Subaru Corporation · TSE:7270
Subaru — Q1 FYE2017 Earnings Presentation
34 slides from Subaru's earnings presentation, Aug 3, 2016
Slide 1: Consolidated Financial Results for the 1st Quarter of FYE 2017
Consolidated Financial Results for the 1st Quarter of FYE 2017 Mitsuru Takahashi Executive Vice President & CFO August 3, 2016 http://www.fhi.co.jp/english/ir/index.html 0 0
Slide 2: Summary
Summary Consolidated Financial Results for the 1st Quarter (3 months) of FYE 2017 Consolidated net sales and unit sales posted record results for a fiscal first quarter. Despite unit sales growth and cost reduction progress, operating income decreased for the first time in 5 years due to foreign
Slide 3: Consolidated Financial Results for the 1st Quarter (3 months) of FYE 2017
Consolidated Financial Results for the 1st Quarter (3 months) of FYE 2017 http://www.fhi.co.jp/english/ir/index.html 2 2
Slide 4: 1Q: Consolidated Unit Sales
1Q (3 months) : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results 1Q (3 months) 1Q (3 months) Variance FYE 2016 FYE 2017 Passenger car 19.9 24.5 +4.6 Minicar 8.1 6.6 -1.5 Domestic total 28.0 31.2 +3.2 US 140.4 155.0 +14.6 Canada 13.9 15.4 +1.5 Russia 1.7 1.9 +0.3 Europe 8.3 8.7
Slide 5: 1Q: Consolidated Income Statements
1Q (3 months) : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results 1Q (3 months) 1Q (3 months) Variance FYE 2016 FYE 2017 Net sales 7,653 7,694 +41 Domestic 1,245 1,303 +58 Overseas 6,408 6,391 -17 Operating income 1,342 1,015 -327 Total non-operating income & expenses -4
Slide 6: 1Q: Analysis of Variance in Operating Income
1Q (3 months) : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Cost Fixed cost : -71 (FHI -24, SIA -47) Sales volume SG&A : -58 (FHI -22, SOA -17, others) & mixture reduction Warranty claims : -263 and others +105 US$ : -283 +303 EURO : -5 CA$ : -24 CNY : -1 Currency excha
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） As of March As of June Variance 2016 2016 Total assets 25,924 25,244 -680 Current assets 17,841 17,064 -777 Noncurrent assets 8,083 8,180 +97 Total liabilities 12,430 11,852 -578 Interest bearing debts 1,700 1,654 -45 Net assets 13,494 13,392 -102 Retain
Slide 8: 1Q: Consolidated Statement of Cash Flows
1Q (3 months) : Consolidated Statement of Cash Flows （100 Million Yen） Actual Results Actual Results 1Q (3 months) 1Q (3 months) Variance FYE 2016 FYE 2017 Net cash provided by (used in) operating activities 1,097 621 -477 Net cash provided by (used in) investing activities -328 -647 -319 Free cash
Slide 9: 1Q: Operating Results of Subsidiaries in U.S.
