Slide 1: Business Results of the FYE 2018
Business Results of the FYE 2018 SUBARU CORPORATION Yasuyuki Yoshinaga President & CEO https://www.subaru.co.jp/en/ir/ May 11, 2018 0
Slide 2: Statement Regarding Issues Related to Final Vehicle Inspections
Statement Regarding Issues Related to Final Vehicle Inspections With regard to the incidents of fuel economy and emissions data alterations that were identified in the course of an investigation into the nonconforming final vehicle inspections conducted in late 2017, Subaru Corporation submitted a f
Slide 3: Business Results of the FYE 2018
Business Results of the FYE 2018 FYE 2017 FYE 2018 YoY Results (a) Results (b) (b) – (a) (b) / (a) Consolidated sales volume 1,064.5K units 1,066.9K units +2.4K units +0.2% Net sales (100 million yen) 33,260 34,052 +792 +2.4% Operating income (100 million yen) 4,108 3,794 -314 -7.6% OPM 12.4% 11.1%
Slide 4: Business Plan for the FYE 2019
Business Plan for the FYE 2019 FYE 2018 FYE 2019 YoY Results (a) Plan (b) (b) – (a) (b) / (a) Consolidated sales volume 1,066.9K units 1,100.4K units +33.5K units +3.1% Net sales (100 million yen) 34,052 32,500 -1,552 -4.6% Operating income (100 million yen) 3,794 3,000 -794 -20.9% OPM 11.1% 9.2% -1
Slide 5: Consolidated Automobile Sales
Consolidated Automobile Sales FYE 2018 Result: 1,067K units (YoY +0.2％, record sales for the 6th consecutive years) FYE 2019 Plan: 1,100K units (YoY +3.1％) (unit : 1,000 units) US Canada Japan China Europe Russia Australia Others 1,065 1,067 1,100 958 46 45 52 911 49 5 56 8 55 11 825 38 46 45 44
Slide 6: Global Production Volume
Global Production Volume ＜US Production (SIA)＞ - Camry consignment production ended in May 2016. - Impreza production started from November 2016. (unit : 1,000 units) Japan US 1,033 1,036 1,042 929 888 772 335 349 384 US 236 692 207 635 164 181 171 Japan 681 693 698 687 658 609 465 511 2 3 4 5 6 7 8
Slide 7: Shareholder Returns
Shareholder Returns 【Dividend Per Share】 FYE 2017 FYE 2018 FYE 2019 Result Plan Forecast End of 2nd quarter ¥72 ¥72 ¥72 End of 4th quarter ¥72 ¥72 ¥72 Year total ¥144 ¥144 ¥144 Dividend payout 39.4% 50.1% 50.2% ratio https://www.subaru.co.jp/en/ir/ 6
Slide 8: Management Changes
Management Changes Board of Directors (*to be proposed at the General Meeting of Shareholders planned to be held on June 22) 【May 11, 2018】 【June, 2018】 Director, Representative Director, Yasuyuki Jun Kondo Chairman & CEO Yoshinaga Chairman Representative Director, Yasuyuki Representative Director,
Slide 9: Organizational Changes (effective April 1, 2018)
Organizational Changes (effective April 1, 2018) < “Tadashii-Kaisha” Promotion Department > This department plans and promotes company-wide efforts and activities that will lead to building a company that is trusted even more deeply by customers and society. (Tadashii-Kaisha: A company doing the rig
Slide 10: 2018 New Products
2018 New Products Ascent Forester - Production started in May (5th Generation) (SIA） Plug-in Hybrid - To be based on Crosstrek (“SUBARU XV”) - THS (Toyota Hybrid System) to be adopted* - Scheduled for sale in 2018 in US *Engine is Subaru’s horizontally opposed engine Image: Gasoline model https://ww
Slide 11: New Mid-term Management Vision
New Mid-term Management Vision Currently developing a new Mid-Term Management Vision that focuses on efforts to enhance the brand value of SUBARU and address business challenges in future. To be announced in July 2018 under the new management team. https://www.subaru.co.jp/en/ir/ 10
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: Consolidated Financial Results for FYE 2018
Consolidated Financial Results for FYE 2018 SUBARU CORPORATION Toshiaki Okada Corporate Executive Vice President & CFO https://www.subaru.co.jp/en/ir/ May 11th, 20180
Slide 14: Summary
