Subaru Corporation · TSE:7270
Subaru — Fuji Heavy Industries — H1 FYE March 2016 Earnings Presentation
39 slides from Subaru's earnings presentation, Nov 5, 2015
Slide 1: Business Results for the 1st Half of FYE 2016
Business Results for the 1st Half of FYE 2016 Mitsuru Takahashi Executive Vice President & CFO Fuji Heavy Industries Ltd. http://www.fhi.co.jp/english/ir/index.html Nov 5, 2015 0 0
Slide 2: Summary
Summary Financial results for the 1st half of FYE March 2016 Consolidated automobile sales set a new record for the fiscal 1st half period due to strong sales in overseas, mainly led by continuous strong momentum in North America. Net sales and all profit levels made a new record for any fiscal
Slide 3: Business results for the 1st half of FYE 2016
Business results for the 1st half of FYE 2016 http://www.fhi.co.jp/english/ir/index.html 2 2
Slide 4: 1st Half: Consolidated Automobile Sales
1st Half : Consolidated Automobile Sales （（Thousand Units） 1st half actual results 1st half actual results Variance FYE 2015 FYE 2016 Passenger car 56.5 49.8 -6.6 Minicar 15.1 16.7 +1.6 Domestic total 71.5 66.5 -5.0 US 249.9 290.6 +40.7 Canada 22.1 26.1 +4.0 Russia 8.6 3.5 -5.2 Europe 15.6 19.6 +4.0
Slide 5: 1st Half: Consolidated Income Statements
1st Half : Consolidated Income Statements （100 Million Yen） 1st half actual results 1st half actual results Variance FYE 2015 FYE 2016 Net sales 13,102 16,015 +2,912 Domestic 2,928 2,852 -76 Overseas 10,174 13,163 +2,988 Operating income 1,857 2,851 +994 Total non-operating income & expenses -97 -1
Slide 6: 1st Half: Analysis of Operating Income Variance
1st Half : Analysis of Operating Income Variance （100 Million Yen） US$ : +1.038 EURO : -5 Sales volume Cost Fixed cost : -59 (FHI -32 SIA -27) CA$ : +11 Gain on & mixture reduction SG&A : -118 (FHI -27 SOA -21 others) currency Warranty claims : -40 CNY : +3 Currency and others +126 exchange exchange
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） As of March 31 As of Sep. 30 Variance 2015 2015 Total assets 21,997 23,617 +1,620 Current assets 14,733 15,905 +1,173 Noncurrent assets 7,265 7,712 +448 Interest bearing debts 2,112 2,014 -98 Net assets 10,307 11,925 +1,618 Retained earnings 6,974 8,618
Slide 8: 1st Half: Consolidated Statement of Cash Flows
1st Half : Consolidated Statement of Cash Flows （100 Million Yen） 1st half actual results 1st half actual results FYE 2015 FYE 2016 Variance Net cash provided by (used in) operating activities 1,347 2,829 +1,481 Net cash provided by (used in) investing activities -637 -969 -332 Free cash flows 711 1
Slide 9: 1st Half: Operating Results of Subsidiaries in U.S.
1st Half : Operating Results of Subsidiaries in U.S. （Million US$） 1st half actual results 1st half actual results SOA FYE 2015 FYE 2016 Variance Net sales 6,313 7,524 +1,211 Operating income 218 412 +194 Net income 133 252 +119 Retail sales 262.3 300.3 +38.0 (Thousand units) 1st half actual results
Slide 10: Outlook for the FYE March 2016
Outlook for the FYE March 2016 http://www.fhi.co.jp/english/ir/index.html 9 9
Slide 11: Full Year: Consolidated Automobile Sales Plan
Full Year : Consolidated Automobile Sales Plan （Thousand Units） Actual results Revised plan Variance FYE 2015 FYE 2016 Passenger car 127.9 107.7 -20.2 Minicar 34.9 34.4 -0.4 Domestic total 162.8 142.1 -20.6 US 527.6 577.6 +50.0 Canada 42.4 46.5 +4.0 Russia 11.6 9.0 -2.5 Europe 35.7 42.2 +6.4 Austral
Slide 12: Full Year: Consolidated Operating Plan
Full Year : Consolidated Operating Plan （100 Million Yen） Actual results Revised plan Variance FYE 2015 FYE 2016 Net sales 28,779 32,100 +3,321 Domestic 6,529 5,721 -808 Overseas 22,250 26,379 +4,129 Operating income 4,230 5,500 +1,270 Ordinary income 3,936 5,470 +1,534 Income before taxes and minor
Slide 13: Full Year: Analysis of Operating Income Variance
