Subaru Corporation · TSE:7270

Subaru — Fuji Heavy Industries — Q1 FYE March 2015 Earnings Presentation

29 slides from Subaru's earnings presentation, Jul 31, 2014

  1. Slide 1: Presentation of Business Results for the 1st Quarter of FYE 2015

    Presentation of Business Results for the 1st Quarter of FYE 2015 Director of the Boards & CFO, Mitsuru Takahashi July 31, 2014 http://www.fhi.co.jp/english/ir/index.html 0 0

  2. Slide 2: Summary

    Summary Financial results for the 1st quarter of FYE March 2015  Due to healthy sales of Forester in North America and China and increase of new WRX in overseas market, consolidated automobile sales set an all-time records as 1st quarter.  In addition to gain on currency exchange, increase in sale

  3. Slide 3: Business results for the 1st quarter of FYE March 2015

    Business results for the 1st quarter of FYE March 2015 http://www.fhi.co.jp/english/ir/index.html 2 2

  4. Slide 4: 1st Quarter: Consolidated Automobile Sales Total

    1st Quarter : Consolidated Automobile Sales （Thousand Units） 1Q Actual Results 1Q Actual Results Increase / FYE March 2014 FYE March 2015 Decrease Passenger car 28.8 20.4 -8.4 Minicar 12.0 6.8 -5.2 Domestic total 40.7 27.2 -13.5 U.S. 106.4 112.4 +6.0 Canada 9.4 10.8 +1.4 Russia 2.5 4.0 +1.6 Europe 7

  5. Slide 5: 1st Quarter: Consolidated Income Statements

    1st Quarter : Consolidated Income Statements （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2014 FYE March 2015 Decrease Net sales 5,469 5,934 +465 Domestic 1,577 1,162 -416 Overseas 3,892 4,772 +880 Operating income 696 787 +91 Total non-operating -51 19 +70 income & exp

  6. Slide 6: 1st Quarter: Analysis of Increase and Decrease in Operating Income

    1st Quarter : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） Improvement of sales US$ : +104 Decrease of fixed cost EURO : +6 volume & Increase of SG&A expenses CA$ : -6 mixture Cost reduction Increase of warranty claims expenses CNY : +8 Currency and

  7. Slide 7: Consolidated Balance Sheets

    Consolidated Balance Sheets （100 Million Yen） Increase / As of Mar. 2014 As of Jun. 2014 Decrease Total assets 18,884 18,484 -399 Current assets 12,738 12,052 -685 Noncurrent assets 6,146 6,432 +286 Interest bearing 2,697 2,574 -123 debts Net assets 7,701 7,997 +296 Retained earnings 4,839 5,118 +27

  8. Slide 8: 1st Quarter: Consolidated Statement of Cash Flows

    1st Quarter : Consolidated Statement of Cash Flows （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2014 FYE March 2015 Decrease Net cash provided by (used in) operating activities 712 3 -709 Net cash provided by (used in) investing activities -196 -166 +30 Free cash flows

  9. Slide 9: 1st Quarter: Operating Results of Subsidiaries in U.S.

    1st Quarter : Operating Results of Subsidiaries in U.S. （Million US$） 1Q Actual results 1Q Actual results Increase SOA FYE 2014 FYE 2015 / decrease Net sales 2,633 2,875 +242 Operating income 22 61 +39 Net income 14 37 +23 Retail sales (Thousand units) 111.8 125.3 +13.5 1Q Actual results 1Q Actual r

  10. Slide 10: Outlook for the FYE March 2015

    Outlook for the FYE March 2015 http://www.fhi.co.jp/english/ir/index.html 9 9

  11. Slide 11: Full year: Consolidated Operating Plan

    Full year : Consolidated Operating Plan （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2014 FYE March 2015 Decrease Net sales 24,081 27,200 +3,119 Operating income 3,265 3,400 +135 Ordinary income 3,144 3,300 +156 Net income 2,066 2,150 +84 FHI exchange ¥100/US$ ¥100/US$

  12. Slide 12: Capex / Depreciation / R&D / Interest bearing debt

    Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） 1Q Actual Actual Results 1Q Actual Plan Increase Results FYE2014 Results FYE2015 / Decrease FYE2014 (a) FYE 2015 (b) (b) - (a) Capex 124 685 280 1,200 +515 Depreciation 133 549 127 660 +111 R&D 128 601 159 740 +139 Interest bearing

  13. Slide 13: Appendix (1)

    Appendix (1) ・ Non-operating income & expenses and extraordinary ・Non-operating income & loss ・ Segment information (by Business / Geographic) ・Segment ・ Overseas net sales ・Overseas ・ Non-consolidated automobile sales ・Non-consolidated ・ Full year of FYE2015, consolidated statements income ・Full ht

  14. Slide 14: 1st Quarter: Non-Operating Income & Expenses and Extraordinary Income & Loss

    1st Quarter : Non-Operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE 2014 FYE 2015 Decrease Financial revenue and expenditure 1 0 -0 FOREX effects -52 17 +69 Other 0 1 +1 Total non-operating income & expense

  15. Slide 15: 1st Quarter: Net Sales and Operating Income by Business Segment

    1st Quarter : Net Sales and Operating Income by Business Segment (consolidated) （100 Million Yen） Net sales Operating income 1Q Actual 1Q Actual 1Q Actual 1Q Actual Increase / Increase / Results Results Results Results Decrease Decrease FYE 2014 FYE 2015 FYE 2014 FYE 2015 Automobile 5,133 5,551 +418

