Subaru Corporation · TSE:7270
Subaru — H1 FYE2024 Earnings Presentation
39 slides from Subaru's earnings presentation, Nov 2, 2023
Slide 1: Consolidated Financial Results for the 1st Half of FYE 2024
Consolidated Financial Results for the 1st Half of FYE 2024 SUBARU CORPORATION Atsushi Osaki, Representative Director, President & CEO November 2 nd, 2023 https://www.subaru.co.jp/en/ir/
Slide 2: Key Points
Key Points ◼ Results for 1st Half of FYE 2024 • Production: 493,000 units (up 16% y/y) Continuing from the 1st quarter, global production increased year on year. • Operating profit: 185.8 billion yen (up 68% y/y) Due to factors including sales volume growth and the effects of foreign exchange rates,
Slide 3: 1st Half: Consolidated Profit Results
1 st H a l f ： Consolidated Profit Results (Yen in 100 millions, Units in thousands) FYE 2023 FYE 2024 st st Variance 1 Half Results 1 Half Results Production 425 493 +68 Consolidated unit sales 398 469 +71 Revenue 17,509 22,135 +4,626 Operating profit 1,104 1,858 +754 Profit for the period attribut
Slide 4: Revised Plan FYE 2024: Consolidated Profit Plan
Revised Plan FYE 2024 ： Consolidated Profit Plan (Yen in 100 millions, Units in thousands) FYE 2023 FYE 2024 FYE 2024 Variance Variance Results(a) Previous Plan(b)* Revised Plan(c) (c)-(a) (c)-(b) Production 874 1,010 1,010 +136 ±0 Consolidated unit sales 852 1,010 1,010 +158 ±0 Revenue 37,745 42,00
Slide 5: Progress on the New Management Policy
Progress on the New Management Policy Establishment of the Monozukuri Division All-New Facilities at Development Sites As a first step toward the realization of “Monozukuri Innovation,” the Manufacturing Division has been renamed All-new development facilities have been established the Monozukuri Di
Slide 6: Progress on the New Management Policy: "One Subaru"
Progress on the New Management Policy ◼ The Name of the New Development Facility in Ota, Gunma Production Becoming “One Subaru” Development Supply Chain ・ The center of innovation, creation, and knowledge, dedicated to creating new value. ・ The hub where Innovation Leaders are fostered, and the futu
Slide 7: Progress on the New Management Policy: Construction Progress
Progress on the New Management Policy ◼ Construction Progress 2023 2025 2027 Main ICE Next-gen. Plant HEV HEV Yajima BEV Starting in-house BEV production (ICE/BEV mixed-flow production line) Plant BEV Dedicated BEV production line Oizumi Plant April 2022 September 2023 https://www.subaru.co.jp/en/ir
Slide 8: Consolidated Financial Results for the 1st Half of FYE 2024
Consolidated Financial Results for the 1st Half of FYE 2024 SUBARU CORPORATION Katsuyuki Mizuma, Director, Executive Vice President & CFO November 2 nd, 2023 https://www.subaru.co.jp/en/ir/
Slide 9: Consolidated Financial Results for the 1st Half of FYE 2024
Consolidated Financial Results for the 1st Half of FYE 2024 https://www.subaru.co.jp/en/ir/ 9
Slide 10: Consolidated Unit Sales / Complete Cars Production
1 st H a l f ： Consolidated Unit Sales / Complete Cars Production (Thousand Units) FYE 2023 FYE 2024 st st Variance 1 Half Results 1 Half Results Production in U.S. 143 173 +30 Production in Japan 283 320 +37 Production* Total 425 493 +68 FYE 2023 FYE 2024 st st Variance 1 Half Results 1 Half Result
Slide 11: Consolidated Unit Sales (by market)
1 st H a l f ： Consolidated Unit Sales (by market) (Thousand Units) FYE 2023 FYE 2024 st st Variance 1 Half Results 1 Half Results Passenger cars 40 38 -2 Minicars 9 7 -2 Domestic total 49 45 -4 U.S. 279 327 +48 Canada 22 31 +9 Europe 8 15 +7 Australia 18 27 +9 China 6 4 -2 Others 17 21 +4 Overseas
Slide 12: Consolidated Profit Results
1 st H a l f ： Consolidated Profit Results (100 Million Yen) FYE 2023 FYE 2024 Variance 1st Half Results 1st Half Results Revenue 17,509 22,135 +4,626 Domestic 2,816 2,886 +70 Overseas 14,693 19,248 +4,555 Operating profit 1,104 1,858 +754 Profit before tax 1,204 2,265 +1,061 Profit for the period a
Slide 13: Analysis of Variance in Operating Profit (Consolidated)
1 st H a l f ： A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) New car sales total： +947 +625 -451 by sales volume +771 by price & mixture +176 -334 +930 SG&A expenses, -46 +30 Gain on currency etc. exchange Cost impacts R&D expenses
Slide 14: Consolidated Statement of Cash Flows / Cash and cash equivalents
1 st H a l f ： Consolidated Statement of Cash Flows / Cash and cash equivalents (100 Million Yen) FYE 2023 FYE 2024 st st 1 Half Results 1 Half Results Net cash provided by (used in) operating activities 2,123 2,674 Net cash provided by (used in) investing activities -1,100 -3,191 Free cash flows 1,
Slide 15: Capex / Depreciation / R&D
