Subaru Corporation · TSE:7270
Subaru — H1 FYE March 2014 Earnings Presentation
45 slides from Subaru's earnings presentation, Oct 31, 2013
Slide 1: Presentation of Business Results for the 1st Half of FYE 2014
Presentation of Business Results for the 1st Half of FYE 2014 Director of the Boards & CFO, Mitsuru Takahashi October 31, 2013 http://www.fhi.co.jp/english/ir/index.html 0 0
Slide 2: Summary
Summary Financial results for the 1st half of FYE March 2014 Due to strong sales of Forester and Impreza series in Japan and North America, consolidated vehicle sales set an all-time records for a fiscal half-year period. Due to gain on currency exchange, unit sales increase and mix improvement, c
Slide 3: Business results for the 1st half of FYE March 2014
Business results for the 1st half of FYE March 2014 http://www.fhi.co.jp/english/ir/index.html 2 2
Slide 4: 1st Half: Consolidated Automobile Sales
1st Half : Consolidated Automobile Sales （Thousand Units） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2013 FYE 2014 Passenger car 45.4 61.7 +16.4 Minicar 26.6 25.6 -1.0 Domestic total 72.0 87.3 +15.4 U.S. 164.4 208.9 +44.6 Canada 16.3 18.7 +2.4 Russia 11.1 6.8 -4.3 Europe
Slide 5: 1st Half: Consolidated Income Statement
1st Half : Consolidated Income Statement （100 Million Yen） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2013 FYE 2014 Net sales 8,980 11,256 +2,276 Domestic 3,098 3,306 +208 Overseas 5,883 7,951 +2,068 Operating income 433 1,507 +1,074 Ordinary income 453 1,462 +1,009 Inco
Slide 6: 1st Half: Analysis of Increase and Decrease in Operating Income
1st Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） US$ : +758 EURO : +20 Reduction in cost Increase of R&D expenses CA$ : +49 Gain on +135 Currency exchange adjustment : +45 currency -50 exchange Increase of +872 SG&A Improvement expenses of sal
Slide 7: Automobile Segment (Consolidated)
Automobile Segment (Consolidated) （100 Million Yen） Net sales Operating income +26.8 ％ +258.4 ％ 10,527 1,423 8,304 397 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 Actual results 1H of FYE2013 1H of FYE2014 1H of FYE2013 1H of FYE2014 Mainly due to gain on curren
Slide 8: Aerospace Segment (Consolidated)
Aerospace Segment (Consolidated) （100 Million Yen） Net sales Operating income +28.4 ％ +266.1 ％ 535 69 417 19 2012年3月期 2013年3月期 2012年3月期 2013年3月期 Actual results Actual results Actual results Actual results 1H of FYE2013 1H of FYE2014 1H of FYE2013 1H of FYE2014 Both net sales and operating income we
Slide 9: Industrial Products Segment (Consolidated)
Industrial Products Segment (Consolidated) （100 Million Yen） Net sales Operating income -3.6 ％ -57.5 ％ 4 163 157 2 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 Actual results 1H of FYE2013 1H of FYE2014 1H of FYE2013 1H of FYE2014 Despite gain on currency exchang
Slide 10: 1st Half: Non-Operating Income & Expenses and Extraordinary Income & Loss
1st Half : Non-Operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2013 FYE 2014 Financial revenue and -6 +0 +7 expenditure FOREX effects 34 -39 -73 Equity in earnings of affiliates 1 1 +
Slide 11: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） Increase / As of Mar. 2013 As of Sep. 2013 Decrease Total assets 15,775 17,193 +1,418 Current assets 9,440 10,511 +1,071 Noncurrent assets 6,334 6,681 +347 Interest bearing debts 3,072 2,918 -153 Net assets 5,968 7,112 +1,144 Retained earnings 3,014 3,93
Slide 12: 1st Half: Consolidated Statement of Cash Flows
