Subaru Corporation · TSE:7270
Subaru — Fuji Heavy Industries — FY2014 Earnings Presentation
38 slides from Subaru's earnings presentation, May 8, 2015
Slide 1: Mitsuru Takahashi, Executive Vice President & CFO
Mitsuru Takahashi Executive Vice President & CFO Fuji Heavy Industries Ltd. May 8, 2015 http://www.fhi.co.jp/english/ir/index.html 0 0
Slide 2: Summary
Summary Financial results of the FYE March 2015 (consolidated) Consolidated automobile sales set a new record of 911K units for the 3rd consecutive year led by the continuous strong sales in North America as well as the introduction of new models such as Legacy, Outback, Levorg and WRX. Net sale
Slide 3: Business results of the FYE March 2015
Business results of the FYE March 2015 http://www.fhi.co.jp/english/ir/index.html 2 2
Slide 4: Automobile Sales Volume (consolidated)
Automobile Sales Volume (consolidated) （Thousand units） Actual results Actual results Variance FYE 2014 FYE 2015 Passenger cars 126.1 127.9 +1.7 Minicars 55.5 34.9 -20.6 Domestic total 181.6 162.8 -18.8 U.S. 441.8 527.6 +85.8 Canada 36.0 42.4 +6.4 Russia 15.3 11.6 -3.8 Europe 31.8 35.7 +4.0 Australi
Slide 5: Income Statements (consolidated)
Income Statements (consolidated) （100 Million Yen） Actual results Actual results Variance FYE 2014 FYE 2015 Net sales 24,081 28,779 +4,698 Domestic 6,721 6,529 -192 Overseas 17,361 22,250 +4,890 Operating income 3,265 4,230 +966 Total non-operating -121 -294 -173 income & expenses Ordinary income 3,
Slide 6: Analysis of Variance in Operating Income (consolidated)
Analysis of Variance in Operating Income (consolidated) Improvement （100 Million Yen） of sales volume Cost Fixed cost : -85 (FHI -53 SIA -32) & mixture SG&A : -467 (FHI -81 SOA -190 and others) reduction Warranty claims : -114 US$ : +927 and others EURO : +15 Gain on +703 +124 CA$ : +8 currency CNY
Slide 7: Balance Sheets (consolidated)
Balance Sheets (consolidated) （100 Million Yen） As of March 31 As of March 31 Variance 2014 2015 Total assets 18,884 21,997 +3,114 Current assets 12,738 14,733 +1,995 Noncurrent assets 6,146 7,264 +1,119 Interest bearing debts 2,697 2,112 -585 Net assets 7,701 10,307 +2,606 Retained earnings 4,839 6
Slide 8: Statement of Cash Flows (consolidated)
Statement of Cash Flows (consolidated) （100 Million Yen） Actual results Actual results Variance FYE 2014 FYE 2015 Net cash provided by (used in) operating activities 3,130 3,115 -15 Net cash provided by (used in) investing activities -339 -1,728 -1,389 Free cash flows 2,791 1,388 -1,404 Net cash pro
Slide 9: Operating Results of Subsidiaries in U.S. SOA SIA
Operating Results of Subsidiaries in U.S. （Million US$） Actual results Actual results SOA FYE 2014 FYE 2015 Variance Net sales 11,005 13,393 +2,388 Operating income 184 490 +306 Net income 111 309 +198 Retail sales (thousand units) 442.3 530.5 +88.2 Actual results Actual results SIA FYE 2014 FYE 201
Slide 10: Outlook for the FYE March 2016
Outlook for the FYE March 2016 http://www.fhi.co.jp/english/ir/index.html 9 9
Slide 11: Automobile Sales Volume (consolidated)
Automobile Sales Volume (consolidated) （Thousand units） Actual results Plan Variance FYE 2015 FYE 2016 Passenger cars 127.9 106.7 -21.2 Minicars 34.9 37.6 +2.7 Domestic total 162.8 144.2 -18.5 U.S. 527.6 554.0 +26.4 Canada 42.4 46.2 +3.8 Russia 11.6 12.8 +1.2 Europe 35.7 37.7 +2.0 Australia 38.9 42.
