Subaru Corporation · TSE:7270
Subaru — H1 FYE2022 Earnings Presentation
38 slides from Subaru's earnings presentation, Nov 5, 2021
Slide 1: Consolidated Financial Results for the 1st Half of FYE 2022
Consolidated Financial Results for the 1 st Half of FYE 2022 SUBARU CORPORATION Tomomi Nakamura, Representative Director, President & CEO November 5 th, 2021 https://www.subaru.co.jp/en/ir/
Slide 2: 1st Half: Consolidated Profit Results
1 st H a l f : Consolidated Profit Results (Yen in 100 millions, Units in thousands) FYE 2021 FYE 2022 st st Variance 1 Half Results 1 Half Results Consolidated Unit Sales 363 375 +12 Production 354 342 -12 Revenue 12,184 13,417 +1,233 Operating profit 306 545 +238 Profit for the period attributable
Slide 3: Subaru sales in the U.S.
Subaru sales in the U.S. ■ Retailer inventory and backorders - Retailer inventory at: 4 days’ supply level * - Backorders at: 35,000 unit level * Retailer lot filled with Empty retailer lot “pre-sold” vehicles with no new cars in stock ■ Outback model mix - Higher trim models (Wilderness, XT, Onyx,
Slide 4: Revised Plan FYE 2022: Consolidated Profit Plan
Revised Plan FYE 2022 ： Consolidated Profit Plan (Yen in 100 millions, Units in thousands) FYE 2021 FYE 2022 FYE 2022 Variance Variance Results(a) Previous Plan*(b) Revised Plan(c) (c)-(a) (c)-(b) Consolidated Unit Sales 860 960 830 -30 -130 Production 810 990 860 50 -130 Revenue 28,302 33,000 29,00
Slide 5: 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 6: Consolidated Financial Results for the 1st Half of FYE 2022
Consolidated Financial Results for the 1 st Half of FYE 2022 SUBARU CORPORATION Katsuyuki Mizuma, Director, Executive Vice President & CFO November 5 th, 2021 https://www.subaru.co.jp/en/ir/
Slide 7: Consolidated Financial Results for the 1st Half of FYE 2022
Consolidated Financial Results for the 1 st Half of FYE 2022 https://www.subaru.co.jp/en/ir/ 7
Slide 8: Consolidated Unit Sales / Complete Cars Production
1 st H a l f ： Consolidated Unit Sales / Complete Cars Production (Thousand Units) FYE 2021 FYE 2022 Variance 1st Half Results 1st Half Results Consolidated Unit Sales Total 363 375 +12 FYE 2021 FYE 2022 st st Variance 1 Half Results 1 Half Results Production in U.S. 133 124 -9 Production in Japan 2
Slide 9: Consolidated Unit Sales (by market)
1 st H a l f ： C: o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t ) (Thousand Units) FYE 2021 FYE 2022 Variance 1st Half Results 1st Half Results Passenger cars 33 35 +3 Minicars 10 9 -1 Domestic total 43 44 +2 U.S. 261 253 -8 Canada 23 29 +6 Russia 1 2 +1 Europe 6 7 +2 Australia 11 17 +6
Slide 10: Consolidated Profit Results
1 st H a l f : Consolidated Profit Results (100 Million Yen) FYE 2021 FYE 2022 Variance 1st Half Results 1st Half Results Revenue 12,184 13,417 +1,233 Domestic 2,102 2,179 +77 Overseas 10,082 11,237 +1,156 Operating profit 306 545 +238 Profit before tax 361 612 +251 Profit for the period attributabl
Slide 11: Analysis of Variance in Operating Profit (Consolidated)
1 st H a l f : A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) +66 +4 -257 +534 R&D expenses Gain on currency -98 exchange -11 Cost reduction, etc. SG&A expenses, Other etc. Sales volume & mixture, etc. Results Results 1st Half 1st H
Slide 12: Consolidated Statement of Cash Flows / Cash and cash equivalents
1 st H a l f : Consolidated Statement of Cash Flows / Cash and cash equivalents (100 Million Yen) * Lease liabilities are not included in the results above. https://www.subaru.co.jp/en/ir/ 12
Slide 13: Capex / Depreciation / R&D
Capex / Depreciation / R&D (100 Million Yen) FYE 2021 FYE 2022 st st Variance 1 Half Results 1 Half Results Capex *1 334 382 +48 Depreciation *1 471 460 -11 R&D expenditures *2 506 616 +110 *1 : Leases, capex & amortization for intangible assets and lease liabilities are not included in the results
Slide 14: Forecast for FYE 2022
Forecast for FYE 2022 https://www.subaru.co.jp/en/ir/ 14
Slide 15: Revised Plan: Consolidated Unit Sales / Complete Cars Production
Revised Plan FYE 2022 ： Consolidated Unit Sales / Complete Cars Production (Thousand Units) FYE 2021 FYE 2022 FYE 2022 Variance Variance Results(a) Previous Plan(b) Revised Plan(c) (c)-(a) (c)-(b) Consolidated Unit Sales Total 860 960 830 -30 -130 FYE 2021 FYE 2022 FYE 2022 Variance Variance Results
