Subaru Corporation · TSE:7270
Subaru — Fuji Heavy Industries — H1 FYE2015 Earnings Presentation
52 slides from Subaru's earnings presentation, Oct 31, 2014
Slide 1: President & CEO, Yasuyuki Yoshinaga
President & CEO, Yasuyuki Yoshinaga Fuji Heavy Industries Ltd. October 31, 2014 http://www.fhi.co.jp/english/ir/index.html 0
Slide 2: Business Results for the 1st Half of FYE2015
Business Results for the 1st Half of FYE2015 （¥100M） FYE2014 FYE2015 1st half 1st half yoy vs. plan Actual results Plan Actual results Consolidated automobile 392,600 units 438,800 units 431,600 units +9.9% -1.6% sale unit Net sales 11,256 13,000 13,102 +16.4% +0.8% Operating 1,507 1,600 1,857 +23.2
Slide 3: Business Plan for the FYE2015
Business Plan for the FYE2015 （¥100M） FYE2014 FYE2015 vs. yoy previous Actual results Previous plan Revised plan plan Consolidated automobile 825,1000 units 916,000 units 909,400 units +10.2% -0.7% sale unit Net sales 24,081 27,200 27,800 +15.4% +2.2% Operating 3,265 3,400 3,820 +17.0% +12.4% income
Slide 4: Consolidated Automobile Sales
Consolidated Automobile Sales Plan of FYE2015 909,000 units (yoy+10.2％) Australia Other FYE2015 Japan North America Europe China 909 k (Revised plan) units FYE2015 916 k (Previous plan) units FYE2014 825 k (Actual results) units 0 100 200 300 400 500 600 700 800 900 http://www.fhi.co.jp/english/ir/i
Slide 5: Sales Situation in US
Sales Situation in US Consolidated automobile sales (1,000 cars) 490 513 500 442 400 358 FORESTER 280 300 IMPREZA 200 LEGACY/ 100 OUTBACK 0 FYE2012 FYE2013 FYE2014 FYE2015 FYE2015 (Previous plan) (Revised plan) The all new Legacy, Outback and WRX got off to a strong start and other existing models
Slide 6: New LEGACY and OUTBACK
New LEGACY and OUTBACK LEGACY OUTBACK Accumulated sales units in 90 days - New vs. Previous 20,000 New model 61days 65days 15,000 Previous model Reached Reached 10,000units 10,000units 10,000 5,000 0 1 30 days31 60 days61 90 days 91 30 days 121 60 days 151 90 days http://www.fhi.co.jp/english/ir/ind
Slide 7: Safety Performance
Safety Performance IIHS Top Safety Pick (TSP+ 3models / TSP 4models) 7 models (The most winners among all nameplates) http://www.fhi.co.jp/english/ir/index.html 6
Slide 8: Sales Situation in Japan
Sales Situation in Japan Total units Consolidated automobile sales (1,000 cars) Pass. Mini car car 195 172 182 163 144 51 167 200 126 55 80 92 126 41 113 50 150 MINICAR LEVORG 100 FORESTER 50 IMPREZA LEGACY/ OUTBACK 0 FYE2012 FYE2013 FYE2014 FYE2015 FYE2015 (Previous plan) (Revised plan) The all n
Slide 9: JNCAP Advanced Safety Vehicle-Plus (ASV+)
Safety Performance JNCAP Advanced Safety Vehicle-Plus (ASV+) LEVORG/WRX S4 XV Hybrid FORESTER http://www.fhi.co.jp/english/ir/index.html 8
Slide 10: New LEGACY and OUTBACK
New LEGACY and OUTBACK http://www.fhi.co.jp/english/ir/index.html 9
Slide 11: Dividend Forecast and Growth Investment
Dividend Forecast and Growth Investment Dividend forecast FYE2014 FYE2015 vs. yoy previous Actual results Previous plan Revised plan plan End of 2nd ¥20 ¥28 ¥31 +¥11 +¥3 quarter Year-end ¥33 ¥28 ¥31 -¥2 +¥3 Total ¥53 ¥56 ¥62 +¥9 +¥6 * Total of FYE2014 ：Ordinary ¥28, Commemorative ¥5 Considering th
Slide 12: 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 13: http://www.fhi.co.jp/english/ir/index.html
http://www.fhi.co.jp/english/ir/index.html 12
Slide 14: Presentation of Business Results for the 1st Half of FYE 2015
Presentation of Business Results for the 1st Half of FYE 2015 Director of the Boards & CFO, Mitsuru Takahashi October 31, 2014 http://www.fhi.co.jp/english/ir/index.html 0