Slide 12: Operating Plan (consolidated)
Operating Plan (consolidated) （100 Million Yen） Actual results Plan Variance FYE 2015 FYE 2016 Net sales 28,779 30,300 +1,521 Domestic 6,529 5,655 -874 Overseas 22,250 24,645 +2,395 Operating income 4,230 5,030 +800 Ordinary income 3,936 4,950 +1,014 Income before income taxes and minority interests
Slide 13: Analysis of Variance in Operating Income (consolidated)
Analysis of Variance in Operating Income (consolidated) （100 Million Yen） Improvement Fixed cost : -122 (FHI : -38 SIA : -84) of sales volume Cost SG&A : -257 (FHI : +33 SOA : -168 and others) US$ : +1,010 & mixture EURO : -40 Gain on reduction Warranty claims : +48 and others CA$ : -6 currency +133
Slide 14: Operating Plan of Subsidiaries in U.S. SOA SIA
Operating Plan of Subsidiaries in U.S. （Million US$） Actual results Plan SOA FYE 2015 FYE 2016 Variance Net sales 13,393 14,265 +872 Operating income 490 500 +10 Net income 309 299 -10 Retail sales (thousand units) 530.5 546.7 +16.2 Actual results Plan SIA FYE 2015 FYE 2016 Variance Net sales 4,770
Slide 15: Capex / Depreciation / R&D / Interest bearing debt
Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual results Actual results Plan Variance FYE 2014 FYE 2015 FYE 2016 (b) - (a) (a) (b) Capex 685 1,107 1,300 +193 Depreciation 549 648 670 +22 R&D 601 835 970 +135 Interest bearing debt 2,697 2,112 1,800 -312 http://www.fhi.co.jp
Slide 16: Appendix (1)
Appendix (1) ・ Non-operating income & expenses ・Non-operating and extraordinary income & loss ・ Segment information (by business / by geographic area) ・Segment ・ Overseas net sales ・Overseas ・ Non-consolidated automobile sales ・Non-consolidated ・ Consolidated income statement in 4th ・Consolidated th
Slide 17: Non-Operating Income & Expenses and Extraordinary Income & Loss
Non-Operating Income & Expenses and Extraordinary Income & Loss (consolidated) （100 Million Yen） Actual results Actual results Variance FYE 2014 FYE 2015 Financial revenue and expenditure 1 12 +11 FOREX effects -95 -263 -168 Others -27 -43 -17 Total non-operating income -121 -294 -173 & expenses Gai
Slide 18: Net Sales and Operating Income by Business Segment
Net Sales and Operating Income by Business Segment (Consolidated) （100 Million Yen） Net sales Operating income Actual Actual Actual Actual results results Variance results results Variance FYE 2014 FYE 2015 FYE 2014 FYE 2015 Automobile 22,466 26,990 +4,524 3,090 4,009 +919 Aerospace 1,244 1,428 +184
Slide 19: Net Sales and Operating Income by Geographic Area
Net Sales and Operating Income by Geographic Area (consolidated) （100 Million Yen） Net sales Operating income Actual Actual Actual Actual results results Variance results results Variance FYE 2014 FYE 2015 FYE 2014 FYE 2015 Japan 9,674 9,722 +48 2,823 3,518 +695 North America 12,371 16,250 +3,879 52
Slide 20: Overseas Net Sales
Overseas Net Sales （100 Million Yen） Actual results Actual results Variance FYE 2014 FYE 2015 North America 13,228 17,309 +4,082 Europe 1,347 1,233 -114 Asia 1,544 2,387 +844 Others 1,242 1,321 +78 Total 17,361 22,250 +4,890 http://www.fhi.co.jp/english/ir/index.html 19 19