Slide 16: Revised Plan: Consolidated Unit Sales (by market)
Revised Plan FYE 2022 ： C: o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t ) (Thousand Units) FYE 2021 FYE 2022 Variance Results Plan Passenger cars 82 78 -4 Minicars 20 19 -1 Domestic total 102 97 -5 U.S. 612 570 -42 Canada 50 55 +5 China 24 16 -8 Others 73 92 +19 Overseas total 758 733 -
Slide 17: Revised Plan: Consolidated Profit Plan
Revised Plan FYE 2022 ： Consolidated Profit Plan (Yen in 100 millions, Units in thousands) FYE 2021 FYE 2022 FYE 2022 Variance Variance Results(a) Previous Plan(b) Revised Plan(c) (c)-(a) (c)-(b) Revenue 28,302 33,000 29,000 +698 -4,000 Operating profit 1,025 2,000 1,500 +475 -500 Profit before tax
Slide 18: Revised Plan: Analysis of Variance in Operating Profit
Revised Plan FYE 2022 ： A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) +307 +38 +10 -630 (100 Million Yen) +845 SG&A expenses, R&D expenses Cost reduction etc. Gain on currency -95 exchange Cost reduction, Other etc. Sales volume & 1,500 mixture, etc
Slide 19: Previous Plan vs Revised Plan: Variance in Operating Profit
P r e v i o u s P l a n F Y E 2 0 2 2 ( a s o f A u g u s t 3 rd) v s R e v i s e d P l a n : A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) -1,189 Loss on currency exchange：-43 +345 Material cost, etc.：+20 +437 R&D expenses：+63 SG&
Slide 20: Capex / Depreciation / R&D
Capex / Depreciation / R&D (100 Million Yen) FYE 2021 FYE 2022 FYE 2022 Variance Variance Results(a) Previous Plan(b) Revised Plan(c) (c)-(a) (c)-(b) Capex *1 862 1,000 900 +38 -100 Depreciation *1 950 1,000 1,000 +50 ±0 R&D expenditures *2 1,016 1,200 1,200 +184 ±0 *1 : Leases, capex & amortization
Slide 21: Shareholder Returns
Shareholder Returns (Yen) ➢ Dividend per share FYE 2021 FYE 2022 FYE 2022 Results Previous Forecast Revised Forecast * Interim dividend 28 28 28 Year-end Dividend 28 28 28 Total 56 56 56 Payout ratio 56.1% 30.7% 39.0% ＊Payout ratio：Based on the number of shares in the previous term https://www.subar
Slide 22: Appendix (1)
Appendix (1) • Segment information by Business & Geographic (1st Half) • Forecast for 2 nd Half FYE 2022 • Overseas Revenue (1st Half) • FYE 2021 and FYE 2022 Results (by Quarter) • Consolidated Statement of Financial Position • Analysis of Variance in Operating Profit (Consolidated) • Non-consolida
Slide 23: Revenue and Operating Profit by Business Segment
1 st H a l f ： Revenue and Operating Profit by Business Segment (Consolidated) (100 Million Yen) Revenue Operating profit FYE 2021 FYE 2022 FYE 2021 FYE 2022 Variance Variance 1st Half Results 1st Half Results 1st Half Results 1st Half Results Automobile 11,688 13,061 +1,373 316 520 +204 Aerospace 4
Slide 24: Revenue and Operating Profit by Geographic Area
1 st H a l f ： Revenue and Operating Profit by Geographic Area (Consolidated) (100 Million Yen) Revenue Operating profit FYE 2021 FYE 2022 FYE 2021 FYE 2022 Variance Variance 1st Half Results 1st Half Results 1st Half Results 1st Half Results Japan 2,788 3,151 +363 -192 -42 +150 North America 8,791
Slide 25: Overseas Revenue (Consolidated)
1 st H a l f ： Overseas Revenue (Consolidated) (100 Million Yen) FYE 2021 FYE 2022 st st Variance 1 Half Results 1 Half Results North America 9,088 9,911 +823 Europe 209 320 +110 Asia 470 420 -50 Other 314 586 +272 Total 10,082 11,237 +1,156 https://www.subaru.co.jp/en/ir/ 25
Slide 26: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (100 Million Yen) As of March As of September Variance 2021 2021 Total assets 34,117 33,223 -894 Current assets 19,828 18,698 -1,131 Non-current assets 14,289 14,525 +237 Total liabilities 16,253 14,946 -1,308 Interest bearing debts 3,339 3,351 +12 Total
Slide 27: Non-consolidated Unit Sales
1 st H a l f ： Non-consolidated Unit Sales : (Thousand Units) FYE 2021 FYE 2022 Variance 1st Half Results 1st Half Results Domestic production* 221 218 -3 Domestic sales 41 40 -1 Passenger cars 31 32 +1 Minicars 10 8 -2 Export total 189 188 -0 Components for overseas 109 168 +59 production Total 338
Slide 28: Operating Results of Subsidiaries in U.S.