1st Half : Consolidated Statement of Cash Flows （100 Million Yen） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2013 FYE 2014 Net cash provided by (used in) operating activities 1,103 1,579 +477 Net cash provided by (used in) investing activities -324 -381 -57 Free cash flo
Slide 13: 1st Half: Operating Results of Subsidiaries in U.S. SOA SIA
1st Half : Operating Results of Subsidiaries in U.S. （Million US$） Actual results Actual results Increase / SOA 1st half 1st half Decrease FYE 2013 FYE 2014 Net sales 4,074 5,179 +1,105 Operating income 100 117 +17 Net income 64 72 +8 Retail sales (Thousand units) 164.4 220.3 +55.9 Actual results Ac
Slide 14: Outlook for the term ending FYE March 2014
Outlook for the term ending FYE March 2014 http://www.fhi.co.jp/english/ir/index.html 13 13
Slide 15: Full Year: Consolidated Automobile Sales
Full Year : Consolidated Automobile Sales （Thousand Units） Actual results Plan Increase / FYE 2013 FYE 2014 Decrease Passenger cars 112.8 116.3 +3.5 Minicars 50.4 53.6 +3.2 Domestic Total 163.1 169.9 +6.7 U.S. 357.6 434.8 +77.2 Canada 32.6 35.9 +3.3 Russia 14.7 15.4 +0.7 Europe 46.4 34.6 -11.8 Austr
Slide 16: Full Year: Consolidated Operating Plan
Full Year : Consolidated Operating Plan （100 Million Yen） Actual results Plan Increase / FYE 2013 FYE 2014 Decrease Net sales 19,130 23,000 +3,870 Domestic 6,718 6,437 -281 Overseas 12,411 16,563 +4,151 Operating income 1,204 2,780 +1,576 Ordinary income 1,006 2,720 +1,714 Income before income taxes
Slide 17: Analysis of Increase and Decrease in Operating Income Changes
Analysis of Increase and Decrease in Operating Income Changes (consolidated) US$ : +1,264 （100 Million Yen） EURO : +42 Reduction in cost CA$ : +76 Gain on Increase of R&D expenses Currency currency +174 exchange adjustment : -48 exchange -109 +1,334 Increase of SG&A Improvement expenses FHI : +138 o
Slide 18: Full Year: Operating Plan of Subsidiaries in U.S. SOA SIA
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 10,808 +2,003 Operating income 133 175 +42 Net income 97 109 +12 Retail sales (Thousand units) 347.1 430.0 +82.9 Actual results Plan Increase / SIA FYE 2013
Slide 19: Capex / Depreciation / R&D / Interest bearing debt
Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） FYE2013 FYE2014 Increase Actual results Actual Results Actual Results Plan / Decrease 1st half FYE2013 1st half FYE FYE2014 (b) - (a) FYE2013 (a) 2014 (b) Capex 339 702 273 720 +18 Depreciation 247 559 260 550 -9 R&D 249 491 299 60
Slide 20: Appendix (1)
Appendix (1) ・ Segment information ・Segment ・ Overseas net sales ・Overseas ・ Non-consolidated automobile sales ・Non-consolidated ・ 2nd quarter, consolidated statements income ・2nd ・ 2nd half, consolidated statements income ・2nd http://www.fhi.co.jp/english/ir/index.html 19 19
Slide 21: 1st Half: Consolidated Net Sales and Operating Income by Business Segment
1st Half : Consolidated Net Sales and Operating Income by Business Segment （100 Million Yen） Net sales Operating income Actual Actual Actual Actual results results Increase / results results Increase / 1st half 1st half Decrease 1st half 1st half Decrease FYE 2013 FYE 2014 FYE 2013 FYE 2014 Automobi
Slide 22: 1st Half: Consolidated Operating Income by Geographic Area
1st Half : Consolidated Operating Income by Geographic Area （100 Million Yen） Net sales Operating income Actual Actual Actual Actual results results Increase / results results Increase / 1st half 1st half Decrease 1st half 1st half Decrease FYE 2013 FYE 2014 FYE 2013 FYE 2014 Japan 4,376 4,691 +314
Slide 23: 1st Half: Overseas Net Sales
