Subaru Corporation · TSE:7270
Subaru — H1 FYE March 2015 Earnings Presentation
39 slides from Subaru's earnings presentation, Oct 31, 2014
Slide 1: Presentation of Business Results for the 1st Half of FYE 2015
Presentation of Business Results for the 1st Half of FYE 2015 Director of the Boards & CFO, Mitsuru Takahashi October 31, 2014 http://www.fhi.co.jp/english/ir/index.html 0 0
Slide 2: Summary
Summary Financial results for the 1st half of FYE March 2015 Due to healthy sales in overseas such as new LEGACY / OUTBACK launched in North America, consolidated automobile sales set an all-time record high as 1st half. In addition to increase in sales volume, gain on currency exchange and cost
Slide 3: Business results for the 1st half of FYE March 2015
Business results for the 1st half of FYE March 2015 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） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2014 FYE 2015 Passenger car 61.7 56.5 -5.3 Minicar 25.6 15.1 -10.5 Domestic total 87.3 71.5 -15.8 U.S. 208.9 249.9 +41.0 Canada 18.7 22.1 +3.4 Russia 6.8 8.6 +1.8 Europe
Slide 5: 1st Half: Consolidated Income Statements
1st Half : Consolidated Income Statements （100 Million Yen） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2014 FYE 2015 Net sales 11,256 13,102 +1,846 Domestic 3,306 2,928 -378 Overseas 7,951 10,174 +2,224 Operating 1,507 1,857 +350 income Total non-operating -45 -97 -52 in
Slide 6: 1st Half: Analysis of Increase and Decrease in Operating Income Changes
1st Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） Improvement of sales Gain on Fixed cost : -16 (FHI -4 SIA -12) volume & currency SG&A : -226 (FHI -8 SOA -128 and others) Cost reduction Warranty claims : -60 mixture exchange and others +215 +5
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） As of Mar. 31 As of Sep. 30 Increase / 2014 2014 Decrease Total assets 18,884 19,868 +985 Current assets 12,738 13,096 +358 Noncurrent assets 6,146 6,772 +627 Interest bearing debts 2,697 2,322 -375 Net assets 7,701 8,809 +1,109 Retained earnings 4,839 5
Slide 8: 1st Half: Consolidated Statement of Cash Flows
1st Half : Consolidated Statement of Cash Flows （100 Million Yen） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2014 FYE 2015 Net cash provided by (used in) operating activities 1,579 1,347 -232 Net cash provided by (used in) investing activities -381 -637 -255 Free cash fl
Slide 9: 1st Half: Operating Results of Subsidiaries in U.S.
1st Half : Operating Results of Subsidiaries in U.S. （Million US$） Actual results Actual results Increase / SOA 1st half 1st half Decrease FYE 2014 FYE 2015 Net sales 5,179 6,313 +1,134 Operating income 117 218 +101 Net income 72 133 +61 Retail sales (Thousand units) 220.3 262.4 +42.1 Actual results
Slide 10: Outlook for the FYE March 2015
Outlook for the FYE March 2015 http://www.fhi.co.jp/english/ir/index.html 9 9
Slide 11: Full Year: Consolidated Automobile Sales
Full Year : Consolidated Automobile Sales （Thousand Units） Actual results Plan Increase / FYE 2014 FYE 2015 Decrease Passenger car 126.1 125.7 -0.4 Minicar 55.5 40.8 -14.7 Domestic total 181.6 166.5 -15.1 U.S. 441.8 513.2 +71.4 Canada 36.0 40.7 +4.6 Russia 15.3 18.7 +3.4 Europe 31.8 36.0 +4.2 Austra
Slide 12: Full Year: Consolidated Operating Plan
Full Year : Consolidated Operating Plan （100 Million Yen） Actual results Plan Increase / FYE 2014 FYE 2015 Decrease Net sales 24,081 27,800 +3,719 Domestic 6,721 6,582 -138 Overseas 17,361 21,218 +3,857 Operating income 3,265 3,820 +555 Ordinary income 3,144 3,700 +556 Income before income taxes and
Slide 13: Analysis of Increase and Decrease in Operating Income Changes
Analysis of Increase and Decrease in Operating Income Changes (consolidated) （100 Million Yen） US$ : +431 Improvement EURO : +11 Gain on CA$ : -6 of sales currency Fixed cost : -94 CNY : +8 volume & Cost reduction (FHI : -57 SIA : -37) Currency mixture exchange SG&A : -429 exchange adjustment : -32
