Subaru Corporation · TSE:7270
Subaru — H1 FYE2017 Earnings Presentation
39 slides from Subaru's earnings presentation, Nov 2, 2016
Slide 1: Consolidated Financial Results for the 1st Half of FYE 2017
Consolidated Financial Results for the 1st Half of FYE 2017 Mitsuru Takahashi Executive Vice President & CFO Nov 2, 2016 http://www.fhi.co.jp/english/ir/index.html 0 0
Slide 2: Summary
Summary Consolidated Financial Results for the 1st Half of FYE 2017 Consolidated unit sales posted first-half record for the 5th consecutive year. While unit sales growth and cost reduction progress offset increase in R&D and SG&A expenses mainly related to airbag inflator quality cost, net sale
Slide 3: Consolidated Financial Results for the 1st Half of FYE 2017
Consolidated Financial Results for the 1st Half of FYE 2017 http://www.fhi.co.jp/english/ir/index.html 2 2
Slide 4: 1st Half: Consolidated Unit Sales
1st Half : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance 1st Half FYE 2016 1st Half FYE 2017 Passenger car 49.8 52.5 +2.7 Minicar 16.7 15.6 -1.1 Domestic total 66.5 68.0 +1.5 US 290.6 326.9 +36.3 Canada 26.1 28.4 +2.4 Russia 3.5 3.7 +0.3 Europe 19.6 18.4 -1.2 Austra
Slide 5: 1st Half: Consolidated Income Statements
1st Half : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results Variance 1st Half FYE 2016 1st Half FYE 2017 Net sales 16,015 15,777 -238 Domestic 2,852 2,860 +8 Overseas 13,163 12,916 -246 Operating income 2,851 2,085 -766 Total non-operating income & expenses -1 +192 +193
Slide 6: 1st Half: Analysis of Variance in Operating Income
1st Half : Analysis of Variance in Operating Income (Consolidated) US$ : -865 （100 Million Yen） EURO : -23 CA$ : -58 Sales volume Cost CNY : -1 & mixture Currency exchange reduction adjustment: -91 and others +218 Unrealized gain: +221 +678 Fixed cost : -148 (FHI -24, SIA -124) SG&A : -210(FHI -6, S
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） As of March As of September Variance 2016 2016 Total assets 25,924 25,600 -324 Current assets 17,841 17,338 -503 Noncurrent assets 8,083 8,263 +180 Total liabilities 12,430 11,985 -445 Interest bearing debts 1,700 1,614 -85 Net assets 13,494 13,616 +122
Slide 8: 1st Half: Consolidated Statement of Cash Flows
1st Half : Consolidated Statement of Cash Flows （100 Million Yen） Actual Results Actual Results Variance 1st Half FYE 2016 1st Half FYE 2017 Net cash provided by (used in) operating activities 2,829 1,984 -845 Net cash provided by (used in) investing activities -969 -1,090 -121 Free cash flows 1,860
Slide 9: 1st Half: Operating Results of Subsidiaries in U.S.
1st Half : Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Actual Results SOA 1st Half FYE 2016 1st Half FYE 2017 Variance Net sales 7,524 8,733 +1,209 Operating income 412 441 +29 Net income 252 272 +20 Retail sales (Thousand units) 300.3 315.3 +15.0 Actual Results Actual Res
Slide 10: Forecasts for FYE 2017
Forecasts for FYE 2017 http://www.fhi.co.jp/english/ir/index.html 9 9
Slide 11: Revised Plan FYE 2017: Consolidated Unit Sales
Revised Plan FYE 2017 : Consolidated Unit Sales （Thousand Units） Actual Results Revised Plan Variance FYE 2016 FYE 2017 Passenger car 111.6 122.9 +11.3 Minicar 33.7 35.7 +2.0 Domestic total 145.3 158.6 +13.3 US 582.7 661.7 +79.0 Canada 47.6 52.5 +4.9 Russia 5.7 5.4 -0.4 Europe 41.8 41.9 +0.2 Austral
Slide 12: Revised Plan FYE 2017: Consolidated Income Statements
Revised Plan FYE 2017 : Consolidated Income Statements （100 Million Yen） Actual Results Revised Plan FYE 2017 Variance FYE 2016 Net sales 32,323 31,800 -523 Domestic 6,054 6,463 +409 Overseas 26,269 25,337 -931 Operating income 5,656 3,730 -1,926 Ordinary income 5,770 3,970 -1,800 Income before taxe
Slide 13: Revised Plan FYE 2017: Analysis of Variance in Operating Income
Revised Plan FYE 2017: Analysis of Variance in Operating Income (Consolidated) US$ : -1,952 Sales volume Cost EURO : -63 （100 Million Yen） & mixture reduction CA$ : -95 and others CNY : -11 +339 Currency exchange +1,353 adjustment: -60 Unrealized gain: +216 Fixed cost : -345 (FHI -72, SIA -273) SG&A
Slide 14: Revised Plan FYE 2017: Operating Results of Subsidiaries in U.S.