Slide 15: Summary
Summary Financial results for the 1st half of FYE March 2015 Due to healthy sales in overseas such as new LEGACY / OUTBACK launched in North America, consolidated automobile sales set an all-time records as 1st half. In addition to increase in sales volume, gain on currency exchange and cost red
Slide 16: Business results for the 1st half of FYE March 2015
Business results for the 1st half of FYE March 2015 http://www.fhi.co.jp/english/ir/index.html 2
Slide 17: 1st Half: Consolidated Automobile Sales
1st Half : Consolidated Automobile Sales （Thousand Units） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2014 FYE 2015 Passenger car 61.7 56.5 -5.3 Minicar 25.6 15.1 -10.5 Domestic total 87.3 71.5 -15.8 U.S. 208.9 249.9 +41.0 Canada 18.7 22.1 +3.4 Russia 6.8 8.6 +1.8 Europe
Slide 18: 1st Half: Consolidated Income Statements
1st Half : Consolidated Income Statements （100 Million Yen） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2014 FYE 2015 Net sales 11,256 13,102 +1,846 Domestic 3,306 2,928 -378 Overseas 7,951 10,174 +2,224 Operating 1,507 1,857 +350 income Total non-operating -45 -97 -52 in
Slide 19: 1st Half: Analysis of Operating Income Changes
1st Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） Improvement Gain on Fixed cost : -16 (FHI -4 SIA -12) of sales currency SG&A : -226 (FHI -8 SOA -128 and others) volume & Cost reduction Warranty claims : -60 exchange mixture and others +215 +5
Slide 20: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） As of Sep. 30 Increase / As of Mar. 31 2014 2014 Decrease Total assets 18,884 19,868 +985 Current assets 12,738 13,096 +358 Noncurrent assets 6,146 6,772 +627 Interest bearing debts 2,697 2,322 -375 Net assets 7,701 8,809 +1,109 Retained earnings 4,839 5
Slide 21: 1st Half: 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 2014 FYE 2015 Net cash provided by (used in) operating activities 1,579 1,347 -232 Net cash provided by (used in) investing activities -381 -637 -255 Free cash fl
Slide 22: 1st Half: Operating Results of Subsidiaries in U.S.
1st Half : Operating Results of Subsidiaries in U.S. （Million US$） Actual results Actual results Increase / SOA 1st half 1st half Decrease FYE 2014 FYE 2015 Net sales 5,179 6,313 +1,134 Operating income 117 218 +101 Net income 72 133 +61 Retail sales 220.3 262.4 +42.1 (Thousand units) Actual results
Slide 23: Outlook for the FYE March 2015
Outlook for the FYE March 2015 http://www.fhi.co.jp/english/ir/index.html 9
Slide 24: Full Year: Consolidated Automobile Sales
Full Year : Consolidated Automobile Sales （Thousand Units） Actual results Plan Increase / FYE 2014 FYE 2015 Decrease Passenger car 126.1 125.7 -0.4 Minicar 55.5 40.8 -14.7 Domestic total 181.6 166.5 -15.1 U.S. 441.8 513.2 +71.4 Canada 36.0 40.7 +4.6 Russia 15.3 18.7 +3.4 Europe 31.8 36.0 +4.2 Austra
Slide 25: Full Year: Consolidated Operating Plan
Full Year : Consolidated Operating Plan （100 Million Yen） Actual results Plan Increase / FYE 2014 FYE 2015 Decrease Net sales 24,081 27,800 +3,719 Domestic 6,721 6,582 -138 Overseas 17,361 21,218 +3,857 Operating income 3,265 3,820 +555 Ordinary income 3,144 3,700 +556 Income before income taxes and
Slide 26: Analysis of Operating Income Changes (Consolidated)
Analysis of Increase and Decrease in Operating Income Changes (consolidated) （100 Million Yen） US$ : +431 EURO : +11 Improvement Gain on CA$ : -6 of sales Fixed cost : -94 CNY : +8 currency volume & Cost reduction (FHI : -57 SIA : -37) Currency exchange SG&A : -429 mixture exchange adjustment : -32
Slide 27: Full Year: Operating Plan of Subsidiaries in U.S.
