Slide 1: Consolidated Financial Results for FYE 2016
Consolidated Financial Results for FYE 2016 Mitsuru Takahashi Executive Vice President & CFO May 12, 2016 http://www.fhi.co.jp/english/ir/index.html 0 0
Slide 2: Summary
Summary Consolidated Financial Results for FYE 2016 Consolidated global unit sales set an all time record for the 4th consecutive year mainly with the continuous strong sales in North American market. Net sales and all profit levels posted all-time records for the 4th consecutive year with gain
Slide 3: Consolidated financial results for FYE 2016
Consolidated financial results for FYE 2016 http://www.fhi.co.jp/english/ir/index.html 2 2
Slide 4: FYE 2016: Consolidated Unit Sales
FYE 2016：Consolidated Unit Sales （Thousand units） Actual Results Actual Results Variance FYE 2015 FYE 2016 Passenger car 127.9 111.6 -16.3 Minicar 34.9 33.7 -1.2 Domestic total 162.8 145.3 -17.5 US 527.6 582.7 +55.0 Canada 42.4 47.6 +5.1 Russia 11.6 5.7 -5.8 Europe 35.7 41.8 +6.0 Australia 38.9 44.6
Slide 5: FYE 2016: Consolidated Income Statements
FYE 2016：Consolidated Income Statements （100 Million Yen） Actual Results Actual Results Variance FYE 2015 FYE 2016 Net sales 28,779 32,323 +3,543 Domestic 6,529 6,054 -475 Overseas 22,250 26,269 +4,018 Operating income 4,230 5,656 +1,425 Total non-operating -294 +114 +408 income & expenses Ordinary
Slide 6: FYE 2016: Analysis of Variance in Operating Income (Consolidated)
FYE 2016 : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Fixed cost : -89 (FHI -13, SIA -76) Sales volume Cost SG&A : -87 (FHI +18, SOA -61, others) US$ : +1,325 & mixture reduction Warranty claims : -214 EURO : -20 Gain on and others +331 CA$ : -27 CNY : +7 currency +588
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） As of March 31 As of March 31 Variance 2015 2016 Total assets 21,997 25,924 +3,927 Current assets 14,733 17,841 +3,108 Noncurrent assets 7,264 8,083 +819 Interest bearing debts 2,112 1,700 -412 Net assets 10,307 13,494 +3,187 Retained earnings 6,974 10,4
Slide 8: FYE 2016: Consolidated Statement of Cash Flows
FYE 2016: Consolidated Statement of Cash Flows （100 Million Yen） Actual results Actual results Variance FYE 2015 FYE 2016 Net cash provided by (used in) operating activities 3,115 6,143 +3,027 Net cash provided by (used in) investing activities -1,728 -2,557 -829 Free cash flows 1,388 3,586 +2,198 N
Slide 9: FYE 2016: Operating Results of Subsidiaries in U.S.
FYE 2016 : Operating Results of Subsidiaries in U.S. （Million US$） Actual results Actual results SOA FYE 2015 FYE 2016 Variance Net sales 13,393 15,203 +1,810 Operating income 490 770 +280 Net income 309 480 +171 Retail sales 530.5 581.4 +50.9 (Thousand units) Actual results Actual results SIA FYE 2
Slide 10: Forecasts for FYE 2017
Forecasts for FYE 2017 http://www.fhi.co.jp/english/ir/index.html 9 9
Slide 11: FYE 2017: Consolidated Unit Sales Plan
FYE 2017：Consolidated Unit Sales Plan （Thousand units） Actual results Plan Variance FYE 2016 FYE 2017 Passenger car 111.6 119.0 +7.5 Minicar 33.7 37.3 +3.6 Domestic total 145.3 156.3 +11.0 US 582.7 643.1 +60.4 Canada 47.6 52.6 +5.0 Russia 5.7 9.6 +3.9 Europe 41.8 40.1 -1.7 Australia 44.6 48.2 +3.6 C
Slide 12: FYE 2017: Consolidated Operating Plan
FYE 2017 : Consolidated Operating Plan （100 Million Yen） Actual results Plan Variance FYE 2016 FYE 2017 Net sales 32,323 31,700 -623 Domestic 6,054 6,103 +49 Overseas 26,269 25,597 -672 Operating income 5,656 4,200 -1,456 Ordinary income 5,770 4,200 -1,570 Income before taxes and minority interests
Slide 13: FYE 2017: Analysis of Variance in Operating Income (Consolidated)
FYE 2017 : Analysis of Variance in Operating Income (Consolidated) US$ : -1,719 （100 Million Yen） Sales volume Cost EURO : -40 CA$ : -87 & mixture reduction CNY : -5 and others +320 Currency exchage adjustment : +5 Unrealized gain: +160 +999 Fixed cost : -383 (FHI -98, SIA -285) SG&A : -436 (FHI -54
Slide 14: FYE 2017: Operating Plan of Subsidiaries in U.S.
