Subaru Corporation · TSE:7270

Subaru — Q1 FYE March 2014 Earnings Presentation

35 slides from Subaru's earnings presentation, Jul 31, 2013

  1. Slide 1: Presentation of Business Results for the 1st Quarter of FYE 2014

    Presentation of Business Results for the 1st Quarter of FYE 2014 Director of the Boards & CFO, Mitsuru Takahashi July 31, 2013 http://www.fhi.co.jp/english/ir/index.html 0

  2. Slide 2: Summary

    Summary Financial results for the 1st quarter of FYE March 2014 Propelled by strong sales of the Forester and Impreza series in Japan and the US, consolidates auto sales hit new record high for the 1st quarter. Consolidated sales and revenues increased on a YoY basis, due to foreign exchange gain,

  3. Slide 3: Business results for the 1st quarter of FYE March 2014

    Business results for the 1st quarter of FYE March 2014 http://www.fhi.co.jp/english/ir/index.html 2

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

    1st Quarter : Consolidated Automobile Sales （Thousand Units） 1Q Actual Results 1Q Actual Results Increase / FYE March 2013 FYE March 2014 Decrease Passenger car 17.7 28.8 +11.0 Minicar 13.2 12.0 -1.2 Domestic total 30.9 40.7 +9.9 U.S. 82.4 106.4 +24.0 Canada 6.7 9.4 +2.6 Russia 5.6 2.5 -3.1 Europe 1

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

    1st Quarter : Consolidated Statements Income （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2013 FYE March 2014 Decrease Net sales 4,289 5,469 +1,180 Domestic 1,427 1,577 +151 Overseas 2,862 3,892 +1,030 Operating income 173 696 +523 Ordinary income 191 645 +454 Income be

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

    1st Quarter : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) Improvement Increase of （100 Million Yen） US$ : +348 of sales Decrease SG&A EURO : +7 CA$ : +21 volume & Reduction of R&D expenses Currency exchange mixture and in cost expenses and others adjustment : +25 Gai

  7. Slide 7: Automobile Segment (Consolidated)

    Automobile Segment (Consolidated) （100 Million Yen） Net sales Operating income +29.5 ％ +315.9 ％ 649 5,133 3,963 156 Actual results 2012年3月期 Actual results 2013年3月期 Actual results 2012年3月期 Actual results 2013年3月期 1Q of FYE2013 1Q of FYE2014 1Q of FYE2013 1Q of FYE2014  Net sales increased on a YoY b

  8. Slide 8: Aerospace Segment (Consolidated)

    Aerospace Segment (Consolidated) （100 Million Yen） Net sales Operating income +32.3 ％ +1,604.8 ％ 243 39 184 2 2012年3月期 2013年3月期 Actual results 2012年3月期 Actual results 2013年3月期 Actual results Actual results 1Q of FYE2013 1Q of FYE2014 1Q of FYE2013 1Q of FYE2014  Both net sales and operating income

  9. Slide 9: Industrial Products Segment (Consolidated)

    Industrial Products Segment (Consolidated) （100 Million Yen） Net sales Operating income -7.5 ％ -51.5 ％ 84 77 3 2 Actual results 2012年3月期 Actual results 2013年3月期 Actual results 2012年3月期 Actual results 2013年3月期 1Q of FYE2013 1Q of FYE2014 1Q of FYE2013 1Q of FYE2014  Despite foreign exchange gain, bo

  10. Slide 10: 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 March 2013 FYE March 2014 Decrease Financial revenue and -3 1 +4 expenditure FOREX effects 23 -52 -75 Other -2 0 +2 Total non-operating in

  11. Slide 11: Consolidated Balance Sheets

    Consolidated Balance Sheets （100 Million Yen） Increase / As of Mar. 2013 As of Jun. 2013 Decrease Total assets 15,775 16,258 +484 Current assets 9,440 9,719 +279 Noncurrent assets 6,334 6,539 +205 Interest bearing debts 3,072 2,967 -104 Net assets 5,968 6,495 +527 Retained earnings 3,014 3,420 +407

  12. Slide 12: 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 2013 FYE March 2014 Decrease Net cash provided by (used in) operating activities 393 712 +319 Net cash provided by (used in ) investing activities -172 -196 -24 Free cash flo

