Subaru Corporation · TSE:7270
Subaru — Q3 FYE2017 Earnings Presentation
39 slides from Subaru's earnings presentation, Feb 8, 2017
Slide 1: Consolidated Financial Results for the 3rd Quarter of FYE 2017
Consolidated Financial Results for the 3rd Quarter of FYE 2017 Mitsuru Takahashi Executive Vice President & CFO February 8, 2017 http://www.fhi.co.jp/english/ir/index.html 0
Slide 2: Summary
Summary Consolidated Financial Results for the 3rd Quarter of FYE 2017 Consolidated net sales and global unit sales posted all-time records for the April-December period. While posting unit sales growth and cost reduction progress, all profit levels decreased year on year due to increase in SG&A
Slide 3: Consolidated Financial Results for the 3rd Quarter of FYE 2017
Consolidated Financial Results for the 3rd rd Quarter of FYE 2017 http://www.fhi.co.jp/english/ir/index.html 2
Slide 4: 3rd Quarter: Consolidated Unit Sales
3rd Quarter : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance 3rd Quarter FYE 2016 3rd Quarter FYE 2017 Passenger car 75.9 83.1 +7.2 Minicar 24.0 22.4 -1.6 Domestic total 99.9 105.5 +5.6 US 446.3 501.3 +55.0 Canada 36.7 40.5 +3.7 Russia 4.8 4.1 -0.7 Europe 28.6 29.8 +
Slide 5: 3rd Quarter: Consolidated Income Statements
3rd Quarter: Consolidated Income Statements （100 Million Yen） Actual Results Actual Results Variance 3rd Quarter FYE 2016 3rd Quarter FYE 2017 Net sales 24,186 24,279 +93 Domestic 4,282 4,449 +167 Overseas 19,904 19,830 -75 Operating income 4,357 3,068 -1,290 Total non-operating income & expenses -1
Slide 6: 3rd Quarter: Analysis of Variance in Operating Income
3rd Quarter : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Sales volume Cost US$ : -1,329 & mixture EURO : -41 reduction CA$ : -77 and others +301 CNY : -5 +1,035 Currency exchange adjustment : +18 Unrealized gain：+198 FHI : +241 SG&A (material cost +148) expenses SIA :
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） As of March As of December Variance 2016 2016 Total assets 25,924 26,440 +516 Current assets 17,841 17,468 -373 Noncurrent assets 8,083 8,972 +888 Total liabilities 12,430 12,412 -18 Interest bearing debts 1,700 1,455 -245 Net assets 13,494 14,028 +534 R
Slide 8: 3rd Quarter: Consolidated Statement of Cash Flows
3rd Quarter : Consolidated Statement of Cash Flows （100 Million Yen） Actual Results Actual Results 3rd Quarter FYE 2016 3rd Quarter FYE 2017 Variance Net cash provided by (used in) operating activities 4,343 2,164 -2,179 Net cash provided by (used in) investing activities -1,808 -1,665 +143 Free cas
Slide 9: 3rd Quarter: Operating Results of Subsidiaries in U.S.
3rd Quarter : Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Actual Results SOA 3rd Quarter FYE 2016 3rd Quarter FYE 2017 Variance Net sales 11,589 13,454 +1,865 Operating income 657 609 -48 Net income 404 376 -28 Retail sales (Thousand units) 449.9 481.6 +31.7 Actual Results
Slide 10: Forecasts for FYE 2017
Forecasts for FYE 2017 http://www.fhi.co.jp/english/ir/index.html 9
Slide 11: Revised Plan FYE 2017: Consolidated Unit Sales
Revised Plan FYE 2017 : Consolidated Unit Sales （Thousand Units） Actual Results Revised Plan FYE 2017 Variance FYE 2016 Passenger car 111.6 127.5 +15.9 Minicar 33.7 34.0 +0.3 Domestic total 145.3 161.5 +16.2 US 582.7 667.4 +84.7 Canada 47.6 52.9 +5.3 Russia 5.7 5.6 -0.1 Europe 41.8 41.1 -0.7 Austral
Slide 12: Revised Plan FYE 2017: Consolidated Income Statements
Revised Plan FYE 2017 : Consolidated Income Statements （100 Million Yen） Actual Results Revised Plan Variance FYE 2016 FYE 2017 Net sales 32,323 33,100 +777 Domestic 6,054 6,511 +457 Overseas 26,269 26,589 +321 Operating income 5,656 4,100 -1,556 Ordinary income 5,770 4,120 -1,650 Income before taxe
Slide 13: Revised Plan FYE 2017: Analysis of Variance in Operating Income
Revised Plan FYE 2017: Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Domestic : +173 (volume increase, Sales volume Cost mixture & mixture reduction improvement) US$ : -1,433 and others EURO : -47 Overseas : +927 +319 CA$ : -75 (volume increase, +1,398 CNY : -7 mixture de
Slide 14: Previous Plan vs. Revised Plan: Consolidated Unit Sales
（Previous Plan vs. Revised Plan） FYE 2017 : Consolidated Unit Sales （Thousand Units） Previous Plan Revised Plan Variance FYE 2017 FYE 2017 Passenger car 122.9 127.5 +4.6 Minicar 35.7 34.0 -1.7 Domestic total 158.6 161.5 +2.9 US 661.7 667.4 +5.8 Canada 52.5 52.9 +0.4 Russia 5.4 5.6 +0.3 Europe 41.9 4
Slide 15: Previous Plan vs. Revised Plan: Consolidated Income Statements
（Previous Plan vs. Revised Plan） FYE 2017 : Consolidated Income Statements （100 Million Yen） Previous Plan Revised Plan Variance FYE 2017 FYE 2017 Net sales 31,800 33,100 +1,300 Domestic 6,463 6,511 +48 Overseas 25,337 26,589 +1,252 Operating income 3,730 4,100 +370 Ordinary income 3,970 4,120 +150
Slide 16: Previous Plan vs. Revised Plan: Analysis of Variance in Operating Income
（Previous Plan vs. Revised Plan）FYE 2017 : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Sales volume R&D Gain on & mixture US$ : +519 currency and others expenses EURO : +15 exchange +30 FHI : -15(material cost -25) CA$ : +20 +45 CNY : +4 +510 SIA : -5 (material cost -17
Slide 17: Revised Plan FYE 2017: Operating Results of Subsidiaries in U.S.
