Subaru Corporation · TSE:7270

Subaru — Fuji Heavy Industries — H1 FYE2013 Earnings Presentation

40 slides from Subaru's earnings presentation, Oct 30, 2012

  1. Slide 1: Presentation of Business Results for the 1st Half of FYE2013

    Presentation of Business Results for the 1st Half of FYE2013 Fuji Heavy Industries Ltd. October 30, 2012 http://www.fhi.co.jp/english/ir/index.html 0

  2. Slide 2: A Summary of Business Results

    A Summary of Business Results http://www.fhi.co.jp/english/ir/index.html 1

  3. Slide 3: 1st Half: Consolidated Automobile Sales

    1st Half : Consolidated Automobile Sales （Thousand Units） Actual Results Actual Results Increase / 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 Passenger car 35.9 45.4 +9.5 Minicar 36.7 26.6 -10.1 Domestic total 72.6 72.0 -0.6 U.S. 113.5 164.4 +50.8 Canada 14.7 16.3 +1.6 Russia 5.6 11.1

  4. Slide 4: 1st Half: Consolidated Statements Income

    1st Half : Consolidated Statements Income （100 Million Yen） Actual Results Actual Results Increase / 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 Net sales 6,550 8,980 +2,430 Domestic 2,245 3,098 +853 Overseas 4,305 5,883 +1,577 Operating income 188 433 +245 Ordinary income 216 453 +237

  5. Slide 5: Analysis of Increase and Decrease in Operating Income Changes (Consolidated)

    1st Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) Improvement Increase of fixed cost, （100 Million Yen） of sales Reduction SG&A expenses and warranty claims volume & in cost mixture and US$ : -8 others 144 EURO : -20 CA$ : -10 Currency exchange adjustment : -5 -

  6. Slide 6: Consolidated Net Sales by Business Segment

    1st Half : Consolidated Net Sales by Business Segment （100 Million Yen / Percentage of Total Sales） Actual Results Actual Results Increase / 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 5,943 8,304 Automobile +2,361 90.7% 92.5% 374 417 Aerospace +42 5.7% 4.6% Industrial 173 163 products

  7. Slide 7: Consolidated Operating Income by Business Segment

    1st Half : Consolidated Operating Income by Business Segment （100 Million Yen） Actual Results Actual Results Increase / 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 Automobile 171 397 +226 Aerospace 10 19 +9 Industrial products 3 4 +1 Other 4 10 +7 Elimination and corporate 1 2 +2 Total

  8. Slide 8: Consolidated Net Sales by Geographic Area

    1st Half : Consolidated Net Sales by Geographic Area <Appendix> （100 Million Yen / Percentage of Total Sales） Actual Results Actual Results Increase / 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 3,544 4,376 Japan +832 54.1% 48.7% 2,772 3,745 North America +973 42.3% 41.7% 234 860 Other

  9. Slide 9: Consolidated Operating Income by Geographic Area

    1st Half : Consolidated Operating Income by Geographic Area <Appendix> （100 Million Yen） Actual Results Actual Results Increase / 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 Japan 26 344 +318 North America 102 87 -15 Other 2 -1 -4 Elimination and corporate 58 3 -55 Total 188 433 +245 ht

  10. Slide 10: Overseas Net Sales

    1st Half : Overseas Net Sales <Appendix> （100 Million Yen / Percentage of Total Sales） Actual Results Actual Results Increase / 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 2,991 4,017 North America +1,026 69.5% 68.3% 459 719 Europe +260 10.7% 12.2% 390 578 Asia +188 9.1% 9.8% 465 569 Ot

  11. Slide 11: Operating Results of Subsidiaries in U.S.

    1st Half : Operating Results of Subsidiaries in U.S. （million US$） Actual Results Actual Results Increase / SOA 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 Net sales 2,861 4,074 +1,213 Operating income 105 100 -5 Net income 68 64 -4 Retail sales (Thousand units) 127.9 164.4 +36.5 Actual