Summary Consolidated Financial Results for FYE 2018 Net sales and global unit sales posted all-time records*1 for the 6th consecutive year. Unit sales in North America marked an all-time record*1 for the 9th consecutive year. Operating income decreased, as foreign exchange gains were offset by a
Slide 15: Consolidated Financial Results for FYE 2018
Consolidated Financial Results for FYE 2018 https://www.subaru.co.jp/en/ir/ 2
Slide 16: Consolidated Unit Sales Total
FYE 2018： Consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance FYE 2017 FYE 2018 Passenger Cars 126.4 132.6 +6.2 Minicars 32.5 30.9 -1.7 Domestic Total 158.9 163.4 +4.5 US 667.6 670.9 +3.3 Canada 53.1 56.8 +3.8 Russia 5.3 7.7 +2.4 Europe 40.9 40.2 -0.7 Australia 49.1 55.7
Slide 17: Consolidated Income Statements
FYE 2018： Consolidated Income Statements （100 Million Yen） Actual Results Actual Results Variance FYE 2017 FYE 2018 Net Sales 33,260 34,052 +792 Domestic 6,503 6,686 +182 Overseas 26,756 27,367 +610 Operating Income 4,108 3,794 -314 Total Non-operating -165 5 +170 Income & Expenses Ordinary Income 3
Slide 18: Analysis of Variance in Operating Income (Consolidated)
FYE 2018 : Analysis of Variance in Operating Income (Consolidated) Fixed cost : -169 (SUBARU -67, SIA -102) （100 Million Yen） SG&A : -398 (SUBARU -70, SOA -389, others) Warranty claims : +125 Gain on SUBARU: -85 (material cost -183) currency SIA : +8 (material cost -39) exchange Domestic : +95 +327
Slide 19: Consolidated Balance Sheets
FYE 2018 : Consolidated Balance Sheets （100 Million Yen） As of March 31 As of March 31 Variance 2017 2018 Total Assets 27,623 28,843 +1,220 Current Assets 18,453 18,952 +500 Noncurrent Assets 9,171 9,891 +720 Total Liabilities 12,974 13,233 +259 Interest Bearing Debts 1,483 862 -621 Net Assets 14,64
Slide 20: Consolidated Statement of Cash Flows
FYE 2018 : Consolidated Statement of Cash Flows （100 Million Yen） Actual Results Actual Results Variance FYE 2017 FYE 2018 Net Cash Provided by (used in) Operating Activities 3,454 3,663 +209 Net Cash Provided by (used in) Investing Activities -2,543 -1,507 +1,035 Free Cash Flows 912 2,156 +1,244 Ne
Slide 21: Operating Results of Subsidiaries in U.S.
FYE 2018 : Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Actual Results SOA FYE 2017 FYE 2018 Variance Net Sales 17,947 18,402 +455 Operating Income 671 356 -315 Net Income 421 235 -186 Retail Sales (Thousand Units) 625.0 651.9 +26.9 Actual Results Actual Results SIA FYE 201
Slide 22: Capex / Depreciation / R&D / Interest bearing debt
FYE 2018 : Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Previous Plan Actual Results Variance Variance FYE 2017 FYE 2018 FYE 2018 (c) - (a) (c) - (b) (a) (b) (c) Capex 1,585 1,500 1,414 -171 -86 Depreciation 770 920 898 +128 -22 R&D 1,142 1,260 1,211 +69 -49 In
Slide 23: Forecasts for FYE 2019
Forecasts for FYE 2019 https://www.subaru.co.jp/en/ir/ 10
Slide 24: Consolidated Unit Sales Plan
FYE 2019 : Consolidated Unit Sales Plan （Thousand Units） Actual Results Plan Variance FYE 2018 FYE 2019 Passenger Cars 132.6 122.7 -9.9 Minicars 30.9 28.1 -2.8 Domestic Total 163.4 150.8 -12.7 US 670.9 707.0 +36.0 Canada 56.8 61.4 +4.6 Russia 7.7 11.5 +3.8 Europe 40.2 32.5 -7.7 Australia 55.7 55.5 -
Slide 25: Consolidated Operating Plan
FYE 2019 : Consolidated Operating Plan （100 Million Yen） Actual Results Plan Variance FYE 2018 FYE 2019 Net Sales 34,052 32,500 -1,552 Domestic 6,686 6,086 -600 Overseas 27,367 26,415 -952 Operating Income 3,794 3,000 -794 Ordinary Income 3,799 3,050 -749 Income before Taxes and Minority Interests 2
Slide 26: FYE 2019: Analysis of Variance in Operating Income
FYE 2019 : Analysis of Variance in Operating Income (Consolidated) US$ : -653 （100 Million Yen） EURO : +9 CA$ : -10 CNY : ±0 Currency exchange adjustment : +56 Unrealized gain : +14 Sales volume R&D & mixture expenses Fixed cost : -136 (SUBARU -85, SIA -51) and others SG&A : -400 (SUBARU -34, SOA -2
Slide 27: Operating Plan of Subsidiaries in U.S.
