Subaru Corporation · TSE:7270
Subaru — Fuji Heavy Industries — FY2015 Earnings Presentation
51 slides from Subaru's earnings presentation, May 8, 2015
Slide 1: Yasuyuki Yoshinaga, President & CEO
Yasuyuki Yoshinaga President & CEO Fuji Heavy Industries Ltd. May 8, 2015 http://www.fhi.co.jp/english/ir/index.html 0
Slide 2: Business Results of the FYE 2015
Business Results of the FYE 2015 FYE 2014 FYE 2015 vs. YoY Actual results Plan Actual results plan Consolidated sales 825,100 906,100 910,700 +10.4% +0.5% volume units units units Net sales (100 million yen) 24,081 28,500 28,779 +19.5% +1.0% Operating income (100 million yen) 3,265 4,100 4,230 +29.6
Slide 3: Business Plan for the FYE 2016
Business Plan for the FYE 2016 FYE 2015 FYE 2016 YoY Actual results Plan Consolidated sales 910,700 units 928,300 units +1.9% volume Net sales (100 million yen) 28,779 30,300 +5.3% Operating income (100 million yen) 4,230 5,030 +18.9% OPM 14.7% 16.6% +1.9p Ordinary income (100 million yen) 3,926 4,9
Slide 4: Shareholder Returns
Shareholder Returns Dividend Per Share （Unit: Yen） FYE 2014 FYE 2015 FYE 2016 YoY (a) (b) (b)-(a) End of 2nd quarter ¥20 ¥31 TBD +¥11 End of 4th quarter ¥33 ¥37 TBD +¥4 Annual total ¥53 ¥68 TBD +¥15 Profits are returned to shareholders basically in the form of dividends with business results for
Slide 5: Production Capacity Enhancement
Production Capacity Enhancement Production strategy to ensure sustainable growth The global production capacity will be 1,026K units at the end of CY2016 by raising SIA’s production capacity to 400K level with the original plan moved up. One of the paint plants in Japan will be renewed by 2018 i
Slide 6: Global Sales Plan
Global Sales Plan Consolidated Sales plan for FYE2016 928K units (YoY +1.9%) Global sales plan in FYE2016 is to achieve another record for the 4th consecutive year. (for the 7th consecutive year in North America.) As an effort to address the situation of short supply and to realize sustainable g
Slide 7: Further Evolution of EyeSight
Further Evolution of EyeSight SUBARU ALL-AROUND SAFETY Aim is to “Protect more peoples’ lives” in pursuit of “Enjoyment” and “Peace of Mind” Primary safety Active safety CY2017 Automated follow-up system in congested traffic on the same lane of expressways CY2020 Automated driving including lane cha
Slide 8: Subaru Next Story (SNS)
Subaru Next Story (SNS) To give customers’ Subaru life More Peace of Mind, More Enjoyment Establish structure to have a Customer Peace of Mind strong tie with customers Support Safety Subaru Life Create a touch point with customers from digital to real life Enjoyment Support Active Life New website
Slide 9: Revision of Three-Year Investment Plan
Revision of Three-Year Investment Plan (R&D / Capex / Depreciation & Amortization) Three-year investment plan (total of FYE2015-2017) The plan is revised in consideration of the recent situation. R&D expenses and capital expenditures are further expanded in order to reinforce the foundation for
Slide 10: Major Awards
Major Awards Consumer Kelly Blue IIHS TSP+ ENCAP 5Star JNCAP ASV+ (JAPAN) Reports Book (US) (US) (EU) (US) Top Pick LEGACY Most OUTBACK OUTBACK LEVORG OUTBACK Trusted Brand FORESTER LEGACY LEGACY FORESTER Best IMPREZA FORESTER IMPREZA XV Performance Brand IMPREZA XV http://www.fhi.co.jp/english/ir/i
Slide 11: 2014-2015 JNCAP Five Star Award
2014-2015 JNCAP Five Star Award http://www.fhi.co.jp/english/ir/index.html 10
Slide 12: Forward-looking statements disclaimer
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: Mitsuru Takahashi, Executive Vice President & CFO
Mitsuru Takahashi Executive Vice President & CFO Fuji Heavy Industries Ltd. May 8, 2015 http://www.fhi.co.jp/ir/english/index.html 0
Slide 15: 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 16: Business results of the FYE March 2015
Business results of the FYE March 2015 http://www.fhi.co.jp/ir/english/index.html 2
Slide 17: 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 18: 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 19: Analysis of Variance in Operating Income
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 20: 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 21: 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 22: Operating Results of Subsidiaries in U.S.
