Subaru Corporation · TSE:7270
Subaru — H1 FYE2020 Earnings Presentation
44 slides from Subaru's earnings presentation, Nov 6, 2019
Slide 1: Business Results for the 1st Half of FYE 2020
Business Results for the 1st Half of FYE 2020 SUBARU CORPORATION Tomomi Nakamura Representative Director, President and CEO November 6th, 2019 https://www.subaru.co.jp/ir/ 1
Slide 2: 1st Half of FYE 2020: Consolidated Financial Results
1st Half of FYE 2020: Consolidated Financial Results Yen in 100 Millions, Units in Thousands Results Results Change 1st Half FYE 2019 (*1) 1st Half FYE 2020 (b)-(a) (a) (b) Consolidated unit sales 484.0 503.8 +19.8 Revenue (*2) 14,914 16,057 +1,142 Operating profit (*3) 564 948 +384 Profit for the p
Slide 3: Subaru's U.S. Retail Sales and Market Share Growth
1st Half of FYE 2020: Business Review Subaru’s U.S. Retail Sales and Market Share Growth 4.1% 3.9% … Market share 3.8% 3.5% 3.3% 3.1% PLAN 2.7% 700 … CY sales 680 648 615 583 514 525 … Jan-Sep sales 503 425 479 447 429 375 313 (Thousand units) 2013 2014 2015 2016 2017 2018 2019 * Market share figure
Slide 4: Business Review: Quality enhancement
1st Half of FYE 2020: Business Review Quality enhancement: Top-priority initiative in the mid-term management vision “STEP” New Quality Policy (Revised on Apr 1st, 2019) “At Subaru, quality is our highest priority as we earn the trust of our customers.” Enhance product quality level from developme
Slide 5: Business Review: Alliance with Toyota Motor Corporation
1st Half of FYE 2020: Business Review Alliance with Toyota Motor Corporation New business and capital alliance with Toyota (Announced on Sep 27th, 2019) - Strengthen response to the new domains of CASE and accelerate efforts to make ever-better cars. - Further enhance “Enjoyment and Peace of Mind”
Slide 6: FYE 2020 Consolidated Financial Plan
FYE 2020 Consolidated Financial Plan Yen in 100 Millions, Units in Thousands Previous Plan (*1) Results Revised Plan FYE 2020 Change Change FYE 2019 FYE 2020 (as of Aug 5th, 2019) (c)-(a) (c)-(b) (a) (c) (b) Consolidated unit sales 1,000.8 1,058.3 1,058.3 +57.5 ±0 Revenue (*2) 31,562 33,100 33,100 +
Slide 7: Shareholder Returns
Shareholder Returns < Dividend per share> FYE 2019 FYE 2020 Result Plan Interim dividend 72 yen 72 yen Year-end dividend 72 yen 72 yen Total 144 yen 144 yen Payout ratio 74.7% 67.7% https://www.subaru.co.jp/ir/ 7
Slide 8: 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 9: Consolidated Financial Results for the 1st Half of FYE 2020
Consolidated Financial Results for the 1st Half of FYE 2020 SUBARU CORPORATION Toshiaki Okada Corporate Executive Vice President & CFO November 6th, 2019 https://www.subaru.co.jp/en/ir/ 1
Slide 10: Consolidated Financial Results for the 1st Half of FYE 2020: IFRS note
Consolidated Financial Results for the 1st Half of FYE 2020 SUBARU Corporation is voluntarily adopting the International Financial Reporting Standards (IFRS) from the first quarter of the fiscal year ending March 2020. Therefore, the figures are based on IFRS. Please refer to Appendix (2) for change
Slide 11: Consolidated Unit Sales (by market)
1st Half : Consolidated Unit Sales （by market) （Thousand Units） Reference : JGAAP Results Results Results Variance 1st Half FYE 2019 1st Half FYE 2020 1st Half FYE 2019 Passenger cars (*) 54.1 55.1 +1.1 52.4 Minicars (*) 12.8 12.8 +0.0 12.6 Domestic total(*) 66.9 68.0 +1.1 65.0 US 302.2 336.3 +34.1
Slide 12: Consolidated Unit Sales / Complete Cars Production
1st Half : Consolidated Unit Sales / Complete Cars Production （Thousand Units） Results Results Variance 1st Half FYE 2019 1st Half FYE 2020 Consolidated Unit Sales Total 484.0 503.8 +19.8 （Thousand Units） Results Results Variance 1st Half FYE 2019 1st Half FYE 2020 Production in U.S. 172.6 172.2 -0.