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 Increase / SOA FYE 2014 FYE 2015 Decrease Net sales 11,005 13,119 +2,114 Operating income 184 443 +259 Net income 111 267 +156 Retail sales (Thousand units) 442.3 510.3 +68.0 Actual results Plan Increase / SIA FYE 2
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 Plan Increase 1st Half FYE2014 1st Half FYE2015 / Decrease FYE2014 (a) FYE 2015 (b) (b) - (a) Capex 273 685 597 1,200 +515 Depreciation 260 549 277 660 +111 R&D 299 601 363 840 +239 Inte
Slide 16: Appendix (1)
Appendix (1) ・ Non-operating income & expenses and ・Non-operating extraordinary income & loss ・ Segment information ・Segment ・ Overseas net sales ・Overseas ・ Non-consolidated automobile sales ・Non-consolidated 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 Increase / 1st half 1st half Decrease FYE 2014 FYE 2015 Financial revenue and expenditure 0 -1 -1 FOREX effects -39 -98 -58 Other -6 1 +7 Total non-operating inco
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 Increase Increase results results results results / / 1st half 1st half 1st half 1st half Decrease Decrease FYE 2014 FYE 2015 FYE 2014 FYE 2015 Automo
Slide 19: 1st Half: Consolidated Operating Income by Geographic Area
1st Half : Consolidated Operating Income by Geographic Area （100 Million Yen） Net sales Operating income Actual Actual Actual Actual Increase Increase results results results results / / 1st half 1st half 1st half 1st half Decrease Decrease FYE 2014 FYE 2015 FYE 2014 FYE 2015 Japan 4,691 4,466 -225
Slide 20: 1st Half: Overseas Net Sales
1st Half : Overseas Net Sales （100 Million Yen） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2014 FYE 2015 North America 6,172 7,751 +1,579 Europe 562 601 +40 Asia 582 1,183 +600 Other 635 639 +5 Total 7,951 10,174 +2,224 http://www.fhi.co.jp/english/ir/index.html 19 19
Slide 21: 1st Half: Non-Consolidated Automobiles Sales
1st Half : Non-Consolidated Automobiles Sales （Thousand Units） Actual results Actual results Increase / 1st half 1st half Decrease FYE 2014 FYE 2015 Domestic production 310.1 344.0 +33.9 Domestic sales 91.9 76.0 -15.9 Passenger cars 64.8 60.3 -4.5 Minicars 27.2 15.7 -11.4 Number of vehicles 231.6 26
Slide 22: Appendix (2)
Appendix (2) ・ 2nd quarter, consolidated statements income ・2nd ・ 1st half, Plan vs. Actual results ・ Full year, Previous plan vs. revised plan http://www.fhi.co.jp/english/ir/index.html 21 21
Slide 23: 2nd Quarter: Consolidated Automobile Sales Total
2nd Quarter : Consolidated Automobile Sales （Thousand Units） Actual results Actual results Increase / 2nd quarter 2nd quarter Decrease FYE 2014 FYE 2015 Passenger car 33.0 36.1 +3.1 Minicar 13.6 8.3 -5.3 Domestic total 46.6 44.3 -2.3 U.S. 102.5 137.5 +35.0 Canada 9.3 11.3 +2.0 Russia 4.3 4.6 +0.3 Eu
Slide 24: 2nd Quarter: Consolidated Income Statements
2nd Quarter : Consolidated Income Statements （100 Million Yen） Actual results Actual results Increase / 2nd quarter 2nd quarter Decrease FYE 2014 FYE 2015 Net sales 5,787 7,168 +1,381 Domestic 1,729 1,766 +38 Overseas 4,058 5,402 +1,344 Operating income 811 1,069 +259 Ordinary income 817 954 +137 In
Slide 25: 2nd Quarter: Analysis of Increase and Decrease in Operating Income Changes
2nd Quarter : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) Improvement （100 Million Yen） of sales Gain on currency Fixed cost : -26 (FHI : -15 SIA : -11) volume & SG&A : -166 (FHI : -11 SOA : -97 and other) exchange Cost reduction mixture Warranty claims : -30 and oth
Slide 26: (Plan vs. Results) 1st Half: Consolidated Automobile Sales Total
(Plan vs. Results) 1st Half : Consolidated Automobile Sales （Thousand Units） Plan Actual results Increase / 1st half 1st half Decrease FYE 2015 FYE 2015 Passenger car 70.5 56.5 -14.1 Minicar 22.6 15.1 -7.5 Domestic total 93.2 71.5 -21.6 U.S. 233.9 249.9 +16.0 Canada 21.7 22.1 +0.4 Russia 9.2 8.6 -0.
