Subaru Corporation · TSE:7270

Subaru — Fuji Heavy Industries — Q1 FYE March 2013 Earnings Presentation

34 slides from Subaru's earnings presentation, Aug 3, 2012

  1. Slide 1: Presentation of Business Results for the 1st Quarter of FYE2013

    Presentation of Business Results for the 1st Quarter of FYE2013 Fuji Heavy Industries Ltd. August 3, 2012 http://www.fhi.co.jp/english/ir/index.html 0

  2. Slide 2: A Summary of Business Results

    A Summary of Business Results http://www.fhi.co.jp/english/ir/index.html 1

  3. Slide 3: 1st Quarter: Consolidated Automobile Sales

    1st Quarter : Consolidated Automobile Sales （Thousand Units） 1Q Actual Results 1Q Actual Results Increase / FYE March 2012 FYE March 2013 Decrease Passenger car 15.7 17.7 +2.1 Minicar 15.1 13.2 -2.0 Domestic total 30.8 30.9 +0.1 U.S. 51.8 82.4 +30.6 Canada 8.9 6.7 -2.2 Russia 1.6 5.6 +4.0 Europe 7.7

  4. Slide 4: 1st Quarter: Consolidated Statements Income

    1st Quarter : Consolidated Statements Income （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2012 FYE March 2013 Decrease Net sales 3,004 4,289 +1,285 Domestic 988 1,427 +438 Overseas 2,016 2,862 +847 Operating income 107 173 +67 Ordinary income 117 191 +74 Income before i

  5. Slide 5: Analysis of Increase and Decrease in Operating Income Changes (Consolidated)

    1st Quarter : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) Improvement Increase of （100 Million Yen） of sales SG&A Increase of fixed cost, SG&A expenses and warranty claims volume & Reduction expenses mixture and in cost and others US$ : -18 others EURO : -12 CA$ : -4

  6. Slide 6: Consolidated Net Sales by Business Segment

    1st Quarter : Consolidated Net Sales by Business Segment （100 Million Yen / Percentage of Total Sales） 1Q Actual Results 1Q Actual Results Increase / FYE March 2012 FYE March 2013 Decrease 2,725 3,963 Automobile +1,239 90.7% 92.4% 169 184 Aerospace +15 5.6% 4.3% Industrial 86 84 products -3 2.9% 2.0

  7. Slide 7: Consolidated Operating Income by Business Segment

    1st Quarter : Consolidated Operating Income by Business Segment （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2012 FYE March 2013 Decrease Automobile 96 156 +60 Aerospace 7 2 -5 Industrial products 0 3 +3 Other 3 11 +8 Elimination and corporate 0 1 +1 Total 107 173 +67 h

  8. Slide 8: Consolidated Net Sales by Geographic Area

    1st Quarter : Consolidated Net Sales by Geographic Area <Appendix> （100 Million Yen / Percentage of Total Sales） 1Q Actual Results 1Q Actual Results Increase / FYE March 2012 FYE March 2013 Decrease 1,507 2,069 Japan +563 50.2% 48.2% 1,360 1,844 North America +484 45.3% 43.0% 138 376 other +238 4.6%

  9. Slide 9: Consolidated Operating Income by Geographic Area

    1st Quarter : Consolidated Operating Income by Geographic Area <Appendix> （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2012 FYE March 2013 Decrease Japan 25 144 +119 North America 28 24 -4 Other 0 1 +0 Elimination and corporate 53 4 -49 Total 107 173 +67 http://www.fhi.

  10. Slide 10: Overseas Net Sales

    1st Quarter : Overseas Net Sales <Appendix> （100 Million Yen / Percentage of Total Sales） 1Q Actual Results 1Q Actual Results Increase / FYE March 2012 FYE March 2013 Decrease 1,457 1,963 North America +506 72.3% 68.6% 218 369 Europe +151 10.8% 12.9% 139 236 Asia +97 6.9% 8.2% 202 294 Other +92 10.0

  11. Slide 11: Operating Results of Subsidiaries in U.S. (SOA, SIA)

    1st Quarter : Operating Results of Subsidiaries in U.S. （million US$） 1Q Actual Results 1Q Actual Results Increase / SOA FYE March 2012 FYE March 2013 Decrease Net sales 1,313 2,014 +701 Operating income 36 34 -2 Net income 24 23 -1 Retail sales (Thousand units) 64.5 83.6 +19.1 1Q Actual Results 1Q

