Japan Tobacco Inc.
Financial Statements and
Independent Auditor's Report
Year Ended December 31, 2023
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 | 100 | |
2. | Nonconsolidated Financial Statements | 101 | |
(1) | Nonconsolidated Financial Statements | 101 | |
A. Nonconsolidated Balance Sheet | 101 | ||
B. Nonconsolidated Statement of Income | 104 | ||
C. Nonconsolidated Statement of Changes in Net Assets | 105 | ||
D. Notes to Nonconsolidated Financial Statements | 107 | ||
E. Supplementary Statements | 119 | ||
(2) | Major Assets and Liabilities | 120 | |
(3) | Others | 120 | |
3. | Independent Auditor's Report | 121 |
1. Consolidated Financial Statements
(1) Consolidated Financial Statements | ||||
A. Consolidated Statement of Financial Position | ||||
As of December 31, 2022 and 2023 | ||||
(Millions of yen) | ||||
2022 | 2023 | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents (Note 7) | 866,885 | 1,040,206 | ||
Trade and other receivables (Note 8) | 477,239 | 535,302 | ||
Inventories (Note 9) | 691,906 | 832,611 | ||
Other financial assets (Note 10) | 37,677 | 58,633 | ||
Other current assets (Note 11) | 649,181 | 789,888 | ||
Subtotal | 2,722,889 | 3,256,639 | ||
Assets held for sale (Note 12) | 702 | 2,921 | ||
Total current assets | 2,723,591 | 3,259,561 | ||
Non-current assets | ||||
Property, plant and equipment (Notes 13, 15) | 775,957 | 821,499 | ||
Goodwill (Note 14) | 2,446,063 | 2,616,440 | ||
Intangible assets (Note 14) | 246,442 | 206,982 | ||
Investment property (Note 16) | 9,495 | 9,338 | ||
Retirement benefit assets (Note 22) | 57,792 | 65,856 | ||
Investments accounted for using the equity method | 56,943 | 56,726 | ||
Other financial assets (Note 10) | 140,366 | 156,316 | ||
Deferred tax assets (Note 17) | 91,430 | 89,379 | ||
Total non-current assets | 3,824,487 | 4,022,536 | ||
Total assets | 6,548,078 | 7,282,097 | ||
- 1 -
(Millions of yen) | ||||
2022 | 2023 | |||
Liabilities and equity | ||||
Liabilities | ||||
Current liabilities | ||||
Trade and other payables (Note 18) | 540,089 | 592,802 | ||
Bonds and borrowings (Note 19) | 137,308 | 233,333 | ||
Income tax payables | 37,470 | 29,647 | ||
Other financial liabilities (Note 19) | 40,065 | 44,470 | ||
Provisions (Note 20) | 26,610 | 18,634 | ||
Other current liabilities (Note 21) | 781,093 | 1,008,390 | ||
Subtotal | 1,562,635 | 1,927,276 | ||
Liabilities directly associated with assets held for sale | 29 | - | ||
Total current liabilities | 1,562,664 | 1,927,276 | ||
Non-current liabilities | ||||
Bonds and borrowings (Note 19) | 821,003 | 908,926 | ||
Other financial liabilities (Note 19) | 41,735 | 40,678 | ||
Retirement benefit liabilities (Note 22) | 244,116 | 279,443 | ||
Provisions (Note 20) | 26,490 | 45,527 | ||
Other non-current liabilities (Note 21) | 195,248 | 127,170 | ||
Deferred tax liabilities (Note 17) | 40,061 | 40,586 | ||
Total non-current liabilities | 1,368,653 | 1,442,329 | ||
Total liabilities | 2,931,317 | 3,369,605 | ||
Equity | ||||
Share capital (Note 23) | 100,000 | 100,000 | ||
Capital surplus (Note 23) | 736,400 | 736,478 | ||
Treasury shares (Note 23) | (490,183) | (489,194) | ||
Other components of equity (Note 23) | 104,309 | 290,550 | ||
Retained earnings | 3,089,909 | 3,192,323 | ||
Equity attributable to owners of the parent company | 3,540,435 | 3,830,156 | ||
Non-controlling interests | 76,326 | 82,336 | ||
Total equity | 3,616,761 | 3,912,491 | ||
Total liabilities and equity | 6,548,078 | 7,282,097 | ||
- 2 -
B. Consolidated Statement of Income
Years Ended December 31, 2022 and 2023 | |
2022 | |
Revenue (Notes 6, 25) | |
2,657,832 | |
Cost of sales (Notes 14, 22) | (1,090,989) |
Gross profit | 1,566,843 |
Other operating income (Note 26) | 20,262 |
Share of profit in investments accounted for using the | 8,009 |
equity method | |
Selling, general and administrative expenses | (941,538) |