Full Year : Analysis of Operating Income Variance （100 Million Yen） US$ : +1,248 Fixed cost : -116 EURO : -21 Sales volume (FHI : -29 SIA : -87) CA$ : -17 Gain on & mixture Cost SG&A : -201 CNY : +4 Currency currency and others reduction (FHI : -6 SOA : -130 others) Warranty claims : -40 exchange ex
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 15,079 +1,686 Operating income 490 685 +195 Net income 309 420 +111 Retail sales 530.5 578.0 +47.5 (Thousand units) 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） 1st half Actual results 1st half Plan Variance actual results FYE 2015 actual results FYE 2016 (b) - (a) FYE 2015 (a) FYE 2016 (b) Capex 597 1,107 506 1,300 +193 Depreciation 277 648 313 670 +22 R&D 363 835 463 990 +155 Interest 2,
Slide 16: Appendix (1)
Appendix (1) ・ Non- Non-operating income & expenses and extraordinary ・Non-operating income & loss (1st half) ・ Segment information by Business & Geographic (1st ・Segment half) (1st half) ・ Overseas net sales (1st ・Overseas half) (1st half) ・ Non- Non-consolidated automobile sales (1st ・Non-consolid
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） 1st half 1st half actual results actual results Variance FYE 2015 FYE 2016 Financial revenue and expenditure -1 9 +9 FOREX effects -98 3 +101 Other 1 -13 -14 Total non-operating income & expen
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 1st half 1st half 1st half 1st half actual results actual results Variance actual results actual results Variance FYE 2015 FYE 2016 FYE 2015 FYE 2016 Automobile 12,280 15,057 +2,
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 1st half 1st half 1st half 1st half actual actual actual actual Variance Variance results results results results FYE 2015 FYE 2016 FYE 2015 FYE 2016 Japan 4,466 4,599 +133 1,358
Slide 20: 1st Half: Overseas Net Sales
1st Half : Overseas Net Sales (Consolidated) （100 Million Yen） 1st half actual results 1st half actual results Variance FYE 2015 FYE 2016 North America 7,751 10,630 +2,879 Europe 601 614 +13 Asia 1,183 1,107 -76 Other 639 812 +172 Total 10,174 13,163 +2,988 http://www.fhi.co.jp/english/ir/index.html
Slide 21: 1st Half: Non-consolidated Automobile Sales
1st Half : Non-consolidated Automobile Sales （Thousand Units） 1st half actual results 1st half actual results FYE 2015 FYE 2016 Variance Domestic production 344.0 347.8 +3.8 Domestic sales 76.0 70.2 -5.8 Passenger cars 60.3 51.8 -8.5 Minicars 15.7 18.4 +2.7 Number of exported vehicles 261.3 283.9 +2
Slide 22: Appendix (2)
Appendix (2) ・ 2nd quarter (3months) consolidated income statements ・2nd ・ 1st half consolidated income statements (Plan vs. Actual results) results) ・ Full ・Full year consolidated income statements (Previous plan vs. Revised Revised plan) http://www.fhi.co.jp/english/ir/index.html 21 21
Slide 23: 2nd Quarter: Consolidated Automobile Sales
2nd Quarter (3months) : Consolidated Automobile Sales （Thousand Units） 2Q actual results 2Q actual results Variance FYE 2015 FYE 2016 Passenger car 36.1 29.9 -6.1 Minicar 8.3 8.6 +0.3 Domestic total 44.3 38.5 -5.8 US 137.5 150.2 +12.7 Canada 11.3 12.2 +0.9 Russia 4.6 1.8 -2.8 Europe 8.7 11.3 +2.6 Au
Slide 24: 2nd Quarter: Consolidated Income Statements
2nd Quarter (3months) : Consolidated Income Statements （100 Million Yen） 2Q actual results 2Q actual results Variance FYE 2015 FYE 2016 Net sales 7,168 8,362 +1,194 Domestic 1,766 1,607 -159 Overseas 5,402 6,755 +1,353 Operating income 1,069 1,509 +439 Ordinary income 954 1,550 +596 Income before ta
Slide 25: 2nd Quarter: Analysis of Operating Income Variance
2nd Quarter (3months) : Analysis of Operating Income Variance （100 Million Yen） US$ : +569 Sales volume Fixed cost : -33 (FHI : -23 SIA : -10) EURO : ±0 Gain on Cost & mixture SG&A : -44 (FHI : -14 SOA : +7 others) CA$ : +2 currency Warranty claims : +11 CNY : ±0 reduction and others exchange +72 Cu
Slide 26: Plan vs. Results 1st Half: Consolidated Automobile Sales