  12. Slide 12: Consolidated Non-Operating Income and Expenses

    1st Quarter : Consolidated Non-Operating Income and Expenses （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2012 FYE March 2013 Decrease Non-Operating income 36 99 +63 Interest & dividends income 6 6 +0 Equity in earnings of affiliates 5 1 -4 Non-operating expenses 26 81

  13. Slide 13: Consolidated Extraordinary Income and Expenses

    1st Quarter : Consolidated Extraordinary Income and Expenses （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2012 FYE March 2013 Decrease Extraordinary income 265 4 -261 Gain on sales of noncurrent assets 263 1 -263 Gain on sales of investment securities 1 3 +2 Other 0 0 -

  14. Slide 14: Consolidated Balance Sheets

    Consolidated Balance Sheets （100 Million Yen） As of As of Increase / March 31, 2012 June 30, 2012 Decrease Total assets 13,525 13,538 +12 Current assets 7,625 7,695 +69 Noncurrent assets 5,900 5,843 -57 Interest bearing debt 3,410 3,381 -29 Net assets 4,516 4,573 +57 Retained earnings 1,885 2,014 +1

  15. Slide 15: Consolidated Statement of Cash Flows

    1st Quarter : Consolidated Statement of Cash Flows （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2012 FYE March 2013 Decrease Net cash provided by (used in) operating activities -197 393 +591 Net cash provided by (used in) investing activities 275 -172 -448 Free cash flo

  16. Slide 16: Non-Consolidated Automobile Sales

    1st Quarter : Non-Consolidated Automobile Sales <Appendix> （Thousand units） 1Q Actual Results 1Q Actual Results Increase / FYE March 2012 FYE March 2013 Decrease Domestic production 77.7 136.6 +58.8 Domestic sales 33.0 31.9 -1.1 Passenger car 17.7 20.1 +2.4 Minicar 15.3 11.8 -3.5 Number of vehicles

  17. Slide 17: Net Sales & Operating Income

    Net Sales & Operating Income <Appendix> Net Sales Operating Income （¥100M） （¥100M） 6,000 400 ¥92/$ ¥88/$ ¥83$ ¥83/$ ¥82/$ ¥79/$ ¥79/$ ¥78/$ ¥81/$ 347 4,877 350 5,000 4,337 4,289 300 4,059 4,000 3,703 3,706 3,744 3,546 250 226 3,004 3,000 200 161 173 161 150 2,000 107 107 91 100 1,000 81 50 0 0 1Q 2Q

  18. Slide 18: Complete Cars Production & Retail Sales

    Complete Cars Production & Retail Sales <Appendix> （1,000 Cars） Production Retail 196 196 200 191 182 174 162 160 161 164 162 158 165 156 147 150 150 138 136 111 100 50 0 Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. 2010 2011 2012 * Production figures inc

  19. Slide 19: Free Cash Flows & Shareholder's Equity to Total Assets

    Free Cash Flows & Shareholder’s Equity to Total Assets <Appendix> FCF Shareholder’s Equity （¥100M） to Total Assets 38% 35.4% 871 900 34.7% 33.6% 34.2% 35% 33.7% 33.3% 34.7% 700 640 33.7% 33% 31.9% 30% 500 397 28% 283 300 246 221 25% 78 100 47 23% -100 -42 20% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2011 FY2012

  20. Slide 20: Interest Bearing Debts & D/E Ratio

    Interest Bearing Debts & D/E Ratio <Appendix> Interest Bearing Debt D/E Ratio （¥100M） 4,500 3,965 1.4 4,000 3,866 3,688 3,473 3,367 3,410 3,381 1.2 3,500 3,306 3,179 3,000 0.91 1.0 0.89 0.82 0.85 2,500 0.89 0.76 0.8 0.8 0.76 0.74 2,000 0.6 1,500 0.4 1,000 500 0.2 0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2

  21. Slide 21: Outlook for the term Ending March 2013

    Outlook for the term Ending March 2013 http://www.fhi.co.jp/english/ir/index.html 20

  22. Slide 22: Full Year: Consolidated Statements Income

    Full Year : Consolidated Statements Income （100 million yen / Thousand units） Actual Results Plan Increase / FYE March 2012 FYE March 2013 Decrease Net sales 15,171 18,600 +3,429 Operating income 440 670 +230 Ordinary income 373 630 +257 Income before income taxes and 529 600 +71 minority interests