  12. Slide 12: Consolidated Non-Operating Income and Expenses

    1st Half : Consolidated Non-Operating Income and Expenses （100 Million Yen） Actual Results Actual Results Increase / 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 Non-Operating income 86 102 +17 Interest & dividends income 9 11 +2 Equity in earnings of affiliates 5 1 -4 Non-operating expe

  13. Slide 13: Consolidated Extraordinary Income and Expenses

    1st Half : Consolidated Extraordinary Income and Expenses （100 Million Yen） Actual Results Actual Results Increase / 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 Extraordinary income 271 35 -235 Gain on sales of noncurrent assets 265 4 -260 Gain on sales of investment securities 5 4 -2 S

  14. Slide 14: Consolidated Balance Sheets

    Consolidated Balance Sheets （100 Million Yen） As of As of Increase / March 31, September 30, Decrease 2012 2012 Total assets 13,525 13,951 +426 Current assets 7,625 8,072 +447 Noncurrent assets 5,900 5,879 -21 Interest bearing debt 3,410 3,301 -109 Net assets 4,516 4,787 +271 Retained earnings 1,885

  15. Slide 15: Consolidated Statement of Cash Flows

    1st Half : Consolidated Statement of Cash Flows （100 Million Yen） Actual Results Actual Results Increase / 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 Net cash provided by (used in) operating activities -92 1,103 +1,195 Net cash provided by (used in) investing activities 140 -324 -464 F

  16. Slide 16: Non-Consolidated Automobile Sales

    1st Half : Non-Consolidated Automobile Sales <Appendix> （Thousand units） Actual Results Actual Results Increase / 1st Half 1st Half Decrease FYE March 2012 FYE March 2013 Domestic production 178.0 272.5 +94.5 Domestic sales 76.2 72.6 -3.6 Passenger car 38.1 47.4 +9.4 Minicar 38.2 25.2 -13.0 Number o

  17. Slide 17: Net Sales & Operating Income

    Net Sales & Operating Income <Appendix> Net Sales Operating Income （¥100M） （¥100M） 6,000 400 ¥92/$ ¥88/$ ¥83$ ¥83/$ ¥82/$ ¥79/$ ¥79/$ ¥78/$ ¥81/$ ¥79/$ 347 4,877 350 5,000 4,691 4,337 4,289 300 4,059 4,000 3,703 3,706 3,744 259 3,546 250 226 3,004 3,000 200 161 173 161 150 2,000 107 107 91 100 1,000

  18. Slide 18: Complete Cars Production & Retail Sales

    Complete Cars Production & Retail Sales <Appendix> （1,000 Cars） Production Retail 196 196 200 191 182 178 174 172 162 160 164 167 161 156 162 158 147 150 150 138 136 111 100 50 0 Apr.- Jul.-Sep. Oct.- Jan.- Apr.- Jul.-Sep. Oct.- Jan.- Apr.- Jul.-Sep. Jun. Dec. Mar. Jun. Dec. Mar. Jun. 2010 2011 2012

  19. Slide 19: Free Cash Flows & Shareholder's Equity to Total Assets

    Free Cash Flows & Shareholder’s Equity to Total Assets <Appendix> FCF Shareholder’s Equity （¥100M） to Total Assets 43% 1,100 35.4% 33.6% 34.7% 34.7% 34.2% 34.2% 33.7% 33.3% 36% 900 871 33.7% 778 31.9% 29% 700 640 21% 500 397 283 14% 300 246 221 78 7% 100 47 -100 -42 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

  20. Slide 20: Interest Bearing Debts & D/E Ratio

    Interest Bearing Debts & D/E Ratio <Appendix> Interest Bearing Debt D/E Ratio （¥100M） 4,500 3,965 1.4 4,000 3,866 3,688 3,473 3,367 3,410 3,381 1.2 3,500 3,306 3,301 3,179 3,000 0.91 1.0 0.89 0.82 0.85 2,500 0.89 0.76 0.8 0.8 0.76 0.74 0.69 2,000 0.6 1,500 0.4 1,000 500 0.2 0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3