Capex / Depreciation / R&D (100 Million Yen) FYE 2023 FYE 2024 st st Variance 1 Half Results 1 Half Results Capex *1 551 964 +413 Depreciation *1 495 483 -12 R&D expenditures *2 519 621 +102 *1 : Leases, capex & amortization for intangible assets and lease liabilities are not included in the results
Slide 16: Forecast for FYE 2024
Forecast for FYE 2024 https://www.subaru.co.jp/en/ir/ 16
Slide 17: Consolidated Unit Sales / Complete Cars Production
Revised Plan FYE 2024 ： Consolidated Unit Sales / Complete Cars Production (Thousand Units) FYE 2023 FYE 2024 FYE 2024 Variance Variance Results(a) Previous Plan(b) Revised Plan(c) (c)-(a) (c)-(b) Production in U.S. 299 - - - - Production in Japan 575 - - - - Production* Total 874 1,010 1,010 +136 ±
Slide 18: Consolidated Unit Sales (by market)
Revised Plan FYE 2024 ： Consolidated Unit Sales (by market) (Thousand Units) FYE 2023 FYE 2024 FYE 2024 Variance Variance Results(a) Previous Plan(b) Revised Plan(c) (c)-(a) (c)-(b) Passenger cars 81 107 100 +19 -7 Minicars 19 19 16 -2 -3 Domestic total 100 126 116 +17 -10 U.S. 592 664 686 +94 +22 C
Slide 19: Consolidated Profit Plan
Revised Plan FYE 2024 Consolidated Profit Plan (Yen in 100 millions) FYE 2023 FYE 2024 FYE 2024 Variance Variance Results(a) Previous Plan(b) Revised Plan(c) (c)-(a) (c)-(b) Revenue 37,745 42,000 46,500 +8,755 +4,500 Operating profit 2,675 3,000 4,200 +1,525 +1,200 Profit before tax 2,784 3,000 4,60
Slide 20: Analysis of Variance in Operating Profit (Consolidated)
Revised Plan FYE 2024 ： A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) New car sales total： +1,772 +746 +39 -771 by sales volume +1,656 +1,627 -121 by price & mixture +116 Cost impacts +5 SG&A expenses, Gain on currency R&D expenses
Slide 21: Previous Plan vs Revised Plan: Analysis of Variance in Operating Profit
P r e v i o u s P l a n F Y E 2 0 2 4 ( a s o f A u g u s t 2 nd ) v s R e v i s e d P l a n : A : n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) +306 +107 -461 +1,401 -181 +28 Sales volume & Cost impacts mixture, etc. SG&A expenses,
Slide 22: Capex / Depreciation / R&D
Capex / Depreciation / R&D (100 Million Yen) FYE 2023 FYE 2024 FYE 2024 Variance Variance Results(a) Previous Plan(b) Revised Plan(c) (c)-(a) (c)-(b) Capex *1 1,228 1,800 1,800 +572 ±0 Depreciation *1 1,030 1,000 1,000 -30 ±0 R&D expenditures *2 1,078 1,200 1,350 +272 +150 *1 : Leases, capex & amort
Slide 23: Shareholder Returns
Shareholder Returns (Yen) FYE2023 FYE2024 FYE2024 Results Previous Forecast Revised Forecast Interim Dividend 38 38 48 Ordinary: 38+Commemorative:10 Year-end Dividend 38 38 48 Ordinary: 38+Commemorative:10 Total 76 76 96 Ordinary: 76+Commemorative:20 https://www.subaru.co.jp/en/ir/ 23
Slide 24: Appendix
Appendix • Segment information by Business & Geographic (1st Half) • Consolidated Financial Results for 2nd Quarter (3 months) • Overseas Revenue (1st Half) • Forecast for 2nd Half FYE 2024 • Consolidated Statement of Financial Position • FYE 2023 and FYE 2024 Results (by Quarter) • Non-consolidated
Slide 25: Revenue and Operating Profit by Business Segment (Consolidated)
1 st H a l f ： Revenue and Operating Profit by Business Segment (Consolidated) (100 Million Yen) Revenue Operating profit FYE 2023 FYE 2024 FYE 2024 FYE 2023 FYE 2024 FYE 2024 Variance Variance 1st Half Results 1st Half Results Plan 1st Half Results 1st Half Results Plan Automobile 17,134 21,635 +4,
Slide 26: Revenue and Operating Profit by Geographic Area (Consolidated)
1 st H a l f ： Revenue and Operating Profit by Geographic Area (Consolidated) (100 Million Yen) Revenue Operating profit FYE 2023 FYE 2024 FYE 2023 FYE 2024 Variance Variance 1st Half Results 1st Half Results 1st Half Results 1st Half Results Japan 3,876 4,495 +618 778 1,080 +302 North America 13,05
Slide 27: Overseas Revenue (Consolidated)
1 st H a l f ： Overseas Revenue (Consolidated) (100 Million Yen) FYE 2023 FYE 2024 st st Variance 1 Half Results 1 Half Results North America 13,235 17,200 +3,965 Europe 303 594 +291 Asia 467 339 -128 Other 688 1,115 +427 Total 14,693 19,248 +4,555 https://www.subaru.co.jp/en/ir/ 27
Slide 28: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (100 Million Yen) As of March As of September Variance 2023 2023 Total assets 39,442 43,665 +4,224 Current assets 24,298 27,284 +2,986 Non-current assets 15,144 16,382 +1,238 Total liabilities 18,342 20,620 +2,278 Interest bearing debts 3,126 3,232 +106 T
Slide 29: Non-consolidated Unit Sales
1 st H a l f ： Non-consolidated Unit Sales : (Thousand Units) FYE 2023 FYE 2024 st st Variance 1 Half Results 1 Half Results Domestic production* 283 320 +37 Domestic sales 50 46 -4 Passenger cars 40 39 -1 Minicars 10 7 -3 Export total 228 273 +45 Components for overseas 153 164 +11 production Total
Slide 30: Operating Results of Subsidiaries in U.S.