  16. Slide 16: 1st Quarter: Consolidated Operating Income by Geographic Area

    1st Quarter : Consolidated Operating Income by Geographic Area （100 Million Yen） Net sales Operating income 1Q Actual 1Q Actual 1Q Actual 1Q Actual Increase / Increase / Results Results Results Results Decrease Decrease FYE 2014 FYE 2015 FYE 2014 FYE 2015 Japan 2,233 1,898 -335 686 611 -74 North 2,9

  17. Slide 17: 1st Quarter: Overseas Net Sales

    1st Quarter : Overseas Net Sales （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2014 FYE March 2015 Decrease North America 3,115 3,549 +434 Europe 243 279 +36 Asia 201 646 +445 Other 333 299 -35 Total 3,892 4,772 +880 http://www.fhi.co.jp/english/ir/index.html 16 16

  18. Slide 18: 1st Quarter: Non-Consolidated Automobiles Sales

    1st Quarter : Non-Consolidated Automobiles Sales （Thousand Units） 1Q Actual Results 1Q Actual Results Increase / FYE March 2014 FYE March 2015 Decrease Domestic production 153.0 169.0 +16.0 Domestic sales 44.4 30.7 -13.7 Passenger cars 31.9 23.2 -8.7 Minicars 12.5 7.5 -5.0 Number of vehicles 117.1 1

  19. Slide 19: Full Year: Consolidated Automobile Sales Plan

    Full Year : Consolidated Automobile Sales Plan （Thousand Units） Actual results Plan Increase FYE 2014 FYE 2015 / decrease Passenger cars 126.1 143.7 +17.6 Minicars 55.5 51.2 -4.3 Domestic total 181.6 194.9 +13.3 U.S. 441.8 490.2 +48.4 Canada 36.0 40.4 +4.4 Russia 15.3 19.3 +4.0 Europe 31.8 40.3 +8.5

  20. Slide 20: Full Year: Consolidated Operating Plan

    Full Year : Consolidated Operating Plan （100 Million Yen） Actual results Plan Increase FYE 2014 FYE 2015 / decrease Net sales 24,081 27,200 +3,119 Domestic 6,721 7,032 +312 Overseas 17,361 20,168 +2,807 Operating income 3,265 3,400 +135 Ordinary income 3,144 3,300 +156 Income before taxes and minori

  21. Slide 21: Analysis of Increase and Decrease in Operating Income Changes

    Analysis of Increase and Decrease in Operating Income Changes (consolidated) Improvement of sales （100 Million Yen） volume & Increase of fixed cost mixture and Increase of SG&A expenses Cost reduction Decrease of warranty claims expenses others +920 +70 US$ : +46 EURO : +5 CA$ : -30 CNY : +2 Currenc

  22. Slide 22: 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/

  23. Slide 23: Net Sales & Operating Income

    Net Sales & Operating Income Operating ¥82/$ ¥79/$ ¥77/$ ¥78/$ ¥81/$ ¥79/$ ¥79/$ ¥89/$ ¥98/$ ¥98/$ ¥99/$ ¥103/ ¥102/ Net Sales Income $ $ (100 million yen) （100 million yen) 6,996 7,000 1,000 Net sales Operating income 931 5,787 5,829 5,934 6,000 5,422 5,469 811 827 800 787 4,877 5,000 4,691 4,727 6

  24. Slide 24: Consolidated Automobile Sales & Operating Income Margin

    Consolidated Automobile Sales & Operating Income Margin Automobile sales (1,000 cars) OPM Automobile sales OPM 232 18% 208 198 202 201 200 191 194 183 15% 178 13.3% 166 166 14.0% 14.2% 13.3% 148 12.7% 12% 150 118 9% 8.7% 100 6.4% 6% 5.5% 3.3% 50 4.0% 3.6% 2.4% 3% 2.3% 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

  25. Slide 25: Complete Cars Production & Retail Units

    Complete Cars Production & Retail Units Units （1000 units) 250 Production Retail Units 228 213 212 210 211 211214 207 211 196 196 197 195 197 193 200 191 182 177 178 172 167 158 147 150 150 136 111 100 50 0 Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jun. Sep. Dec.

  26. Slide 26: Free Cash Flows & Shareholders' Equity to Total Assets

    Free Cash Flows & Shareholders’ Equity to Total Assets FCF Shareholders’ （100 million yen) Equity to Total Assets 2,791 45% 2,800 42.9% 42.6% FCF Shareholders' equity to total assets 2,300 41.2% 2,094 39.9% 40.5% 40% 1,800 37.7% 1,300 1,198 35.2% 953 34.7% 800 34.2% 35% 33.7% 33.3% 33.7% 34.2% 778 5

  27. Slide 27: Interest-Bearing Debt & D/E Ratio

    Interest-Bearing Debt & D/E Ratio Interest Bearing Debt 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 3,301 3,236 3,072 2,967 2,918 3,000 0.89 2,760 2,697 1.0 0.85 2,574 0.91 2,500 0.76 0.8 0.74 0.69 2,000 0.64 0.52 0.6 1,500 0.46

  28. Slide 28: Forward-looking statements disclaimer

    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

  29. Slide 29: http://www.fhi.co.jp/english/ir/index.html

    http://www.fhi.co.jp/english/ir/index.html 28 28

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