  21. Slide 21: 2nd Quarter: Consolidated Automobile Sales

    2nd Quarter : Consolidated Automobile Sales <Appendix> （Thousand Units） Actual Results Actual Results Increase / 2nd Quarter 2nd Quarter Decrease FYE March 2012 FYE March 2013 Passenger car 20.2 27.7 +7.5 Minicar 21.6 13.4 -8.2 Domestic total 41.8 41.1 -0.7 U.S. 61.7 81.9 +20.2 Canada 5.8 9.6 +3.8 R

  22. Slide 22: 2nd Quarter: Consolidated Statements Income

    2nd Quarter : Consolidated Statements Income <Appendix> （100 Million Yen） Actual Results Actual Results Increase / 2nd Quarter 2nd Quarter Decrease FYE March 2012 FYE March 2013 Net sales 3,546 4,691 +1,145 Domestic 1,257 1,671 +414 Overseas 2,290 3,020 +731 Operating income 81 259 +178 Ordinary inc

  23. Slide 23: 2nd Quarter: Analysis of Operating Income Changes

    2nd Quarter : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) <Appendix> Decrease （100 Million Yen） Reduction of R&D Increase of fixed cost, Improvement expenses SG&A expenses and warranty claims of sales in cost volume & 4 US$ : +10 mixture and 104 EURO : -8 CA$ : -6 ot

  24. Slide 24: Outlook for the term Ending March 2013

    Outlook for the term Ending March 2013 http://www.fhi.co.jp/english/ir/index.html 23

  25. Slide 25: Full year: Consolidated Automobile Sales

    Full year : Consolidated Automobile Sales （Thousand Units） Actual Results Plan Increase / FYE March 2012 FYE March 2013 Decrease Passenger car 80.2 108.1 +28.0 Minicar 92.2 52.1 -40.1 Domestic total 172.3 160.3 -12.1 U.S. 280.4 348.8 +68.5 Canada 28.2 33.4 +5.2 Russia 15.9 17.3 +1.4 Europe 39.1 49.0

  26. Slide 26: Full year: Consolidated Statements Income

    Full year : Consolidated Statements Income （100 Million Yen） Actual Results Plan Increase / FYE March 2012 FYE March 2013 Decrease Net sales 15,171 18,400 +3,229 Domestic 4,985 6,570 +1,586 Overseas 10,186 11,830 +1,643 Operating income 440 820 +380 Ordinary income 373 810 +437 Income before income

  27. Slide 27: Full Year: Analysis of Operating Income Changes

    Full Year : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) Increase of （100 Million Yen） SG&A Improvement expenses Increase of fixed cost and SG&A expenses of sales Reduction and others Decrease of warranty claims volume & in cost mixture and US$ : +5 others 274 EURO :

  28. Slide 28: Full Year: Operating Results of Subsidiaries in U.S.

    Full Year : Operating Results of Subsidiaries in U.S. （million US$） Actual Results Plan Increase / SOA FYE March 2012 FYE March 2013 Decrease Net sales 6,923 8,340 +1,417 Operating income 105 111 +6 Net income 74 73 -1 Retail sales (Thousand units) 279.2 330.0 +50.8 Actual Results Plan Increase / SI

  29. Slide 29: Capex / Depreciation / R&D / Interest Bearing Debt

    Capex / Depreciation / R&D / Interest Bearing Debt <Appendix> （100 Million Yen） Actual Results Actual Results Actual Results Plan Increase/ 1st Half 1st Half Decrease FYE2012 FYE2012 (a) FYE2013 FYE2013 (b) (b) - (a) Capex 276 543 339 720 +177 Depreciation 254 537 247 600 +63 R&D 229 481 249 500 +19