Slide 13: Consolidated Profit Results
1st Half: Consolidated Profit Results (100 Million Yen) Reference : JGAAP Results Results Results st st Variance st 1 Half FYE 2019 1 Half FYE 2020 1 Half FYE 2019 Revenue (*1) 14,914 16,057 +1,142 14,868 Domestic 2,924 2,975 +51 2,874 Overseas 11,990 13,082 +1,091 11,994 Operating profit (*2) 564 9
Slide 14: Analysis of Variance in Operating Profit (Consolidated)
1st Half : Analysis of Variance in Operating Profit (Consolidated) R&D (100 Million Yen) SG&A expenses expenses +158 Sales volume and others & mixture +194 Cost and others reduction Loss on currency Other Accounting standard +196 -65 exchange -36 difference -63 +14 Results Results Results Operating
Slide 15: Capex / Depreciation / Interest Bearing Debt / R&D
Capex / Depreciation / Interest Bearing Debt / R&D (100 Million Yen) Reference : JGAAP Results Results Results st st Variance 1 Half FYE 2019 1 Half FYE 2020 1st Half FYE 2019 Capex (*1) 592 732 +140 591 Depreciation (*1) 467 457 -10 473 Interest bearing debt (*1) 532 1,333 +801 498 R&D expenditures
Slide 16: Forecast for FYE 2020
Forecast for FYE 2020 https://www.subaru.co.jp/en/ir/ 8
Slide 17: Consolidated Unit Sales (by market)
Revised Plan FYE 2020 : Consolidated Unit Sales (by market) （Thousand Units） Reference : JGAAP Previous Plan Results Revised Plan FYE 2020 Variance Variance Results FYE 2019 FYE 2020 (as of Aug. 5th) (c)-(a) (c)-(b) FYE 2019 (a) (c) (b) Passenger cars (*) 110.2 112.3 111.3 +1.1 -1.0 109.7 Minicars (
Slide 18: Consolidated Unit Sales / Complete Cars Production
Revised Plan FYE 2020 : Consolidated Unit Sales / Complete Cars Production （Thousand Units） Previous Plan Results Revised Plan FYE 2020 Variance Variance FYE 2019 FYE 2020 (as of Aug. 5th) (c)-(a) (c)-(b) (a) (c) (b) Consolidated Unit 1,000.8 1,058.3 1,058.3 +57.5 ±0 Sales Total （Thousand Units） Pre
Slide 19: Consolidated Profit Plan
Revised Plan FYE 2020 : Consolidated Profit Plan (100 Million Yen) Reference : JGAAP Previous Plan Results Revised Plan FYE 2020 Variance Variance Results FYE 2019 FYE 2020 (as of Aug. 5th) (c)-(a) (c)-(b) FYE 2019 (a) (c) (b) Revenue (*1) 31,562 33,100 33,100 +1,539 ±0 31,605 Domestic 5,941 5,841 5
Slide 20: Analysis of Variance in Operating Profit (Consolidated)
Revised Plan FYE2020: Analysis of Variance in Operating Profit (Consolidated) (100 Million Yen) SG&A Sales volume expenses R&D & mixture and others expenses and others +112 +181 Other +550 +47 Loss on currency Cost Accounting reduction standard exchange difference -412 -95 -138 Results Results Revis
Slide 21: Analysis of Variance in Operating Profit (Consolidated)
Previous Plan FYE 2020 (as of August 5th) vs. Revised Plan : Analysis of Variance in Operating Profit (Consolidated) Sales volume (100 Million Yen) & mixture R&D and others expenses +293 +76 Other SG&A +23 expenses Loss on Cost and others currency reduction -525 exchange -3 -264 Previous Plan Revise
Slide 22: Capex / Depreciation / Interest Bearing Debt / R&D
Capex / Depreciation / Interest Bearing Debt / R&D (100 Million Yen) Reference : JGAAP Previous Plan Results Revised Plan FYE 2020 Variance Variance Results FYE 2019 FYE 2020 (as of Aug. 5th) (c)-(a) (c)-(b) FYE 2019 (a) (c) (b) Capex (*1) 1,140 1,400 1,400 +260 ±0 1,135 Depreciation (*1) 891 1,000
Slide 23: Appendix (1)
Appendix (1) • Segment information by Business & Geographic (1st Half) • Overseas Revenue (1st Half) • Consolidated Statement of Financial Position • Consolidated Statement of Cash Flows (1st Half) • Non-consolidated Unit Sales (1st Half) • Operating Results of Subsidiaries in U.S. (1st Half) • Cons
Slide 24: Revenue and Operating Profit by Business Segment (Consolidated)