(Notes 12, 13, 14, 16, 22, 27, 32) | |
Operating profit (Note 6) | 653,575 |
Financial income (Notes 28, 33) | 31,147 |
Financial costs (Notes 22, 28, 33) | (91,272) |
Profit before income taxes | 593,450 |
Income taxes (Note 17) | (149,277) |
Profit for the period | 444,174 |
Attributable to | |
Owners of the parent company | 442,716 |
Non-controlling interests | 1,458 |
Profit for the period | 444,174 |
Earnings per share | |
Basic (Yen) (Note 30) | 249.45 |
Diluted (Yen) (Note 30) | 249.36 |
Reconciliation from "Operating profit" to "Adjusted operating profit"
(Millions of yen)
2023
2,841,077
(1,225,974)
1,615,103
30,027
8,332
(981,052)
672,410
44,414
(95,222)
621,601
(136,292)
485,310
482,288
3,021
485,310
271.69
271.63
(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)
2022
653,575
71,392
(15,865)
18,677
727,779
2023
672,410
58,836
(18,651)
15,407
728,002
- 3 -
C. Consolidated Statement of Comprehensive Income | |||
Years Ended December 31, 2022 and 2023 | |||
(Millions of yen) | |||
2022 | 2023 | ||
Profit for the period | |||
444,174 | 485,310 | ||
Other comprehensive income | |||
Items that will not be reclassified to profit or loss | |||
Net gain (loss) on revaluation of financial assets measured | |||
at fair value through other comprehensive income (Notes | 1,741 | 2,414 | |
29, 33) | |||
Remeasurements of defined benefit plans (Notes 22, 29) | 49,744 | (13,538) | |
Total of items that will not be reclassified to profit or loss | 51,485 | (11,123) |
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations (Notes 29, 33)
Net gain (loss) on derivatives designated as cash flow hedges (Notes 29, 33)
Hedge costs
Total of items that may be reclassified subsequently to profit or loss
Other comprehensive income (loss), net of taxes Comprehensive income (loss) for the period
493,986189,299
8,5844,749
-(17)
502,570194,031
554,055 | 182,908 | |
998,229 | 668,217 | |
Attributable to | |||
Owners of the parent company | 996,687 | 660,663 | |
Non-controlling interests | 1,542 | 7,554 | |
Comprehensive income (loss) for the period | 998,229 | 668,217 | |
- 4 -
D. Consolidated Statement of Changes in Equity
Years Ended December 31, 2022 and 2023
(Millions of yen)
Equity attributable to owners of the parent company
Other components of equity
Share | Capital surplus | Treasury | Exchange | Net gain (loss) on | |||||||
Subscription | differences on | ||||||||||
capital | shares | derivatives | |||||||||
rights to | translation of | ||||||||||
designated as | |||||||||||
shares | foreign | ||||||||||
cash flow hedges | |||||||||||
operations | |||||||||||
As of January 1, 2022 | |||||||||||
100,000 | 736,400 | (490,899) | 1,202 | (408,175) | (274) | ||||||
Profit for the period | - | - | - | - | - | - | |||||
Other comprehensive income (loss) | - | - | - | - | 493,971 | 8,584 | |||||
Comprehensive income (loss) for the period | - | - | - | - | 493,971 | 8,584 | |||||
Acquisition of treasury shares | - | - | (1) | - | - | - | |||||
(Note 23) | |||||||||||
Disposal of treasury shares (Note 23) | - | - | 717 | (200) | - | - | |||||
Share-based payments (Note 32) | - | - | - | - | - | - | |||||
Dividends (Note 24) | - | - | - | - | - | - | |||||
Changes in the scope of consolidation | - | - | - | - | - | - | |||||
Changes in the ownership interest in a | - | - | - | - | - | - | |||||
subsidiary without a loss of control | |||||||||||
Transfer from other components of equity to | - | - | - | - | - | - | |||||
retained earnings | |||||||||||
Other increase (decrease) | - | - | - | - | - | 236 | |||||
Total transactions with the owners | - | - | 716 | (200) | - | 236 | |||||
As of December 31, 2022 | |||||||||||
100,000 | 736,400 | (490,183) | 1,001 | 85,796 | 8,546 | ||||||
Profit for the period | - | - | - | - | - | - | |||||
Other comprehensive income (loss) | - | - | - | - | 185,014 | 4,749 | |||||
Comprehensive income (loss) for the period | - | - | - | - | 185,014 | 4,749 | |||||
