Subaru Corporation · TSE:7270
Subaru — Q3 FYE March 2016 Earnings Presentation
39 slides from Subaru's earnings presentation, Feb 4, 2016
Slide 1: Business Results for the 3rd Quarter of FYE 2016
Business Results for the 3rd Quarter of FYE 2016 Mitsuru Takahashi Executive Vice President & CFO February 4, 2016 http://www.fhi.co.jp/english/ir/index.html 0 0
Slide 2: Summary
Summary Financial results for the 3rd quarter (9 months) of FYE March 2016 Consolidated automobile sales set an all-time record high for the 3rd quarter period (9 months) mainly with the continuous strong sales in North American market. Net sales and all profit levels for the 3rd quarter period
Slide 3: Business results for the 3rd quarter (9 months) of FYE March 2016
Business results for the 3rd quarter (9 months) of FYE March 2016 http://www.fhi.co.jp/english/ir/index.html 2 2
Slide 4: 9 months: Consolidated Automobile Unit Sales
9 months : Consolidated Automobile Unit Sales （Thousand Units） Actual Results Actual Results 9 months 9 months Variance FYE 2015 FYE 2016 Passenger car 83.5 75.9 -7.6 Minicar 22.3 24.0 +1.6 Domestic total 105.9 99.9 -6.0 US 398.7 446.3 +47.6 Canada 32.0 36.7 +4.7 Russia 10.8 4.8 -6.1 Europe 22.9 28.
Slide 5: 9 months: Consolidated Income Statements
9 months : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results 9 months 9 months Variance FYE 2015 FYE 2016 Net sales 20,607 24,186 +3,579 Domestic 4,419 4,282 -137 Overseas 16,189 19,904 +3,716 Operating income 3,102 4,357 +1,256 Total non-operating income & expenses -218
Slide 6: 9 months: Analysis of Operating Income Variance (Consolidated)
9 months : Analysis of Operating Income Variance (Consolidated) （100 Million Yen） US$ : +1,347 EURO : -10 Fixed cost : -79 (FHI -31 ,SIA -48) CA$ : -2 Sales volume Cost SG&A : -106 (FHI -21, SOA -29, others) CNY : +6 Gain on & mixture Warranty claims : -212 Currency reduction currency and others exc
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） As of March 31 As of Dec. 31 Variance 2015 2015 Total assets 21,997 24,294 +2,297 Current assets 14,733 16,354 +1,621 Noncurrent assets 7,265 7,940 +676 Interest bearing debts 2,112 1,865 -247 Net assets 10,307 12,817 +2,510 Retained earnings 6,974 9,502
Slide 8: 9 months: Consolidated Statement of Cash Flows
9 months : Consolidated Statement of Cash Flows （100 Million Yen） Actual Results Actual Results 9 months 9 months Variance FYE 2015 FYE 2016 Net cash provided by (used in) operating activities 1,773 4,343 +2,570 Net cash provided by (used in) investing activities -1,165 -1,808 -643 Free cash flows 6
Slide 9: 9 months: Operating Results of Subsidiaries in U.S.
9 months : Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Actual Results SOA 9 months 9 months Variance FYE 2015 FYE 2016 Net sales 10,115 11,589 +1,474 Operating income 417 657 +240 Net income 259 404 +145 Retail sales (Thousand units) 399.9 449.9 +50.0 Actual Results Actual
Slide 10: Outlook for the FYE March 2016
Outlook for the FYE March 2016 http://www.fhi.co.jp/english/ir/index.html 9 9
Slide 11: Full Year: Consolidated Automobile Sales Plan
Full Year : Consolidated Automobile Sales Plan （Thousand Units） Actual results Revised plan Variance FYE 2015 FYE 2016 Passenger car 127.9 109.8 -18.1 Minicar 34.9 33.5 -1.4 Domestic total 162.8 143.3 -19.4 US 527.6 583.0 +55.3 Canada 42.4 47.1 +4.7 Russia 11.6 6.1 -5.5 Europe 35.7 41.3 +5.6 Austral
Slide 12: Full Year: Consolidated Operating Plan
Full Year : Consolidated Operating Plan （100 Million Yen） Actual results Revised plan Variance FYE 2015 FYE 2016 Net sales 28,779 32,100 +3,321 Domestic 6,529 5,962 -567 Overseas 22,250 26,138 +3,888 Operating income 4,230 5,500 +1,270 Ordinary income 3,936 5,470 +1,534 Income before taxes and minor
Slide 13: Full Year: Analysis of Operating Income Variance (Consolidated)
Full Year : Analysis of Operating Income Variance (Consolidated) （100 Million Yen） US$ : +1,248 Fixed cost : -116 (FHI -33, SIA -83) EURO : -21 Cost CA$ : -17 Sales volume SG&A : -122 (FHI -10, SOA -53, others) CNY : +4 & mixture reduction Warranty claims : -215 Gain on Currency currency and others
Slide 14: Full Year: Operating Plan of Subsidiaries in U.S.