1Q (3 months) : Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Actual Results SOA 1Q (3 months) 1Q (3 months) Variance FYE 2016 FYE 2017 Net sales 3,613 4,079 +466 Operating income 168 219 +51 Net income 99 135 +36 Retail sales 140.8 146.7 +5.9 (Thousand units) Actual Results
Slide 10: Forecasts for FYE 2017
Forecasts for FYE 2017 http://www.fhi.co.jp/english/ir/index.html 9 9
Slide 11: FYE 2017: Consolidated Operating Plan
FYE 2017 : Consolidated Operating Plan （100 Million Yen） Actual results Plan FYE 2017 Variance FYE 2016 (a) Original Revised (b) (b) - (a) Net sales 32,323 31,700 31,900 -423 Domestic 6,054 6,103 6,103 +49 Overseas 26,269 25,597 25,797 -472 Operating income 5,656 4,200 4,000 -1,656 Ordinary income 5
Slide 12: Original Plan vs. Revised Plan: FYE 2017 Analysis of Variance in Operating Income
Original Plan vs. Revised Plan: FYE 2017 Analysis of Variance in Operating Income (Consolidated) Gain on （100 Million Yen） currency exchange Warranty claims : -300 +100 US$ : +107 SG&A EURO : +3 expenses CA$ : +7 and others 4,200 CNY : +1 -300 Unrealized gain : -18 4,000 Original Plan Revised Plan O
Slide 13: Capex / Depreciation / R&D / Interest bearing debt
Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Actual Results Actual Results Plan Variance 1Q (3 months) FYE2016 1Q (3 months) FYE2017 (b) - (a) FYE2016 (a) FYE 2017 (b) Capex 171 1,357 368 1,600 +243 Depreciation 154 650 159 800 +150 R&D 185 1,024 236 1,200 +176
Slide 14: Appendix(1)
Appendix(1) ・Non-operating income&expenses and extraordinary income&loss (1Q) ・Segment information by business & geographic (1Q) ・Overseas net sales (1Q) ・Non-consolidated unit sales (1Q) ・Revised plan for FYE 2017 ・Revised plan for 1st half of FYE 2017 http://www.fhi.co.jp/english/ir/index.html 13
Slide 15: 1Q: Non-operating Income & Expenses and Extraordinary Income & Loss
1Q (3 months) : Non-operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual Results Actual Results 1Q (3 months) 1Q (3 months) Variance FYE2016 FYE 2017 Financial revenue and expenditure 6 6 +0 FOREX effects -46 +171 +218 Other -1 -5 -4 Total non-operating
Slide 16: 1Q: Net Sales and Operating Income by Business Segment
1Q (3 months) : Net Sales and Operating Income by Business Segment (Consolidated) （100 Million Yen） Net Sales Operating Income Actual Results Actual Results Actual Results Actual Results 1Q 1Q 1Q 1Q Variance Variance (3 months) (3 months) (3 months) (3 months) FYE 2016 FYE 2017 FYE 2016 FYE 2017 Aut
Slide 17: 1Q: Net Sales and Operating Income by Geographic Area
1Q (3 months) : Net Sales and Operating Income by Geographic Area (Consolidated) （100 Million Yen） Net Sales Operating Income Actual Results Actual Results Actual Results Actual Results 1Q 1Q 1Q 1Q Variance Variance (3 months) (3 months) (3 months) (3 months) FYE 2016 FYE 2017 FYE 2016 FYE 2017 Japa
Slide 18: 1Q: Overseas Net Sales
1Q (3 months) : Overseas Net Sales (Consolidated) （100 Million Yen） Actual Results Actual Results 1Q (3 months) 1Q (3 months) Variance FYE 2016 FYE 2017 North America 5,183 5,177 -6 Europe 272 269 -2 Asia 551 531 -20 Other 403 413 +10 Total 6,408 6,391 -17 http://www.fhi.co.jp/english/ir/index.html
Slide 19: 1Q: Non-consolidated Unit Sales
1Q (3 months) : Non-consolidated Unit Sales （Thousand Units） Actual Results Actual Results 1Q (3 months) 1Q (3 months) Variance FYE 2016 FYE 2017 Domestic production 171.0 179.4 +8.4 Domestic sales 31.3 32.8 +1.5 Passenger cars 21.7 26.0 +4.3 Minicars 9.6 6.8 -2.8 Number of exported vehicles 137.2 1
Slide 20: Plan for FYE 2017: Consolidated Unit Sales
Plan for FYE 2017 : Consolidated Unit Sales （Thousand Units） Actual Results Plan Variance FYE2016 FYE2017 Passenger car 111.6 119.0 +7.5 Minicar 33.7 37.3 +3.6 Domestic total 145.3 156.3 +11.0 US 582.7 643.1 +60.4 Canada 47.6 52.6 +5.0 Russia 5.7 9.6 +3.9 Europe 41.8 40.1 -1.7 Australia 44.6 48.2 +3
Slide 21: Revised Plan for FYE 2017: Consolidated Income Statements