Revised Plan FYE 2017: Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Revised Plan SOA FYE 2016 FYE 2017 Variance Net sales 15,203 17,876 +2,673 Operating income 770 703 -67 Net income 480 437 -43 Retail sales (Thousand units) 581.4 640.1 +58.7 Actual Results Revised Plan SIA
Slide 18: 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 3rd Quarter Variance FYE 2016 3rd Quarter FYE 2017 (b) - (a) FYE 2016 (a) FYE 2017 (b) Capex 830 1,357 1,076 1,600 +243 Depreciation 473 650 541 800 +150 R&D 717 1,024 805 1
Slide 19: Appendix(1)
Appendix(1) ・Non-operating income&expenses and extraordinary income&loss (3Q) ・Segment information by business & geographic (3Q) ・Overseas net sales (3Q) ・Non-consolidated unit sales (3Q) http://www.fhi.co.jp/english/ir/index.html 18
Slide 20: 3rd Quarter: Non-operating Income & Expenses and Extraordinary Income & Loss
3rd Quarter : Non-operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual Results Actual Results 3rd Quarter 3rd Quarter Variance FYE 2016 FYE 2017 Financial revenue and expenditure 19 20 +1 FOREX effects -14 -91 -77 Other -22 -24 -2 Total non-operating in
Slide 21: 3rd Quarter: Net Sales and Operating Income by Business Segment
3rd Quarter : 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 Quarter rd 3 Quarter rd Variance 3 Quarter rd 3 Quarter rd Variance FYE 2016 FYE 2017 FYE 2016 FYE 2017 Automobil
Slide 22: 3rd Quarter: Net Sales and Operating Income by Geographic Area
3rd Quarter : 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 Quarter rd 3 Quarter rd Variance 3 Quarter rd 3 Quarter rd Variance FYE 2016 FYE 2017 FYE 2016 FYE 2017 Japan 6,85
Slide 23: 3rd Quarter: Overseas Net Sales
3rd Quarter : Overseas Net Sales (Consolidated) （100 Million Yen） Actual Results Actual Results Variance 3rd Quarter FYE 2016 3rd Quarter FYE 2017 North America 16,221 16,180 -41 Europe 895 827 -69 Asia 1,616 1,581 -36 Other 1,172 1,242 +71 Total 19,904 19,830 -75 http://www.fhi.co.jp/english/ir/ind
Slide 24: 3rd Quarter: Non-consolidated Unit Sales
3rd Quarter : Non-consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance 3rd Quarter FYE 2016 3rd Quarter FYE 2017 Domestic production 530.2 543.1 +12.9 Domestic sales 108.4 113.8 +5.4 Passenger cars 82.2 89.5 +7.3 Minicars 26.2 24.3 -1.9 Number of exported 435.3 441.5 +6.2
Slide 25: Appendix (2)
Appendix (2) ・ 3rd quarter (3months) consolidated income statements ・3rd ・ 4th quarter (3months) consolidated income statements http://www.fhi.co.jp/english/ir/index.html 24
Slide 26: 3rd Quarter (3 months): Consolidated Unit Sales
3rd Quarter (3 months) : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results 3rd Quarter (3 months) 3rd Quarter (3 months) Variance FYE 2016 FYE 2017 Passenger car 26.1 30.7 +4.6 Minicar 7.3 6.8 -0.5 Domestic total 33.4 37.5 +4.1 US 155.7 174.4 +18.7 Canada 10.6 12.0 +1.4 Russia 1
Slide 27: 3rd Quarter (3 months): Consolidated Income Statements
3rd Quarter (3 months) : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results 3rd Quarter (3 months) 3rd Quarter (3 months) Variance FYE 2016 FYE 2017 Net sales 8,172 8,502 +331 Domestic 1,430 1,589 +159 Overseas 6,742 6,913 +172 Operating income 1,506 982 -524 Ordinary inc
Slide 28: 3rd Quarter (3 months): Analysis of Variance in Operating Income