（Plan vs. Results） 1st Half : Consolidated Automobile Sales （Thousand Units） 1st half plan 1st half actual results Variance FYE 2016 FYE 2016 Passenger car 48.5 49.8 +1.3 Minicar 18.3 16.7 -1.6 Domestic total 66.8 66.5 -0.2 US 270.9 290.6 +19.7 Canada 25.8 26.1 +0.3 Russia 6.2 3.5 -2.7 Europe 18.1 1
Slide 27: Plan vs. Results 1st Half: Consolidated Income Statements
（Plan vs. Results） 1st Half : Consolidated Income Statements （100 Million Yen） 1st half plan 1st half actual results Variance FYE 2016 FYE 2016 Net sales 14,750 16,015 +1,265 Domestic 2,650 2,852 +202 Overseas 12,100 13,163 +1,063 Operating income 2,440 2,851 +411 Ordinary income 2,400 2,850 +450 In
Slide 28: Plan vs. Results 1st Half: Analysis of Operating Income Variance
（Plan vs. Results） 1st Half : Analysis of Operating Income Variance SG&A Cost R&D （100 Million Yen） US$ : +177 EURO : +7 SG&A expenses reduction expenses CA$ : +2 expenses and others +51 +7 CNY : +3 Currency and others +53 exchange Gain on +127 adjustment : -16 currency FHI : +34 exchange (material
Slide 29: Previous Plan vs. Revised Plan: Automobile Sales Plan
（Previous Plan vs. Revised Plan） Full Year : Consolidated Automobile Sales Plan （Thousand Units） Previous Plan Revised Plan Variance FYE 2016 FYE 2016 Passenger car 106.7 107.7 +1.0 Minicar 37.6 34.4 -3.2 Domestic total 144.2 142.1 -2.1 US 554.0 577.6 +23.6 Canada 46.2 46.5 +0.3 Russia 12.8 9.0 -3.7
Slide 30: Previous Plan vs. Revised Plan: Consolidated Operating Plan
（ Previous Plan vs. Revised Plan） Full Year : Consolidated Operating Plan （100 Million Yen） Previous Plan Revised Plan Variance FYE 2016 FYE 2016 Net sales 30,300 32,100 +1,800 Domestic 5,655 5,721 +66 Overseas 24,645 26,379 +1,734 Operating income 5,030 5,500 +470 Ordinary income 4,950 5,470 +520 I
Slide 31: Previous Plan vs. Revised Plan: Operating Income Variance
（Previous Plan vs. Revised Plan） Full Year : Analysis of Operating Income Variance SG&A Sales volume expenses R&D （100 Million Yen） & mixture and others expenses FHI : +129 Gain on and Others -20 (material cost : +127) currency +44 SIA : +41 +113 (material cost : +34) exchange +163 Cost reduction Fi
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/E
Slide 33: Net Sales / Operating Income
Net Sales / Operating Income Net Sales Operating （100M yen） ¥79/$ ¥79/$ ¥89/$ ¥98/$ ¥98/$ ¥99/$ ¥103/$ ¥102/$ ¥102/$ ¥110/$ ¥118/$ ¥120/$ ¥123/$ Income （100M yen） 9000 1,800 Net sales 8,172 8,362 8000 Operating income 7,505 7,653 6,996 7,168 1,500 7000 1,509 5,787 5,829 5,934 1,245 1,342 6000 5,422
Slide 34: Consolidated Automobile Sales & Operating Income Margin
Consolidate Automobile Sales & Operating Income Margin Consolidated sales OPM （1,000 units） Automobile sales 247 247 250 238 21% OPM 232 232 225 202 201 18% 198 194 200 191 18.0% 183 178 17.5% 16.6% 15% 14.9% 150 14.0% 14.2% 13.8% 12.7% 13.3% 13.3% 12% 9% 100 8.7% 6% 6.4% 50 5.5% 3% 0 0% 2Q 3Q 4Q 1Q
Slide 35: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units （1,000 units） 253 250 244 Production Retail units 237 241 234 237 231 228 225 229 233 207 211 213212 210 211 211 214 197 195197 193 200 178 177 172 150 100 50 0 Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Sep Dec Mar Jun Sep Dec Mar
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 2,791 50.2% 2,800 Shareholders' 50% equity ratio 48.8% 2,300 46.5% 2,094 46.0% 44.0% 1,860 45% 42.9% 1,800 42.6% 41.2% 40.5% 1,388 39.9% 1,300 1,198 40% 37.7% 769 800 646
Slide 37: Interest Bearing Debt & D/E Ratio
Interest Bearing Debt & D/E Ratio Interest bearing debt D/E ratio （100M yen） 3500 3,301 1.0 3,236 3,072 Interest bearing debt D/E ratio 2,967 2,918 0.9 3000 2,760 2,697 2,574 0.8 0.69 2500 0.64 2,322 2,268 0.7 2,112 2,011 2,014 0.6 2000 0.52 0.46 0.5 0.41 1500 0.36 0.35 0.32 0.4 0.27 1000 0.24 0.3 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
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