  30. Slide 30: 2nd Half: Consolidated Automobile Sales

    2nd Half : Consolidated Automobile Sales <Appendix> （Thousand Units） Actual Results Plan Increase / 2nd Half 2nd Half Decrease FYE March 2012 FYE March 2013 Passenger car 44.3 62.8 +18.5 Minicar 55.5 25.5 -29.9 Domestic total 99.8 88.3 -11.5 U.S. 166.8 184.5 +17.6 Canada 13.6 17.1 +3.6 Russia 10.3 6

  31. Slide 31: 2nd Half: Consolidated Statements Income

    2nd Half : Consolidated Statements Income <Appendix> （100 Million Yen） Actual Results Plan Increase / 2nd Half 2nd Half Decrease FYE March 2012 FYE March 2013 Net sales 8,621 9,420 +799 Domestic 2,740 3,473 +733 Overseas 5,881 5,947 +66 Operating income 252 387 +135 Ordinary income 157 357 +200 Inco

  32. Slide 32: 2nd Half: Analysis of Operating Income Changes

    2nd Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) <Appendix> Decrease （100 Million Yen） Improvement Reduction of R&D US$ : +13 of sales in cost expenses EURO : -8 volume & CA$ : +9 mixture and 1 Currency exchange 130 adjustment : -41 others -205 Loss on currency

  33. Slide 33: Appendix

    Appendix http://www.fhi.co.jp/english/ir/index.html 32

  34. Slide 34: Plan vs. Actual Results: Consolidated Automobile Sales

    1st Half : Consolidated Automobile Sales Plan vs. Actual Results <Appendix> （Thousand Units） Plan Actual Results Increase / 1st Half 1st Half Decrease FYE March 2013 FYE March 2013 Passenger car 47.4 45.4 -2.0 Minicar 27.8 26.6 -1.2 Domestic total 75.2 72.0 -3.2 U.S. 164.6 164.4 -0.2 Canada 15.1 16.

  35. Slide 35: Plan vs. Actual Results: Consolidated Statements Income

    1st Half : Consolidated Statements Income Plan vs. Actual Results <Appendix> （100 Million Yen） Plan Actual Results Increase / 1st Half 1st Half Decrease FYE March 2013 FYE March 2013 Net sales 9,100 8,980 -120 Domestic 3,129 3,098 -31 Overseas 5,971 5,883 -89 Operating income 320 433 +113 Ordinary i

  36. Slide 36: Analysis of Operating Income Changes: Plan vs. Actual

    1st Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) <Appendix> Decrease （100 Million Yen） of R&D Reduction expenses in cost -13 -9 27 -5 113 Increase of Loss on FHI : -15 SIA : +2 SG&A currency Improvement expenses exchange of sales and others volume & Decrease of

  37. Slide 37: Previous Plan vs. Revised Plan: Automobile Sales

    Full year : Consolidated Automobile Sales Previous Plan vs. Revised Plan <Appendix> （Thousand Units） Previous Plan Revised Plan Increase / FYE March 2013 FYE March 2013 Decrease Passenger car 94.9 108.1 +13.3 Minicar 50.5 52.1 +1.6 Domestic total 145.4 160.3 +14.9 U.S. 324.0 348.8 +24.8 Canada 31.7

  38. Slide 38: Previous Plan vs. Actual Results: Statements Income

    Full year : Consolidated Statements Income Previous Plan vs. Actual Results <Appendix> （100 Million Yen） Previous Plan Revised Plan Increase / FYE March 2013 FYE March 2013 Decrease Net sales 18,600 18,400 -200 Domestic 6,278 6,570 +292 Overseas 12,322 11,830 -492 Operating income 670 820 +150 Ordin

  39. Slide 39: Full year: Analysis of Operating Income Changes

    Full year : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) <Appendix> Improvement Increase of （100 Million Yen） of sales Decrease SG&A volume & of R&D Reduction expenses mixture and expenses in cost and others Loss on others currency 30 11 -140 exchange 318 FHI : -6 SIA

  40. Slide 40: Thank you!

    Thank you ! http://www.fhi.co.jp/english/ir/index.html 39

Fuji Heavy Industries — H1 FYE2013 Earnings Presentation on 6ix