Subaru Corporation · TSE:7270
Subaru — Q3 FYE2018 Earnings Presentation
38 slides from Subaru's earnings presentation, Feb 8, 2018
Slide 1: Consolidated Financial Results for the 3rd Quarter of FYE 2018
Consolidated Financial Results for the 3rd Quarter of FYE 2018 SUBARU CORPORATION Toshiaki Okada Corporate Executive Vice President & CFO February 8, 2018 https://www.subaru.co.jp/en/ir/ 0
Slide 2: Summary
Summary Consolidated Financial Results for the 3rd Quarter of FYE 2018 Consolidated net sales and global unit sales posted record highs for the April-December period.*1 Operating income decreased year on year, as factors such as unit sales growth and foreign exchange gains were offset by an incr
Slide 3: Consolidated Financial Results for the 3rd Quarter of FYE 2018
Consolidated Financial Results for the 3rd rd Quarter of FYE 2018 https://www.subaru.co.jp/en/ir/ 2
Slide 4: Consolidated Unit Sales
3rd Quarter : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance 3rd Quarter FYE 2017 3rd Quarter FYE 2018 Passenger car 83.1 97.7 +14.6 Minicar 22.4 21.1 -1.2 Domestic total 105.5 118.8 +13.3 US 501.3 509.1 +7.8 Canada 40.5 44.5 +4.0 Russia 4.1 5.7 +1.6 Europe 29.8 28.5
Slide 5: Consolidated Income Statements
3rd Quarter: Consolidated Income Statements （100 Million Yen） Actual Results Actual Results Variance 3rd Quarter FYE 2017 3rd Quarter FYE 2018 Net sales 24,279 25,646 +1,367 Domestic 4,449 4,845 +396 Overseas 19,830 20,801 +971 Operating income 3,068 3,063 -5 Total non-operating income & expenses -9
Slide 6: Analysis of Variance in Operating Income (Consolidated)
3rd Quarter : Analysis of Variance in Operating Income (Consolidated) Fixed cost : -127 (SUBARU -34, SIA -93) （100 Million Yen） Sales volume SG&A : -388 (SUBARU-49, SOA -346, others) Gain on & mixture Warranty claims : +226 currency and others SUBARU: -66 exchange +82 (material cost -147) +345 SIA :
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） As of March As of December Variance 2017 2017 Total assets 27,623 27,932 +309 Current assets 18,453 18,344 -108 Noncurrent assets 9,171 9,588 +417 Total liabilities 12,974 12,724 -250 Interest bearing debts 1,483 919 -564 Net assets 14,649 15,207 +559 Re
Slide 8: Consolidated Statement of Cash Flows
3rd Quarter : Consolidated Statement of Cash Flows （100 Million Yen） Actual Results Actual Results Variance 3rd Quarter FYE 2017 3rd Quarter FYE 2018 Net cash provided by (used in) operating activities 2,164 2,546 +382 Net cash provided by (used in) investing activities -1,665 -1,320 +345 Free cash
Slide 9: Operating Results of Subsidiaries in U.S.
3rd Quarter : Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Actual Results SOA 3rd Quarter FYE 2017 3rd Quarter FYE 2018 Variance Net sales 13,454 13,901 +447 Operating income 609 336 -273 Net income 376 218 -158 Retail sales 481.6 501.2 +19.5 (Thousand units) Actual Results
Slide 10: Capex / Depreciation / R&D / Interest bearing debt
3rd Quarter : Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Actual Results 3rd Quarter FYE 3rd Quarter FYE Variance 2017 2018 Capex 1,076 780 -295 Depreciation 541 653 +112 R&D 805 889 +85 Interest bearing debt 1,455 919 -536 https://www.subaru.co.jp/en/ir/ 9
Slide 11: Forecasts for FYE 2018
Forecasts for FYE 2018 https://www.subaru.co.jp/en/ir/ 10
Slide 12: Revised Plan FYE 2018: Consolidated Unit Sales
Revised Plan FYE 2018 : Consolidated Unit Sales （Thousand Units） Actual Results Previous Plan Revised Plan Variance Variance FYE 2017 (a) FYE 2018 (b) FYE 2018 (c) (c)-(a) (c)-(b) Passenger cars 126.4 135.0 134.5 +8.2 -0.4 Minicars 32.5 31.6 30.6 -1.9 -1.0 Domestic total 158.9 166.5 165.2 +6.2 -1.4
Slide 13: Revised Plan FYE 2018: Consolidated Income Statements
Revised Plan FYE 2018 : Consolidated Income Statements （100 Million Yen） Actual Results Previous Plan Revised Plan Variance Variance FYE 2017 (a) FYE 2018 (b) FYE 2018 (c) (c)-(a) (c)-(b) Net sales 33,260 33,800 34,100 +840 +300 Domestic 6,503 6,717 6,703 +200 -13 Overseas 26,756 27,083 27,397 +640
Slide 14: Analysis of Variance in Operating Income (FY2017 vs Revised Plan)
（FYE 2017 Actual Results vs. Revised Plan）FYE 2018 : Analysis of Variance in Operating Income (Consolidated) Fixed cost : -177 (SUBARU-73, SIA -104) （100 Million Yen） SG&A : -418 (SUBARU-84, SOA -370, others) Warranty claims : +139 Gain on SUBARU: -87 (material cost -183) SIA: -7 (material cost -54)
Slide 15: Analysis of Variance in Operating Income (Previous vs Revised Plan)
（Previous Plan vs. Revised Plan）FYE 2018 : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Fixed cost : +4 (SUBARU-15, SIA +19) SG&A : -13 Sales volume Gain on Cost (SUBARU+52, SOA -91, others) & mixture R&D Warranty claims : -196 currency expenses reduction and others exch
Slide 16: Operating Plan of Subsidiaries in U.S.
