Subaru Corporation · TSE:7270

Subaru — Fuji Heavy Industries — Q1 FYE March 2011 Earnings Presentation

28 slides from Subaru's earnings presentation, Jul 30, 2010

  1. Slide 1: Presentation of Business Results for the 1st Quarter of FYE 2011

    Presentation of Business Results for the 1st Quarter of FYE 2011 Fuji Heavy Industries Ltd. July 30, 2010 http://www.fhi.co.jp/english/ir/index.html 0

  2. Slide 2: A Summary of Business Results

    A Summary of Business Results http://www.fhi.co.jp/english/ir/index.html 1

  3. Slide 3: 1st Quarter: Consolidated Automobile Sales

    1st Quarter : Consolidated Automobile Sales （Thousand Units） Actual Results Actual Results Increase 1Q 1Q /Decrease FYE March 2010 FYE March 2011 Passenger Car 12.1 12.7 +0.6 Minicar 20.8 22.7 +1.9 Domestic Total 32.9 35.5 +2.6 U.S. 39.3 58.2 +18.9 Canada 5.9 8.4 +2.4 Russia 0 1.5 +1.4 Europe 6.8 11

  4. Slide 4: 1st Quarter: Consolidated Statements of Income

    1st Quarter : Consolidated Statements of Income （100 million yen） Actual Results Actual Results Increase 1Q 1Q /Decrease FYE March 2010 FYE March 2011 Net Sales 2,713 3,703 +990 Domestic 1,075 1,045 -30 Overseas 1,638 2,658 +1,020 Operating Income /Loss -197 226 +423 Ordinary Income /Loss -195 242 +

  5. Slide 5: Analysis of Increase and Decrease in Operating Income Changes

    1st Quarter : Analysis of Increase and Decrease in Operating Income Changes (consolidated) （100 million yen） Japan & Overseas: Improvement of sales volume and mixture, etc Reduction in cost 34 1 -49 -4 Decrease Loss on Increase FHI: +34 of SG&A currency of R&D SIA: ±0 expenses exchange expenses 226

  6. Slide 6: Net Sales by Business Segment

    1st Quarter : Net Sales by Business Segment (consolidated) （100 million yen） Percentage of Actual Results Actual Results Total Sales 1Q 1Q Increase FYE March FYE March /Decrease 2010 2011 2,407 3,421 Industrial Aerospace Products Other Automobile +1,015 4.7% 2.1% 0.7% Aerospace 224 175 -49 Industria

  7. Slide 7: Operating Income by Business Segment

    1st Quarter : Operating Income by Business Segment (consolidated) （100 million yen） Actual Results Actual Results Increase 1Q 1Q /Decrease FYE March 2010 FYE March 2011 Automobile -217 219 +436 Aerospace 16 0 -16 Industrial -3 -1 +2 Products Other 3 6 +3 Elimination and Corporate 3 1 -2 Total -197 2

  8. Slide 8: Net Sales by Geographic Area

    1st Quarter : Net Sales by Geographic Area (consolidated) <Appendix> （100 million yen） Actual Results Actual Results 1Q 1Q Increase FYE March FYE March /Decrease Percentage of 2010 2011 Total Sales Other Japan 1,552 1,993 +441 North America 3.4% 42.8% North 1,098 1,584 +486 America Japan Other 64 12

  9. Slide 9: Operating Income by Geographic Area

    1st Quarter : Operating Income by Geographic Area (consolidated) <Appendix> （100 million yen） Actual Results Actual Results Increase 1Q 1Q /Decrease FYE March 2010 FYE March 2011 Japan -130 131 +261 North America -27 123 +150 Other 1 2 +1 Elimination and Corporate -40 -30 +10 Total -197 226 +423 htt

  10. Slide 10: Overseas Net Sales

    1st Quarter : Overseas Net Sales <Appendix> （100 million yen） Actual Results Actual Results 1Q 1Q Increase Percentage of FYE March FYE March /Decrease Total Sales 2010 2011 North 1,189 1,686 +497 Other America Asia 12.7% 13.3% Europe 145 281 +136 Asia 143 354 +211 North Europe America 10.6% 63.4% Ot