3rd Quarter (3 months) : Analysis of Variance in Operating Income (Consolidated) Domestic : +78 （100 Million Yen） (volume increase, mixture improvement) Sales volume Cost Fixed cost: -110 (FHI -39, SIA -71) Overseas : +249 SG&A : -251 (FHI -36, SOA -204, others) (volume increase, & mixture reduction
Slide 29: 4th Quarter (3 months): Consolidated Unit Sales
4th Quarter (3 months) : Consolidated Unit Sales （Thousand Units） Actual Results Plan 4th Quarter 4th Quarter Variance FYE 2016 FYE 2017 Passenger car 35.7 44.4 +8.7 Minicar 9.7 11.6 +1.8 Domestic total 45.4 56.0 +10.6 US 136.4 166.1 +29.7 Canada 10.9 12.4 +1.5 Russia 1.0 1.5 +0.6 Europe 13.2 11.3 -
Slide 30: 4th Quarter (3 months): Consolidated Income Statements
4th Quarter (3 months) : Consolidated Income Statements （100 Million Yen） Actual Results Plan 4th Quarter 4th Quarter Variance FYE 2016 FYE 2017 Net sales 8,136 8,821 +685 Domestic 1,772 2,062 +290 Overseas 6,364 6,759 +395 Operating income 1,298 1,032 -266 Ordinary income 1,430 1,148 -282 Income be
Slide 31: 4th Quarter (3 months): Analysis of Variance in Operating Income
4th Quarter (3 months) : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Domestic : +56 (volume increase, Fixed cost : -83 (FHI -11, SIA -72) mixture SG&A : -187 (FHI -12, SOA -140, others) improvement) Sales volume Warranty claims : -130 Overseas : +138 & mixture Cost (vol
Slide 32: Appendix (3)
Appendix (3) ・Net sales / Operating income ・Consolidated unit sales / OPM ・Complete cars production / Retail sales units ・FCF / Shareholder’s equity to total assets ・Interest-bearing debt / D/E ratio http://www.fhi.co.jp/english/ir/index.html 31
Slide 33: Net Sales / Operating Income
Net Sales / Operating Income Operating Net Sales ¥99/$ ¥103/ ¥102/ ¥102/ ¥110/ ¥118/ ¥120/ ¥123/ ¥121/ ¥118/ ¥111/ ¥104/ ¥105/ Income （100M yen） $ $ $ $ $ $ $ $ $ $ $ $ （100M yen） 9000 Net sales 8,502 1,800 8,172 8,362 8,172 Operating income 8,136 8,083 8000 7,505 7,653 7,694 6,996 7,168 1,500 7000
Slide 34: Consolidated Unit Sales / Operating Income Margin
Consolidate Unit Sales / Operating Income Margin Unit sales OPM （1,000 units） Consolidated unit sales 300 20% OPM 240 274 247 267 247 225 18.1% 18.4% 246 245 250 232 238 232 18% 17.5% 201 16.6% 200 194 16.0% 15% 14.9% 13.2% 13.2% 14.2% 13.8% 150 13.3% 13.3% 11.6% 13% 100 10% 50 8% 0 5% 3Q 4Q 1Q 2Q 3
Slide 35: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units （1,000 units） Production Retail Sales 273 269 265 258 253 248 249 250 241 244 242 245 242 237 234 237 237 228 225 229 233 231 212 210 211 211 214 200 150 100 50 0 Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul
Slide 36: Free Cash Flows / Ratio of Shareholders' Equity to Total Assets
Free Cash Flows / Ratio of Shareholders’ Equity to Total Assets FCF Ration of shareholders’ （100M yen） Equity to total assets FCF 55% 3,800 3,586 52.8% Shareholders' equity ratio 52.5% 52.8% 53.0% 3,300 51.8% 50% 2,791 50.2% 2,800 48.8% 2,535 2,300 2,094 46.0% 46.5% 45% 44.0% 1,860 1,800 42.6% 42.9%
Slide 37: Interest Bearing Debt / D/E Ratio
Interest Bearing Debt / D/E Ratio Interest bearing debt D/E ratio （100M yen） 3500 Interest bearing debt 1.0 D/E ratio 0.9 3000 2,760 2,697 2,574 0.8 2500 2,322 2,268 0.7 2,112 2,011 2,014 0.6 2000 1,865 1,700 1,654 1,614 0.5 1,455 1500 0.35 0.4 0.32 0.36 1000 0.27 0.3 0.24 0.21 0.18 0.17 0.2 0.15 0.
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: http://www.fhi.co.jp/english/ir/index.html
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