Slide 1: Consolidated Financial Results for FYE 2018
Consolidated Financial Results for FYE 2018 SUBARU CORPORATION Toshiaki Okada Corporate Executive Vice President & CFO https://www.subaru.co.jp/en/ir/ May 11th, 20180 0
Slide 2: Summary
Summary Consolidated Financial Results for FYE 2018 Net sales and global unit sales posted all-time records*1 for the 6th consecutive year. Unit sales in North America marked an all-time record*1 for the 9th consecutive year. Operating income decreased, as foreign exchange gains were offset by a
Slide 3: Consolidated Financial Results for FYE 2018
Consolidated Financial Results for FYE 2018 https://www.subaru.co.jp/en/ir/ 2 2
Slide 4: FYE 2018: Consolidated Unit Sales
FYE 2018： Consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance FYE 2017 FYE 2018 Passenger Cars 126.4 132.6 +6.2 Minicars 32.5 30.9 -1.7 Domestic Total 158.9 163.4 +4.5 US 667.6 670.9 +3.3 Canada 53.1 56.8 +3.8 Russia 5.3 7.7 +2.4 Europe 40.9 40.2 -0.7 Australia 49.1 55.7
Slide 5: Consolidated Income Statements
FYE 2018： Consolidated Income Statements （100 Million Yen） Actual Results Actual Results Variance FYE 2017 FYE 2018 Net Sales 33,260 34,052 +792 Domestic 6,503 6,686 +182 Overseas 26,756 27,367 +610 Operating Income 4,108 3,794 -314 Total Non-operating -165 5 +170 Income & Expenses Ordinary Income 3
Slide 6: Analysis of Variance in Operating Income (Consolidated)
FYE 2018 : Analysis of Variance in Operating Income (Consolidated) Fixed cost : -169 (SUBARU -67, SIA -102) （100 Million Yen） SG&A : -398 (SUBARU -70, SOA -389, others) Warranty claims : +125 Gain on SUBARU: -85 (material cost -183) currency SIA : +8 (material cost -39) exchange Domestic : +95 +327
Slide 7: Consolidated Balance Sheets
FYE 2018 : Consolidated Balance Sheets （100 Million Yen） As of March 31 As of March 31 Variance 2017 2018 Total Assets 27,623 28,843 +1,220 Current Assets 18,453 18,952 +500 Noncurrent Assets 9,171 9,891 +720 Total Liabilities 12,974 13,233 +259 Interest Bearing Debts 1,483 862 -621 Net Assets 14,64
Slide 8: Consolidated Statement of Cash Flows
FYE 2018 : Consolidated Statement of Cash Flows （100 Million Yen） Actual Results Actual Results Variance FYE 2017 FYE 2018 Net Cash Provided by (used in) Operating Activities 3,454 3,663 +209 Net Cash Provided by (used in) Investing Activities -2,543 -1,507 +1,035 Free Cash Flows 912 2,156 +1,244 Ne
Slide 9: Operating Results of Subsidiaries in U.S.
