Subaru Corporation · TSE:7270
Subaru — H1 FYE2018 Earnings Presentation
39 slides from Subaru's earnings presentation, Nov 6, 2017
Slide 1: Consolidated Financial Results for the 1st Half of FYE 2018
Consolidated Financial Results for the 1st Half of FYE 2018 SUBARU CORPORATION Toshiaki Okada Corporate Executive Vice President & CFO https://www.subaru.co.jp/en/ir/ November 6, 20170 0
Slide 2: Summary
Summary Consolidated Financial Results for the 1st Half of FYE 2018 Consolidated global unit sales, overseas unit sales and North American unit sales posted 1st half record.*1 Consolidated net sales increased year on year mainly due to foreign exchange rate fluctuations and higher automobile uni
Slide 3: Consolidated Financial Results for the 1st Half of FYE 2018
Consolidated Financial Results for the 1stst Half of FYE 2018 https://www.subaru.co.jp/en/ir/ 2 2
Slide 4: Consolidated Unit Sales
1st Half : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance 1st Half FYE 2017 1st Half FYE 2018 Passenger cars 52.5 67.3 +14.8 Minicars 15.6 15.1 -0.5 Domestic total 68.0 82.3 +14.3 US 326.9 333.2 +6.3 Canada 28.4 30.7 +2.3 Russia 3.7 3.7 -0.1 Europe 18.4 17.8 -0.7 Aus
Slide 5: Consolidated Income Statements
1st Half : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results Variance 1st Half FYE 2017 1st Half FYE 2018 Net sales 15,777 16,863 +1,087 Domestic 2,860 3,286 +426 Overseas 12,916 13,577 +661 Operating income 2,085 2,121 +36 Total non-operating income & expenses +192 +6 -
Slide 6: Analysis of Variance in Operating Income (Consolidated)
1st Half : Analysis of Variance in Operating Income (Consolidated) Fixed cost : -116 (SUBARU -41, SIA -75) （100 Million Yen） Sales volume SG&A : -257 (SUBARU-44, SOA -238, others) Warranty claims : +170 Gain on & mixture currency and others SUBARU: -41 exchange +142 (material cost -89) +214 SIA : -1
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） As of March As of September Variance 2017 2017 Total assets 27,623 28,207 +584 Current assets 18,453 18,617 +165 Noncurrent assets 9,171 9,590 +419 Total liabilities 12,974 13,155 +180 Interest bearing debts 1,483 976 -507 Net assets 14,649 15,053 +404 R
Slide 8: Consolidated Statement of Cash Flows
1st Half : Consolidated Statement of Cash Flows （100 Million Yen） Actual Results Actual Results Variance 1st Half FYE 2017 1st Half FYE 2018 Net cash provided by (used in) operating activities 1,984 2,078 +94 Net cash provided by (used in) investing activities -1,090 -1,014 +75 Free cash flows 894 1
Slide 9: Operating Results of Subsidiaries in U.S.
1st Half : Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Actual Results SOA 1st Half FYE 2017 1st Half FYE 2018 Variance Net sales 8,733 9,115 +382 Operating income 441 278 -163 Net income 272 177 -95 Retail sales 315.3 334.7 +19.4 (Thousand units) Actual Results Actual Resu
Slide 10: Forecasts for FYE 2018
Forecasts for FYE 2018 https://www.subaru.co.jp/en/ir/ 9 9
Slide 11: Revised Plan FYE 2018: Consolidated Unit Sales
Revised Plan FYE 2018 : Consolidated Unit Sales （Thousand Units） Actual Results Previous Plan Revised Plan Variance Variance FYE 2017 (a) FYE 2018 (b) FYE 2018 (c) (c)-(a) (c)-(b) Passenger cars 126.4 134.2 135.0 +8.6 +0.7 Minicars 32.5 37.8 31.6 -1.0 -6.3 Domestic total 158.9 172.1 166.5 +7.6 -5.5
Slide 12: Revised Plan FYE 2018: Consolidated Income Statements
Revised Plan FYE 2018 : Consolidated Income Statements （100 Million Yen） Actual Results Previous Plan Revised Plan Variance Variance FYE 2017 (a) FYE 2018 (b) FYE 2018 (c) (c)-(a) (c)-(b) Net sales 33,260 34,200 33,800 +540 -400 Domestic 6,503 6,680 6,717 +213 +37 Overseas 26,756 27,520 27,083 +327
Slide 13: Revised Plan FYE 2018: Analysis of Variance in Operating Income
Revised Plan FYE 2018: Analysis of Variance in Operating Income (Consolidated) Fixed cost : -181 (SUBARU-58, SIA -123) （100 Million Yen） SG&A : -405 (SUBARU-135, SOA -279, others) Warranty claims : +335 SUBARU: -108 (material cost -201) Gain on SIA : -16 (material cost -58) currency exchange Domesti
Slide 14: Operating Plan of Subsidiaries in U.S.