Slide 21: Non-Consolidated Automobile Sales
Non-Consolidated Automobile Sales （Thousand units） Actual results Actual results Variance FYE 2014 FYE 2015 Domestic production 649.9 707.7 +57.8 Domestic sales 185.8 167.1 -18.7 Passenger cars 128.1 131.6 +3.5 Minicars 57.8 35.6 -22.2 Number of vehicles exported 499.2 545.6 +46.4 Components for pro
Slide 22: Automobile Sales Volume (consolidated) 4th Quarter (3 months)
Automobile Sales Volume (consolidated) 4th Quarter (3 months) （Thousand units） Actual results Actual results Variance 4Q FYE 2014 4Q FYE 2015 Passenger cars 39.3 44.4 +5.1 Minicars 18.5 12.5 -5.9 Domestic total 57.7 56.9 -0.8 U.S. 115.4 128.9 +13.5 Canada 8.8 10.5 +1.6 Russia 5.8 0.7 -5.1 Europe 8.3
Slide 23: Income Statements (consolidated) 4th Quarter (3 months)
Income Statements (consolidated) 4th Quarter (3 months) （100 Million Yen） Actual results Actual results Variance 4Q FYE 2014 4Q FYE 2015 Net sales 6,996 8,172 +1,176 Domestic 1,933 2,110 +177 Overseas 5,063 6,062 +998 Operating income 931 1,129 +198 Ordinary income 930 1,053 +123 Income before incom
Slide 24: Analysis of Variance in Operating Income 4th Quarter
Analysis of Variance in Operating Income (consolidated) 4th Quarter (3 months) Improvement （100 Million Yen） of sales volume Cost Fixed cost : -35 (FHI -25 SIA -10) US$ : +368 Gain on EURO : +1 & mixture reduction SG&A : -126 (FHI -62 SOA -13 and others) currency Warranty claims : -36 CA$ : +7 and o
Slide 25: Automobile Sales Volume FYE 2015 Plan vs. Actual Results
Automobile Sales Volume (consolidated) FYE 2015 Plan vs. Actual Results （Thousand units） Plan Actual results Variance FYE 2015 FYE 2015 Passenger cars 124.3 127.9 +3.6 Minicars 37.0 34.9 -2.1 Domestic total 161.3 162.8 +1.5 U.S. 527.3 527.6 +0.4 Canada 42.2 42.4 +0.2 Russia 12.6 11.6 -1.0 Europe 33.
Slide 26: Income Statements FYE 2015 Plan vs. Actual Results
Income Statements (consolidated) FYE 2015 Plan vs. Actual Results （100 Million Yen） Plan Actual results Variance FYE 2015 FYE 2015 Net sales 28,500 28,779 +279 Domestic 6,483 6,529 +46 Overseas 22,017 22,250 +233 Operating income 4,100 4,230 +130 Ordinary income 3,920 3,936 +16 Income before income
Slide 27: Analysis of Variance in Operating Income FYE 2015 Plan vs. Actual
Analysis of Variance in Operating Income (consolidated) FYE 2015 Plan vs. Actual Results （100 Million Yen） Increase Gain on of R&D Fixed cost : +8 (FHI +3 SIA +5) Cost currency expenses SG&A : -91 exchange reduction (FHI -24 SOA +10 and others) Improvement of sales volume +97 +7 +7 Warranty claims :
Slide 28: Automobile Sales Volume Plan for 1st Half of FYE 2016
Automobile Sales Volume (consolidated) Plan for 1st Half of FYE 2016 （Thousand units） Actual results Plan Variance 1st half FYE 2015 1st half FYE 2016 Passenger cars 56.5 48.5 -8.0 Minicars 15.1 18.3 +3.2 Domestic total 71.5 66.8 -4.8 U.S. 249.9 270.9 +21.0 Canada 22.1 25.8 +3.8 Russia 8.6 6.2 -2.5