1st Half : Overseas Net Sales （100 Million Yen） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2013 FYE 2014 North America 4,017 6,172 +2,155 Europe 719 562 -157 Asia 578 582 +5 Other 569 635 +65 Total 5,883 7,951 +2,068 http://www.fhi.co.jp/english/ir/index.html 22 22
Slide 24: 1st Half: Non-Consolidated Automobiles Sales
1st Half : Non-Consolidated Automobiles Sales （100 Million Yen） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2013 FYE 2014 Domestic production 272.5 310.1 +37.6 Domestic sales 72.6 91.9 +19.3 Passenger cars 47.4 64.8 +17.3 Minicars 25.2 27.2 +2.0 Number of vehicles exporte
Slide 25: 2nd Quarter: Consolidated Automobile Sales
2nd Quarter : Consolidated Automobile Sales （Thousand Units） Actual Results Actual Results Increase / 2nd Quarter 2nd Quarter Decrease FYE March 2013 FYE March 2014 Passenger car 27.7 33.0 +5.3 Minicar 13.4 13.6 +0.2 Domestic total 41.1 46.6 +5.5 U.S. 81.9 102.5 +20.6 Canada 9.6 9.3 -0.3 Russia 5.5
Slide 26: 2nd Quarter: Consolidated Income Statement
2nd Quarter : Consolidated Income Statement （100 Million Yen） Actual Results Actual Results Increase / 2nd Quarter 2nd Quarter Decrease FYE March 2013 FYE March 2014 Net sales 4,691 5,787 +1,096 Domestic 1,671 1,729 +58 Overseas 3,020 4,058 +1,038 Operating income 259 811 +551 Ordinary income 262 81
Slide 27: 2nd Quarter: Analysis of Increase and Decrease in Operating Income
2nd Quarter : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） US$ : +410 EURO : +13 Gain on CA$ : +28 Reduction in cost Increase of R&D expenses currency Currency exchange adjustment : +20 exchange +55 -52 Decrease of +471 SG&A Improvement expenses FHI
Slide 28: 2nd Half: Consolidated Automobile Sales
2nd Half : Consolidated Automobile Sales （Thousand Units） Actual Results Plan Increase / 2nd Half 2nd Half Decrease FYE March 2013 FYE March 2014 Passenger car 67.4 54.5 -12.8 Minicar 23.8 28.0 +4.2 Domestic total 91.1 82.5 -8.6 U.S. 193.2 225.9 +32.7 Canada 16.3 17.2 +0.9 Russia 3.6 8.6 +5.0 Europe
Slide 29: 2nd Half: Consolidated Statements Income
2nd Half : Consolidated Statements Income （100 Million Yen） Actual Results Plan Increase / 2nd Half 2nd Half Decrease FYE March 2013 FYE March 2014 Net sales 10,149 11,744 +1,594 Domestic 3,621 3,131 -489 Overseas 6,529 8,612 +2,083 Operating income 772 1,273 +501 Ordinary income 553 1,258 +705 Inco
Slide 30: 2nd Half: Analysis of Increase and Decrease in Operating Income
2nd Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) US$ : +505 （100 Million Yen） EURO : +22 Gain on Reduction in cost CA$ : +27 Currency currency +39 Increase of R&D expenses exchange adjustment : -92 exchange -58 +462 Increase of Improvement FHI : +22 SIA : +17 S
Slide 31: Appendix (2)
Appendix (2) ・ 1st half, Plan vs. Actual results ・1st ・Full year, Previous plan vs. revised plan ・ Full http://www.fhi.co.jp/english/ir/index.html 30 30
Slide 32: 1st Half: Consolidated Automobile Sales Plan vs. Actual Results
1st Half : Consolidated Automobile Sales Plan vs. Actual Results （Thousand Units） Plan Actual Results Increase / 1st Half 1st Half Decrease FYE March 2014 FYE March 2014 Passenger car 55.1 61.7 +6.7 Minicar 25.9 25.6 -0.3 Domestic total 80.9 87.3 +6.4 U.S. 210.5 208.9 -1.6 Canada 18.7 18.7 -0.1 Russ
Slide 33: 1st Half: Consolidated Income Statement Plan vs. Actual Results
1st Half : Consolidated Income Statement Plan vs. Actual Results （100 Million Yen） Plan Actual Results Increase / 1st Half 1st Half Decrease FYE March 2014 FYE March 2014 Net sales 10,600 11,256 +656 Domestic 3,100 3,306 +205 Overseas 7,500 7,951 +451 Operating income 1,130 1,507 +377 Ordinary incom
