Subaru Corporation · TSE:7270

Subaru — Fuji Heavy Industries — Q3 FYE March 2014 Earnings Presentation

41 slides from Subaru's earnings presentation, Feb 4, 2014

  1. Slide 1: Presentation of Business Results for the 3rd quarter of FYE 2013

    Presentation of Business Results for the 3rd quarter of FYE 2013 Fuji Heavy Industries Ltd. February 4, 2014 http://www.fhi.co.jp/english/ir/index.html 0 0

  2. Slide 2: Summary

    Summary Financial results for the 3rd quarter (9 months) of FYE March 2014  Due to healthy sales of Forester in Japan and North America, consolidated automobile sales set an all-time records of 593k units for a fiscal 9 months period.  In addition to gain on currency exchange, increase in sales vo

  3. Slide 3: Business results for the 3rd quarter (9 months) of FYE March 2013

    Business results for the 3rd quarter (9 months) of FYE March 2013 http://www.fhi.co.jp/english/ir/index.html 2 2

  4. Slide 4: 9 months: Consolidated Automobile Units

    9 months : Consolidated Automobile Units （Thousand Units） Actual Results Actual Results Increase / 9 months 9 months Decrease FYE 2013 FYE 2014 Passenger cars 76.9 86.9 +10.0 Minicars 34.7 37.0 +2.3 Domestic total 111.5 123.9 +12.3 U.S. 259.4 326.4 +67.0 Canada 23.6 27.2 +3.6 Russia 13.3 9.5 -3.8 Eu

  5. Slide 5: 9 months: Consolidated Income Statements

    9 months : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results Increase / 9 months 9 months Decrease FYE 2013 FYE 2014 Net sales 13,707 17,085 +3,378 Domestic 4,823 4,788 -35 Overseas 8,884 12,297 +3,413 Operating income 734 2,334 +1,600 Ordinary income 634 2,214 +1,580 In

  6. Slide 6: 9 months: Analysis of Increase and Decrease in Operating Income

    9 months : Analysis of Increase and Decrease in Operating Income Changes (consolidated) （100 Million Yen） US$ : +1,271 EURO : +35 Increase of CA$ : +71 Gain on Cost reduction CNY : -1 R&D expenses Currency currency +194 exchange exchange -80 adjustment : +52 +1,428 Increase of SG&A Improvement expen

  7. Slide 7: 9 months: Automobile Segment (Consolidated)

    9 months : Automobile Segment (Consolidated) （100 Million Yen） Net sales Operating income +25.5 ％ +226.6 ％ 15,962 2,203 12,717 674 92012年3月期 months 92013年3月期 months 92012年3月期 months 92013年3月期 months FYE2013 FYE2014 FYE2013 FYE2014  Net sales to be increased due to increase of sales in Japan and US

  8. Slide 8: 9 months: Aerospace Segment (Consolidated)

    9 months : Aerospace Segment (Consolidated) （100 Million Yen） Net sales Operating income +33.0 ％ +180.3 ％ 846 106 636 38 92012年3月期 months 92013年3月期 months 92012年3月期 months 92013年3月期 months FYE2013 FYE2014 FYE2013 FYE2014  Increase in both sales and operating income.  Increase in both Defense and C

  9. Slide 9: 9 months: Industrial Products Segment (Consolidated)

    9 months : Industrial Products Segment (Consolidated) （100 Million Yen） Net sales Operating income -1.5 ％ -32.9 ％ 224 220 3 2 92012年3月期 months 92013年3月期 months 9 2012年3月期 months 92013年3月期 months FYE2013 FYE2014 FYE2013 FYE2014  Decrease in both net sales and operating income.  Despite increase of

  10. Slide 10: 9 months: Non-Operating Income & Expenses and Extraordinary Income & Loss

    9 months : Non-Operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual Results Actual Results Increase / 9 months 9 months Decrease FYE 2013 FYE 2014 Financial revenue and expenditure -8 1 +8 FOREX effects -79 -108 -28 Other -12 -12 +0 Total non-operating

  11. Slide 11: Consolidated Balance Sheets

    Consolidated Balance Sheets （100 Million Yen） Increase / As of Mar. 2013 As of Dec. 2013 Decrease Total assets 15,775 17,859 +2,085 Current assets 9,440 11,565 +2,124 Noncurrent assets 6,334 6,295 -39 Interest bearing debts 3,072 2,760 -312 Net assets 5,968 7,643 +1,675 Retained earnings 3,014 4,595