FYE 2018 : Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Actual Results SOA FYE 2017 FYE 2018 Variance Net Sales 17,947 18,402 +455 Operating Income 671 356 -315 Net Income 421 235 -186 Retail Sales (Thousand Units) 625.0 651.9 +26.9 Actual Results Actual Results SIA FYE 201
Slide 10: Capex / Depreciation / R&D / Interest bearing debt
FYE 2018 : Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Previous Plan Actual Results Variance Variance FYE 2017 FYE 2018 FYE 2018 (c) - (a) (c) - (b) (a) (b) (c) Capex 1,585 1,500 1,414 -171 -86 Depreciation 770 920 898 +128 -22 R&D 1,142 1,260 1,211 +69 -49 In
Slide 11: Forecasts for FYE 2019
Forecasts for FYE 2019 https://www.subaru.co.jp/en/ir/ 10 10
Slide 12: Consolidated Unit Sales Plan
FYE 2019 : Consolidated Unit Sales Plan （Thousand Units） Actual Results Plan Variance FYE 2018 FYE 2019 Passenger Cars 132.6 122.7 -9.9 Minicars 30.9 28.1 -2.8 Domestic Total 163.4 150.8 -12.7 US 670.9 707.0 +36.0 Canada 56.8 61.4 +4.6 Russia 7.7 11.5 +3.8 Europe 40.2 32.5 -7.7 Australia 55.7 55.5 -
Slide 13: Consolidated Operating Plan
FYE 2019 : Consolidated Operating Plan （100 Million Yen） Actual Results Plan Variance FYE 2018 FYE 2019 Net Sales 34,052 32,500 -1,552 Domestic 6,686 6,086 -600 Overseas 27,367 26,415 -952 Operating Income 3,794 3,000 -794 Ordinary Income 3,799 3,050 -749 Income before Taxes and Minority Interests 2
Slide 14: FYE 2019: Analysis of Variance in Operating Income
FYE 2019 : Analysis of Variance in Operating Income (Consolidated) US$ : -653 （100 Million Yen） EURO : +9 CA$ : -10 CNY : ±0 Currency exchange adjustment : +56 Unrealized gain : +14 Sales volume R&D & mixture expenses Fixed cost : -136 (SUBARU -85, SIA -51) and others SG&A : -400 (SUBARU -34, SOA -2
Slide 15: Operating Plan of Subsidiaries in U.S.
FYE 2019 : Operating Plan of Subsidiaries in U.S. （Million US$） Actual Results Plan SOA FYE 2018 FYE 2019 Variance Net Sales 18,402 19,678 +1,276 Operating Income 356 273 -83 Net Income 235 227 -8 Retail Sales (Thousand Units) 651.9 700.0 +48.1 Actual Results Plan SIA FYE 2018 FYE 2019 Variance Net
Slide 16: FYE 2019: Capex / Depreciation / R&D / Interest bearing debt
FYE 2019 : Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Plan Variance FYE 2018 FYE 2019 Capex 1,414 1,300 -114 Depreciation 898 930 +32 R&D 1,211 1,200 -11 Interest Bearing Debt 862 800 -62 https://www.subaru.co.jp/en/ir/ 15 Finally, we have the full-year plan
Slide 17: Appendix(1)
Appendix(1) ・Non-operating Income & Expenses and Extraordinary Income & Loss ・Segment Information by Business & Geographic ・Overseas Net Sales ・Non-consolidated Unit Sales ・Consolidated Income Statements in 4th Quarter (3 months) ・FYE 2018 Plan vs. Actual Results ・Consolidated Income Statements in 1
Slide 18: Non-operating Income & Expenses and Extraordinary Income & Loss
FYE 2018 : Non-operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual Results Actual Results Variance FYE 2017 FYE 2018 Financial Revenue and Expenditure 28 68 +40 FOREX Effects -90 -51 +39 Others -102 -12 +90 Total Non-operating Income& Expenses -165 5 +
Slide 19: Net Sales and Operating Income by Business Segment
