobacco
Core revenue
*2*3
Rates of
Change
International tobacco
Core revenue at constant rates of exchange
*2*3*4
146.0
130.0
10.5
-0.2
25.0
641.8
-1.0
3.0
-31.5
FY2013
212.6
FY2013
FY2013
120.1
-9.0
-2.1
0.6
-16.2
FY2014
482.0
115.0
398.0
-12.5
-1.0
3.0
-21.5
552.0
168.0
2,399.8
710.3
154.0
41.0
89.0
3.0
9.0
6.0
6.0
425.0
-12.5
156.2
49.1
78.5
3.9
14.6
4.9
5.1
2,150.0
501.0
475.0
1,319.0
1,247.0Data of JT products in Japanese market
* Excludes sales from the China, Hong Kong, and Macau markets and domestic duty-free sales.
Japanese Domestic Tobacco Business Results Market Share in Growing Segments
1. Quarterly Sales Volume (billions of cigarettes) 1. 1mg Tar
Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total (1) JT 1mg Tar Product Share (%)
FY 03/2012 18.4 32.5 30.0 27.5 108.4 Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total
FY 03/2013 29.4 30.2 29.8 26.8 116.2 FY 03/2012 9.8 14.1 14.1 14.3 13.2
FY 03/2014 29.3 30.3 30.1 30.4 120.1 FY 03/2013 14.4 14.2 14.3 14.4 14.3
FY 03/2014 14.7 14.7 14.7 14.8 14.7
(2) 1mg Market Share (%)
Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total
FY 03/2012 24.7 23.9 24.1 24.4 24.3
2. Quarterly Retail Price Sales (billions of JPY) FY 03/2013 24.5 24.2 24.4 24.5 24.4
Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total FY 03/2014 24.5 24.5 24.4 24.6 24.5
FY 03/2012 373.6 662.5 610.0 560.3 2,206.5 (3) JT Share in 1mg Tar Segment (%)
FY 03/2013 596.7 612.9 605.2 544.2 2,358.9 Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total
FY 03/2014 593.3 614.1 608.5 615.6 2,431.5 FY 03/2012 39.6 58.8 58.5 58.7 54.2
* Retail price sales = sales volume × fixed retail price. FY 03/2013 58.8 58.7 58.6 58.8 58.7
FY 03/2014 60.0 59.9 60.3 60.3 60.1
2. Menthol
(1) JT Menthol Product Share (%)
3. Quarterly Net Sales Excluding Excise Tax/ Revenue Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total
Per Thousand Cigarettes (JPY) FY 03/2012 3.2 6.3 6.6 6.9 5.8
Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total FY 03/2013 7.5 7.6 7.4 7.7 7.6
FY 03/2012 5,444 5,516 5,509 5,515 5,502 FY 03/2014 8.3 8.8 9.0 9.0 8.8
FY 03/2013 5,508 5,505 5,499 5,498 5,503 (2) Menthol Market Share (%)
FY 03/2014 5,491 5,485 5,481 5,483 5,485 Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total
* Net sales excluding excise tax /Revenue per thousand cigarettes FY 03/2012 26.1 24.2 25.1 25.0 25.1
= (retail price sales-retailer margins-consumption tax-excise taxes) FY 03/2013 25.6 25.7 25.6 26.2 25.8
/sales volume×1,000 FY 03/2014 26.3 26.3 26.4 26.1 26.3
(3) JT Share in Menthol Segment (%)
Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total
4. Quarterly JT Market Share (%) FY 03/2012 12.4 26.2 26.4 27.5 23.2
Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total FY 03/2013 29.3 29.4 28.9 29.6 29.3
FY 03/2012 40.8 59.3 58.7 59.2 54.9 FY 03/2014 31.6 33.4 34.0 34.4 33.4
FY 03/2013 59.4 59.7 59.6 59.5 59.6
FY 03/2014 60.5 60.7 61.1 61.5 61.0 3. JPY 440 or above*
(1) JT JPY 440 or above Product Share (%)
Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total
FY 03/2012 8.1 15.1 14.9 14.8 13.4
FY 03/2013 14.7 14.8 14.5 14.5 14.6
FY 03/2014 14.5 14.4 14.7 14.7 14.6
(2) JPY 440 or above Product Market Share (%)
Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total
FY 03/2012 37.6 36.4 37.0 36.6 36.9
FY 03/2013 36.6 36.9 39.5 36.6 36.7
FY 03/2014 36.1 35.9 36.0 35.9 36.0
(3) JT Share in JPY 440 or above Segment (%)
Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total
FY 03/2012 21.5 41.3 40.2 40.4 36.2
FY 03/2013 40.1 40.2 36.7 39.7 39.9
FY 03/2014 40.1 40.1 40.8 41.0 40.5Code
(Generic Name)
Potential
Indication/Dosage form
Note
In-house
Elvitegravir; In-house
Cobicistat, Emtricitabine,
Tenofovir Alafenamide;
In-license
(Gilead Sciences)
JTT-851
Type 2 diabetes mellitus
/Oral
G protein-coupled
receptor 40 agonist
Decreases blood glucose by
stimulation of glucose-dependent
insulin secretion.