FYE 2017 : Operating Plan of Subsidiaries in U.S. （Million US$） Actual results Plan SOA FYE 2016 FYE 2017 Variance Net sales 15,203 16,973 +1,770 Operating income 770 789 +19 Net income 480 484 +4 Retail sales 581.4 623.6 +42.2 (Thousand units) Actual results Plan SIA FYE 2016 FYE 2017 Variance Net
Slide 15: Capex / Depreciation / R&D / Interest bearing debt
Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Plan Actual Results Variance FYE 2016 FYE 2017 FYE 2015 (b) - (a) (a) (b) Capex 1,107 1,357 1,600 +243 Depreciation 648 650 800 +150 R&D 835 1,024 1,200 +176 Interest 2,112 1,700 1,650 -50 bearing debt http://www.fhi
Slide 16: Appendix (1)
Appendix (1) ・ Non- Non-operating income & expenses and extraordinary income & loss ・Non-operating ・ Segment information by Business & Geographic ・Segment ・ Overseas net sales ・Overseas ・ Non- Non-consolidated unit sales ・Non-consolidated ・ Consolidated income statements in 4th quarter (3 months) ・
Slide 17: FYE 2016: Non-operating Income & Expenses and Extraordinary Income & Loss
FYE 2016 : Non-operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual Results Actual Results Variance FYE 2015 FYE 2016 Financial revenue and expenditure 12 27 +15 FOREX effects -263 78 +341 Others -43 9 +52 Total non-operating income& expenses -294 114 +
Slide 18: FYE 2016: Net Sales and Operating Income by Business Segment
FYE 2016 : 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 2015 FYE 2016 FYE 2015 FYE 2016 Automobile 26,990 30,394 +3,405 4,009 5,436 +1,427 Aerospace 1,4
Slide 19: FYE 2016: Net Sales and Operating Income by Geographic Area
FYE 2016 : 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 2015 FYE 2016 FYE 2015 FYE 2016 Japan 9,722 9,621 -101 3,518 4,457 +938 North America 16,250 19,8
Slide 20: FYE 2016: Overseas Net Sales (Consolidated)
FYE 2016 : Overseas Net Sales (Consolidated) （100 Million Yen） Actual Results Actual Results Variance FYE 2015 FYE 2016 North America 17,309 21,045 +3,736 Europe 1,233 1,262 +30 Asia 2,387 2,373 -15 Other 1,321 1,589 +268 Total 22,250 26,269 +4,018 http://www.fhi.co.jp/english/ir/index.html 19 19
Slide 21: FYE 2016: Non-consolidated Unit Sales
FYE 2016 : Non-consolidated Unit Sales （Thousand units） Actual Results Actual Results FYE 2015 FYE 2016 Variance Domestic production 707.7 714.9 +7.2 Domestic sales 167.1 150.0 -17.1 Passenger cars 131.6 114.4 -17.2 Minicars 35.6 35.6 +0.1 Number of exported vehicles 545.6 576.5 +30.9 Components for
Slide 22: 4th Quarter (3 months): Consolidated Unit Sales
4th Quarter (3 months) : Consolidated Unit Sales （Thousand units） Actual results Actual results Variance 4Q FYE 2015 4Q FYE 2016 Passenger cars 44.4 35.7 -8.7 Minicars 12.5 9.7 -2.8 Domestic total 56.9 45.4 -11.5 U.S. 128.9 136.4 +7.4 Canada 10.5 10.9 +0.4 Russia 0.7 1.0 +0.2 Europe 12.8 13.2 +0.3 A
Slide 23: 4th Quarter (3 months): Consolidated Income Statements
4th Quarter (3 months) : Consolidated Income Statements （100 Million Yen） Actual results Actual results Variance 4Q FYE 2015 4Q FYE 2016 Net sales 8,172 8,136 -36 Domestic 2,110 1,772 -338 Overseas 6,062 6,364 +303 Operating income 1,129 1,298 +170 Ordinary income 1,053 1,430 +377 Income before taxe
Slide 24: 4th Quarter (3 months): Analysis of Variance in Operating Income
4th Quarter (3 months) : Analysis of Variance in Operating Income (Consolidated) US$ : -22 （100 Million Yen） SG&A EURO : -10 Cost CA$ : -25 expenses Sales volume reduction CNY : +1 and others Currency exchange & mixture and Others +113 +7 adjustment : -92 +217 Loss on FHI : +83 currency R&D (materia
Slide 25: FYE 2016 Plan vs. Actual Results: Consolidated Unit Sales
FYE 2016 Plan vs. Actual Results： Consolidated Unit Sales （Thousand units） Plan Actual results Variance FYE 2016 FYE 2016 Passenger cars 109.8 111.6 +1.8 Minicars 33.5 33.7 +0.2 Domestic total 143.3 145.3 +2.0 U.S. 583.0 582.7 -0.3 Canada 47.1 47.6 +0.5 Russia 6.1 5.7 -0.4 Europe 41.3 41.8 +0.4 Aust