Acquisition of treasury shares | - | - | (1) | - | - | - | |||||
(Note 23) | |||||||||||
Disposal of treasury shares (Note 23) | - | 78 | 990 | (444) | - | - | |||||
Share-based payments (Note 32) | - | - | - | - | - | - | |||||
Dividends (Note 24) | - | - | - | - | - | - | |||||
Changes in the scope of consolidation | - | - | - | - | - | - | |||||
Changes in the ownership interest in a | - | - | - | - | - | - | |||||
subsidiary without a loss of control | |||||||||||
Transfer from other components of equity to | - | - | - | - | - | - | |||||
retained earnings | |||||||||||
Other increase (decrease) | - | - | - | - | - | (4,150) | |||||
Total transactions with the owners | - | 78 | 989 | (444) | - | (4,150) |
Hedge costs
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(17)
(17)
-
-
-
-
-
-
-
-
-
As of December 31, 2023 | 100,000 | 736,478 | (489,194) | 557 | 270,810 | 9,145 | (17) | ||||||
- 5 -
(Millions of yen)
Equity attributable to owners of the parent company
Other components of equity | ||||||||
Net gain (loss) on | ||||||||
revaluation of | Retained | |||||||
financial assets | Remeasurements | |||||||
measured at fair | earnings | |||||||
of defined | Total | |||||||
value through | ||||||||
benefit plans | ||||||||
other | ||||||||
comprehensive | ||||||||
income | ||||||||
As of January 1, 2022 | 7,161 | - | (400,086) | 2,863,843 | ||||
Profit for the period | - | - | - | 442,716 | ||||
Other comprehensive income (loss) | 1,880 | 49,535 | 553,970 | - | ||||
Comprehensive income (loss) for the period | 1,880 | 49,535 | 553,970 | 442,716 | ||||
Acquisition of treasury shares (Note 23) | - | - | - | - | ||||
Disposal of treasury shares (Note 23) | - | - | (200) | (516) | ||||
Share-based payments (Note 32) | - | - | - | 460 | ||||
Dividends (Note 24) | - | - | - | (266,203) | ||||
Changes in the scope of consolidation | - | - | - | - | ||||
Changes in the ownership interest in a | - | - | - | (1) | ||||
subsidiary without a loss of control | ||||||||
Transfer from other components of equity to | (75) | (49,535) | (49,610) | 49,610 | ||||
retained earnings | ||||||||
Other increase (decrease) | - | - | 236 | - | ||||
Total transactions with the owners | (75) | (49,535) | (49,575) | (216,650) | ||||
As of December 31, 2022 | ||||||||
8,966 | - | 104,309 | 3,089,909 | |||||
Profit for the period | - | - | - | 482,288 | ||||
Other comprehensive income (loss) | 2,199 | (13,571) | 178,375 | - | ||||
Comprehensive income (loss) for the period | 2,199 | (13,571) | 178,375 | 482,288 | ||||
Acquisition of treasury shares (Note 23) | - | - | - | - | ||||
Disposal of treasury shares (Note 23) | - | - | (444) | (505) | ||||
Share-based payments (Note 32) | - | - | - | 505 | ||||
Dividends (Note 24) | - | - | - | (367,415) | ||||
Changes in the scope of consolidation | - | - | - | - | ||||
Changes in the ownership interest in a | - | - | - | (0) | ||||
subsidiary without a loss of control | ||||||||
Transfer from other components of equity to | (1,111) | 13,571 | 12,460 | (12,460) | ||||
retained earnings | ||||||||
Other increase (decrease) | - | - | (4,150) | - | ||||
Total transactions with the owners | (1,111) | 13,571 | 7,866 | (379,875) |
Non-controlling | Total equity | |||
Total | interests | |||
2,809,258 | 76,823 | 2,886,081 | ||
442,716 | 1,458 | 444,174 | ||
553,970 | 85 | 554,055 | ||
996,687 | 1,542 | 998,229 | ||
(1) | - | (1) | ||
0 | - | 0 | ||
460 | 21 | 481 | ||
(266,203) | (1,631) | (267,834) | ||
- | (429) | (429) | ||
(1) | (0) | (1) | ||
- | - | - | ||
236 | - | 236 | ||
(265,510) | (2,039) | (267,548) | ||
3,540,435 | 76,326 | 3,616,761 | ||
482,288 | 3,021 | 485,310 | ||
178,375 | 4,533 | 182,908 | ||
660,663 | 7,554 | 668,217 | ||
(1) | - | (1) | ||
119 | - | 119 | ||
505 | 22 | 526 | ||
(367,415) | (2,945) | (370,360) | ||
- | (33) | (33) | ||
(0) | 1,413 | 1,413 | ||
- | - | - | ||
(4,150) | - | (4,150) | ||
