Subaru Corporation · TSE:7270
Subaru — H1 FYE2019 Earnings Presentation
29 slides from Subaru's earnings presentation, Nov 5, 2018
Slide 1: Consolidated Financial Results for the 1st Half of FYE 2019
Consolidated Financial Results for the 1st Half of FYE 2019 SUBARU CORPORATION Toshiaki Okada Corporate Executive Vice President & CFO November 5th, 2018 https://www.subaru.co.jp/en/ir/ 1 NOTE) This document is an English translation of an original Japanese document. If there are any discrepancies b
Slide 2: Summary
Summary Consolidated Financial Results for the 1st Half of FYE 2019 Net sales declined due to decreased unit sales and other factors. While Subaru’s retail vehicle sales in its largest North American market kept strong momentum, all profit levels declined due to factors such as an increase in qu
Slide 3: Consolidated Financial Results for the 1st Half of FYE 2019
Consolidated Financial Results for the 1st Half of FYE 2019 https://www.subaru.co.jp/en/ir/ 3 3
Slide 4: Consolidated Unit Sales
1st Half : Consolidated Unit Sales （Thousand Units） Plan Actual Results Actual Results 1st Half FYE 2019 Variance Variance 1st Half FYE 2018 1st Half FYE 2019 (as of Aug. 6th) (c)-(a) (c)-(b) (a) (c) (b) Passenger cars 67.3 56.0 52.4 -14.9 -3.6 Minicars 15.1 13.0 12.6 -2.5 -0.4 Domestic total 82.3 6
Slide 5: Consolidated Income Statements
1st Half : Consolidated Income Statements （100 Million Yen） Actual Results Plan Actual Results 1st Half FYE 2019 Variance Variance 1st Half FYE 2018 (as of Aug. 6th) 1st Half FYE 2019 (c)-(a) (c)-(b) (a) (b) (c) Net sales (16,863) 16,080 14,630 14,868 -1,212 +238 Domestic (3,286) 3,283 2,670 2,874 -
Slide 6: Analysis of Variance in Operating Income (Consolidated)
1st Half : Analysis of Variance in Operating Income (Consolidated) Fixed Cost : -79 (SUBARU -52, SIA -27) SG&A : -63 (SUBARU -32, SOA -38, others) Domestic : -144 （100 Million Yen） Warranty claims : -771 Overseas : -361 Sales incentive : -102 Others : -22 R&D expenses US$ : -94 EURO : +9 +65 CA$ : -
Slide 7: Analysis of Variance in Operating Income (Plan vs. Actual Results)
（Plan as of Aug. 6th vs. Actual Results） 1st Half : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Fixed Cost : +16 (SUBARU +12, SIA +4) SG&A : +16 (SUBARU +11, SOA -2, others) Warranty claims : -807 Gain on R&D Cost currency expenses Reduction exchange Domestic : -22 +66
Slide 8: Consolidated Income Statements (Plan as of Oct. 23rd vs. Actual Results)
（Plan as of Oct. 23rd vs. Actual Results） 1st Half : Consolidated Income Statements （100 Million Yen） Revised Plan Actual Results 1st Half FYE 2019 Variance 1st Half FYE 2019 as of Oct. 23rd (b)-(a) (b) (a) Net sales 14,860 14,868 +8 Operating income 610 550 -60 Ordinary income 660 600 -60 Net incom
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets (100 Million Yen) As of March As of September Variance 2018 2018 Total assets 28,665 29,351 +686 Current assets 17,704 17,810 +106 Noncurrent assets 10,960 11,541 +580 Total liabilities 13,055 13,581 +526 Interest bearing debts 862 498 -364 Net assets 15,610 15,770 +160 R
Slide 10: Consolidated Statement of Cash Flows
1st Half : Consolidated Statement of Cash Flows (100 Million Yen) Actual Results Actual Results Variance 1st Half FYE 2018 1st Half FYE 2019 Net cash provided by (used in) operating activities 2,078 647 -1,431 Net cash provided by (used in) investing activities -1,014 -800 +214 Free cash flows 1,064
Slide 11: 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 2018 1st Half FYE 2019 Variance Net sales 9,115 8,643 -472 Operating income 278 104 -174 Net income 177 94 -83 Retail sales (Thousand units) 334.7 350.1 15.4 Actual Results Actual Result
Slide 12: Forecasts for FYE 2019
Forecasts for FYE 2019 https://www.subaru.co.jp/en/ir/ 12 12
Slide 13: Production plan / Consolidated Unit Sales Plan
Revised plan FYE 2019 : Production plan / Consolidated Unit Sales Plan （Thousand Units） Actual Results Previous Plan Revised Plan Variance Variance FYE 2018 as of Aug. 6th (c) (c)-(a) (c)-(b) (a) (b) Production in U.S. 348.6 384 379.7 +31.1 -4.3 Production in Japan 701.2 672 656.1 -45.0 -15.9 Total
Slide 14: Consolidated Income Plan
Revised plan FYE 2019 : Consolidated Income Plan (100 Million Yen) Actual Results Previous Plan Revised Plan Variance Variance FYE 2018 as of Aug. 6th (c) (c)-(a) (c)-(b) (a) (b) Net Sales (34,052) 32,327 32,500 32,100 -227 -400 Domestic (6,686) 6,680 6,086 6,173 -507 +87 Overseas (27,367) 25,647 26
Slide 15: Analysis of Variance in Operating Income (Consolidated)