FYE 2018 : Net Sales and Operating Income by Business Segment (Consolidated) （100 Million Yen） Net Sales Operating Income Actual Actual Actual Actual Results Results Variance Results Results Variance FYE 2017 FYE 2018 FYE 2017 FYE 2018 Automobile 31,520 32,349 +829 3,977 3,615 -362 Aerospace 1,388 1
Slide 20: Net Sales and Operating Income by Geographic Area
FYE 2018 : Net Sales and Operating Income by Geographic Area (Consolidated) （100 Million Yen） Net Sales Operating Income Actual Actual Actual Actual Results Results Variance Results Results Variance FYE 2017 FYE 2018 FYE 2017 FYE 2018 Japan 9,705 10,118 +413 2,945 2,950 +5 North America 20,947 21,92
Slide 21: Overseas Net Sales (Consolidated)
FYE 2018 : Overseas Net Sales (Consolidated) （100 Million Yen） Actual Results Actual Results Variance FYE 2017 FYE 2018 North America 21,923 23,058 +1,135 Europe 1,126 1,191 +65 Asia 2,113 1,406 -707 Others 1,595 1,712 +117 Total 26,756 27,367 +610 https://www.subaru.co.jp/en/ir/ 20 20
Slide 22: Non-consolidated Unit Sales
FYE 2018 : Non-consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance FYE 2017 FYE 2018 Domestic Production 720.5 701.2 -19.4 Domestic Sales 163.7 168.9 +5.2 Passenger Cars 129.6 137.2 +7.6 Minicars 34.1 31.7 -2.4 Number of Exported 570.7 556.5 -14.3 Vehicles Components for
Slide 23: 4th Quarter: Consolidated Unit Sales
4th Quarter (3 months) : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results 4th Quarter (3 months) 4th Quarter (3 months) Variance FYE 2017 FYE 2018 Passenger Cars 43.3 34.9 -8.4 Minicars 10.2 9.7 -0.4 Domestic Total 53.4 44.6 -8.8 US 166.3 161.9 -4.4 Canada 12.6 12.3 -0.3 Russia
Slide 24: 4th Quarter: Consolidated Income Statements
4th Quarter (3 months) : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results 4th Quarter (3 months) 4th Quarter (3 months) Variance FYE 2017 FYE 2018 Net Sales 8,981 8,406 -575 Domestic 2,054 1,840 -214 Overseas 6,927 6,565 -361 Operating Income 1,041 731 -309 Ordinary Inc
Slide 25: 4th Quarter: Analysis of Variance in Operating Income
4th Quarter (3 months) : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Fixed cost : -42 (SUARU -33, SIA -9) Domestic : -40 (volume decrease, mixture deterioration) SG&A : -10 (SUBARU -21, SOA -43, others) Overseas : -112 (volume decrease, mixture deterioration) Warranty c
Slide 26: FYE 2018 Plan vs. Actual: Consolidated Unit Sales
FYE 2018 (Plan vs. Actual Results) : Consolidated Unit Sales （Thousand Units） Plan Actual Results Variance FYE 2018 FYE 2018 Passenger Cars 134.5 132.6 -2.0 Minicars 30.6 30.9 +0.3 Domestic Total 165.2 163.4 -1.7 US 671.3 670.9 -0.4 Canada 57.0 56.8 -0.2 Russia 7.7 7.7 +0.1 Europe 39.1 40.2 +1.1 Aus
Slide 27: FYE 2018 Plan vs. Actual: Consolidated Income Statements
FYE 2018 (Plan vs. Actual Results) : Consolidated Income Statements （100 Million Yen） Plan Actual Results Variance FYE 2018 FYE 2018 Net Sales 34,100 34,052 -48 Domestic 6,703 6,686 -18 Overseas 27,397 27,367 -30 Operating Income 3,800 3,794 -6 Ordinary Income 3,750 3,799 +49 Income before Taxes and
Slide 28: FYE 2018 Plan vs. Actual: Analysis of Variance in Operating Income
FYE 2018 (Plan vs. Actual Results) : Analysis of Variance in Operating Income (Consolidated) US$ : -46 （100 Million Yen） EURO : ±0, CA$ : -2 CNY : ±0 Currency exchange adjustment : +27 Unrealized gain : -50 Domestic : -18 SG&A (volume increase, mixture deterioration) R&D Cost expenses Overseas : -23
