Subaru Corporation · TSE:7270
Subaru — Q3 FYE2019 Earnings Presentation
29 slides from Subaru's earnings presentation, Feb 7, 2019
Slide 1: Consolidated Financial Results for the 3rd Quarter of FYE 2019
Consolidated Financial Results for the 3rd Quarter of FYE 2019 SUBARU CORPORATION Toshiaki Okada Corporate Executive Vice President & CFO February 7th, 2019 https://www.subaru.co.jp/en/ir/ 1 1
Slide 2: Summary
Summary Consolidated Financial Results for the 3rd Quarter (9 months) of FYE 2019 Net sales declined due to decreased unit sales, foreign exchange losses and other factors. Consolidated unit sales decreased as deliveries of the Forester declined before the launch of its fully-redesigned version
Slide 3: Consolidated Financial Results for the 3rd Quarter (9 months) of FYE 2019
Consolidated Financial Results for the 3rd Quarter (9 months) of FYE 2019 https://www.subaru.co.jp/en/ir/ 3 3
Slide 4: Consolidated Unit Sales (9 months)
3rd Quarter (9 months) : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance 3rd Quarter FYE 2018 3rd Quarter FYE 2019 Passenger cars 97.7 79.9 -17.8 Minicars 21.1 18.6 -2.5 Domestic total 118.8 98.5 -20.3 US 509.1 495.9 -13.2 Canada 44.5 47.3 +2.8 Russia 5.7 6.5 +0.9 Eur
Slide 5: Consolidated Income Statements (9 months)
3rd Quarter (9 months) : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results Variance 3rd Quarter FYE 2018 3rd Quarter FYE 2019 Net sales (25,646) 24,377 23,774 -603 Domestic (4,845) 4,842 4,358 -484 Overseas (20,801) 19,536 19,417 -119 Operating income 3,063 1,537 -1,526
Slide 6: Analysis of Variance in Operating Income (Consolidated)
3rd Quarter (9 months) : Analysis of Variance in Operating Income (Consolidated) Domestic : -205 （100 Million Yen） Fixed Cost : -129 (SUBARU -87, SIA -42) Overseas: -309 SG&A : -91 (SUBARU -40, SOA -65, others) Sales Incentive：-116 Warranty claims : -593 Others : -34 R&D US$ : -82 expenses EURO : +5
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets (100 Million Yen) As of March 2018 As of December 2018 Variance Total assets 28,665 28,701 +36 Current assets 17,704 17,379 -326 Noncurrent assets 10,960 11,322 +361 Total liabilities 13,055 12,900 -154 Interest bearing debts 862 520 -342 Net assets 15,610 15,800 +190 Ret
Slide 8: Consolidated Statements of Cash Flows
3rd Quarter (9 months) : Consolidated Statements of Cash Flows (100 Million Yen) Actual Results Actual Results Variance 3rd Quarter FYE 2018 3rd Quarter FYE 2019 Net cash provided by (used in) operating activities 2,546 1,123 -1,423 Net cash provided by (used in) investing activities -1,320 -1,129 +
Slide 9: Operating Results of Subsidiaries in U.S.
3rd Quarter (9 months) : Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Actual Results SOA 3rd Quarter FYE 2018 3rd Quarter FYE 2019 Variance Net sales 13,901 14,240 +339 Operating income 336 256 -80 Net income 218 216 -2 Retail sales 501.2 526.1 +24.9 (Thousand units) Actual
Slide 10: Forecasts for FYE 2019
Forecasts for FYE 2019 https://www.subaru.co.jp/en/ir/ 10 10
Slide 11: Production Plan / Consolidated Unit Sales Plan
Revised Plan FYE 2019 : Production Plan / Consolidated Unit Sales Plan （Thousand Units） Previous Plan Actual Results Revised Plan FYE 2019 Variance Variance FYE 2018 FYE 2019 as of Nov. 5th (c)-(a) (c)-(b) (a) (c) (b) Production in U.S. 348.6 379.7 377.2 +28.6 -2.6 Production in Japan 701.2 656.1 61
Slide 12: Consolidated Income Plan
Revised Plan FYE 2019 : Consolidated Income Plan (100 Million Yen) Previous Plan Actual Results Revised Plan FYE 2019 Variance Variance FYE 2018 FYE 2019 as of Nov. 5th (c)-(a) (c)-(b) (a) (c) (b) Net sales (34,052) 32,327 32,100 31,200 -1,127 -900 Domestic (6,686) 6,680 6,173 5,698 -982 -475 Overse
Slide 13: Analysis of Variance in Operating Income (Consolidated)
Revised Plan FYE 2019 : Analysis of Variance in Operating Income (Consolidated) Domestic : -306 (100 Million Yen) Overseas : -487 Fixed cost : -187 (SUBARU -109, SIA -78) Sales Incentive : -127 SG&A : -223 (SUBARU -73, SOA -91, others) R&D Others : -63 Warranty claims : -538 expenses SUBARU: -11 (ma
Slide 14: Analysis of Variance in Operating Income: Previous Plan vs. Revised Plan
Previous Plan FYE 2019 (as of November 5th) vs. Revised Plan : Analysis of Variance in Operating Income (Consolidated) Domestic : -70 (100 Million Yen) Overseas : -260 Sales Incentive : +62 Others : -26 SUBARU : -47 (material cost -36) R&D SIA : -60 (material cost -44) expenses Fixed cost : -1 (SUBA
Slide 15: Capex / Depreciation / R&D / Interest Bearing Debt
Capex / Depreciation / R&D / Interest Bearing Debt (100 Million Yen) Actual Results Previous Plan Actual Results Actual Results Revised Plan FYE 2019 Variance Variance 3rd Quarter 3rd Quarter FYE 2018 FYE 2019 (as of Nov. 5th) (c)-(a) (c)-(b) FYE 2018 FYE 2019 (a) (c) (b) Capex 780 852 1,414 1,300 1