FYE 2019 : Operating Plan of Subsidiaries in U.S. （Million US$） Actual Results Plan SOA FYE 2018 FYE 2019 Variance Net Sales 18,402 19,678 +1,276 Operating Income 356 273 -83 Net Income 235 227 -8 Retail Sales (Thousand Units) 651.9 700.0 +48.1 Actual Results Plan SIA FYE 2018 FYE 2019 Variance Net
Slide 28: FYE 2019: Capex / Depreciation / R&D / Interest bearing debt
FYE 2019 : Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Plan Variance FYE 2018 FYE 2019 Capex 1,414 1,300 -114 Depreciation 898 930 +32 R&D 1,211 1,200 -11 Interest Bearing Debt 862 800 -62 https://www.subaru.co.jp/en/ir/ 15
Slide 29: Appendix(1)
Appendix(1) ・Non-operating Income & Expenses and Extraordinary Income & Loss ・Segment Information by Business & Geographic ・Overseas Net Sales ・Non-consolidated Unit Sales ・Consolidated Income Statements in 4th Quarter (3 months) ・FYE 2018 Plan vs. Actual Results ・Consolidated Income Statements in 1
Slide 30: Non-operating Income & Expenses and Extraordinary Income & Loss
FYE 2018 : Non-operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual Results Actual Results Variance FYE 2017 FYE 2018 Financial Revenue and Expenditure 28 68 +40 FOREX Effects -90 -51 +39 Others -102 -12 +90 Total Non-operating Income& Expenses -165 5 +
Slide 31: Net Sales and Operating Income by Business Segment
FYE 2018 : 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 2017 FYE 2018 FYE 2017 FYE 2018 Automobile 31,520 32,349 +829 3,977 3,615 -362 Aerospace 1,388 1
Slide 32: Net Sales and Operating Income by Geographic Area
FYE 2018 : 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 2017 FYE 2018 FYE 2017 FYE 2018 Japan 9,705 10,118 +413 2,945 2,950 +5 North 20,947 21,928 +981 1
Slide 33: Overseas Net Sales (Consolidated)
FYE 2018 : Overseas Net Sales (Consolidated) （100 Million Yen） Actual Results Actual Results Variance FYE 2017 FYE 2018 North America 21,923 23,058 +1,135 Europe 1,126 1,191 +65 Asia 2,113 1,406 -707 Others 1,595 1,712 +117 Total 26,756 27,367 +610 https://www.subaru.co.jp/en/ir/ 20
Slide 34: Non-consolidated Unit Sales
FYE 2018 : Non-consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance FYE 2017 FYE 2018 Domestic Production 720.5 701.2 -19.4 Domestic Sales 163.7 168.9 +5.2 Passenger Cars 129.6 137.2 +7.6 Minicars 34.1 31.7 -2.4 Number of Exported 570.7 556.5 -14.3 Vehicles Components for
Slide 35: 4th Quarter: Consolidated Unit Sales
4th Quarter (3 months) : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results 4th Quarter (3 months) 4th Quarter (3 months) Variance FYE 2017 FYE 2018 Passenger Cars 43.3 34.9 -8.4 Minicars 10.2 9.7 -0.4 Domestic Total 53.4 44.6 -8.8 US 166.3 161.9 -4.4 Canada 12.6 12.3 -0.3 Russia
Slide 36: 4th Quarter: Consolidated Income Statements
4th Quarter (3 months) : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results 4th Quarter (3 months) 4th Quarter (3 months) Variance FYE 2017 FYE 2018 Net Sales 8,981 8,406 -575 Domestic 2,054 1,840 -214 Overseas 6,927 6,565 -361 Operating Income 1,041 731 -309 Ordinary Inc
Slide 37: 4th Quarter: Analysis of Variance in Operating Income
4th Quarter (3 months) : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Fixed cost : -42 (SUARU -33, SIA -9) Domestic : -40 (volume decrease, mixture deterioration) SG&A : -10 (SUBARU -21, SOA -43, others) Overseas : -112 (volume decrease, mixture deterioration) Warranty c
Slide 38: FYE 2018 Plan vs. Actual: Consolidated Unit Sales
FYE 2018 (Plan vs. Actual Results) : Consolidated Unit Sales （Thousand Units） Plan Actual Results Variance FYE 2018 FYE 2018 Passenger Cars 134.5 132.6 -2.0 Minicars 30.6 30.9 +0.3 Domestic Total 165.2 163.4 -1.7 US 671.3 670.9 -0.4 Canada 57.0 56.8 -0.2 Russia 7.7 7.7 +0.1 Europe 39.1 40.2 +1.1 Aus