1st Half : Revenue and Operating Profit by Business Segment (Consolidated) (100 Million Yen) Revenue Operating profit Results Results Results Results 1st Half 1st Half Variance 1st Half 1st Half Variance FYE 2019 FYE 2020 FYE 2019 FYE 2020 Automobile (14,164) 14,196 15,303 +1,108 (500) 507 874 +367
Slide 25: Revenue and Operating Profit by Geographic Area (Consolidated)
1st Half : Revenue and Operating Profit by Geographic Area (Consolidated) (100 Million Yen) Revenue Operating profit Results Results Results Results 1st Half 1st Half Variance 1st Half 1st Half Variance FYE 2019 FYE 2020 FYE 2019 FYE 2020 Japan (4,496) 4,545 4,545 -0 (266) 286 439 +152 North America
Slide 26: Overseas Revenue (Consolidated)
1st Half : Overseas Revenue (Consolidated) (100 Million Yen) Results Results st st Variance 1 Half FYE 2019 1 Half FYE 2020 North America (10,016) 10,012 11,350 +1,338 Europe (629) 629 421 -208 Asia (538) 538 558 +20 Other (811) 811 753 -58 Total (11,994) 11,990 13,082 +1,091 * Figure in ( ) ：JGAAP
Slide 27: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (100 Million Yen) As of March As of September Variance 2019 2019 Total assets 31,806 31,364 -442 Current assets 19,137 18,235 -903 Non-current assets 12,669 13,130 +461 Total liabilities 14,907 14,467 -440 Interest bearing debts 1,037 1,333 +296 Total equ
Slide 28: Consolidated Statement of Cash Flows
1st Half : Consolidated Statement of Cash Flows (100 Million Yen) Results Results st st Variance 1 Half FYE 2019 1 Half FYE 2020 Net cash provided by (used in) 1,038 792 -247 operating activities Net cash provided by (used in) -969 226 +1,195 investing activities Free cash flows 70 1,018 +948 Net ca
Slide 29: Non-consolidated Unit Sales
1st Half : Non-consolidated Unit Sales （Thousand Units） Results Results Variance 1st Half FYE 2019 1st Half FYE 2020 Domestic production 318.9 325.8 +6.9 Domestic sales 68.9 68.0 -0.9 Passenger cars 56.0 53.9 -2.0 Minicars 12.9 14.1 +1.1 Number of exported vehicles 254.4 266.1 +11.7 Components for o
Slide 30: Operating Results of Subsidiaries in U.S.
1st Half : Operating Results of Subsidiaries in U.S. （Million US$） Results Results SOA 1st Half FYE 2019 1st Half FYE 2020 Variance Net sales 8,643 9,919 +1,276 Operating income 104 382 +278 Net income 94 304 +210 Retail sales 352.6* 367.5 +14.9 (Thousand units) Results Results SIA 1st Half FYE 2019
Slide 31: Consolidated Unit Sales (by market): 2nd Quarter
2nd Quarter (3 months) : Consolidated Unit Sales （by market) （Thousand Units） Reference : JGAAP Results Results Results 2nd Quarter (3 months) 2nd Quarter (3 months) Variance 2nd Quarter (3 months) FYE 2019 FYE 2020 FYE 2019 Passenger cars (*) 28.2 27.7 -0.5 29.5 Minicars (*) 6.3 7.0 +0.7 6.6 Domest
Slide 32: Consolidated Profit Results: 2nd Quarter
2nd Quarter (3 months) : Consolidated Profit Results (100 Million Yen) Reference : JGAAP Results Results Results 2 nd Quarter (3 months) 2 nd Quarter (3 months) Variance 2nd Quarter (3 months) FYE 2019 FYE 2020 FYE 2019 Revenue (*1) 7,731 7,723 -8 7,776 Domestic 1,527 1,553 +26 1,572 Overseas 6,204
Slide 33: Analysis of Variance in Operating Profit (Consolidated)
2nd Quarter (3 months) : Analysis of Variance in Operating Profit (Consolidated) Sales volume & mixture (100 Million Yen) R&D and others SG&A expenses expenses +22 and others +45 +124 Loss on currency Cost exchange reduction Other -43 -39 -26 Accounting standard difference Results -32 Results Result
Slide 34: Consolidated Unit Sales (by market): Plan for 2nd Half
Plan for 2nd Half: Consolidated Unit Sales （by market) （Thousand Units） Reference : JGAAP Results Plan Results nd nd Variance nd 2 Half FYE 2019 2 Half FYE 2020 2 Half FYE 2019 Passenger cars (*) 56.1 56.1 +0.0 57.3 Minicars (*) 13.2 14.1 +0.8 13.0 Domestic total(*) 69.4 70.2 +0.8 70.3 US 357.5 365.