(370,942) | (1,544) | (372,486) |
As of December 31, 2023 | 10,054 | - | 290,550 | 3,192,323 | 3,830,156 | 82,336 | 3,912,491 | ||||||
- 6 -
E. Consolidated Statement of Cash Flows | |||
Years Ended December 31, 2022 and 2023 | |||
(Millions of yen) | |||
2022 | 2023 | ||
Cash flows from operating activities | |||
Profit before income taxes | 593,450 | 621,601 | |
Depreciation and amortization | 199,651 | 179,652 | |
Impairment losses | 27,539 | 13,710 | |
Interest and dividend income | (26,535) | (42,816) | |
Interest expense | 27,019 | 28,493 | |
Share of profit in investments accounted for using the | (8,009) | (8,332) | |
equity method | |||
(Gains) losses on sale and disposal of property, plant and | (4,891) | (16,810) | |
equipment, intangible assets and investment property | |||
(Gains) losses on sale of investments in subsidiaries | (849) | 104 | |
(Increase) decrease in trade and other receivables | 26,574 | (30,169) | |
(Increase) decrease in inventories | (93,910) | (136,232) | |
Increase (decrease) in trade and other payables | (38,251) | 40,998 | |
Increase (decrease) in retirement benefit liabilities | (4,156) | 455 | |
(Increase) decrease in prepaid tobacco excise taxes | (6,825) | (106,987) | |
Increase (decrease) in tobacco excise tax payables | 24,989 | 102,787 | |
Increase (decrease) in consumption tax payables | (11,461) | 23,249 | |
Other | (28,608) | 41,534 | |
Subtotal | 675,728 | 711,238 | |
Interest and dividends received | 25,530 | 41,189 | |
Interest paid | (23,728) | (26,324) | |
Income taxes paid | (193,731) | (159,088) | |
Net cash flows from operating activities | 483,799 | 567,014 | |
Cash flows from investing activities | |||
Purchase of securities | (37,414) | (113,010) | |
Proceeds from sale and redemption of securities | 18,208 | 84,363 | |
Purchase of property, plant and equipment | (81,411) | (94,861) | |
Proceeds from sale of investment property | 7,583 | 19,653 | |
Purchase of intangible assets | (17,997) | (26,353) | |
Payments into time deposits | (350) | - | |
Proceeds from withdrawal of time deposits | 1,602 | - | |
Proceeds from sale of investments in subsidiaries | 2,963 | - | |
Proceeds from sale of investments in associates | 63 | 1,369 | |
Other | 4,930 | 2,710 | |
Net cash flows from investing activities | (101,822) | (126,129) |
- 7 -
(Millions of yen) | |||
2022 | 2023 | ||
Cash flows from financing activities | |||
Dividends paid to owners of the parent company | (266,175) | (367,331) | |
(Note 24) | |||
Dividends paid to non-controlling interests | (1,536) | (2,594) | |
Capital contribution from non-controlling interests | 27 | 431 | |
Increase (decrease) in short-term borrowings and | (27,610) | 143,042 | |
commercial paper (Note 31) | |||
Proceeds from long-term borrowings (Note 31) | 1,522 | 2,890 | |
Repayments of long-term borrowings (Note 31) | (42,849) | (14,909) | |
Proceeds from issuance of bonds (Notes 19, 31) | 69,175 | 59,795 | |
Redemption of bonds (Notes 19, 31) | (30,000) | (68,194) | |
Repayments of lease liabilities (Note 31) | (21,009) | (23,613) | |
Acquisition of treasury shares | (1) | (1) | |
Payments for acquisition of interests in subsidiaries from | (1) | (17) | |
non-controlling interests | |||
Proceeds from settlement of derivatives (Note 31) | 12,281 | - | |
Other | 0 | 0 | |
Net cash flows from financing activities | (306,176) | (270,500) | |
Net increase (decrease) in cash and cash equivalents | 75,801 | 170,385 | |
Cash and cash equivalents at the beginning of the period | 721,731 | 866,885 | |
Effect of exchange rate changes on cash and cash | 69,353 | 2,935 | |
equivalents | |||
Cash and cash equivalents at the end of the period | 866,885 | 1,040,206 | |
(Note 7) | |||
- 8 -
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Disclaimer
Japan Tobacco Inc. published this content on 22 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2024 08:15:08 UTC.