Slide 27: (Plan vs. Results) 1st Half: Consolidated Income Statements
(Plan vs. Results) 1st Half : Consolidated Income Statements （100 Million Yen） Plan Actual results Increase / 1st half 1st half Decrease FYE 2015 FYE 2015 Net sales 13,000 13,102 +102 Domestic 3,426 2,928 -498 Overseas 9,574 10,174 +600 Operating income 1,600 1,857 +257 Ordinary income 1,560 1,760 +
Slide 28: (Plan vs. Results) 1st Half: Analysis of Operating Income Changes
(Plan vs. Results) 1st Half : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） Increase of Domestic : -152 US$ : +121 (Deterioration of sales volume and mixture) EURO : +4 SG&A Overseas : +110 CA$ : +11 expenses Cost reduction (Increase of sales volume C
Slide 29: (Previous Plan vs. Revised Plan) Full Year: Consolidated Automobile Sales Total
(Previous Plan vs. Revised Plan) Full Year : Consolidated Automobile Sales （Thousand Units） Previous plan Revised plan Increase / FYE 2015 FYE 2015 Decrease Passenger car 143.7 125.7 -18.0 Minicar 51.2 40.8 -10.4 Domestic total 194.9 166.5 -28.4 U.S. 490.2 513.2 +23.0 Canada 40.4 40.7 +0.3 Russia 19
Slide 30: (Previous Plan vs. Revised Plan) Full Year: Consolidated Income Statements
(Previous Plan vs. Revised Plan) Full Year : Consolidated Income Statements （100 Million Yen） Previous plan Revised plan Increase / FYE 2015 FYE 2015 Decrease Net sales 27,200 27,800 +600 Domestic 7,032 6,582 -450 Overseas 20,168 21,218 +1,050 Operating income 3,400 3,820 +420 Ordinary income 3,300
Slide 31: (Previous Plan vs. Revised Plan) Full Year: Analysis of Operating Income Changes
(Previous Plan vs. Revised Plan) Full Year : Analysis of Increase and Decrease in Operating Income Changes (Consolidated) （100 Million Yen） US$ : +385 EURO : +6 Fixed cost : +15 (FHI : +6 SIA : +9) CA$ : +24 Decrease of SG&A : +146 (FHI : +78 SOA : -4 and other) CNY : +6 SG&A Warranty claims : -63 C
Slide 32: Appendix (3)
Appendix (3) ・ Net sales / Operating income ・Net ・ Consolidated automobile units / OPM ・Consolidated ・ Complete cars production / Retail units ・Complete ・ FCF / Shareholders ・FCF Shareholders’’ equity to total assets ・ Interest-bearing debt / D/E ratio ・Interest-bearing http://www.fhi.co.jp/english/
Slide 33: Net Sales & Operating Income
Net Sales & Operating Income Operating ¥79/$ ¥77/$ ¥78/$ ¥81/$ ¥79/$ ¥79/$ ¥89/$ ¥98/$ ¥98/$ ¥99/$ ¥103/ ¥102/ ¥102/ Net Sales Income $ $ $ (100 million yen) （100 million yen) 7,168 1,200 6,996 7,000 1,069 Net Sales Operating Income 5,787 5,829 5,934 1,000 6,000 5,422 5,469 931 4,877 5,000 4,691 4,7
Slide 34: Consolidated Automobile Sales & Operating Income Margin
Consolidated Automobile Sales & Operating Income Margin Automobile sales (1,000 cars) OPM 250 238 18% Consolidated Automobile Sales OPM 232 208 14.9% 198 202 201 15% 200 191 194 183 178 14.0% 166 166 14.2% 13.3% 12.7% 13.3% 12% 148 150 9% 8.7% 100 6.4% 6% 5.5% 50 4.0% 3.3% 3% 2.4% 2.3% 0 0% 2Q 3Q 4Q
Slide 35: Completed Cars Production & Retail Units
Completed Cars Production & Retail Units Units （1000 units) 250 237 Production Retail Units 228 225 207 211 213 212 210 211 211 214 200 196 196 191 197 195 197 193 182 178 177 167 172 158 150 150 136 100 50 0 Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Sep. Dec. Mar
Slide 36: Free Cash Flows & Shareholders' Equity to Total Assets
Free Cash Flows & Shareholders’ Equity to Total Assets FCF Shareholders’ （100 million yen) Equity to Total Assets 44.0% 45% FCF Shareholders' Equity to Total Assets 2,791 2,800 42.6% 2,300 41.2% 42.9% 39.9% 2,094 40.5% 40% 1,800 37.7% 1,300 1,198 35.2% 953 34.2% 778 711 35% 800 33.7% 33.7% 33.3% 34.
Slide 37: Interest-Bearing Debt & D/E Ratio
Interest-Bearing Debt & D/E Ratio Interest Bearing Debt D/E ratio (100 million yen) 4,000 3,866 3,688 Interest-Bearing Debt D/E Ratio 1.4 3,410 3,381 3,301 3,236 3,072 1.2 2,967 2,918 3,000 2,760 2,697 2,574 1.0 0.85 2,322 0.89 0.76 0.8 0.74 2,000 0.69 0.64 0.52 0.6 0.46 0.41 0.36 1,000 0.35 0.32 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: Investor relations website
http://www.fhi.co.jp/english/ir/index.html 38 38