Revised Plan FYE 2018 : Operating Plan of Subsidiaries in U.S. （Million US$） Actual Results Revised Plan SOA FYE 2017 FYE 2018 Variance Net sales 17,947 18,393 +446 Operating income 671 359 -312 Net income 421 239 -182 Retail sales 625.0 652.8 +27.8 (Thousand units) Actual Results Revised Plan SIA F
Slide 17: Revised Plan FYE 2018: Capex / Depreciation / R&D / Interest bearing debt
Revised Plan FYE 2018 : Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Previous Plan Revised Plan Variance Variance FYE 2017 FYE 2018 FYE 2018 (c) - (a) (c) - (b) (a) (b) (c) Capex 1,585 1,500 1,500 -85 ±0 Depreciation 770 920 920 +150 ±0 R&D 1,142 1,300 1,260 +1
Slide 18: Appendix(1)
Appendix(1) ・Non-operating income & expenses and extraordinary income & loss ・Segment information by business & geographic ・Overseas net sales ・Non-consolidated unit sales https://www.subaru.co.jp/en/ir/ 17
Slide 19: Non-operating Income & Expenses and Extraordinary Income & Loss
3rd Quarter : Non-operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual Results Actual Results 3rd Quarter 3rd Quarter Variance FYE 2017 FYE 2018 Financial revenue and expenditure 20 42 +23 FOREX effects -91 -26 +65 Loss on taxation of overseas subsidiar
Slide 20: Net Sales and Operating Income by Business Segment
3rd Quarter : Net Sales and Operating Income by Business Segment (Consolidated) （100 Million Yen） Net Sales Operating Income Actual Actual Actual Actual Results Results Results Results 3 Quarter rd 3 Quarter rd Variance 3 Quarter rd 3 Quarter rd Variance FYE 2017 FYE 2018 FYE 2017 FYE 2018 Automobil
Slide 21: Net Sales and Operating Income by Geographic Area
3rd Quarter : Net Sales and Operating Income by Geographic Area (Consolidated) （100 Million Yen） Net Sales Operating Income Actual Actual Actual Actual Results Results Results Results 3 Quarter rd 3 Quarter rd Variance 3 Quarter rd 3 Quarter rd Variance FYE 2017 FYE 2018 FYE 2017 FYE 2018 Japan 6,88
Slide 22: Overseas Net Sales (Consolidated)
3rd Quarter : Overseas Net Sales (Consolidated) （100 Million Yen） Actual Results Actual Results Variance 3rd Quarter FYE 2017 3rd Quarter FYE 2018 North America 16,180 17,610 +1,430 Europe 827 851 +24 Asia 1,581 1,074 -507 Others 1,242 1,267 +24 Total 19,830 20,801 +971 https://www.subaru.co.jp/en/i
Slide 23: Non-consolidated Unit Sales
3rd Quarter : Non-consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance 3rd Quarter FYE 2017 3rd Quarter FYE 2018 Domestic production 543.1 532.2 -10.9 Domestic sales 113.8 125.9 +12.1 Passenger cars 89.5 103.4 +13.9 Minicars 24.3 22.5 -1.9 Number of exported 441.5 419.6 -2
Slide 24: Appendix (2)
Appendix (2) rd quarter (3months) consolidated income statements ・3rd th quarter (3months) consolidated income statements ・4th https://www.subaru.co.jp/en/ir/ 23
Slide 25: Consolidated Unit Sales (3 months)
3rd Quarter (3 months) : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results 3rd Quarter (3 months) 3rd Quarter (3 months) Variance FYE 2017 FYE 2018 Passenger car 30.7 30.4 -0.2 Minicar 6.8 6.1 -0.8 Domestic total 37.5 36.5 -1.0 US 174.4 175.8 +1.5 Canada 12.0 13.7 +1.7 Russia 0.