Slide 16: Shareholder Returns
Shareholder Returns 【Dividend per share】 (Yen) FYE 2019 FYE 2018 Results Results Forecast 2nd Quarter 72 72 - Year-end 72 - 72 Annual 144 - 144 https://www.subaru.co.jp/en/ir/ 16 Finally, we come to returns to shareholders. Although the level of profits has deteriorated compared to the previous set
Slide 17: Appendix
Appendix • Non-operating Income & Expenses and Extraordinary Income & Losses • Segment information by Business & Geographic • Overseas Net Sales • Non-consolidated Unit Sales • 3rd Quarter (3 months) Consolidated Unit Sales and Income Statements • 4th Quarter (3 months) Consolidated Income Statement
Slide 18: Non-operating Income & Expenses and Extraordinary Income & Losses
3rd Quarter (9 months) : Non-operating Income & Expenses and Extraordinary Income & Losses (Consolidated) （100 Million Yen） Actual Results Actual Results 3rd Quarter FYE 2018 3rd Quarter FYE 2019 Variance Financial revenue and expenditure 42 91 +48 FOREX effects -26 -58 -32 Loss on taxation of overs
Slide 19: Net Sales and Operating Income by Business Segment
3rd Quarter (9 months) : Net Sales and Operating Income by Business Segment (Consolidated) (100 Million Yen) Net Sales Operating Income Actual Actual Actual Actual Results Results Results Results 3 rd Quarter FYE 2018 3 rd Quarter Variance 3 rd Quarter 3 rd Quarter Variance FYE 2019 FYE 2018 FYE 201
Slide 20: Net Sales and Operating Income by Geographic Area
3rd Quarter (9 months) : Net Sales and Operating Income by Geographic Area (Consolidated) (100 Million Yen) Net Sales Operating Income Actual Actual Actual Actual Results Results Results Results 3 rd Quarter FYE 2018 3 rd Quarter Variance 3 rd Quarter 3rd Quarter Variance FYE 2019 FYE 2018 FYE 2019
Slide 21: Overseas Net Sales (Consolidated)
3rd Quarter (9 months) : Overseas Net Sales (Consolidated) (100 Million Yen) Actual Results Actual Results 3rd Quarter FYE 2018 3rd Quarter FYE 2019 Variance North America (17,610) 16,395 16,512 +117 Europe (851) 844 808 -36 Asia (1,074) 1,031 877 -153 Others (1,267) 1,265 1,219 -46 Total (20,801) 1
Slide 22: Non-consolidated Unit Sales
3rd Quarter (9 months) : Non-consolidated Unit Sales (Thousand Units) Actual Results Actual Results Variance 3rd Quarter FYE 2018 3rd Quarter FYE 2019 Domestic production 532.2 491.1 -41.2 Domestic sales 125.9 104.2 -21.6 Passenger cars 103.4 84.9 -18.5 Minicars 22.5 19.4 -3.1 Number of exported veh
Slide 23: Consolidated Unit Sales (3 months)
3rd Quarter (3 months) : Consolidated Unit Sales (Thousand Units) Actual Results Actual Results 3rd Quarter (3 months) 3rd Quarter (3 months) Variance FYE 2018 FYE 2019 Passenger car 30.4 27.5 -2.9 Minicar 6.1 6.0 -0.1 Domestic total 36.5 33.5 -3.0 US 175.8 193.7 +17.8 Canada 13.7 15.4 +1.7 Russia 2
Slide 24: Consolidated Income Statements (3 months)
3rd Quarter (3 months) : Consolidated Income Statements (100 Million Yen) Actual Results Actual Results 3Q (3 months) 3Q (3 months) Variance FYE 2018 FYE 2019 Net sales (8,783) 8,297 8,906 +609 Domestic (1,559) 1,559 1,483 -76 Overseas (7,224) 6,738 7,423 +684 Operating income 942 986 +44 Ordinary i
Slide 25: Operating Income Variance (3 months)
3rd Quarter (3 months) : Consolidated Income Statements (100 Million Yen) US$ : +12 EURO : -4 CA$ : -6 CNY : ±0 Currency exchange adjustment : -17 Domestic : -61 Unrealized gain : -24 Overseas : +52 Sales Incentive : -14 Others : -12 SG&A R&D expenses expenses SUBARU : -12 (material cost -32) SIA :
Slide 26: Consolidated Income Statements: 4th Quarter (3 months)
4th Quarter (3 months) : Consolidated Income Statements (100 Million Yen) Actual Results Plan 4th Quarter (3 months) 4th Quarter (3 months) Variance FYE 2018 FYE 2019 Net sales (8,406) 7,949 7,426 -524 Domestic (1,840) 1,838 1,340 -498 Overseas (6,565) 6,111 6,086 -26 Operating income 731 313 -418 O
Slide 27: Analysis of Variance in Operating Income: 4th Quarter
4th Quarter (3 months) : Analysis of Variance in Operating Income(Consolidated) (100 Million Yen) Domestic : -101 Overseas : -178 Sales Incentive : -11 Gain on R&D Others : -29 currency expenses exchange +40 Fixed cost : -58 (SUBARU -22, SIA -36) SG&A : -132 (SUBARU -33, SOA -26, others) +42 Warrant
Slide 28: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units （1,000units） Production Retail Sales 300 280 276 276 278 273 270 264 269 268 271 269 261 264 258 257 253 249 253 249 252 250 244 248 245242 250 237 242 237 241 233 229 231 200 150 100 50 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec J
Slide 29: https://www.subaru.co.jp/en/ir/
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