Slide 26: FYE 2016 Plan vs. Actual Results: Consolidated Income Statements
FYE 2016 Plan vs. Actual Results : Consolidated Income Statements （100 Million Yen） Plan Actual results Variance FYE 2016 FYE 2016 Net sales 32,100 32,323 +223 Domestic 5,962 6,054 +92 Overseas 26,138 26,269 +130 Operating income 5,500 5,656 +156 Ordinary income 5,470 5,770 +300 Income before taxes
Slide 27: FYE 2016 Plan vs. Actual Results: Analysis of Variance in Operating Income
FYE 2016 Plan vs. Actual Results : Analysis of Variance in Operating Income (consolidated) Domestic : +14 Gain on （100 Million Yen） (volume increase, currency FHI : -15 (material cost -23) mixture deterioration) SIA : -7 (material cost -7) Overseas : +116 SG&A exchange (volume increase, expenses +44
Slide 28: Plan for 1st Half of FYE 2017: Consolidated Unit Sales
Plan for 1st Half of FYE 2017 : Consolidated Unit Sales （Thousand units） Actual results Plan Variance 1st half FYE 2016 1st half FYE 2017 Passenger cars 49.8 50.5 +0.7 Minicars 16.7 14.6 -2.1 Domestic total 66.5 65.1 -1.4 U.S. 290.6 315.1 +24.5 Canada 26.1 28.2 +2.1 Russia 3.5 5.3 +1.9 Europe 19.6 1
Slide 29: Plan for 1st Half of FYE 2017: Consolidated Income Statements
Plan for 1st Half of FYE 2017 : Consolidated Income Statements （100 Million Yen） Actual results Plan Variance 1st half FYE 2016 1st half FYE 2017 Net sales 16,015 15,335 -680 Domestic 2,852 2,796 -56 Overseas 13,163 12,539 -624 Operating income 2,851 2,100 -751 Ordinary income 2,850 2,140 -710 Incom
Slide 30: 1st Half of FYE 2016 Results vs. FYE 2017 Plan: Analysis of Variance
1st Half of FYE 2016 Results vs. FYE 2017 Plan： Analysis of Variance in Operating Income (consolidated) US$ : -935 （100 Million Yen） EURO : -23 CA$ : -66 CNY : -2 Sales volume Cost Currency exchange & mixture reduction adjustment : -43 and Others +207 Unrealized gain：+227 +474 Fixed cost：-172 (FHI -
Slide 31: Appendix (2)
Appendix (2) ・ Net sales / Operating income ・Net ・ Consolidated unit sales / OPM ・Consolidated ・ Complete cars production / Retail sales units ・Complete ・ FCF / Shareholder’ ・FCF Shareholder ’s equity to total assets Shareholder’s ・ Interest- Interest-bearing ・Interest-bearing debt / D/E ratio http:
Slide 32: Net Sales / Operating Income
Net Sales / Operating Income Operating Net Sales ¥89/$ ¥98/$ ¥98/$ ¥99/$ ¥103/ ¥102/ ¥102/ ¥110/ ¥118/ ¥120/ ¥123/ ¥121/ ¥118/ Income （100M yen） $ $ $ $ $ $ $ $ $ （100 million yen） 9000 1,800 8,172 8,362 8,172 Net sales Operating income 8,136 8000 7,505 7,653 6,996 7,168 1,500 7000 1,509 1,506 5,829
Slide 33: Consolidate Unit Sales & Operating Income Margin
Consolidate Unit Sales & Operating Income Margin Unit sales OPM （1,000 units） Consolidated unit sales OPM 247 247 246 250 238 240 232 232 225 20% 198 202 201 200 191 194 18.4% 18% 18.1% 17.5% 16.6% 13.8% 16.0% 15% 150 14.9% 14.0% 14.2% 12.7% 13.3% 13.3% 13% 100 10% 50 8.7% 8% 0 5% 4Q 1Q 2Q 3Q 4Q 1Q
Slide 34: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units （1,000 units） 253 248 249 250 Production Retail Sales 241 244 242 237 234 237 229 233 231 237 228 225 207 211 213 212 210 211 211 214 195 197 193 200 150 100 50 0 Jan.- Apr.-Jun. Jul.-Sep. Oct.- Jan.- Apr.-Jun. Jul.-Sep. Oct.- Jan.- Apr.-Jun. Jul.-Sep. O
Slide 35: 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 3,586 55% FCF Shareholders' equity ratio 3,800 52.5% 51.8% 50.2% 3,300 48.8% 50% 2,791 2,800 46.5% 46.0% 2,535 44.0% 2,300 2,094 42.9% 45% 41.2% 1,860 1,800 39.9% 42.6% 40.5%
Slide 36: Interest Bearing Debt & D/E Ratio
Interest Bearing Debt & D/E Ratio Interest bearing debt D/E ratio （100M yen） 3500 1.0 Interest bearing debt D/E ratio 3,072 0.9 2,967 2,918 3000 2,760 2,697 2,574 0.8 2500 2,322 2,268 0.7 2,112 2,011 2,014 0.6 0.52 1,865 2000 0.46 1,700 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
Slide 37: 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 38: http://www.fhi.co.jp/english/ir/index.html
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