Consolidated Financial Results for the Full Fiscal Year ended March 31, 2010
Key Figures: EBITDA, operating income and net income all exceeded the original forecast announced in JT-113. In comparison to prior fiscal year, net income improved by 12.2% to ¥138.4 billion (FY2008: ¥123.4 billion) due primarily to improvements in extraordinary profits. Adjusted net sales excluding tax and EBITDA declined by 11.7% to ¥1,980.9 billion (FY2008: 2,243.1 billion) and 18.5% to ¥526.7 billion (FY2008: ¥646.2 billion), respectively.
Japanese Domestic Tobacco Business: Sales volume, adjusted net sales excluding tax and EBITDA declined. Market share of all brands was basically flat year on year.
International Tobacco Business: Market share increased year on year in most key markets, although total sales volume decreased 2.5%. Favourable pricing and volume gains in Europe drove adjusted net sales excluding tax to increase by 7.2% and EBITDA to increase by 14.9% at constant rates of exchange. On a reported basis, adjusted net sales excluding tax and EBITDA declined by 16.1% and 26.1% respectively due to adverse currency movements.
Dividends: The company’s board is recommending that the year end dividend is increased by 7.1% to ¥3,000 per share (FY2008: ¥2,800), made up of ¥2,800 in respect of each ordinary share and ¥200 in respect of each commemorative share, at an annualized sum of ¥5,800 (FY2008: ¥5,400).
Annual Forecast for the Full Fiscal Year ending March 31, 2011
Consolidated Annual Forecast: Decreases are forecast with adjusted net sales excluding tax at ¥1,973.0 billion, EBITDA at ¥513.0 billion and net income at ¥133.0 billion.
Japanese Domestic Tobacco Business: Adjusted net sales excluding tax and EBITDA are forecast to decrease to ¥576.0 billion and ¥219.0 billion respectively. These forecasts take account of the introduction of the tobacco excise tax increase in October 2010 which is likely to impact sales volumes substantially.
International Tobacco Business: EBITDA is forecast to increase by 12.3% in US dollars compared to prior year, and 6.2% at constant rates of exchange.