  23. Slide 23: Full Year: Operating Income Changes, Original Plan vs Revised Plan

    Full Year : Analysis of Increase and Decrease in Operating Income Changes Original Plan vs Revised Plan (Consolidated) <Appendix> Loss on Increase of FHI : +52 （100 Million Yen） Reduction currency SG&A in cost exchange expenses and others 52 -32 -20 Increase of EURO : -26 warranty claims CA$ : -5 Cu

  24. Slide 24: Full Year: Analysis of Increase and Decrease in Operating Income Changes

    Full Year : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) <Appendix> Increase of （100 Million Yen） Improvement SG&A Reduction expenses Increase of fixed cost and SG&A expenses of sales Decrease of warranty claims in cost and others volume & mixture and 263 US$ : +78 EU

  25. Slide 25: Full Year: Operating Results of Subsidiaries in U.S.

    Full Year : Operating Results of Subsidiaries in U.S. （million US$） Actual Results Plan Increase / SOA FYE March 2012 FYE March 2013 Decrease Net sales 6,923 8,209 +1,287 Operating income 105 59 -46 Net income 74 40 -34 Retail sales (Thousand units) 279.2 320.0 +40.8 Actual Results Plan Increase / S

  26. Slide 26: Capex / Depreciation / R&D / Interest Bearing Debt

    Capex / Depreciation / R&D / Interest Bearing Debt <Appendix> （100 Million Yen） Actual Results Actual Results Actual Results Plan Increase/ 1Q 1Q Decrease FYE2012 FYE2012 (a) FYE2013 FYE2013 (b) (b) - (a) Capex 140 543 113 720 +177 Depreciation 116 537 119 600 +63 R&D 106 481 130 530 +49 Interest be

  27. Slide 27: Appendix

    Appendix http://www.fhi.co.jp/english/ir/index.html 26

  28. Slide 28: 1st Half: Consolidated Statements Income

    1st Half : Consolidated Statements Income <Appendix> （100 million yen / Thousand units） 1H Actual Results 1H Plan Increase / FYE March 2012 FYE March 2013 Decrease Net sales 6,550 9,100 +2,550 Operating income 188 320 +132 Ordinary income 216 300 +84 Income before income taxes and 402 290 -112 minor

  29. Slide 29: 1st Half: Operating Income Changes, Original Plan vs Revised Plan

    1st Half : Analysis of Increase and Decrease in Operating Income Changes Original Plan vs Revised Plan (Consolidated) <Appendix> Increase of FHI : +29 （100 Million Yen） SG&A Loss on Reduction expenses currency in cost and others exchange 29 -20 -9 EURO : -6 Increase of warranty claims CA$ : -3 320 3

  30. Slide 30: 1st Half: Analysis of Increase and Decrease in Operating Income Changes

    1st Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated)<Appendix> Improvement Increase of fixed cost and （100 Million Yen） of sales Reduction SG&A expenses volume & in cost mixture and 157 US$ : -12 others EURO : -24 -423 Increase CA$ : -9 Currency exchange Loss on ad

  31. Slide 31: 2nd Half: Consolidated Statements Income

    2nd Half : Consolidated Statements Income <Appendix> （100 million yen / Thousand units） 2H Actual Results 2H Plan Increase / FYE March 2012 FYE March 2013 Decrease Net sales 8,621 9,500 +879 Operating income 252 350 +98 Ordinary income 157 330 +173 Income before income taxes and 127 310 +183 minorit

  32. Slide 32: 2nd Half: Operating Income Changes, Original Plan vs Revised Plan

    2nd Half : Analysis of Increase and Decrease in Operating Income Changes Original Plan vs Revised Plan (Consolidated) <Appendix> Reduction Loss on （100 Million Yen） in cost currency exchange FHI : +23 23 -23 EURO : -20 CA$ : -2 Currency exchange adjustment : -1 350 350 Operating Income Operating Inc

  33. Slide 33: 2nd Half: Analysis of Increase and Decrease in Operating Income Changes

    2nd Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated)<Appendix> FHI : +95 （100 Million Yen） SIA : +11 Gain on currency Increase Reduction exchange 31 of R&D in cost 37 ▲74 expenses Improvement Increase of ▲2 106 of sales SG&A volume & expenses mixture and and others

  34. Slide 34: Thank you !

    Thank you ! http://www.fhi.co.jp/english/ir/index.html 33

Fuji Heavy Industries — Q1 FYE March 2013 Earnings Presentation on 6ix