Subaru Corporation · TSE:7270

Subaru — Fuji Heavy Industries — Q3 FYE March 2015 Earnings Presentation

39 slides from Subaru's earnings presentation, Feb 4, 2015

  1. Slide 1: Presentation of Business Results for the 3rd quarter of FYE 2015

    Presentation of Business Results for the 3rd quarter of FYE 2015 Fuji Heavy Industries Ltd. February 4, 2015 http://www.fhi.co.jp/english/ir/index.html 0

  2. Slide 2: Summary

    Summary Financial results for the 3rd quarter (9 months) of FYE March 2015  Due to healthy sales in North America and enjoy sales of new models such as WRX and LEVORG, consolidated automobile sales set an all-time record high as 3rd quarter periods(9 months).  In addition to increase in sales volu

  3. Slide 3: Business results for the 3rd quarter (9 months) of FYE March 2015

    Business results for the 3rd quarter (9 months) of FYE March 2015 http://www.fhi.co.jp/english/ir/index.html 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 2014 FYE 2015 Passenger cars 86.9 83.5 -3.4 Minicars 37.0 22.3 -14.6 Domestic total 123.9 105.9 -18.0 U.S. 326.4 398.7 +72.3 Canada 27.2 32.0 +4.8 Russia 9.5 10.8 +1.3 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 2014 FYE 2015 Net sales 17,085 20,607 +3,522 Domestic 4,788 4,419 -369 Overseas 12,297 16,189 +3,891 Operating income 2,334 3,102 +768 Total non-operating -119 -218 -99

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

    9 months : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） Gain on Fixed cost : -50 (FHI -28 SIA -22) Improvement currency SG&A : -341 (FHI -19 SOA -177 and others) Cost reduction Warranty claims : -78 of sales exchange volume & +621 +84 mixture and oth

  7. Slide 7: Consolidated Balance Sheets

    Consolidated Balance Sheets （100 Million Yen） As of Mar. 31 As of Dec. 31 Increase / 2014 2014 Decrease Total assets 18,884 20,674 +1,790 Current assets 12,738 13,588 +851 Noncurrent assets 6,146 7,085 +939 Interest bearing debts 2,697 2,268 -429 Net assets 7,701 9,632 +1,932 Retained earnings 4,839

  8. Slide 8: 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 2014 FYE 2015 Net cash provided by (used in) operating activities 2,215 1,773 -442 Net cash provided by (used in) investing activities -121 -1,165 -1,044 Free cas

  9. Slide 9: 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 2014 FYE 2015 Net sales 8,115 10,115 +2,000 Operating income 199 417 +218 Net income 123 259 +136 Retail sales 330.5 399.9 +69.4 (Thousand units) Actual resu

  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

  11. Slide 11: Full Year: Consolidated Automobile Sales

    Full Year : Consolidated Automobile Sales （Thousand Units） Actual results Plan Increase / FYE 2014 FYE 2015 Decrease Passenger car 126.1 124.3 -1.8 Minicar 55.5 37.0 -18.5 Domestic total 181.6 161.3 -20.3 U.S. 441.8 527.3 +85.5 Canada 36.0 42.2 +6.2 Russia 15.3 12.6 -2.7 Europe 31.8 33.8 +2.0 Austra

  12. Slide 12: 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 28,500 +4,419 Domestic 6,721 6,483 -237 Overseas 17,361 22,017 +4,656 Operating income 3,265 4,100 +835 Ordinary income 3,144 3,920 +776 Income before income taxes and

  13. Slide 13: Analysis of Increase and Decrease in Operating Income Changes

    Analysis of Increase and Decrease in Operating Income Changes (consolidated) Improvement （100 Million Yen） US$ : +884 of sales EURO : +19 Fixed cost : -93 (FHI -56 SIA -37) CA$ : +7 volume & SG&A : -376 (FHI -57 SOA -200 and others) CNY : +8 mixture Cost reduction Warranty claims : -99 Gain on +117

  14. Slide 14: 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 2014 FYE 2015 Decrease Net sales 11,005 13,421 +2,416 Operating income 184 484 +300 Net income 111 299 +188 Retail sales 442.3 525.9 +83.6 (Thousand units) Actual results Plan Increase / SIA FYE 2

  15. Slide 15: Capex / Depreciation / R&D / Interest bearing debt

    Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Actual Results Actual Results Plan Increase 9 months FYE2014 9 months FYE2015 / Decrease FYE2014 (a) FYE 2015 (b) (b) - (a) Capex 412 685 828 1,200 +515 Depreciation 394 549 445 660 +111 R&D 433 601 549 840 +239 Inte