  11. Slide 11: Operating Results of Subsidiaries in U.S.

    Operating Results of Subsidiaries in U.S. （million US$） Actual Results Actual Results Increase/ SOA 1Q 1Q Decrease FYE March 2010 FYE March 2011 Net Sales $920 $1,402 +482 Operating Income / Loss -12 61 +73 Net Income / Loss -8 37 +45 Retail Sales (Thousand units) 51.7 68.4 +16.7 Actual Results Actu

  12. Slide 12: Analysis of Non-Operating Income and Expenses

    Analysis of Non-Operating Income and Expenses （100 million yen） Actual Results Actual Results Increase 1Q 1Q /Decrease FYE March 2010 FYE March 2011 Non-Operating Income 39 80 +41 Interest and dividends income 5 6 +1 Equity in earnings of affiliates 3 11 +8 Non-Operating Expenses 37 64 +27 Interest

  13. Slide 13: Consolidated Balance Sheets

    Consolidated Balance Sheets （100 million yen） As of As of Increase March 31, 2010 June 30, 2010 /Decrease Total Assets 12,314 12,251 -63 Current Assets 6,389 6,359 -30 Noncurrent Assets 5,925 5,892 -33 Interest Bearing 3,676 3,473 -203 Debts Net Assets 3,819 3,926 +107 Retained Earnings 1,102 1,293

  14. Slide 14: Consolidated Statements of Cash Flows

    1st Quarter : Consolidated Statements of Cash Flows （100 million yen） Actual Results Actual Results Increase 1Q 1Q /Decrease FYE March 2010 FYE March 2011 Net Cash Provided by (used in) Operating Activities 398 337 -61 Net Cash Provided by (used in ) Investing Activities -225 -91 +134 Free Cash Flow

  15. Slide 15: Net Sales & Operating Sales

    Net Sales & Operating Sales <Appendix> Operating Income Net Sales (100 million yen) (100 million yen) 300 4,166 4,500 3,703 4,031 3,765 250 3,642 4,000 3,411 200 3,625 3,500 3,391 150 2,713 235 226 3,000 100 50 119 153 2,500 65 82 (¥101/$) (¥91/$) (¥98/$) 0 2,000 (¥103/$)(¥108/$) (¥95/$) (¥90/$) (¥9

  16. Slide 16: Free Cash Flows & Shareholders' Equity to Total Assets

    Free Cash Flows & Shareholders’ Equity to Total Assets <Appendix> FCF Shareholders’ (100 million yen) Equity to Total Assets Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. 2008 2008 2008 2009 2009 2009 2009 2010 2010 1,500 45.0% 39.9% 37.7% 30.9% 37.5% 40.0% 1,000 33.8% 31.4% 31.4%31.4% 31.9% 35.0% 50

  17. Slide 17: Interest Bearing Debts & D/E Ratio

    Interest Bearing Debts & D/E Ratio <Appendix> Interest D/E ratio Bearing Debts (100 million yen) 4,500 1.2 4,035 3,676 4,000 3,817 3,832 3,826 3,473 1 3,500 1.07 3,210 1.04 1.01 3,073 3,000 0.97 0.97 0.8 2,769 0.89 2,500 0.69 0.6 2,000 0.66 0.55 1,500 0.4 1,000 0.2 500 0 0 FYE2009 FYE2010 FYE2011 1Q

  18. Slide 18: Non-Consolidated Automobile Sales

    1st Quarter : Non-Consolidated Automobile Sales <Appendix> （Thousand Units） Actual Results Actual Results Increase 1Q 1Q /Decrease FYE March 2010 FYE March 2011 Domestic Production 84.5 121.9 +37.4 Domestic Sales 36.0 39.9 +4.0 Passenger Car 14.6 14.9 +0.3 Minicar 21.4 25.0 +3.7 Number of Vehicles e