Full Year : Operating Plan of Subsidiaries in U.S. （Million US$） Actual results Plan Increase / SOA FYE 2014 FYE 2015 Decrease Net sales 11,005 13,119 +2,114 Operating income 184 443 +259 Net income 111 267 +156 Retail sales 442.3 510.3 +68.0 (Thousand units) Actual results Plan Increase / SIA FYE 2
Slide 28: Capex / Depreciation / R&D / Interest bearing debt
Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Actual Results Actual Results Plan Increase 1st Half FYE2014 1st Half FYE2015 / Decrease FYE2014 (a) FYE 2015 (b) (b) - (a) Capex 273 685 597 1,200 +515 Depreciation 260 549 277 660 +111 R&D 299 601 363 840 +239 Inte
Slide 29: Appendix (1)
Appendix (1) ・ Non-operating income & expenses and ・Non-operating extraordinary income & loss ・Segment information ・Segment ・ Overseas net sales ・Overseas ・ Non-consolidated automobile sales ・Non-consolidated http://www.fhi.co.jp/english/ir/index.html 15
Slide 30: 1st Half: Non-Operating Income & Expenses and Extraordinary Items
1st Half : Non-Operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2014 FYE 2015 Financial revenue and expenditure 0 -1 -1 FOREX effects -39 -98 -58 Other -6 1 +7 Total non-operating inco
Slide 31: 1st Half: Net Sales and Operating Income by Business Segment
1st Half : Net Sales and Operating Income by Business Segment (consolidated) （100 Million Yen） Net sales Operating income Actual Actual Actual Actual Increase Increase results results results results / / 1st half 1st half 1st half 1st half Decrease Decrease FYE 2014 FYE 2015 FYE 2014 FYE 2015 Automo
Slide 32: 1st Half: Operating Income by Geographic Area
1st Half : Consolidated Operating Income by Geographic Area （100 Million Yen） Net sales Operating income Actual Actual Actual Actual Increase Increase results results results results / / 1st half 1st half 1st half 1st half Decrease Decrease FYE 2014 FYE 2015 FYE 2014 FYE 2015 Japan 4,691 4,466 -225
Slide 33: 1st Half: Overseas Net Sales
1st Half : Overseas Net Sales （100 Million Yen） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2014 FYE 2015 North America 6,172 7,751 +1,579 Europe 562 601 +40 Asia 582 1,183 +600 Other 635 639 +5 Total 7,951 10,174 +2,224 http://www.fhi.co.jp/english/ir/index.html 19
Slide 34: 1st Half: Non-Consolidated Automobiles Sales
1st Half : Non-Consolidated Automobiles Sales （Thousand Units） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2014 FYE 2015 Domestic production 310.1 344.0 +33.9 Domestic sales 91.9 76.0 -15.9 Passenger cars 64.8 60.3 -4.5 Minicars 27.2 15.7 -11.4 Number of vehicles 231.6 26
Slide 35: Appendix (2)
Appendix (2) ・ 2nd quarter, consolidated statements income ・2nd ・ 1st half, Plan vs. Actual results ・ Full year, Previous plan vs. revised plan http://www.fhi.co.jp/english/ir/index.html 21
Slide 36: 2nd Quarter: Consolidated Automobile Sales
2nd Quarter : Consolidated Automobile Sales （Thousand Units） Actual results Actual results Increase / 2nd quarter 2nd quarter Decrease FYE 2014 FYE 2015 Passenger car 33.0 36.1 +3.1 Minicar 13.6 8.3 -5.3 Domestic total 46.6 44.3 -2.3 U.S. 102.5 137.5 +35.0 Canada 9.3 11.3 +2.0 Russia 4.3 4.6 +0.3 Eu
Slide 37: 2nd Quarter: Consolidated Income Statements
2nd Quarter : Consolidated Income Statements （100 Million Yen） Actual results Actual results Increase / 2nd quarter 2nd quarter Decrease FYE 2014 FYE 2015 Net sales 5,787 7,168 +1,381 Domestic 1,729 1,766 +38 Overseas 4,058 5,402 +1,344 Operating income 811 1,069 +259 Ordinary income 817 954 +137 In
Slide 38: 2nd Quarter: Analysis of Operating Income Changes
2nd Quarter : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) Improvement （100 Million Yen） Gain on of sales currency Fixed cost : -26 (FHI : -15 SIA : -11) volume & SG&A : -166 (FHI : -11 SOA : -97 and other) exchange Cost reduction mixture Warranty claims : -30 and oth
Slide 39: Plan vs. Results 1st Half: Consolidated Automobile Sales
(Plan vs. Results) 1st Half : Consolidated Automobile Sales （Thousand Units） Plan Actual results Increase / 1st half 1st half Decrease FYE 2015 FYE 2015 Passenger car 70.5 56.5 -14.1 Minicar 22.6 15.1 -7.5 Domestic total 93.2 71.5 -21.6 U.S. 233.9 249.9 +16.0 Canada 21.7 22.1 +0.4 Russia 9.2 8.6 -0.