Full Year : Operating Plan of Subsidiaries in U.S. （Million US$） Actual results Plan SOA FYE 2015 FYE 2016 Variance Net sales 13,393 15,202 +1,809 Operating income 490 776 +286 Net income 309 477 +168 Retail sales (Thousand units) 530.5 585.4 +54.9 Actual results Plan SIA FYE 2015 FYE 2016 Variance
Slide 15: Capex / Depreciation / R&D / Interest bearing debt
Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Actual Results Actual Results Revised plan Variance 9 months FYE2015 9 months FYE2016 (b) - (a) FYE2015 (a) FYE 2016 (b) Capex 828 1,107 830 1,300 +193 Depreciation 445 648 473 670 +22 R&D 549 835 717 1,015 +180 Inte
Slide 16: Appendix (1)
Appendix (1) ・ Non- Non-operating income & expenses and extraordinary ・Non-operating income & loss (9 months) ・ Segment information by Business & Geographic (9 ・Segment (9 months) months) ・ Overseas net sales (9 months) ・Overseas ・ Non- Non-consolidated automobile sales (9 ・Non-consolidated (9 month
Slide 17: 9 months: Non-operating Income & Expenses and Extraordinary Income & Loss
9 months : Non-operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual Results Actual Results 9 months 9 months Variance FYE 2015 FYE 2016 Financial revenue and expenditure 8 19 -11 FOREX effects -230 -14 +215 Other 4 -22 -26 Total non-operating income & e
Slide 18: 9 months: Net Sales and Operating Income by Business Segment
9 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 9 months 9 months Variance 9 months 9 months Variance FYE 2015 FYE 2016 FYE 2015 FYE 2016 Automobile 19,370 22,772 +3,
Slide 19: 9 months: Net Sales and Operating Income by Geographic Area
9 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 9 months 9 months Variance 9 months 9 months Variance FYE 2015 FYE 2016 FYE 2015 FYE 2016 Japan 6,662 6,854 +192 2,431
Slide 20: 9 months: Overseas Net Sales
9 months : Overseas Net Sales (Consolidated) （100 Million Yen） Actual Results Actual Results 9 months 9 months Variance FYE 2015 FYE 2016 North America 12,688 16,221 +3,533 Europe 856 895 +39 Asia 1,675 1,616 -58 Other 970 1,172 +202 Total 16,189 19,904 +3,716 http://www.fhi.co.jp/english/ir/index.h
Slide 21: 9 months: Non-consolidated Automobile Sales
9 months : Non-consolidated Automobile Sales （Thousand Units） Actual Results Actual Results 9 months 9 months Variance FYE 2015 FYE 2016 Domestic production 528.2 530.2 +2.1 Domestic sales 115.3 108.4 -6.9 Passenger cars 91.0 82.2 -8.8 Minicars 24.3 26.2 +1.9 Number of exported 414.0 435.3 +21.3 veh
Slide 22: Appendix (2)
Appendix (2) ・ 3rd quarter (3 months) consolidated income statements ・3rd ・ 4th quarter (3 months) consolidated income statements ・ Full year consolidated income statements ・Full (Previous plan vs. Revised plan) http://www.fhi.co.jp/english/ir/index.html 21 21
Slide 23: 3rd Quarter (3 months): Consolidated Automobile Sales
3rd Quarter (3 months) : Consolidated Automobile Sales （Thousand Units） 3Q Actual Results 3Q Actual Results Variance FYE 2015 FYE 2016 Passenger car 27.1 26.1 -1.0 Minicar 7.3 7.3 +0.0 Domestic total 34.3 33.4 -0.9 US 148.8 155.7 +6.9 Canada 9.9 10.6 +0.7 Russia 2.2 1.3 -0.9 Europe 7.3 9.0 +1.7 Aust
Slide 24: 3rd Quarter (3 months): Consolidated Income Statements
3rd Quarter (3 months) : Consolidated Income Statements （100 Million Yen） 3Q Actual Results 3Q Actual Results FYE 2015 FYE 2016 Variance Net sales 7,505 8,172 +667 Domestic 1,491 1,430 -61 Overseas 6,014 6,742 +728 Operating income 1,245 1,506 +262 Ordinary income 1,124 1,490 +365 Income before taxe
Slide 25: 3rd Quarter (3 months): Analysis of Operating Income Variance
3rd Quarter (3 months) : Analysis of Operating Income Variance (Consolidated) （100 Million Yen） Fixed cost : -20 (FHI +1, SIA -21) US$ : +309 Sales volume Cost SG&A : +12 (FHI +6, SOA -8, others) EURO : -5 CA$ : -13 & mixture reduction Warranty claims : -172 CNY : +3 Gain on and others +92 Currency
Slide 26: 4th Quarter (3 months): Consolidated Automobile Sales
4th Quarter (3 months) : Consolidated Automobile Sales （Thousand Units） 4Q Actual Results 4Q Plan Variance FYE 2015 FYE 2016 Passenger car 44.4 33.9 -10.5 Minicar 12.5 9.5 -3.0 Domestic total 56.9 43.4 -13.5 US 128.9 136.7 +7.7 Canada 10.5 10.4 -0.1 Russia 0.7 1.3 +0.6 Europe 12.8 12.7 -0.1 Australi