Revised Plan FYE 2017: Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Revised Plan SOA FYE 2016 FYE 2017 Variance Net sales 15,203 17,813 +2,610 Operating income 770 790 +20 Net income 480 491 +11 Retail sales (Thousand units) 581.4 644.2 +62.8 Actual Results Revised Plan SIA
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 1st Half Variance FYE 2016 1st Half FYE 2017 (b) - (a) FYE 2016 (a) FYE 2017 (b) Capex 506 1,357 637 1,600 +243 Depreciation 313 650 335 800 +150 R&D 463 1,024 534 1,170 +14
Slide 16: Appendix (1)
Appendix(1) ・Non-operating income&expenses and extraordinary income&loss (1H) ・Segment information by business & geographic (1H) ・Overseas net sales (1H) ・Non-consolidated unit sales (1H) http://www.fhi.co.jp/english/ir/index.html 15 15
Slide 17: 1st Half: Non-operating Income & Expenses and Extraordinary Income & Loss
1st Half : Non-operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual Results Actual Results 1st Half 1st Half Variance FYE 2016 FYE 2017 Financial revenue and expenditure 9 10 +1 FOREX effects 3 205 +201 Other -13 -22 -9 Total non-operating income & expe
Slide 18: 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 Results Results Results Results 1st Half 1st Half Variance 1st Half 1st Half Variance FYE 2016 FYE 2017 FYE 2016 FYE 2017 Automobile 15,057 14,924 -13
Slide 19: 1st Half: Net Sales and Operating Income by Geographic Area
1st Half : Net Sales and Operating Income by Geographic Area (Consolidated) （100 Million Yen） Net Sales Operating Income Actual Actual Actual Actual Results Results Results Results 1st Half 1st Half Variance 1st Half 1st Half Variance FYE 2016 FYE 2017 FYE 2016 FYE 2017 Japan 4,599 4,481 -118 2,229
Slide 20: 1st Half: Overseas Net Sales
1st Half : Overseas Net Sales (Consolidated) （100 Million Yen） Actual Results Actual Results Variance 1st Half FYE 2016 1st Half FYE 2017 North America 10,630 10,489 -140 Europe 614 549 -66 Asia 1,107 1,098 -9 Other 812 781 -31 Total 13,163 12,916 -246 http://www.fhi.co.jp/english/ir/index.html 19 1
Slide 21: 1st Half: Non-consolidated Unit Sales
1st Half : Non-consolidated Unit Sales （Thousand Units） Actual Results Actual Results Variance 1st Half FYE 2016 1st Half FYE 2017 Domestic production 347.8 354.6 +6.8 Domestic sales 70.2 69.9 -0.4 Passenger cars 51.8 53.5 +1.7 Minicars 18.4 16.3 -2.1 Number of exported 283.9 287.7 +3.8 vehicles Com
Slide 22: Appendix (2)
Appendix (2) ・ 2nd quarter (3months) consolidated income statements ・2nd ・ 1st half consolidated income statement (Plan vs. Actual results) ・ Full year consolidated income statements ・Full (Previous plan vs. Revised Revised plan) http://www.fhi.co.jp/english/ir/index.html 21 21
Slide 23: 2Q (3 months): Consolidated Unit Sales
2Q (3 months) : Consolidated Unit Sales （Thousand Units） Actual Results Actual Results 2Q (3 months) 2Q (3 months) Variance FYE 2016 FYE 2017 Passenger car 29.9 27.9 -2.0 Minicar 8.6 8.9 +0.4 Domestic total 38.5 36.9 -1.6 US 150.2 171.9 +21.7 Canada 12.2 13.0 +0.8 Russia 1.8 1.8 +0.0 Europe 11.3 9.8
Slide 24: 2Q (3 months): Consolidated Income Statements
2Q (3 months) : Consolidated Income Statements （100 Million Yen） Actual Results Actual Results 2Q (3 months) 2Q (3 months) Variance FYE 2016 FYE 2017 Net sales 8,362 8,083 -279 Domestic 1,607 1,557 -50 Overseas 6,755 6,526 -229 Operating income 1,509 1,070 -439 Ordinary income 1,550 1,090 -460 Incom
Slide 25: 2Q (3 months): Analysis of Variance in Operating Income
2Q (3 months) : Analysis of Variance in Operating Income (Consolidated) US$ : -582 （100 Million Yen） Sales volume Cost EURO : -18 CA$ : -34 & mixture reduction CNY : ±0 and others +113 Currency exchange +375 adjustment : -8 Unrealized gain : +117 Fixed cost : -77 (FHI±0, SIA -77) SG&A : -152 (FHI+16
Slide 26: 1st Half (Plan vs. Actual Results): Consolidated Unit Sales