  13. Slide 13: 1st Quarter: Operating Results of Subsidiaries in U.S. SIA SOA

    1st Quarter : Operating Results of Subsidiaries in U.S. （Million US$） 1Q Actual Results 1Q Actual Results Increase / SOA FYE March 2013 FYE March 2014 Decrease Net sales 2,014 2,633 +619 Operating income 34 22 -12 Net income 23 14 -9 Retail sales (Thousand units) 83.6 111.8 +28.2 1Q Actual Results 1

  14. Slide 14: Outlook for the term ending FYE March 2014

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

  15. Slide 15: Full year: Consolidated Operating Plan

    Full year : Consolidated Operating Plan （100 million yen / Thousand units） FYE2013 FYE2014 Increase / Decrease Actual Results Revised Plan Previous Plan (b) – (a) (a) (b) Net sales 19,130 20,500 20,800 +1,670 Operating income 1,204 1,800 1,980 +776 Ordinary income 1,006 1,750 1,930 +924 Income befor

  16. Slide 16: Change in number of share unit

    Change in number of share unit  Details of the change: the number of share unit of FHI common stock to be changed from 1,000 shares to 100 shares  Effective date (planned): October 1, 2013 http://www.fhi.co.jp/english/ir/index.html 15

  17. Slide 17: Appendix

    Appendix http://www.fhi.co.jp/english/ir/index.html 16

  18. Slide 18: 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 2013 FYE 2014 FYE 2013 FYE 2014 Automobile 3,963 5,133 +1,1

  19. Slide 19: 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 2013 FYE 2014 FYE 2013 FYE 2014 Japan 2,069 2,233 +164 144 686 +542 North 1,

  20. Slide 20: 1st Quarter: Overseas Net Sales

    1st Quarter : Overseas Net Sales （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2013 FYE March 2014 Decrease North America 1,963 3,115 +1,152 Europe 369 243 -127 Asia 236 201 -35 Other 294 333 +39 Total 2,862 3,892 +1,030 http://www.fhi.co.jp/english/ir/index.html 19

  21. Slide 21: Capex / Depreciation / R&D / Interest bearing debt

    Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） FYE2013 FYE2014 Increase 1Q Actual Actual Results 1Q Actual Plan / Decrease Results FYE2013 Results FYE2014 (b) - (a) FYE2013 (a) FYE 2014 (b) Capex 113 702 124 670 -32 Depreciation 119 559 133 550 -9 R&D 130 491 128 590 +99 Intere

  22. Slide 22: 1st Quarter: Non-Consolidated Automobiles Sales

    1st Quarter : Non-Consolidated Automobiles Sales （100 Million Yen） 1Q Actual Results 1Q Actual Results Increase / FYE March 2013 FYE March 2014 Decrease Domestic production 136.6 153.0 +16.5 Domestic sales 31.9 44.4 +12.5 Passenger cars 20.1 31.9 +11.9 Minicars 11.8 12.5 +0.7 Number of vehicles expo

  23. Slide 23: Full Year: Consolidated Automobile Sales

    Full Year : Consolidated Automobile Sales （Thousand Units） Actual results Plan Increase / FYE 2013 FYE 2014 Decrease Passenger cars 112.8 101.6 -11.1 Minicars 50.4 53.9 +3.5 Domestic Total 163.1 155.5 -7.6 U.S. 357.6 384.9 +27.3 Canada 32.6 35.5 +2.9 Russia 14.7 12.6 -2.1 Europe 46.4 41.8 -4.6 Austr

  24. Slide 24: Full Year: Consolidated Operating Plan

    Full Year : Consolidated Operating Plan （100 Million Yen） FYE2013 FYE2014 Increase / Decrease Actual Results Previous Plan Revised Plan (b) (b) – (a) (a) Net sales 19,130 20,500 20,800 +1,670 Domestic 6,718 6,081 6,081 -638 Overseas 12,411 14,419 14,719 +2,308 Operating income 1,204 1,800 1,980 +776