Slide 27: 4th Quarter (3 months): Consolidated Income Statements
4th Quarter (3 months) : Consolidated Income Statements （100 Million Yen） 4Q Actual Results 4Q Plan Variance FYE 2015 FYE 2016 Net sales 8,172 7,914 -258 Domestic 2,110 1,680 -431 Overseas 6,062 6,234 +172 Operating income 1,129 1,143 +14 Ordinary income 1,053 1,130 +77 Income before taxes and minor
Slide 28: 4th Quarter (3 months): Analysis of Operating Income Variance
4th Quarter (3 months) : Analysis of Operating Income Variance (Consolidated) Domestic : -102 (volume decrease, mixture improvement) US$ : -99 （100 Million Yen） Overseas : +131 (volume increase, mixture improvement) EURO : -11 Others : +109 CA$ : -15 CNY : -2 Currency exchange Cost adjustment : -65
Slide 29: Previous Plan vs. Revised Plan: Consolidated Automobile Sales Plan
Previous Plan (2Q announcement) vs. Revised Plan Full Year : Consolidated Automobile Sales Plan （Thousand Units） Previous Plan Revised Plan Variance FYE 2016 FYE 2016 Passenger car 107.7 109.8 +2.1 Minicar 34.4 33.5 -0.9 Domestic total 142.1 143.3 +1.2 US 577.6 583.0 +5.4 Canada 46.5 47.1 +0.6 Russi
Slide 30: Previous Plan vs. Revised Plan: Consolidated Operating Plan
Previous Plan (announced on Dec. 24, 2015) vs. Revised Plan Full Year : Consolidated Operating Plan （100 Million Yen） Previous Plan Revised Plan Variance FYE 2016 FYE 2016 Net sales 32,100 32,100 ±0 Domestic 5,721 5,962 +240 Overseas 26,379 26,138 -240 Operating income 5,500 5,500 ±0 Ordinary income
Slide 31: Previous Plan vs. Revised Plan: Analysis of Operating Income Variance
Previous Plan (announced on Dec. 24, 2015) vs. Revised Plan Full Year : Analysis of Operating Income Variance (Consolidated) （100 Million Yen） Domestic : +45 (volume increase, mixture improvement) Overseas : +25 (mixture improvement) Fixed cost : ±0 (FHI -4, SIA +4) Others : +20 SG&A : +80 (FHI -4,
Slide 32: Appendix (3) – Historical Performance
Appendix (3) – Historical Performance ・ Net Sales / Operating income ・Net ・ Consolidated automobile sales units/ OPM ・Consolidated ・ Complete cars production / Retail sales units ・Complete ・ FCF / Ratio of shareholders’ ・FCF shareholders’ equity to total assets ・ Interest ・Interest bearing debt / D/
Slide 33: Net Sales / Operating Income
Net Sales / Operating Income Operating Net Sales ¥79/$ ¥89/$ ¥98/$ ¥98/$ ¥99/$ ¥103/ ¥102/ ¥102/ ¥110/ ¥118/ ¥120/ ¥123/ ¥121/ Income （100M yen） $ $ $ $ $ $ $ $ （100M yen） 9000 1,800 Net sales 8,172 8,362 8,172 8000 Operating income 7,505 7,653 6,996 7,168 1,500 7000 1,509 1,506 1,245 5,787 5,829 5,
Slide 34: Consolidated Automobile Sales & Operating Income Margin
Consolidate Automobile Sales & Operating Income Margin Consolidated sales （1,000 units） OPM Consolidated automobile sales 247 247 250 Operating income margin 232 238 240 232 225 20% 198 202 201 200 191 194 16.6% 18.4% 18% 178 18.1% 17.5% 15% 150 14.9% 14.0% 14.2% 13.3% 13.8% 13% 13.3% 12.7% 100 10%
Slide 35: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units （1,000 units） Production Retail units 253 248 244 242 250 237 241 234 237 228 225 229 233 231 207 211 213 212 210 211 211 214 197 195 197 193 200 177 150 100 50 0 Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Dec Mar Jun Sep Dec Mar Ju
Slide 36: 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 FCF 55% 2,800 Shareholders' equity ratio 2,791 52.5% 50.2% 2,300 48.8% 2,535 50% 2,094 46.0% 1,860 1,800 46.5% 44.0% 45% 42.9% 42.6% 1,388 1,198 1,300 39.9% 953 41.2% 40.5% 4
Slide 37: Interest Bearing Debt & D/E Ratio
Interest Bearing Debt & D/E Ratio Interest bearing debt D/E ratio （100M yen） 1.0 3,236 Interest bearing debt 3,072 0.9 2,967 2,918 D/E ratio 3000 2,760 2,697 2,574 0.8 2,322 2,268 0.7 2,112 0.64 2,011 2,014 0.6 2000 0.52 1,865 0.46 0.5 0.41 0.36 0.35 0.4 0.32 1000 0.27 0.3 0.24 0.21 0.18 0.2 0.17 0.
Slide 38: 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 39: http://www.fhi.co.jp/english/ir/index.html
http://www.fhi.co.jp/english/ir/index.html 38 38