Operating Results of Subsidiaries in U.S. （Million US$） Actual results Actual results SOA FYE 2014 FYE 2015 Variance Net sales 11,005 13,393 +2,388 Operating income 184 490 +306 Net income 111 309 +198 Retail sales 442.3 530.5 +88.2 (thousand units) Actual results Actual results SIA FYE 2014 FYE 201
Slide 23: Outlook for the FYE March 2016
Outlook for the FYE March 2016 2016 http://www.fhi.co.jp/ir/english/index.html 9
Slide 24: Automobile Sales Volume (consolidated)
Automobile Sales Volume (consolidated) （Thousand units） Actual results Plan Variance FYE 2015 FYE 2016 Passenger cars 127.9 106.7 -21.2 Minicars 34.9 37.6 +2.7 Domestic total 162.8 144.2 -18.5 U.S. 527.6 554.0 +26.4 Canada 42.4 46.2 +3.8 Russia 11.6 12.8 +1.2 Europe 35.7 37.7 +2.0 Australia 38.9 42.
Slide 25: Operating Plan (consolidated)
Operating Plan (consolidated) （100 Million Yen） Actual results Plan Variance FYE 2015 FYE 2016 Net sales 28,779 30,300 +1,521 Domestic 6,529 5,655 -874 Overseas 22,250 24,645 +2,395 Operating income 4,230 5,030 +800 Ordinary income 3,936 4,950 +1,014 Income before income taxes and minority interests
Slide 26: Analysis of Variance in Operating Income
Analysis of Variance in Operating Income (consolidated) （100 Million Yen） Improvement of sales volume Fixed cost : -122 (FHI : -38 SIA : -84) Cost SG&A : -257 (FHI : +33 SOA : -168 and others) US$ : +1,010 & mixture EURO : -40 Gain on reduction Warranty claims : +48 and others CA$ : -6 currency +133
Slide 27: Operating Plan of Subsidiaries in U.S.
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 530.5 546.7 +16.2 (thousand units) Actual results Plan SIA FYE 2015 FYE 2016 Variance Net sales 4,770
Slide 28: 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 2,697 2,112 1,800 -312 bearing debt http://www.fhi.co.jp
Slide 29: 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 30: 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 31: 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 32: 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 33: 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/ir/english/index.html 19
Slide 34: 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 35: Automobile Sales Volume 4th Quarter
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 36: Income Statements 4th Quarter
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 37: 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 38: Automobile Sales Volume FYE 2015 Plan vs. Actual
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 39: Income Statements FYE 2015 Plan vs. Actual
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 40: Analysis of Variance in Operating Income 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) currency Cost SG&A : -91 reduction expenses (FHI -24 SOA +10 and others) Improvement exchange of sales volume +97 +7 +7 Warranty claims :
Slide 41: 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 42: Operating Plan 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 43: Analysis of Variance in Operating Income 1st Half
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 reduction (FHI：-36 SIA：-34) US$ : +799 EURO : -16 currency and others SG&A：-214 CA$ : +5 exchange +75 (FHI：-15 SO
Slide 44: 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/i
Slide 45: 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 46: 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% 198 202 201 17% 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 47: Complete Cars Production & Retail Sales Units
Complete Cars Production & Retail Sales Units （1,000 units） 250 Production Retail sales 237 241 237 244 234 228 225 211 213 212 211 214 207 210 211 196 191 197 195 197 200 182 193 178 177 167 172 150 100 50 0 Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Mar. Jun. Sep
Slide 48: 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 49: 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 0.74 2,574 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 50: Forward-looking statements disclaimer
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 51: http://www.fhi.co.jp/ir/english/index.html
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