Slide 40: Plan vs. Results 1st Half: Consolidated Income Statements
(Plan vs. Results) 1st Half : Consolidated Income Statements （100 Million Yen） Plan Actual results Increase / 1st half 1st half Decrease FYE 2015 FYE 2015 Net sales 13,000 13,102 +102 Domestic 3,426 2,928 -498 Overseas 9,574 10,174 +600 Operating income 1,600 1,857 +257 Ordinary income 1,560 1,760 +
Slide 41: Plan vs. Results 1st Half: Operating Income Changes
(Plan vs. Results) 1st Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） Increase of Domestic : -152 US$ : +121 (Deterioration of sales volume and mixture) EURO : +4 SG&A Overseas : +110 CA$ : +11 expenses Cost reduction (Increase of sales volume C
Slide 42: Previous vs. Revised Plan: Consolidated Automobile Sales
(Previous Plan vs. Revised Plan) Full Year : Consolidated Automobile Sales （Thousand Units） Previous plan Revised plan Increase / FYE 2015 FYE 2015 Decrease Passenger car 143.7 125.7 -18.0 Minicar 51.2 40.8 -10.4 Domestic total 194.9 166.5 -28.4 U.S. 490.2 513.2 +23.0 Canada 40.4 40.7 +0.3 Russia 19
Slide 43: Previous vs. Revised Plan: Consolidated Income Statements
(Previous Plan vs. Revised Plan) Full Year : Consolidated Income Statements （100 Million Yen） Previous plan Revised plan Increase / FYE 2015 FYE 2015 Decrease Net sales 27,200 27,800 +600 Domestic 7,032 6,582 -450 Overseas 20,168 21,218 +1,050 Operating income 3,400 3,820 +420 Ordinary income 3,300
Slide 44: Previous vs. Revised Plan: Operating Income Changes
(Previous Plan vs. Revised Plan) Full Year : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） US$ : +385 EURO : +6 Fixed cost : +15 (FHI : +6 SIA : +9) CA$ : +24 Decrease of SG&A : +146 (FHI : +78 SOA : -4 and other) CNY : +6 SG&A Warranty claims : -63 C
Slide 45: Appendix (3)
Appendix (3) ・ Net sales / Operating income ・Net ・ Consolidated automobile units / OPM ・Consolidated ・ Complete cars production / Retail units ・Complete ・ FCF / Shareholders ・FCF Shareholders’’ equity to total assets ・ Interest-bearing debt / D/E ratio ・Interest-bearing http://www.fhi.co.jp/english/
Slide 46: Net Sales & Operating Income
Net Sales & Operating Income Operating ¥79/$ ¥77/$ ¥78/$ ¥81/$ ¥79/$ ¥79/$ ¥89/$ ¥98/$ ¥98/$ ¥99/$ ¥103/ ¥102/ ¥102/ Income Net Sales $ $ $ （100 million yen) (100 million yen) 7,168 1,200 6,996 7,000 1,069 Net Sales Operating Income 5,787 5,829 5,934 1,000 6,000 5,422 5,469 931 4,877 5,000 4,691 4,7
Slide 47: Consolidated Automobile Sales & Operating Income Margin
Consolidated Automobile Sales & Operating Income Margin Automobile sales (1,000 cars) OPM 250 238 18% Consolidated Automobile Sales OPM 232 208 14.9% 198 202 201 15% 200 191 194 183 178 14.0% 166 166 14.2% 13.3% 12.7% 13.3% 12% 148 150 9% 8.7% 100 6.4% 6% 5.5% 50 4.0% 3.3% 3% 2.4% 2.3% 0 0% 2Q 3Q 4Q
Slide 48: Completed Cars Production & Retail Units
Completed Cars Production & Retail Units Units （1000 units) 250 237 Production Retail Units 228 225 207 211 213 212 210 211 211 214 200 196 196 191 197 195 197 193 182 178 177 167 172 158 150 150 136 100 50 0 Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Sep. Dec. Mar
Slide 49: Free Cash Flows & Shareholders' Equity to Total Assets
Free Cash Flows & Shareholders’ Equity to Total Assets FCF Shareholders’ （100 million yen) Equity to Total Assets 44.0% 45% FCF Shareholders' Equity to Total Assets 2,791 2,800 42.6% 2,300 41.2% 42.9% 39.9% 2,094 40.5% 40% 1,800 37.7% 1,300 1,198 35.2% 953 34.2% 778 711 35% 800 33.7% 33.7% 33.3% 34.
Slide 50: Interest-Bearing Debt & D/E Ratio
Interest-Bearing Debt & D/E Ratio Interest Bearing Debt D/E ratio (100 million yen) 4,000 3,866 3,688 Interest-Bearing Debt D/E Ratio 1.4 3,410 3,381 3,301 3,236 3,072 1.2 2,967 2,918 3,000 2,760 2,697 2,574 1.0 0.85 2,322 0.89 0.76 0.8 0.74 2,000 0.69 0.64 0.52 0.6 0.46 0.41 0.36 0.35 0.4 1,000 0.3
Slide 51: 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 52: http://www.fhi.co.jp/english/ir/index.html
http://www.fhi.co.jp/english/ir/index.html 38
Fuji Heavy Industries — H1 FYE2015 Earnings Presentation on 6ix