Revised Plan FYE 2018: Operating Plan of Subsidiaries in U.S. （Million US$） Actual Results Revised Plan SOA FYE 2017 FYE 2018 Variance Net sales 17,947 18,271 +324 Operating income 671 462 -209 Net income 421 298 -123 Retail sales 625.0 657.1 +32.1 (Thousand units) Actual Results Revised Plan SIA FY
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 Revised Plan 1st Half Variance FYE 2017 1st Half FYE 2018 (b) - (a) FYE 2017 (a) FYE 2018 (b) Capex 637 1,585 545 1,500 -85 Depreciation 335 770 421 920 +150 R&D 534 1,142 609 1,300 +158
Slide 16: Appendix(1)
Appendix(1) ・Non-operating income & expenses and extraordinary income & loss (1H) ・Segment information by business & geographic (1H) ・Overseas net sales (1H) ・Non-consolidated unit sales (1H) https://www.subaru.co.jp/en/ir/ 15 15
Slide 17: 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 1st Half 1st Half Variance FYE 2017 FYE 2018 Financial revenue and expenditure 10 24 +15 FOREX effects 205 -20 -225 Other -22 2 +23 Total non-operating income & e
Slide 18: Net Sales and Operating Income by Business Segment
1st Half : Net Sales and Operating Income by Business Segment (Consolidated) （100 Million Yen） Net Sales Operating Income Actual Actual Actual Actual Results Results Results Results 1st Half Variance Variance 1st Half 1st Half 1st Half FYE 2017 FYE 2018 FYE 2017 FYE 2018 Automobile 14,924 16,000 +1,
Slide 19: Net Sales and Operating Income by Geographic Area
1st Half : Net Sales and Operating Income by Geographic Area (Consolidated) （100 Million Yen） Net Sales Operating Income Actual Actual Actual Actual Results Results Results Results Variance Variance 1st Half 1st Half 1st Half 1st Half FYE 2017 FYE 2018 FYE 2017 FYE 2018 Japan 4,481 4,979 +498 1,327
Slide 20: Overseas Net Sales (Consolidated)
1st Half : Overseas Net Sales (Consolidated) （100 Million Yen） Actual Results Actual Results Variance 1st Half FYE 2017 1st Half FYE 2018 North America 10,489 11,492 +1,003 Europe 549 541 -7 Asia 1,098 698 -400 Others 781 846 +65 Total 12,916 13,577 +661 https://www.subaru.co.jp/en/ir/ 19 19
Slide 21: Non-consolidated Unit Sales
1st Half : Non-consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance 1st Half FYE 2017 1st Half FYE 2018 Domestic production 354.6 346.2 -8.5 Domestic sales 69.9 85.6 +15.8 Passenger cars 53.5 70.0 +16.4 Minicars 16.3 15.7 -0.7 Number of exported 287.7 271.3 -16.4 vehicles
Slide 22: Appendix (2)
Appendix (2) nd quarter (3months) consolidated income statements ・2nd ・ 1stst half consolidated income statement (Plan vs. Actual results) ・Full year consolidated income statements (Previous plan vs. Revised plan) https://www.subaru.co.jp/en/ir/ 21 21
Slide 23: 2Q (3 months): Consolidated Unit Sales
2Q (3 months) : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results 2Q (3 months) 2Q (3 months) Variance FYE 2017 FYE 2018 Passenger cars 27.9 34.0 +6.1 Minicars 8.9 7.9 -1.1 Domestic total 36.9 41.9 +5.0 US 171.9 159.3 -12.6 Canada 13.0 15.3 +2.3 Russia 1.8 1.8 +0.0 Europe 9.8 9.