Slide 39: FYE 2018 Plan vs. Actual: Consolidated Income Statements
FYE 2018 (Plan vs. Actual Results) : Consolidated Income Statements （100 Million Yen） Plan Actual Results Variance FYE 2018 FYE 2018 Net Sales 34,100 34,052 -48 Domestic 6,703 6,686 -18 Overseas 27,397 27,367 -30 Operating Income 3,800 3,794 -6 Ordinary Income 3,750 3,799 +49 Income before Taxes and
Slide 40: FYE 2018 Plan vs. Actual: Analysis of Variance in Operating Income
FYE 2018 (Plan vs. Actual Results) : Analysis of Variance in Operating Income (Consolidated) US$ : -46 （100 Million Yen） EURO : ±0, CA$ : -2 CNY : ±0 Currency exchange adjustment : +27 Unrealized gain : -50 Domestic : -18 SG&A (volume increase, mixture deterioration) R&D Cost expenses Overseas : -23
Slide 41: 1st Half of FYE 2019: Consolidated Unit Sales Plan
1st Half of FYE 2019 : Consolidated Unit Sales Plan （Thousand Units） Actual Results Plan Variance 1st Half FYE 2018 1st Half FYE 2019 Passenger Cars 67.3 56.0 -11.3 Minicars 15.1 13.0 -2.1 Domestic Total 82.3 68.9 -13.4 US 333.2 313.0 -20.3 Canada 30.7 31.6 +0.8 Russia 3.7 7.0 +3.3 Europe 17.8 20.9
Slide 42: 1st Half of FYE 2019: Consolidated Income Statements Plan
1st Half of FYE 2019 : Consolidated Income Statements Plan （100 Million Yen） Actual Results Plan Variance 1st Half FYE 2018 1st Half FYE 2019 Net Sales 16,863 14,630 -2,233 Domestic 3,286 2,670 -616 Overseas 13,577 11,961 -1,616 Operating Income 2,121 1,100 -1,021 Ordinary Income 2,127 1,117 -1,010
Slide 43: 1st Half FYE 2018 vs. FYE 2019 Plan: Operating Income Variance
1st Half of FYE 2018 Results vs. FYE 2019 Plan： Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Fixed cost : -95 (SUBARU -64, SIA -31) SG&A : -255 (SUBARU -44, SOA -172, others) Warranty claims : +36 Domestic : -122 US$ : -296 (volume decrease, mixture deterioration) EURO :
Slide 44: Appendix (2)
Appendix (2) ・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/ 31
Slide 45: Net Sales / Operating Income
Net Sales / Operating Income ¥102 ¥102 ¥110 ¥118 ¥120 ¥123 ¥121 ¥118 ¥111 ¥104 ¥105 ¥114 ¥112 ¥111 ¥112 ¥110 /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ /$ Operating Net Sales Income （100M Yen） （100M Yen） Net Sales 1,800 Operating Income 8,981 9,000 8,783 8,362 8,172 8,136 8,502 8,548 8,406 1,600 8
Slide 46: Consolidated Unit Sales / Operating Income Margin
Consolidated Unit Sales / Operating Income Margin Unit Sales （1,000 Units） OPM 300 Consolidated Unit Sales OPM 279 267 274 271 271 260 265 247 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 14.0% 13.8% 13.3% 13.2%13.2% 13% 100 11.6%11.6% 11.2% 10.7% 10% 5
Slide 47: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units (1,000 Units) Production 300 Retail Sales 280 270 273 269 276 276 264 268 257 258 261 253 249 253 249 252 244 242 248 245 242 250 237241 237 234 233 231 237 228 225 229 211 214 211 200 150 100 50 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep
Slide 48: Free Cash Flows / Ratio of Shareholders' Equity to Total Assets
Free Cash Flows / Ratio of Shareholders’ Equity to Total Assets Ratio of shareholders’ FCF Equity to Total Assets （100M Yen） FCF Shareholders' equity ratio 3,800 3,586 53.5% 54.2% 53.8% 52.5% 51.8% 52.8% 53.0% 52.8% 52.8% 53.1% 55% 3,300 50.2% 48.8% 2,800 50% 2,535 46.2% 46.5% 2,300 2,156 44.0% 42.9
Slide 49: Interest Bearing Debt / D/E Ratio
Interest Bearing Debt / D/E Ratio Interest D/E Ratio Bearing Debt （100M Yen） 3,000 Interest Bearing Debt 1.0 D/E Ratio 2,574 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 1,000 919 862 0.24 0.3 0.21 0.18 0.17 0.15 0.13
Slide 50: 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 51: https://www.subaru.co.jp/en/ir/
https://www.subaru.co.jp/en/ir/ 38