  12. Slide 12: 9 months: Consolidated Statement of Cash Flows

    9 months : Consolidated Statement of Cash Flows （100 Million Yen） Actual Results Actual Results Increase / 9 months 9 months Decrease FYE 2013 FYE 2014 Net cash provided by (used in) operating activities 1,113 2,215 +1,102 Net cash provided by (used in) investing activities -467 -121 +345 Free cash

  13. Slide 13: 9 months: Operating Results of Subsidiaries in U.S.

    9 months : Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Actual Results Increase / SOA 9 months 9 months Decrease FYE 2013 FYE 2014 Net sales 6,385 8,115 +1,730 Operating income 130 199 +69 Net income 85 123 +38 Retail sales (Thousand units) 254.9 331.0 +76.1 Actual Results

  14. Slide 14: Outlook for the term Ending March 2014

    Outlook for the term Ending March 2014 http://www.fhi.co.jp/english/ir/index.html 13 13

  15. Slide 15: Full Year: Consolidated Automobile Sales Plan

    Full Year : Consolidated Automobile Sales Plan （Thousand Units） Actual results Plan Increase / FYE 2013 FYE 2014 Decrease Passenger cars 112.8 135.0 +22.3 Minicars 50.4 53.8 +3.4 Domestic total 163.1 188.8 +25.7 U.S. 357.6 439.8 +82.3 Canada 32.6 36.0 +3.4 Russia 14.7 15.4 +0.7 Europe 46.4 31.9 -14.

  16. Slide 16: Full Year: Consolidated Operating Plan

    Full Year : Consolidated Operating Plan （100 Million Yen） Actual results Plan Increase / FYE 2013 FYE 2014 Decrease Net sales 19,130 23,800 +4,670 Domestic 6,718 6,495 -223 Overseas 12,411 17,305 +4,893 Operating income 1,204 3,100 +1,896 Ordinary income 1,006 2,940 +1,934 Income before taxes and mi

  17. Slide 17: Analysis of Increase and Decrease in Operating Income Changes

    Analysis of Increase and Decrease in Operating Income Changes (consolidated) （100 Million Yen） US$ : +1,497 EURO : +48 Cost reduction Increase of R&D CA$ : +77 Gain on CNY : +7 currency +210 expenses -109 Currency exchange exchange adjustment : -9 +1,620 Increase of SG&A Improvement FHI : +172 expen

  18. Slide 18: Full Year: Operating Plan of Subsidiaries in U.S.

    Full Year : Operating Plan of Subsidiaries in U.S. （Million US$） Actual results Plan Increase / SOA FYE 2013 FYE 2014 Decrease Net sales 8,805 10,935 +2,130 Operating income 133 175 +42 Net income 97 109 +12 Retail sales (Thousand units) 347.1 435.1 +88.0 Actual results Plan Increase / SIA FYE 2013

  19. Slide 19: Capex / Depreciation / R&D / Interest bearing debt

    Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） FYE2013 FYE2014 Increase Actual Results Plan / Decrease Actual results Actual results Full year Full year (b) - (a) 9 months 9 months (a) (b) Capex 484 702 412 720 +18 Depreciation 389 559 394 550 -9 R&D 353 491 433 600 +109 Intere

  20. Slide 20: Appendix (1)

    Appendix (1) ・ Segment information (by Business / Geographic) ・Segment ・ Overseas net sales ・Overseas ・ Non-consolidated automobile sales ・Non-consolidated ・ 3rd quarter (3 months), consolidated statements income ・3rd ・ 2nd half (6 months), consolidated statements income ・2nd ・ Full year, Previous p

  21. Slide 21: 9 months: Net Sales and Operating Income by Business Segment

    9 months : Net Sales and Operating Income by Business Segment (consolidated) （100 Million Yen） Net sales Operating income Actual Actual Actual Actual Increase Increase Results Results Results Results / / 9 months 9 months 9 months 9 months Decrease Decrease FYE 2013 FYE 2014 FYE 2013 FYE 2014 Automo

  22. Slide 22: 9 months: Consolidated Operating Income by Geographic Area

    9 months : Consolidated Operating Income by Geographic Area （100 Million Yen） Net sales Operating income Actual Actual Actual Actual Increase Increase Results Results Results Results / / 9 months 9 months 9 months 9 months Decrease Decrease FYE 2013 FYE 2014 FYE 2013 FYE 2014 Japan 6,600 6,839 +238