Slide 29: Operating Plan (consolidated) 1st Half of FYE 2016
Operating Plan (consolidated) 1st Half of FYE 2016 （100 Million Yen） Actual results Plan Variance 1st half FYE 2015 1st half FYE 2016 Net sales 13,102 14,750 +1,648 Domestic 2,928 2,650 -278 Overseas 10,174 12,100 +1,925 Operating income 1,857 2,440 +583 Ordinary income 1,760 2,400 +640 Income befor
Slide 30: Analysis of Variance in Operating Income 1st Half FYE 2016 Plan
Analysis of Variance in Operating Income (consolidated) 1st Half of FYE 2015 Results vs. FYE 2016 Plan Improvement （100 Million Yen） of sales volume Cost Fixed cost：-70 Gain on & mixture US$ : +799 reduction (FHI：-36 SIA：-34) EURO : -16 currency and others SG&A：-214 CA$ : +5 exchange +75 (FHI：-15 SO
Slide 31: Appendix (2)
Appendix (2) ・ Net sales / Operating income ・Net ・ Consolidated automobile sales / OPM ・Consolidated ・ Complete cars production / Retail sales units ・Complete ・ FCF / Shareholder ・FCF ’s equity to total assets Shareholder’s ・ Interest-bearing debt / D/E ratio ・Interest-bearing http://www.fhi.co.jp/e
Slide 32: Net Sales & Operating Income
Net Sales & Operating Income ¥78/$ ¥81/$ ¥79/$ ¥79/$ ¥89/$ ¥98/$ ¥98/$ ¥99/$ ¥103/$ ¥102/$ ¥102/$ ¥110/$ ¥118/$ Operating Net Sales Income （100 million yen） （100 million yen） 8,172 1,500 8,000 Net sales Operating income 7,505 6,996 7,168 7,000 1,200 1,245 5,787 5,829 5,934 6,000 5,422 5,469 1,129 1,
Slide 33: Automobile Sales Volume & Operating Income Margin
Automobile Sales Volume & Operating Income Margin (consolidated) Automobile sales （1,000 units） OPM 247 250 Automobile sales OPM 238 20% 232 232 208 16.6% 17% 198 202 201 200 191 194 183 178 14.2% 166 14.9% 14% 14.0% 13.3% 13.8% 150 13.3% 12.7% 11% 6.4% 8.7% 8% 100 5.5% 5% 50 4.0% 3.3% 2% 0 -1% 4Q 1
Slide 34: Complete Cars Production & Retail Sales Units
Complete Cars Production & Retail Sales Units （1,000 units） 250 Production Retail sales 237 241 237 244 234 228 225 211 213 212 211 214 207 210 211 196 191 197 195 197 193 200 182 178 177 167 172 150 100 50 0 Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Mar. Jun. Sep
Slide 35: Free Cash Flows & Shareholders' Equity to Total Assets
Free Cash Flows & Shareholders’ Equity to Total Assets Shareholders’ FCF equity to （100 million yen） total Assets FCF 2,791 46.5% 2,800 Shareholders' equity to total assets 44.0% 46.0% 45% 2,300 42.6% 41.2% 42.9% 1,800 39.9% 2,094 40.5% 1,388 40% 1,300 37.7% 1,198 778 35.2% 800 711 608 33.7% 953 35%
Slide 36: Interest Bearing Debt & D/E Ratio
Interest Bearing Debt & D/E Ratio Interest bearing Debt （100 million yen） D/E ratio 4,000 Interest-bearing debt D/E ratio 1.2 3,500 3,410 3,381 3,301 3,236 3,072 1.0 2,967 2,918 3,000 2,760 2,697 0.76 2,574 0.74 0.8 2,500 0.69 2,322 2,268 0.64 2,112 2,000 0.52 0.6 0.46 0.41 1,500 0.36 0.35 0.4 0.32
Slide 37: 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 38: http://www.fhi.co.jp/english/ir/index.html
http://www.fhi.co.jp/english/ir/index.html 37 37