Slide 34: 1st Half: Analysis of Increase and Decrease in Operating Income
1st Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) Decrease of SG&A （100 Million Yen） US$ : +206 expenses and others Increase of R&D expenses EURO : ±0 CA$ : +9 +47 -11 Currency exchange Reduction adjustment : +30 Decrease in cost of R&D expenses +45 Loss on curr
Slide 35: Full year: Consolidated Automobile Sales Previous Plan vs. Revised Plan
Full year : Consolidated Automobile Sales Previous Plan vs. Revised Plan （Thousand Units） Previous Plan Revised Plan Increase / FYE March 2014 FYE March 2014 Decrease Passenger car 101.6 116.3 +14.6 Minicar 53.9 53.6 -0.3 Domestic total 155.5 169.9 +14.4 U.S. 384.9 434.8 +49.9 Canada 35.5 35.9 +0.4
Slide 36: Full year: Consolidated Income Statement Previous Plan vs. Actual Results
Full year : Consolidated Income Statement Previous Plan vs. Actual Results （100 Million Yen） Previous Plan Revised Plan Increase / FYE March 2014 FYE March 2014 Decrease Net sales 20,800 23,000 +2,200 Domestic 6,081 6,437 +357 Overseas 14,719 16,563 +1,843 Operating income 1,980 2,780 +800 Ordinary
Slide 37: Full year: Analysis of Increase and Decrease in Operating Income
Full year : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) US$ : +485 （100 Million Yen） EURO : +3 CA$ : +25 Gain on Reduction in cost Currency Decrease of R&D expenses currency exchange +54 adjustment : +2 exchange -10 +515 Increase of SG&A Improvement FHI : +38 expense
Slide 38: Appendix (3)
Appendix (3) ・ Net sales / Operating income ・Net ・ Consolidated automobile sales / OPM ・Consolidated ・ Complete cars production / Retail sales ・Complete ・ FCF / Shareholders ・FCF Shareholders’’ equity to total assets ・ Interest bearing debt / D/E ratio ・Interest http://www.fhi.co.jp/english/ir/index
Slide 39: 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/$ 6,000 5,787 1,000 Net sales Operating income 5,422 5,469 900 4,877 5,000 4,691 4,727 811 800 4,289 4,059 700 696 4,000 3,706 3,744 3,546
Slide 40: Consolidated Automobile Sales & Operating Income Margin
Consolidated Automobile Sales & Operating Income Margin Automobile sales OPM (1,000 cars) 230 Automobile sales OPM 16% 208 198 202 19114.0% 183 178 13% 180 169 166 166 157 12.7% 148 11% 130 118 8.7% 8% 80 6.4% 5.5% 5% 4.4% 3.6% 2.4% 4.0% 30 2.3% 3.3% 3% 2.6% -20 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 0
Slide 41: Complete Cars Production & Retail Sales
Complete Cars Production & Retail Sales Units （1000 units) Production Retail Sales 211 213 207 196 196 191 197 195 197 193 200 182 178 177 167 172 164 162 156 158 147 150 150 138 136 111 100 50 0 Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Dec. Mar. Jun. Sep. Dec. Mar. Ju
Slide 42: 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 1,198 45% 1,100 953 900 871 41.2% 778 39.9% 40% 700 646 516 500 37.7% 397 34.7% 34.2% 283 35.2% 35% 300 35.4% 33.7% 221 34.7% 34.2% 33.7% 78 33.3% 100 47 -100 -42 30% 3Q 4Q 1Q 2Q 3Q 4Q 1
Slide 43: 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 3,306 3,410 3,381 1.2 3,500 3,301 3,236 3,179 3,072 2,967 2,918 3,000 0.91 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 1,50
Slide 44: 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
Slide 45: http://www.fhi.co.jp/english/ir/index.html
http://www.fhi.co.jp/english/ir/index.html 44 44
Fuji Heavy Industries Ltd. (Subaru Corporation) — H1 FYE March 2014 Earnings Presentation on 6ix