Slide 29: 1st Half FYE 2019: Consolidated Unit Sales Plan
1st Half of FYE 2019 : Consolidated Unit Sales Plan （Thousand Units） Actual Results Plan Variance 1st Half FYE 2018 1st Half FYE 2019 Passenger Cars 67.3 56.0 -11.3 Minicars 15.1 13.0 -2.1 Domestic Total 82.3 68.9 -13.4 US 333.2 313.0 -20.3 Canada 30.7 31.6 +0.8 Russia 3.7 7.0 +3.3 Europe 17.8 20.9
Slide 30: 1st Half FYE 2019: Consolidated Income Statements Plan
1st Half of FYE 2019 : Consolidated Income Statements Plan （100 Million Yen） Actual Results Plan Variance 1st Half FYE 2018 1st Half FYE 2019 Net Sales 16,863 14,630 -2,233 Domestic 3,286 2,670 -616 Overseas 13,577 11,961 -1,616 Operating Income 2,121 1,100 -1,021 Ordinary Income 2,127 1,117 -1,010
Slide 31: 1st Half FYE 2018 Results vs. FYE 2019 Plan: Variance in Operating Income
1st Half of FYE 2018 Results vs. FYE 2019 Plan： Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Fixed cost : -95 (SUBARU -64, SIA -31) SG&A : -255 (SUBARU -44, SOA -172, others) Warranty claims : +36 Domestic : -122 US$ : -296 (volume decrease, mixture deterioration) EURO :
Slide 32: Appendix (2)
Appendix (2) ・Net Sales / Operating Income ・Consolidated Unit Sales / OPM ・Complete Cars Production / Retail Sales Units ・FCF / Shareholders’ Equity to Total Assets ・Interest Bearing Debt / D/E ratio https://www.subaru.co.jp/en/ir/ 31 31
Slide 33: Net Sales / Operating Income
Net Sales / Operating Income ¥102 ¥102 ¥110 ¥118 ¥120 ¥123 ¥121 ¥118 ¥111 ¥104 ¥105 ¥114 ¥112 ¥111 ¥112 ¥110 /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ Operating Net Sales Income （100M Yen） （100M Yen） Net Sales 1,800 Operating Income 8,981 9,000 8,783 8,362 8,172 8,502 8,548 8,406 1,600 8,172 8
Slide 34: Consolidated Unit Sales / Operating Income Margin
Consolidated Unit Sales / Operating Income Margin Unit Sales （1,000 Units） OPM 300 Consolidated Unit Sales OPM 274 279 267 271 271 260 265 20% 247 247 246 245 250 238 240 232 225 18.4% 18% 18.1% 194 17.5% 200 16.6% 16.0% 15% 14.9% 150 13.8% 14.0% 13.3% 13.2%13.2% 13% 100 11.6% 11.6% 11.2% 10.7% 10%
Slide 35: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units (1,000 Units) Production 300 Retail Sales 280 270 273 269 276 276 264 268 257 258 261 253 249 253 249 252 244 242 248 245 242 250 237241 237 234 233 231 237 228 225 229 211 211 214 200 150 100 50 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep
Slide 36: Free Cash Flows / Ratio of Shareholders' Equity to Total Assets
Free Cash Flows / Ratio of Shareholders’ Equity to Total Assets Ratio of shareholders’ FCF Equity to Total Assets （100M Yen） FCF Shareholders' equity ratio 3,800 3,586 53.5% 54.2% 53.8% 52.8% 55% 52.5% 51.8% 52.8% 53.0%52.8% 53.1% 3,300 50.2% 48.8% 2,800 50% 2,535 46.2% 46.5% 2,300 44.0% 2,156 42.9%
Slide 37: Interest Bearing Debt / D/E Ratio
Interest Bearing Debt / D/E Ratio Interest D/E Ratio Bearing Debt （100M Yen） 3,000 Interest Bearing Debt 1.0 D/E Ratio 2,574 0.9 2,500 2,322 2,268 0.8 2,112 2,011 2,014 0.7 2,000 1,865 1,700 1,654 0.6 1,614 1,455 1,483 1,500 0.5 0.32 1,107 0.4 0.27 976 919 1,000 862 0.24 0.3 0.21 0.18 0.17 0.15 0.13
Slide 38: 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
Slide 39: https://www.subaru.co.jp/en/ir/
https://www.subaru.co.jp/en/ir/ 38 38