  23. Slide 23: 9 months: Overseas Net Sales

    9 months : Overseas Net Sales （100 Million Yen） Actual Results Actual Results Increase / 9 months 9 months Decrease FYE 2013 FYE 2014 North America 6,273 9,640 +3,367 Europe 960 837 -124 Asia 880 916 +36 Other 771 904 +133 Total 8,884 12,297 +3,413 http://www.fhi.co.jp/english/ir/index.html 22 22

  24. Slide 24: 9 months: Non-Consolidated Automobiles Units

    9 months : Non-Consolidated Automobiles Units （Thousand Units） Actual Results Actual Results Increase / 9 months 9 months Decrease FYE 2013 FYE 2014 Domestic production 425.6 482.3 +56.7 Domestic sales 119.4 131.2 +11.8 Passenger cars 84.5 90.9 +6.5 Minicars 34.9 40.3 +5.4 Number of vehicles exporte

  25. Slide 25: 3rd Quarter: Consolidated Automobile Units

    3rd Quarter : Consolidated Automobile Units （Thousand Units） Actual Results Actual Results Increase / Q3 Q3 Decrease FYE 2013 FYE 2014 Passenger cars 31.5 25.1 -6.4 Minicars 8.1 11.4 +3.3 Domestic total 39.6 36.5 -3.0 U.S. 95.0 117.5 +22.4 Canada 7.3 8.5 +1.2 Russia 2.2 2.7 +0.5 Europe 9.5 8.1 -1.4

  26. Slide 26: 3rd Quarter: Consolidated Income Statements

    3rd Quarter : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results Increase / Q3 Q3 Decrease FYE 2013 FYE 2014 Net sales 4,727 5,829 +1,102 Domestic 1,725 1,482 -243 Overseas 3,002 4,347 +1,345 Operating income 301 827 +525 Ordinary income 181 752 +571 Income before taxes a

  27. Slide 27: 3rd Quarter: Analysis of Increase and Decrease in Operating Income

    3rd Quarter : Analysis of Increase and Decrease in Operating Income Changes (consolidated) Gain on （100 Million Yen） US$ : +512 Increase of EURO : +15 currency Cost reduction CA$ : +22 R&D expenses CNY : -1 exchange +59 -30 Currency exchange +556 adjustment : +7 Increase of SG&A Deterioration expens

  28. Slide 28: 2nd Half: Consolidated Automobile Sales Plan

    2nd Half : Consolidated Automobile Sales Plan （Thousand Units） Actual Results Plan Increase / 2nd Half 2nd Half Decrease FYE 2013 FYE 2014 Passenger cars 67.4 73.3 +5.9 Minicars 23.8 28.2 +4.4 Domestic total 91.1 101.5 +10.3 U.S. 193.2 230.9 +37.7 Canada 16.3 17.3 +1.0 Russia 3.6 8.6 +5.0 Europe 21.

  29. Slide 29: 2nd Half: Consolidated Operating Plan

    2nd Half : Consolidated Operating Plan （100 Million Yen） Actual Results Plan Increase / 2nd Half 2nd Half Decrease FYE 2013 FYE 2014 Net sales 10,149 12,544 +2,394 Domestic 3,621 3,189 -431 Overseas 6,529 9,354 +2,825 Operating income 772 1,593 +821 Ordinary income 553 1,478 +925 Income before taxes

  30. Slide 30: 2nd Half: Analysis of Increase and Decrease in Operating Income

    2nd Half : Analysis of Increase and Decrease in Operating Income Changes (consolidated) （100 Million Yen） US$ : +738 EURO : +28 Gain on CA$ : +28 Increase of CNY : +7 currency R&D expenses Currency exchange adjustment : -53 exchange Cost -58 +748 reduction Increase of Improvement +75 SG&A expenses o

  31. Slide 31: Full Year: Consolidated Automobile Units Previous plan vs. Revised plan

    Full Year : Consolidated Automobile Units Previous plan vs. Revised plan （Thousand Units） Previous plan Revised plan Increase / FYE 2014 FYE 2014 Decrease Passenger cars 116.3 135.0 +18.7 Minicars 53.6 53.8 +0.2 Domestic total 169.9 188.8 +18.9 U.S. 434.8 439.8 +5.0 Canada 35.9 36.0 +0.1 Russia 15.4