In-house
JTZ-951
Anemia associated with
chronic kidney disease
/Oral
HIF-PHD inhibitor
Increases red blood cells by
stimulating production of
erythropoietin, an erythropoiesisstimulating hormone, via inhibition of
HIF-PHD.
In-house
JTE-051
Autoimmune/allergic
diseases
/Oral
Interleukin-2
inducible T cell
kinase inhibitor
Suppresses overactive immune
response via inhibition of the signal to
activate T cells related to immune
response.
In-house
JTE-052
Autoimmune/allergic
diseases
/Oral, Topical
JAK inhibitor
Suppresses overactive immune
response via inhibition of Janus kinase
(JAK) related to immune signal.
In-house
JTE-151
Autoimmune/allergic
diseases
/Oral
RORγ antagonist
Suppresses overactive immune
response via inhibition of ROR γ
related to Th 17 activation.
In-house
JTE-350**
(histamine
dihydrochloride)
Diagnostic product
/Positive control solution
in the skin prick test
Histamine receptor
agonist
Induces wheal and flare as histamine
reactions on the epidermis in the skin
prick test.
In-license
(ALK-Abelló)
Co-development with Torii
JTT-251
Type 2 diabetes mellitus
/Oral
PDHK inhibitor
Decreases blood glucose by activation
of pyruvate dehydrogenase (PDH)
related to carbohydrate metabolism.
In-house
Clinical trial phase presented above is based on the first dose.
*Part of global study conducted by Gilead Sciences.
**One of the medical products publicly offered for a development company by the Study Group on Unapproved and Off-label Drugs of High Medical Need,
set up by the Ministry of Health, Labour and Welfare.
Compound
(JT’s code)
Licensee
elvitegravir
(JTK-303)
Gilead Sciences
HIV Integrase
inhibitor
Integrase inhibitor which works by
blocking integrase, an enzyme that is
involved in the replication of HIV.
trametinib GlaxoSmithKline MEK inhibitor
Inhibits cellular growth by specifically
inhibiting the activity of MAPK/ERK
Kinase (MEK1/2).
Anti-ICOS monoclonal
antibody
MedImmune ICOS antagonist
Suppresses overactive immune
response via inhibition of ICOS which
regulates activation of T cells.
・JTT-251 has entered into the clinical trial stage (Phase1) overseas.
・Topical formulation has been added to the potential dosage form of JTE-052.
・JTE-350 has advanced from Phase3 to “preparing to file” in Japan.
・GlaxsoSmithKline announced that it has withdrawn its Marketing Authorization Application to the European Medecines Agency for the use of trametinib
in combination with dabrafenib for the treatment of patients with metastatic melanoma on March 26, 2014.
<Licensed compounds>
<In-house development>
Preparing to file
(Japan)
Mechanism
Phase1(Japan)
HIV infection
/Oral
HIV Integrase
inhibitor
Integrase inhibitor which works by
blocking integrase, an enzyme that is
involved in the replication of HIV.
Phase1(Overseas)
Updates since the previous announcement on January 30, 2014:
Mechanism
Metastatic melanoma
EU marketing approval submitted
JTK-303
(elvitegravir)
Phase2 (Japan)
Phase2 (Overseas)
Phase2(Japan)
Phase1(Overseas)
Phase1(Overseas)
<Licensed compounds>
Phase1(Overseas)
Japan Tobacco Inc. Clinical Development as of April 24, 2014
Elvitegravir
U.S. marketing approval submitted
New Single Tablet Regimen
(elvitegravir/cobicistat/emtricitabine/tenofovir alafenamide)
Phase3
<In-house development>
Phase
Standalone-Agent
Preparing to file
(Japan)
New Single Tablet
Regimen
(elvitegravir/cobicistat/
emtricitabine/tenofovir
alafenamide)
Phase3 (Japan)
Global Study*
Note