1 st H a l f ： Operating Results of Subsidiaries in U.S. （Million US$） *1 SOA: Subaru of America Inc. *2 SIA: Subaru of Indiana Automotive, Inc. https://www.subaru.co.jp/en/ir/ 28
Slide 29: 2nd Quarter: Consolidated Unit Sales (by market)
2 nd Q u a r t e r ( 3 m o n t h s ) ： C: o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t ) (Thousand Units) FYE 2021 FYE 2022 Variance 2Q Results 2Q Results Passenger cars 19 16 -2 Minicars 5 4 -1 Domestic total 24 20 -4 U.S. 170 136 -33 Canada 17 17 +0 Russia 1 1 -0 Europe 2 4 +2 Austral
Slide 30: 2nd Quarter: Consolidated Profit Results
2 nd Q u a r t e r ( 3 m o n t h s ) : Consolidated Profit Results (100 Million Yen) FYE 2021 FYE 2022 Variance 2Q Results 2Q Results Revenue 7,614 7,065 -549 Domestic 1,156 1,049 -107 Overseas 6,458 6,016 -442 Operating profit 463 249 -214 Profit before tax 468 269 -199 Profit for the period attrib
Slide 31: 2nd Quarter: Analysis of Variance in Operating Profit
2 nd Q u a r t e r ( 3 m o n t h s ) : A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) +82 +9 -139 -83 SG&A expenses, Gain on currency etc. -67 exchange Cost reduction, -16 etc. Sales volume & mixture, etc. R&D expenses Other Results
Slide 32: Plan for 2nd Half: Consolidated Unit Sales (by market)
P l a n f o r 2 nd H a l f ： C: o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t ) (Thousand Units) FYE 2021 FYE 2022 Variance 2nd Half Results 2nd Half Plan Passenger cars 49 43 -6 Minicars 10 10 -0 Domestic total 59 52 -7 U.S. 351 317 -34 Canada 26 25 -1 China 11 8 -4 Others 49 52 +3 Over
Slide 33: Plan for 2nd Half: Consolidated Profit
P l a n f o r 2 nd H a l f : Consolidated Profit (100 Million Yen) FYE 2021 FYE 2022 Variance 2nd Half Results 2nd Half Plan Revenue 16,118 15,583 -535 Domestic 2,881 2,975 +94 Overseas 13,237 12,608 -629 Operating profit 719 955 +237 Profit before tax 779 938 +160 Profit for the period attributable
Slide 34: Plan for 2nd Half: Analysis of Variance in Operating Profit
P l a n f o r 2 nd H a l f : A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) +136 +6 -373 +241 R&D expenses +311 SG&A expenses, -84 etc. Gain on currency Cost reduction, exchange etc. Other Sales volume & mixture, etc. 955 719 Result
Slide 35: FYE 2021 and FYE 2022 Results (by Quarter)
FYE 2021 and FYE 2022 Results(by Quarter) (Yen in 100 millions, Units in thousands) FYE 2021 FYE 2022 Results Results 1Q 2Q 3Q 4Q 1Q 2Q Consolidated Unit Sales 133 230 268 229 175 200 Production * 92 262 260 196 184 158 Revenue 4,570 7,614 8,564 7,554 6,352 7,065 Operating profit -157 463 676 42 295
Slide 36: Previous Plan vs Revised Plan: Variance in Operating Profit
P r e v i o u s P l a n F Y E 2 0 2 2 ( a s o f A u g u s t 3 rd) v s R e v i s e d P l a n : A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) Allocate "Effort for improvement" to each expense category. -43 +20 -662 +345 +63 -223 Loss
Slide 37: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units (1,000units） Production Retail Sales 300 280 276 278 273 277 276 271 271 268 270 269 269 269 262 262 262 264 260 264 258 250 257 261 254 250 254 249 253 253 249 252 245 248 242 241 244 242 242 237 236 240 240 237 231 233 229 227 229 200 209 204 196 184 1
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