Slide 26: Consolidated Income Statements (3 months)
3rd Quarter (3 months) : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results 3rd Quarter (3 months) 3rd Quarter (3 months) Variance FYE 2017 FYE 2018 Net sales 8,502 8,783 +281 Domestic 1,589 1,559 -30 Overseas 6,913 7,224 +311 Operating income 982 942 -41 Ordinary income
Slide 27: Analysis of Variance in Operating Income (3 months)
3rd Quarter (3 months) : Analysis of Variance in Operating Income (Consolidated) Fixed cost : -11 (SUBARU+7, SIA-18) （100 Million Yen） SG&A : -131 (SUBARU-5, SOA -108, others) Warranty claims : +56 Domestic : -24 (volume decrease） Gain on Overseas : -123 (volume decrease, mixture improvement) curren
Slide 28: 4th Quarter (3 months): Consolidated Unit Sales
4th Quarter (3 months) : Consolidated Unit Sales （Thousand Units） Actual Results Plan 4th Quarter (3 months) 4th Quarter (3 months) Variance FYE 2017 FYE 2018 Passenger car 43.3 36.9 -6.4 Minicar 10.2 9.5 -0.7 Domestic total 53.4 46.3 -7.1 US 166.3 162.2 -4.1 Canada 12.6 12.5 -0.1 Russia 1.3 2.0 +0.
Slide 29: 4th Quarter (3 months): Consolidated Income Statements
4th Quarter (3 months) : Consolidated Income Statements （100 Million Yen） Actual Results Plan 4th Quarter (3 months) 4th Quarter (3 months) Variance FYE 2017 FYE 2018 Net sales 8,981 8,454 -527 Domestic 2,054 1,858 -196 Overseas 6,927 6,595 -331 Operating income 1,041 737 -304 Ordinary income 971 71
Slide 30: 4th Quarter: Analysis of Variance in Operating Income
4th Quarter (3 months) : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Fixed cost : -50 (SUBARU-39, SIA -11) SG&A : -30 (SUBARU-35, SOA -24, others) Gain on Warranty claims : -87 currency exchange Domestic : -22 (volume decrease, mixture improvement） Overseas : -89 (volum
Slide 31: Appendix (3)
Appendix (3) ・Net sales / Operating income ・Consolidated unit sales / OPM ・Complete cars production / Retail sales units ・FCF / Shareholders’ equity to total assets ・Interest-bearing debt / D/E ratio https://www.subaru.co.jp/en/ir/ 30
Slide 32: Net Sales / Operating Income
Net Sales / Operating Income ¥102 ¥102 ¥110 ¥118 ¥120 ¥123 ¥121 ¥118 ¥111 ¥104 ¥105 ¥114 ¥112 ¥111 ¥112 /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ Operating Net Sales Income （100M yen） （100M yen） Net sales Operating income 1,800 8,981 9,000 8,783 8,362 8,172 8,136 8,502 8,548 1,600 8,172 8,315 8,0
Slide 33: Consolidated Unit Sales / Operating Income Margin
Consolidated Unit Sales / Operating Income Margin Unit sales （1,000 units） OPM 300 Consolidated unit sales OPM 279 267 274 271 271 260 247 20% 238 247 246 245 250 232 240 225 18.4% 18% 18.1% 194 17.5% 200 16.6% 16.0% 15% 14.9% 150 13.8% 14.0% 13.3% 13.2% 13.2% 13% 100 11.6% 11.6% 11.2% 10.7% 10% 50
Slide 34: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units (1,000 units) 300 Production Retail Sales 280 276 276 269 273 269 264 268 258 261 253 249 253 249 250 241 244 242 248 245 242 228 237 234237 233 231 237 225 229 211 211 214 200 150 100 50 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec
Slide 35: Free Cash Flows / Ratio of Shareholders' Equity to Total Assets
Free Cash Flows / Ratio of Shareholders’ Equity to Total Assets FCF Ratio of shareholders’ （100M yen） Equity to total assets FCF 3,800 Shareholders' equity ratio 3,586 53.5% 54.2% 52.8% 55% 52.5% 51.8% 52.8% 53.0% 52.8% 53.1% 3,300 50.2% 48.8% 2,800 50% 2,535 46.2% 46.5% 2,300 44.0% 42.9% 1,860 45%
Slide 36: Interest Bearing Debt / D/E Ratio
Interest Bearing Debt / D/E Ratio Interest D/E ratio bearing debt （100M yen） 3,000 1.0 Interest bearing debt 2,574 D/E ratio 0.9 2,500 2,322 2,268 0.8 2,112 2,011 2,014 0.7 2,000 1,865 1,700 1,654 0.6 1,614 1,455 1,483 1,500 0.5 0.32 1,107 0.4 0.27 976 919 1,000 0.24 0.3 0.21 0.18 0.17 0.15 0.13 0.2
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: https://www.subaru.co.jp/en/ir/
https://www.subaru.co.jp/en/ir/ 37