  19. Slide 19: Outlook for the term Ending March 2011

    Outlook for the term Ending March 2011 http://www.fhi.co.jp/english/ir/index.html 18

  20. Slide 20: 1st Half: Consolidated Automobile Sales Plan

    1st Half : Consolidated Automobile Sales Plan （Thousand Units） Actual Results Plan Plan Increase/ 1st Half 1st Half Full Year Decrease FYE March 2010 FYE March 2011 FYE March 2011 Passenger Car 33.5 35.8 +2.3 69.0 Minicar 45.9 46.9 +1.0 92.4 Domestic Total 79.4 82.7 +3.3 161.4 U.S. 98.3 126.7 +28.3

  21. Slide 21: 1st Half: Consolidated Operating Plan

    1st Half : Consolidated Operating Plan （100 million yen） Actual Results Plan Plan Increase/ 1st Half 1st Half Full Year Decrease FYE March 2010 FYE March 2011 FYE March 2011 Net Sales 6,356 7,500 +1,145 14,700 Domestic 2,439 2,320 -119 4,490 Overseas 3,917 5,180 +1,263 10,210 Operating Income /Loss

  22. Slide 22: 1st Half: Analysis of Increase and Decrease in Operating Income Changes

    1st Half : Analysis of Increase and Decrease in Operating Income Changes Cost in （100 million yen） Loss on reduction currency -30 exchange 150 -15 -5 FHI: -30 Increase of SG&A Improvement expenses of sales and others US$: +1 volume & Euro:-9 mixture and Increase of warranty CA$: +3 350 others claims

  23. Slide 23: 1st Half: Analysis of Increase and Decrease in Operating Income Changes

    1st Half : Analysis of Increase and Decrease in Operating Income Changes <Appendix> Decrease （100 million yen） Improvement of SG&A Loss on of sales volume & Cost in expenses currency mixture and reduction and others exchange Increase others 37 15 of R&D -120 expenses -39 FHI: +43 SIA: -6 US$: -99 57

  24. Slide 24: 2nd Half: Analysis of Increase and Decrease in Operating Income Changes

    2nd Half : Analysis of Increase and Decrease in Operating Income Changes （100 million yen） -70 FHI: -30 180 Loss on -30 currency exchange Cost in reduction 80 US$: -51 Euro:-16 CA$: -3 Original Plan Revised Plan Operating Income Operating Income 2nd Half 2nd Half -10 billion FYE March 2011 FYE March

  25. Slide 25: Full Year: Analysis of Increase and Decrease in Operating Income Changes

    Full Year : Analysis of Increase and Decrease in Operating Income Changes <Appendix> Loss on （100 million yen） Improvement currency of sales Cost in volume & reduction 17 exchange mixture and others 70 Decrease Increase of SG&A -202 of R&D expenses expenses FHI: +67 and others 359 SIA: +3 -88 Decrea

  26. Slide 26: Capex / Depreciation / R&D

    Capex / Depreciation / R&D <Appendix> （100 million yen） Actual Actual Actual Plan Plan Increase / Results Results Results 1st Half FYE 2011 Decrease FYE 2010 1Q 1Q FYE 2011 (b) (b) – (a) (a) FYE 2010 FYE 2011 Capex 561 215 82 260 560 -1 Depreciation 571 147 116 250 520 -51 R&D 372 84 89 210 460 +88

  27. Slide 27: Non-Consolidated Automobile Sales Plan

    Non-Consolidated Automobile Sales Plan <Appendix> （Thousand Units） Actual Results Plan Increase/ FYE March 2010 FYE March 2011 Decrease Domestic Production 452.7 457.9 +5.1 Domestic Sales 177.5 163.8 -13.7 Passenger Car 80.3 73.7 -6.6 Minicar 97.2 90.1 -7.1 Number of Vehicles exported 279.7 316.4 +3

  28. Slide 28: Thank you !

    Thank you ! http://www.fhi.co.jp/english/ir/index.html 27

Fuji Heavy Industries — Q1 FYE March 2011 Earnings Presentation on 6ix