  16. Slide 16: Appendix (1)

    Appendix (1) ・ Non-operating income & expenses and ・Non-operating extraordinary income & loss ・Segment information ・Segment ・ Overseas net sales ・Overseas ・ Non-consolidated automobile sales ・Non-consolidated http://www.fhi.co.jp/english/ir/index.html 15

  17. Slide 17: 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 2014 FYE 2015 Financial revenue and expenditure 1 8 +7 FOREX effects -108 -230 -122 Other -12 4 +16 Total non-operating

  18. Slide 18: 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 2014 FYE 2015 FYE 2014 FYE 2015 Automo

  19. Slide 19: 9 months: Net Sales and Operating Income by Geographic Area

    9 months : Net Sales and Operating Income by Geographic Area (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 2014 FYE 2015 FYE 2014 FYE 2015 Japan 6

  20. Slide 20: 9 months: Overseas Net Sales

    9 months : Overseas Net Sales （100 Million Yen） Actual results Actual results Increase / 9 months 9 months Decrease FYE 2014 FYE 2015 North America 9,640 12,688 +3,048 Europe 837 856 +19 Asia 916 1,675 +758 Other 904 970 +66 Total 12,297 16,189 +3,891 http://www.fhi.co.jp/english/ir/index.html 19

  21. Slide 21: 9 months: Non-Consolidated Automobiles Sales

    9 months : Non-Consolidated Automobiles Sales （Thousand Units） Actual results Actual results Increase / 9 months 9 months Decrease FYE 2014 FYE 2015 Domestic production 482.3 528.2 +45.9 Domestic sales 131.2 115.3 -15.9 Passenger cars 90.9 91.0 +0.1 Minicars 40.3 24.3 -16.0 Number of vehicles export

  22. Slide 22: Appendix (2)

    Appendix (2) ・ 3rd quarter ・3rd quarter,, consolidated statements income ・ 4th quarter, consolidated statements income ・ Full year, Previous plan vs. revised plan http://www.fhi.co.jp/english/ir/index.html 21

  23. Slide 23: 3rd Quarter: Consolidated Automobile Sales Total

    3rd Quarter : Consolidated Automobile Sales （Thousand Units） Actual results Actual results Increase / 3rd quarter 3rd quarter Decrease FYE 2014 FYE 2015 Passenger car 25.1 27.1 +1.9 Minicar 11.4 7.3 -4.1 Domestic total 36.5 34.3 -2.2 U.S. 117.5 148.8 +31.3 Canada 8.5 9.9 +1.4 Russia 2.7 2.2 -0.5 Eur

  24. Slide 24: 3rd Quarter: Consolidated Income Statements

    3rd Quarter : Consolidated Income Statements （100 Million Yen） Actual results Actual results Increase / 3rd quarter 3rd quarter Decrease FYE 2014 FYE 2015 Net sales 5,829 7,505 +1,676 Domestic 1,482 1,491 +9 Overseas 4,347 6,014 +1,667 Operating income 827 1,245 +418 Ordinary income 752 1,124 +372 I

  25. Slide 25: 3rd Quarter: Analysis of Increase and Decrease in Operating Income Changes

    3rd Quarter : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） US$ : +351 EURO : +3 CA$ : +7 Fixed cost : -34 (FHI -24 SIA -10) CNY : ±0 Gain on Cost reduction SG&A : -115 (FHI -11 SOA -49 and others) Warranty claims : -18 Currency exchange currency +34

  26. Slide 26: 4th Quarter: Consolidated Automobile Sales Total

    4th Quarter : Consolidated Automobile Sales （Thousand Units） Actual results Plan Increase / 4th quarter 4th quarter Decrease FYE 2014 FYE 2015 Passenger car 39.3 40.8 +1.5 Minicar 18.5 14.6 -3.9 Domestic total 57.7 55.4 -2.3 U.S. 115.4 128.6 +13.2 Canada 8.8 10.2 +1.4 Russia 5.8 1.8 -4.0 Europe 8.3

  27. Slide 27: 4th Quarter: Consolidated Income Statements

    4th Quarter : Consolidated Income Statements （100 Million Yen） Actual results Plan Increase / 4th quarter 4th quarter Decrease FYE 2014 FYE 2015 Net sales 6,996 7,893 +897 Domestic 1,933 2,065 +132 Overseas 5,063 5,828 +765 Operating income 931 999 +67 Ordinary income 930 1,036 +106 Income before in