Revised Plan FYE 2019 : Analysis of Variance in Operating Income (Consolidated) Fixed cost : -186 (SUBARU -114, SIA -72) (100 Million Yen) SG&A : -213 (SUBARU -79, SOA -90, others) R&D Cost Warranty claims : -508 expenses reduction +132 +16 Domestic : -236 Overseas : -227 Sales Incentive ：-189 Other
Slide 16: Analysis of Variance in Operating Income vs. Previous Plan
Previous Plan FYE 2019 (as of August 6th) vs. Revised Plan : Analysis of Variance in Operating Income (Consolidated) (100 Million Yen) Fixed cost : -50 (SUBARU -29, SIA -21) R&D SG&A : -56 (SUBARU -45, SOA +7, others) Gain on Cost expenses Warranty claims : -850 currency reduction exchange +121 +163
Slide 17: Capex / Depreciation / R&D / Interest bearing debt
Capex / Depreciation / R&D / Interest bearing debt (100 Million Yen) Previous Plan Actual Results Actual Results Actual Results Revised Plan FYE 2019 Variance Variance 1st Half 1st Half FYE 2018 FYE 2019 (as of August 6th) (c)-(a) (c)-(b) FYE 2018 FYE 2019 (a) (c) (b) Capex 545 591 1,414 1,300 1,300
Slide 18: Shareholder Returns
Shareholder Returns 【Dividend per share】 (Japanese Yen) FYE2019 FYE2018 Previous projection Revised projection 2nd Quarter 72 72 72 Year-end 72 72 72 Annual (Forecast) 144 144 144 https://www.subaru.co.jp/en/ir/ 18 Finally, we come to returns to shareholders. The interim dividend will be 72 yen. Wit
Slide 19: Appendix
Appendix • Non-operating income & expenses and extraordinary income & loss (1H) • Segment information by business & geographic (1H) • Overseas net sales (1H) • Non-consolidated unit sales (1H) • Consolidated income statements (2Q) • Complete cars production / Retail sales units https://www.subaru.co
Slide 20: 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 Variance 1st Half FYE 2018 1st Half FYE 2019 Financial revenue and expenditure 24 56 +32 FOREX effects -20 -8 +12 Other 2 2 -0 Total non-operating income & expens
Slide 21: 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 Results Actual Results Results Results 1st Half 1st Half Variance Variance 1st Half 1st Half FYE 2018 FYE 2019 FYE 2018 FYE 2019 Automobile (16,000) 15,217 1
Slide 22: 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 Results Actual Results Actual Actual 1st Half 1st Half Results Results Variance Variance 1st Half 1st Half FYE 2018 FYE 2019 FYE 2018 FYE 2019 Japan (4,979) 4,975 4,496 -47
Slide 23: Overseas Net Sales (Consolidated)
1st Half : Overseas Net Sales (Consolidated) (100 Million Yen) Actual Results Actual Results Variance 1st Half FYE 2018 1st Half FYE 2019 North America (11,492) 10,741 10,016 -725 Europe (541) 538 629 +91 Asia (698) 673 538 -136 Other (846) 844 811 -33 Total (13,577) 12,797 11,994 -804 * Changed acc
Slide 24: Non-consolidated Unit Sales
1st Half : Non-consolidated Unit Sales (Thousand Units) Actual Results Actual Results Variance 1st Half FYE 2018 1st Half FYE 2019 Domestic production 346.2 318.9 -27.2 Domestic sales 85.6 68.9 -16.7 Passenger cars 70.0 56.0 -14.0 Minicars 15.7 12.9 -2.7 Number of exported vehicles 271.3 254.4 -16.9
Slide 25: Consolidated Unit Sales 2Q (3 months)
2Q (3 months) : Consolidated Unit Sales (Thousand Units) Actual Results Actual Results 2Q (3 months) 2Q (3 months) Variance FYE 2018 FYE 2019 Passenger car 34.0 29.5 -4.5 Minicar 7.9 6.6 -1.3 Domestic total 41.9 36.0 -5.8 US 159.3 152.4 -6.9 Canada 15.3 16.1 +0.8 Russia 1.8 2.6 +0.8 Europe 9.4 5.3 -
Slide 26: Consolidated Income Statements 2Q (3 months)
2Q (3 months) : Consolidated Income Statements (100 Million Yen) Actual Results Actual Results 2Q (3 months) 2Q (3 months) Variance FYE 2018 FYE 2019 Net sales (8,315) 7,940 7,776 -164 Domestic (1,681) 1,679 1,572 -107 Overseas (6,634) 6,261 6,204 -57 Operating income 928 -25 -953 Ordinary income 93
Slide 27: Analysis of Variance in Operating Income 2Q (3 months)
2Q (3 months) : Analysis of Variance in Operating Income(Consolidated) Fixed cost : -60 (SUBARU -53, SIA -7) SG&A : -40 (SUBARU -7, SOA -21, others) (100 Million Yen) Warranty claims : -697 R&D Domestic : -33 expenses Overseas : -25 Sales incentive : -33 +84 Others : -100 US$ : -4 EURO : -2 CA$ : -2
Slide 28: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units (1,000 units) Production Retail Sales 300 280 276 276 278 273 269 270 264 268 264 258 261 257 253 249 253 249 252 250 244 248 245 242 250 237 242 237 241 233 229 231 200 150 100 50 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar
Slide 29: 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