  25. Slide 25: Analysis of Increase and Decrease in Operating Income Changes

    Analysis of Increase and Decrease in Operating Income Changes (consolidated) Increase of （100 Million Yen） Gain on SG&A currency Increase expenses exchange Reduction of R&D and others expenses in cost total:819 37 The change in 180 120 Improvement -101 -99 revised plan of sales 639 FHI : +100 volume

  26. Slide 26: 1st Half: Consolidated Automobile Sales Plan

    1st Half : Consolidated Automobile Sales Plan （Thousand Units） Actual Results Plan Increase / 1st Half 1st Half Decrease FYE 2013 FYE 2014 Passenger cars 45.4 55.1 +9.7 Minicars 26.6 25.9 -0.7 Domestic Total 72.0 80.9 +8.9 U.S. 164.4 210.5 +46.2 Canada 16.3 18.7 +2.4 Russia 11.1 4.6 -6.5 Europe 25.4

  27. Slide 27: 1st Half: Consolidated Operating Plan

    1st Half : Consolidated Operating Plan （100 Million Yen） FYE2013 FYE2014 Increase / Decrease 1H Actual 1H 1H Results (a) Previous Plan Revised Plan (b) (b) – (a) Net sales 8,980 10,300 10,600 +1,620 Domestic 3,098 3,100 3,100 +3 Overseas 5,883 7,200 7,500 +1,617 Operating income 433 950 1,130 +697 O

  28. Slide 28: 1st Half: Analysis of Increase and Decrease in Operating Income Changes

    1st Half : Analysis of Increase and Decrease in Operating Income Changes (consolidated) US$ : +553 （100 Million Yen） EURO : +20 Reduction CA$ : +40 Gain on Increase in cost Currency exchange currency of R&D adjustment : +14 exchange 90 -143 expenses total:627 162 Increase of The change in -39 revise

  29. Slide 29: Net Sales & Operating Income

    Net Sales & Operating Income Net Sales Operating Income (100 million yen) （100 million yen) ¥88/$ ¥83$ ¥83/$ ¥82/$ ¥79/$ ¥77/$ ¥78/$ ¥81/$ ¥79/$ ¥79/$ ¥89/$ ¥98/$ 6,000 800 5,469 5,422 Net sales Operating income 4,877 696 700 5,000 4,691 4,727 4,337 4,289 600 4,059 4,000 3,706 3,744 3,546 500 470 3,

  30. Slide 30: Consolidated Automobile Sales & Operating Income Margin

    Consolidated Automobile Sales & Operating Income Margin Automobile sales OPM (1,000 cars) 250 Automobile sales OPM 12.7% 13% 208 198 200 191 11% 181 183 178 169 166 166 157 8.0% 148 8.7% 150 8% 118 6.4% 100 5.5% 5% 4.4% 3.6% 4.0% 2.3% 3.3% 50 3% 2.6% 2.4% 0 0% 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FYE

  31. Slide 31: Retail Sales & Complete Cars Production

    Retail Sales & Complete Cars Production Units （1000 units) Production Retail Sales 207 211 196 196191 197 195 197 200 182 178 177 174 172 161 164 162 167 156 158 147 150 150 138 136 111 100 50 0 Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Sep. Dec. Mar. Jun. Sep. Dec. Mar

  32. Slide 32: 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 39.9% 42% 37.7% 1,100 35.4% 34.7% 34.7% 35.2% 34.2% 33.7% 33.3% 33.7% 953 34% 900 871 34.2% 33.6% 778 700 640 646 25% 516 500 397 17% 283 300 221 8% 100 78 47 -100 -42 0% 2Q 3Q 4Q 1Q 2Q

  33. Slide 33: Interest Bearing Debts & D/E Ratio

    Interest Bearing Debts & D/E Ratio Interest Bearing Debts D/E ratio (100 million yen) Interest bearing debt D/E ratio 4,500 3,965 3,866 1.4 4,000 3,688 3,367 3,410 3,381 1.2 3,500 3,306 3,301 3,236 3,179 3,072 2,967 3,000 0.89 1.0 0.82 2,500 0.76 0.91 0.76 0.74 0.8 0.85 0.64 0.8 2,000 0.69 0.52 0.6

  34. Slide 34: 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

  35. Slide 35: http://www.fhi.co.jp/english/ir/index.html

    http://www.fhi.co.jp/english/ir/index.html 34

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