Slide 35: Consolidated Profit: Plan for 2nd Half
Plan for 2nd Half: Consolidated Profit (100 Million Yen) Reference : JGAAP Results Plan Results Variance nd 2 Half FYE 2019 nd 2 Half FYE 2020 2nd Half FYE 2019 Revenue (*1) 16,647 17,043 +396 16,737 Domestic 3,017 2,999 -18 3,092 Overseas 13,630 14,044 +414 13,645 Operating profit (*2) 1,253 1,252
Slide 36: Analysis of Variance in Operating Profit (Consolidated)
Plan for 2nd Half: Analysis of Variance in Operating Profit (Consolidated) Sales volume & mixture (100 Million Yen) and others +354 Other +83 Accounting Loss on standard currency R&D Cost SG&A difference exchange expenses reduction expenses -152 -349 -46 -30 and others -13 Results Results Plan Opera
Slide 37: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units (1,000units） Production Retail Sales 300 280 276 276 278 277 273269 264 261 268270 264 271 269 269 262 258 257 253 253 252 250 244 248 249 245242 249 250 242 241 242 237 237 236 229233 231 227 200 150 100 50 0 Jan- Apr- Jul-Sep Oct- Jan- Apr- Jul-Sep Oct
Slide 38: Appendix (2)
Appendix (2) Changes in Consolidated Financial Statements Due to Voluntary Adoption of International Financial Reporting Standards (IFRS) https://www.subaru.co.jp/en/ir/ 30
Slide 39: Key differences of JGAAP and IFRS
Key differences of JGAAP and IFRS Japanese generally accepted accounting principles International Financial Reporting Standards Item (JGAAP) (IFRS) In case that it is satisfied with criterion of assets, Recorded as expenses when it incurred. it will be amortized. R&D expenses R&D expenses which is r
Slide 40: Consolidated Statements of Income
Consolidated Statements of Income JGAAP IFRS Net sales Revenue 1) "Selling, general and administrative expenses" on Cost of sales Cost of sales "Japanese Generally Accepted Accounting Principles" Gross profit Gross profit (hereafter "JGAAP") will be presented as "Selling, general and administrative
Slide 41: Consolidated Statement of Financial Position (Assets)
Consolidated Statement of Financial Position （Assets） JGAAP IFRS Consolidated statement of Consolidated Balance Sheet (Assets) financial position (Assets) 1) Of "Cash and deposits" and "Short-term Assets Assets investment securities" on JGAAP, Cash and Current assets Current assets securities that m
Slide 42: Consolidated Statement of Financial Position (Liabilities and Equity)
Consolidated Statement of Financial Position （Liabilities and Equity） JGAAP IFRS Consolidated Balance Sheet Consolidated statement of (Liabilities and Equity) financial position（Liabilities and Equity） 1) "Notes and accounts payable- trade","Electronically recorded Liabilities Liabilities and equity
Slide 43: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows JGAAP IFRS Net cash provided by (used in) operating activities Net cash provided by (used in) operating activities Income (loss) before income taxes Profit before tax 1) Operating lease transactions that were recorded as expense on Depreciation and amortization
Slide 44: 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