1 st H a l f ： Operating Results of Subsidiaries in U.S. （Million US$） FYE 2023 FYE 2024 SOA *1 Variance 1st Half Results 1st Half Results Net sales 9,125 11,066 +1,941 Operating income 521 597 +76 Net income 354 501 +147 Retail sales (Thousand units) 267 322 +55 FYE 2023 FYE 2024 SIA *2 st st Varia
Slide 31: 2nd Quarter: Consolidated Unit Sales (by market)
2 nd Q u a r t e r ( 3 m o n t h s ) ： Consolidated Unit Sales (by market) (Thousand Units) : FYE 2023 FYE 2024 Variance 2Q Results 2Q Results Passenger cars 23 21 -3 Minicars 5 3 -2 Domestic total 28 24 -4 U.S. 140 164 +24 Canada 11 15 +4 Europe 3 8 +5 Australia 9 12 +3 China 3 2 -2 Others 8 9 +1 O
Slide 32: 2nd Quarter: Consolidated Profit Results
2 nd Q u a r t e r ( 3 m o n t h s ) ： Consolidated Profit Results (100 Million Yen) FYE 2023 FYE 2024 Variance 2Q Results 2Q Results Revenue 9,168 11,313 +2,145 Domestic 1,546 1,476 -69 Overseas 7,622 9,837 +2,214 Operating profit 735 1,014 +279 Profit before tax 819 1,111 +291 Profit for the perio
Slide 33: 2nd Quarter: Analysis of Variance in Operating Profit
2 nd Q u a r t e r ( 3 m o n t h s ) ： A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) +284 -358 +413 -72 -21 +33 Gain on currency exchange SG&A expenses, etc. Cost impacts Other R&D expenses Sales volume & mixture, etc. New car sale
Slide 34: Plan for 2nd Half: Consolidated Unit Sales (by market)
P l a n f o r 2 nd H a l f ： Consolidated Unit Sales (by market) (Thousand Units) : FYE 2023 FYE 2024 nd Variance 2 Half Results 2nd Half Plan Passenger cars 42 63 +21 Minicars 9 9 -1 Domestic total 51 71 +20 U.S. 313 359 +46 Canada 21 41 +21 China 4 8 +4 Others 65 61 -4 Overseas total 403 469 +66 T
Slide 35: Plan for 2nd Half: Consolidated Profit Results
P l a n f o r 2 nd H a l f ： Consolidated Profit Results (100 Million Yen) FYE 2023 FYE 2024 Variance 2nd Half Results 2nd Half Plan Revenue 20,236 24,365 +4,130 Operating profit 1,570 2,342 +771 Profit before tax 1,580 2,335 +755 Profit for the period attributable to owners of parent 1,226 1,691 +4
Slide 36: Plan for 2nd Half: Analysis of Variance in Operating Profit
P l a n f o r 2 nd H a l f ： A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) New car sales total： +825 by sales volume +885 +373 +121 -320 by price & mixture -60 +697 -75 -25 Gain on currency exchange SG&A expenses, R&D expenses Cost
Slide 37: FYE 2023 and FYE 2024 Results (by Quarter)
FYE 2023 and FYE 2024 Results(by Quarter) (Yen in 100 millions, Units in thousands) FYE 2023 FYE 2024 Results Results 1Q 2Q 3Q 4Q 1Q 2Q Consolidated Unit Sales 196 203 237 217 236 234 Production * 205 220 246 202 243 250 Revenue 8,341 9,168 10,571 9,665 10,821 11,313 Operating profit 370 735 1,032 5
Slide 38: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units (1,000units） Production Retail Sales 300 280 276 278 273 277 276 271 271 268 270 269 269 269 262 262 262 264 260 264 258 250 261 257 254 250 254 250 249 253 249 252 246 245 243 241 242 242 240 236 240 237 232 227 229 228 220 220 212 200 207 205 209 202 2
Slide 39: 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