Slide 24: 2Q (3 months): Consolidated Income Statements
2Q (3 months) : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results 2Q (3 months) 2Q (3 months) Variance FYE 2017 FYE 2018 Net sales 8,083 8,315 +233 Domestic 1,557 1,681 +124 Overseas 6,526 6,634 +109 Operating income 1,070 928 -142 Ordinary income 1,090 935 -155 Income b
Slide 25: 2Q (3 months): Analysis of Variance in Operating Income
2Q (3 months) : Analysis of Variance in Operating Income (Consolidated) Fixed cost : -52 (SUBARU-21, SIA-31) （100 Million Yen） SG&A : -37 (SUBARU-19, SOA -55, others) Warranty claims : -76 Gain on currency Domestic : +73 (volume increase, exchange mixture improvement） Overseas : -187 (volume decreas
Slide 26: Plan vs. Actual Results: Consolidated Unit Sales
（Plan vs. Actual Results）1st Half : Consolidated Unit Sales （Thousand Units） Plan Actual Results Variance 1st Half FYE 2018 1st Half FYE 2018 Passenger cars 65.2 67.3 +2.1 Minicars 17.4 15.1 -2.3 Domestic total 82.6 82.3 -0.2 US 335.0 333.2 -1.7 Canada 30.1 30.7 +0.6 Russia 3.7 3.7 -0.0 Europe 19.6
Slide 27: Plan vs. Actual Results: Consolidated Income Statements
（Plan vs. Actual Results）1st Half : Consolidated Income Statements （100 Million Yen） Plan Actual Results Variance 1st Half FYE 2018 1st Half FYE 2018 Net sales 16,890 16,863 -27 Domestic 3,286 3,286 +0 Overseas 13,604 13,577 -27 Operating income 2,100 2,121 +21 Ordinary income 2,100 2,127 +27 Income
Slide 28: Plan vs. Actual Results: Analysis of Variance in Operating Income
（Plan vs. Actual Results）1st Half : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Domestic : +12 (volume increase, mixture deterioration） SG&A Overseas : -100 (volume Gain on Cost decrease, mixture improvement) expenses currency reduction Others : -74 and others R&D excha
Slide 29: Previous Plan vs. Revised Plan: Consolidated Unit Sales
（Previous Plan vs. Revised Plan）FYE 2018 : Consolidated Unit Sales （Thousand Units） Previous Plan Revised Plan Variance FYE 2018 FYE 2018 Passenger cars 134.2 135.0 +0.7 Minicars 37.8 31.6 -6.3 Domestic total 172.1 166.5 -5.5 US 687.7 668.0 -19.7 Canada 54.6 55.6 +1.0 Russia 6.6 7.3 +0.7 Europe 39.2
Slide 30: Previous Plan vs. Revised Plan: Consolidated Income Statements
（Previous Plan vs. Revised Plan）FYE 2018 : Consolidated Income Statements （100 Million Yen） Previous Plan Revised Plan Variance FYE 2018 FYE 2018 Net sales 34,200 33,800 -400 Domestic 6,680 6,717 +37 Overseas 27,520 27,083 -437 Operating income 4,100 3,800 -300 Ordinary income 4,100 3,820 -280 Incom
Slide 31: Previous Plan vs. Revised Plan: Analysis of Variance in Operating Income
（Previous Plan vs. Revised Plan）FYE 2018 : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Domestic : +20 (volume increase, mixture deterioration) Overseas : -409 (volume decrease, mixture improvement) Gain on SG&A Others : -31 currency R&D expenses exchange expenses and ot
Slide 32: Appendix (3)
Appendix (3) ・ 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/ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Operating Net Sales Income (100M yen) (100M yen) https://www.subaru.co.jp/en/ir/ 32 32
Slide 34: Complete Unit Sales / Operating Income Margin
Complete Unit Sales / Operating Income Margin Unit Sales (1,000 units) OPM https://www.subaru.co.jp/en/ir/ 33 33
Slide 35: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units https://www.subaru.co.jp/en/ir/ ※ Production figures include Toyota 86 34 34
Slide 36: Free Cash Flows / Ratio of Shareholders' Equity to Total Assets
Free Cash Flows / Ratio of Shareholders’ Equity to Total Assets https://www.subaru.co.jp/en/ir/ 35 35
Slide 37: Interest Bearing Debt / D/E Ratio
Interest Bearing Debt / D/E Ratio https://www.subaru.co.jp/en/ir/ 36 36
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