Revised Plan for FYE 2017 : Consolidated Income Statements （100 Million Yen） Actual Results Revised Plan FYE2017 Variance FYE2016 Net sales 32,323 31,900 -423 Domestic 6,054 6,103 +49 Overseas 26,269 25,797 -472 Operating income 5,656 4,000 -1,656 Ordinary income 5,770 4,100 -1,670 Income before tax
Slide 22: Revised Plan FYE 2017: Analysis of Variance in Operating Income
Revised Plan FYE 2017: Analysis of Variance in Operating Income (Consolidated) US$ : -1,612 Cost EURO : -37 （100 Million Yen） Sales volume CA$ : -80 & mixture reduction CNY : -4 and others +320 Currency exchange adjustment : +5 Unrealized gain: +142 +999 Fixed cost : -383 (FHI -98, SIA -285) SG&A :
Slide 23: Revised Plan for 1st Half of FYE 2017: Consolidated Unit Sales Plan
Revised Plan for 1st Half of FYE 2017: Consolidated Unit Sales Plan （Thousand Units） 1st Half Actual Results 1st Half Plan Variance FYE 2016 FYE 2017 Passenger car 49.8 50.5 +0.7 Minicar 16.7 14.6 -2.1 Domestic total 66.5 65.1 -1.4 US 290.6 315.1 +24.5 Canada 26.1 28.2 +2.1 Russia 3.5 5.3 +1.9 Europ
Slide 24: Revised Plan for 1st Half of FYE 2017: Consolidated Income Statements
Revised Plan for 1st Half of FYE 2017 : Consolidated Income Statements （100 Million Yen） 1st Half Actual Results 1st Half Plan FYE 2017 Variance FYE 2016(a) Original Revised (b) (b) - (a) Net sales 16,015 15,335 15,535 -480 Domestic 2,852 2,796 2,796 -56 Overseas 13,163 12,539 12,739 -424 Operating
Slide 25: Original vs. Revised Plan: 1st Half of FYE 2017 Analysis of Variance
Original Plan vs. Revised Plan: 1st Half of FYE 2017 Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） US$ : +107 EURO : +3 CA$ : +7 CNY : +1 Gain on Unrealized gain : -18 currency exchange Warranty claims : -160 +100 SG&A expenses 2,100 and others 2,040 -160 Original Plan Re
Slide 26: Revised Plan for 1st Half of FYE 2017: Analysis of Variance in Operating Income
Revised Plan for 1st Half of FYE 2017: Analysis of Variance in Operating Income (Consolidated) US$ : -828 EURO : -20 （100 Million Yen） Sales volume Cost CA$ : -59 reduction CNY: -1 & mixture Currency exchange adjustment : -43 and others +207 Unrealized gain : +209 +474 Fixed cost：-172 (FHI -43, SIA
Slide 27: Appendix (2)
Appendix (2) ・ 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 26 26
Slide 28: Net Sales / Operating Income
Net Sales / Operating Income Operating Net Sales Income （100M yen） （100 million yen） ¥98/$ ¥98/$ ¥99/$ ¥103/$ ¥102/$ ¥102/$ ¥110/$ ¥118/$ ¥120/$ ¥123/$ ¥121/$ ¥118/$ ¥111/$ 9000 1,800 Net sales Operating income 8,172 8,362 8,172 8,136 8000 7,505 7,653 7,694 6,996 7,168 1,509 1,500 7000 1,506 1,342 5
Slide 29: Consolidated Unit Sales & Operating Income Margin
Consolidate Unit Sales & Operating Income Margin Unit sales OPM （1,000 units） Consolidated unit sales 247 247 246 245 250 238 240 232 232 OPM 225 18% 202 18.4% 201 200 191 194 17.5% 18.1% 16.6% 15% 16.0% 14.9% 14.0% 14.2% 13.8% 150 13.3% 13.3% 13.2% 12% 12.7% 9% 100 6% 50 3% 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3
Slide 30: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units （1,000 units） Production Retail sales 253 245 248 249 250 244 242 237 241 234 237 242 237 228 225 229 233 231 211 213 212 210211 211 214 197 193 200 150 100 50 0 Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jun Sep Dec Mar Jun Sep Dec
Slide 31: 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 4,000 FCF 55% 3,586 52.8% Shareholders' equity ratio 51.8% 52.5% 3,500 50.2% 3,000 48.8% 50% 2,791 46.5% 46.0% 2,535 2,500 2,094 44.0% 45% 2,000 42.9% 42.6% 1,860 41.2% 40.5%
Slide 32: 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 2,967 2,918 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 0.46 1,700 1,654 0.5 0.41 1500 0.36 0.35 0.32 0.4 0.27 1000 0.24 0.3 0.21 0.18 0.17 0
Slide 33: 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
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