  28. Slide 28: 4th Quarter: Analysis of Increase and Decrease in Operating Income Changes

    4th Quarter : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） Gain on currency Fixed cost : -43 (FHI -28 SIA -15) US$ : +325 Cost reduction SG&A : -35 (FHI -38 SOA -23 and others) exchange EURO : +5 CA$ : +6 +319 +33 Warranty claims : -21 CNY : +1 Curre

  29. Slide 29: Previous Plan vs. Revised Plan: Consolidated Automobile Sales Total

    (Previous Plan vs. Revised Plan) Full Year : Consolidated Automobile Sales （Thousand Units） Previous plan Revised plan Increase / FYE 2015 FYE 2015 Decrease Passenger car 125.7 124.3 -1.4 Minicar 40.8 37.0 -3.8 Domestic total 166.5 161.3 -5.2 U.S. 513.2 527.3 +14.1 Canada 40.7 42.2 +1.5 Russia 18.7

  30. Slide 30: Previous Plan vs. Revised Plan: Consolidated Income Statements

    (Previous Plan vs. Revised Plan) Full Year : Consolidated Income Statements （100 Million Yen） Previous plan Revised plan Increase / FYE 2015 FYE 2015 Decrease Net sales 27,800 28,500 +700 Domestic 6,582 6,483 -99 Overseas 21,218 22,017 +799 Operating income 3,820 4,100 +280 Ordinary income 3,700 3,9

  31. Slide 31: Previous vs. Revised Plan: Analysis of Operating Income Changes

    (Previous Plan vs. Revised Plan) Full Year : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） Gain on US$ : +453 EURO : +8 currency Cost reduction FHI : +10 (Material cost : +10) CA$ : +13 exchange SIA : -2 (Material cost : -5) CNY : ±0 Currency +528 +8

  32. Slide 32: Appendix (3)

    Appendix (3) ・ 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/

  33. Slide 33: Net Sales & Operating Income

    Net Sales & Operating Income Operating Net Sales ¥77/$ ¥78/$ ¥81/$ ¥79/$ ¥79/$ ¥89/$ ¥98/$ ¥98/$ ¥99/$ ¥103/ ¥102/ ¥102/ ¥110/ Income (100 million yen) $ $ $ $ （100 million yen) 8,000 7,505 7,168 6,996 1,245 7,000 Net sales Operating income 1,200 5,787 5,829 5,934 6,000 1,069 5,422 5,469 4,877 4,691

  34. Slide 34: Consolidated Automobile Sales & Operating Income Margin

    Consolidated Automobile Sales & Operating Income Margin Automobile sales (1,000 cars) OPM 250 238 20% Consolidated automobile sales OPM 232 232 208 16.6% 18% 198 202 201 200 191 194 183 178 15% 166 166 14.9% 14.0% 14.2% 13.3% 13% 150 12.7% 13.3% 10% 100 8.7% 8% 6.4% 5.5% 5% 50 3.3% 4.0% 3% 2.4% 0 0%

  35. Slide 35: Completed Cars Production & Retail Units

    Completed Cars Production & Retail Units Units （1000 units) 250 237 241 234 Production Retail Units 228 225 207 211 213 212 210 211 211 214 196 196 197 195 197 193 200 191 182 178 177 167 172 158 150 100 50 0 Oct. - Jan. - Apr. - Jul. - Oct. - Jan. - Apr. - Jul. - Oct. - Jan. - Apr. - Jul. - Oct. -

  36. Slide 36: 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 50% 2,800 FCF Shareholders' equity to total assets 2,791 46.2% 2,300 2,094 45% 42.6% 44.0% 1,800 41.2% 42.9% 39.9% 40.5% 40% 1,300 37.7% 1,198 778 953 800 646 711 608 516 35% 33.7% 33.3%

  37. Slide 37: Interest-Bearing Debt & D/E Ratio

    Interest-Bearing Debt & D/E Ratio Interest Bearing Debt D/E ratio (100 million yen) 4,000 3,688 Interest-bearing debt D/E ratio 1.4 3,410 3,381 3,301 3,236 3,072 1.2 2,967 2,918 3,000 2,760 2,697 2,574 1.0 2,322 2,268 0.85 0.76 0.74 0.8 2,000 0.69 0.64 0.52 0.6 0.46 0.41 1,000 0.36 0.35 0.4 0.32 0.2

  38. Slide 38: 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

  39. Slide 39: http://www.fhi.co.jp/english/ir/index.html

    http://www.fhi.co.jp/english/ir/index.html 38

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