  32. Slide 32: Full Year: Consolidated Income Statements Previous vs. Revised Plan

    Full Year : Consolidated Income Statements Previous Plan vs. Revised Plan （100 Million Yen） Previous plan Revised plan Increase / FYE 2014 FYE 2014 Decrease Net sales 23,000 23,800 +800 Domestic 6,437 6,495 +58 Overseas 16,563 17,305 +742 Operating income 2,780 3,100 +320 Ordinary income 2,720 2,940

  33. Slide 33: Full Year: Operating Income Changes Previous vs. Revised Plan

    Full Year : Analysis of Increase and Decrease in Operating Income Changes Previous Plan vs. Revised Plan （100 Million Yen） Gain on US$ : +233 Cost reduction EURO : +6 currency CA$ : +1 CNY : +7 exchange +36 Currency exchange adjustment : +39 +286 Increase of Improvement SG&A of sales expenses volume

  34. Slide 34: Appendix (2)

    Appendix (2) ・ Net sales / Operating income ・Net ・ Consolidated automobile units / OPM ・Consolidated ・ Complete cars production / Retail units ・Complete ・ FCF / Shareholders ・FCF Shareholders’’ equity to total assets ・ Interest-bearing debt / D/E ratio ・Interest-bearing http://www.fhi.co.jp/english/

  35. Slide 35: Net Sales & Operating Income

    Net Sales & Operating Income Net Sales Operating Income (100 million yen) （100 million yen) ¥83/$ ¥83/$ ¥82/$ ¥79/$ ¥77/$ ¥78/$ ¥81/$ ¥79/$ ¥79/$ ¥89/$ ¥98/$ ¥98/$ ¥99/$ 6,000 5,787 5,829 1,000 Net sales Operating income 5,422 5,469 900 4,877 827 5,000 4,691 4,727 811 800 4,289 4,059 700 696 4,000 3

  36. Slide 36: Consolidated Automobile Units & Operating Income Margin

    Consolidated Automobile Units & Operating Income Margin Automobile sales OPM (1,000 cars) Consolidated automobile sales OPM 18% 208 198 202 201 200 191 183 178 15% 169 166 166 14.0% 14.2% 157 148 12.7% 150 12% 118 8.7% 9% 100 6.4% 6% 5.5% 4.4% 50 3.6% 2.4% 4.0% 2.3% 3.3% 3% 2.6% 0 0% 3Q 4Q 1Q 2Q 3Q

  37. Slide 37: Complete Cars Production & Retail Units

    Complete Cars Production & Retail Units Units （1000 units) 212 Production Retail Units 207 211 213 210 196 196 191 197 195197 193 200 182 178 177 167 172 164 162 156 158 147 150 150 138 136 111 100 50 0 Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Dec. Mar. Jun. Sep.

  38. Slide 38: Free Cash Flows & Shareholders' Equity to Total Assets

    Free Cash Flows & Shareholders’ Equity to Total Assets FCF Shareholders’ Equity to （100 million yen) Total Assets 2,094 45% 1,900 42.6% FCF Shareholders' equity to total assets 41.2% 1,400 39.9% 40% 1,198 953 871 37.7% 900 778 35.4% 646 34.7% 35.2% 34.2% 516 35% 33.7% 33.7% 397 34.7% 33.3% 34.2% 400

  39. Slide 39: Interest-Bearing Debt & D/E Ratio

    Interest-Bearing Debt & D/E Ratio Interest Bearing Debts D/E ratio (100 million yen) 4,500 3,965 3,866 Interest bearing debt D/E ratio 1.4 4,000 3,688 3,410 3,381 1.2 3,500 3,306 3,301 3,236 3,179 3,072 2,967 2,918 3,000 0.91 2,760 1.0 0.80 0.89 0.85 2,500 0.76 0.76 0.8 0.74 0.69 2,000 0.64 0.52 0.6

  40. Slide 40: Forward-looking statements

    Forward-looking statements including projections and future strategies mentioned in this presentation are based on currently available information and assumptions and are subject to risks and uncertainties. Actual results may vary materially as a result of various factors including, without limitati

  41. Slide 41: http://www.fhi.co.jp/english/ir/index.html

    http://www.fhi.co.jp/english/ir/index.html 40 40

Fuji Heavy Industries — Q3 FYE March 2014 Earnings Presentation on 6ix