（Plan vs. Actual Results） 1st Half : Consolidated Unit Sales （Thousand Units） Plan Actual Results Variance 1st Half FYE 2017 1st Half FYE 2017 Passenger car 50.5 52.5 +2.0 Minicar 14.6 15.6 +1.0 Domestic total 65.1 68.0 +2.9 US 315.1 326.9 +11.8 Canada 28.2 28.4 +0.2 Russia 5.3 3.7 -1.6 Europe 19.3
Slide 27: 1st Half (Plan vs. Actual Results): Consolidated Income Statements
（Plan vs. Actual Results） 1st Half : Consolidated Income Statements （100 Million Yen） Plan Actual Results Variance 1st Half FYE 2017 1st Half FYE 2017 Net sales 15,535 15,777 +242 Domestic 2,796 2,860 +64 Overseas 12,739 12,916 +177 Operating income 2,040 2,085 +45 Ordinary income 2,140 2,278 +138 I
Slide 28: 1st Half (Plan vs. Actual Results): Analysis of Variance in Operating Income
（Plan vs. Actual Results）1st Half : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Sales volume R&D Cost US$ : -37 EURO : -3 & mixture reduction expenses CA$ : +1 and others CNY : ±0 +204 +26 +11 Currency exchange adjustment: -48 Unrealized gain: +12 SG&A FHI : +7 (materia
Slide 29: FYE 2017: Consolidated Unit Sales (Previous vs. Revised Plan)
（Previous Plan vs. Revised Plan） FYE 2017 : Consolidated Unit Sales （Thousand Units） Previous Plan Revised Plan Variance FYE 2017 FYE 2017 Passenger car 119.0 122.9 +3.9 Minicar 37.3 35.7 -1.6 Domestic total 156.3 158.6 +2.3 US 643.1 661.7 +18.5 Canada 52.6 52.5 -0.1 Russia 9.6 5.4 -4.2 Europe 40.1
Slide 30: FYE 2017: Consolidated Income Statements (Previous vs. Revised Plan)
（Previous Plan vs. Revised Plan） FYE 2017 : Consolidated Income Statements （100 Million Yen） Previous Plan Revised Plan Variance FYE 2017 FYE 2017 Net sales 31,900 31,800 -100 Domestic 6,103 6,463 +360 Overseas 25,797 25,337 -460 Operating income 4,000 3,730 -270 Ordinary income 4,100 3,970 -130 Inc
Slide 31: FYE 2017: Analysis of Variance in Operating Income (Previous vs. Revised Plan)
（Previous Plan vs. Revised Plan）FYE 2017 : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） US$ : -340 EURO : -25 Sales volume R&D Cost CA$ : -15 & mixture reduction CNY : -7 expenses Currency exchange adjustment : -65 and others +354 +30 +19 Unrealized gain: +74 Fixed cost:
Slide 32: Appendix (3)
Appendix (3) ・ Net sales / Operating income ・Consolidated unit sales / OPM ・Complete cars production / Retail sales units ・FCF / Shareholder’s equity to total assets ・Interest-bearing debt / D/E ratio http://www.fhi.co.jp/english/ir/index.html 31 31
Slide 33: Net Sales / Operating Income
Net Sales / Operating Income Operating Net Sales Income （100M yen）¥98/$ ¥99/$ ¥103/$ ¥102/$ ¥102/$ ¥110/$ ¥118/$ ¥120/$ ¥123/$ ¥110/$ ¥118/$ ¥111/$ ¥104/$ （100M yen） 9000 Net sales Operating income 1,800 8,172 8,362 8,172 8,136 8,083 8000 7,505 7,653 7,694 6,996 7,168 1,500 7000 1,509 1,506 5,787 5,
Slide 34: Consolidated Unit Sales / Operating Income Margin
Consolidate Unit Sales / Operating Income Margin Unit sales OPM （1,000 units） 300 Consolidated unit sales OPM 20% 18.4% 18.1% 17.5% 16.6% 250 238 16.0% 267 247 16% 14.0% 14.2% 247 240 245 13.3% 13.3% 232 246 14.9% 225 13.2% 13.2% 200 202 201 13.8% 232 194 12% 150 8% 100 4% 50 0 0% 2Q 3Q 4Q 1Q 2Q 3Q
Slide 35: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units （1,000 units） 280 Production Retail Sales 258265 253 248 249 244 242 245 242 237241 234 237 237 240 228 225 229 233 231 213 212 210 211 211214 200 193 160 120 80 40 0 Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Sep Dec Mar Jun Sep De
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 Shareholders' equity ratio 55% 3,800 52.5% 3,586 53.0% 3,300 50.2% 52.8% 51.8% 2,791 48.8% 50% 2,800 2,535 46.5% 2,300 46.0% 2,094 1,860 44.0% 45% 1,800 42.9% 42.6% 1,388
Slide 37: Interest Bearing Debt / D/E Ratio
Interest Bearing Debt / D/E Ratio Interest bearing debt D/E ratio （100M yen） 3500 Interest bearing debt D/E ratio 1.0 2,918 0.9 3000 2,760 2,697 2,574 0.8 2500 2,322 2,268 0.7 2,112 2,011 2,014 0.6 2000 1,865 1,700 1,654 1,614 0.5 0.41 1500 0.36 0.35 0.32 0.4 0.27 1000 0.24 0.3 0.21 0.18 0.17 0.15 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
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