Subaru Corporation · TSE:7270
Subaru — Fuji Heavy Industries — FY2013 Earnings Presentation
59 slides from Subaru's earnings presentation, May 8, 2013
Slide 1: Business Results of FYE 2013
Business Results of FYE 2013 Fuji Heavy Industries Ltd. President & CEO Yasuyuki Yoshinaga May 8, 2013 http://www.fhi.co.jp/english/ir/index.html 0
Slide 2: Consolidated Automobile Sales
Business Results of FYE 2013 Consolidated Automobile Sales 724 (Record-high) thousand units Europe Russia Others Japan North America China thousand FYE2012 172 309 55 48 56 640 units thousand FYE2013 163 390 61 50 60 724 units http://www.fhi.co.jp/english/ir/index.html 1
Slide 3: Business Results of FYE 2013
Business Results of FYE 2013 (100 million yen) Actual Results Actual Results YoY FYE 2012 FYE 2013 Consolidated 640 724 Record +13.2% Automobile Sales thousand units thousand units - high Net Sales 15,171 19,130 Record +26.1% - high 440 1,204 - high +173.9% Record Operating Income Ordinary Income 37
Slide 4: Plan of FYE 2014: Consolidated Automobile Sales
Plan of FYE 2014 Consolidated Automobile Sales 752 (Record-high) thousand units Europe Russia Others China FYE2013 Japan 163 North America 390 61 50 60 724 thousand （Actual results） units FYE2014 752 156 420 54 51 70 thousand （Plan） units http://www.fhi.co.jp/english/ir/index.html 3
Slide 5: Projections for FYE 2014
Projections for FYE 2014 (100 million yen) Actual Results Plan YoY FYE 2013 FYE 2014 Consolidated 724 752 Record +3.7% Automobile Sales thousand units thousand units - high Net Sales 19,130 20,500 Record - high +7.2% 1,204 1,800 - high Record Operating Income +49.5% Ordinary Income 1,006 1,750 - hig
Slide 6: Consolidated Automobile Sales
Consolidated Automobile Sales 850 (1,000 cars) 724 752 657 640 367 367 Others 378 360 358 385 U.S. 279 280 FYE2011 FYE2012 FYE2013 FYE2014 FYE2016 （Plan） （Last Year of Mid-term Business Plan） Automobile sales growth continues at a good pace toward the final target of 850 thousand units in FYE 2016
Slide 7: Focusing - Differentiating - Strategy for value added products
Focusing - Differentiating - Strategy for value added products 2011 2012 2013 2014 2015 IMPREZA FORESTER FMC FMC FMC XV BRZ New Concept New boxer engine + CVT equipped on all models Turbo charged direct injection boxer engine Hybrid introduction in Japan first ( SUBARU XV Hybrid ) http://www.fhi.co.
Slide 8: SUBARU XV Hybrid
Investment for Future Growth - Echo-friendly products - SUBARU XV HYBRID Subaru’s new approach to vehicle electrification Hybrid with “Fun to Drive” http://www.fhi.co.jp/english/ir/index.html 7
Slide 9: Enhancement of production capacity at SIA
Investment for Future Growth - Enhancement of production capacity at SIA - About US$400 million investment to increase production capacity at SIA ・ Existing line expansion $160M ・ Bridge production $40M ・ New paint plant $200M http://www.fhi.co.jp/english/ir/index.html 8
Slide 10: Enhancement of production capacity at SIA
Investment for Future Growth - Enhancement of production capacity at SIA - Production capacity will be increased by about 100,000 units by utilizing a current production line at SIA. The start of full-scale production is planned at the end of 2016 ■ 2014 ■ End of 2016 ＳＩＡ total：300 thousand unit
Slide 11: Production Capacity
Production Capacity Next Mid-term Current Mid-term Management Plan “Motion-Ⅴ” Management Plan Japan ＳＩＡ 902 (1,000 cars) 742 757 772 802 692 170 200 300 170 170 170 522 572 587 602 602 602 Mar. 2012 Aug. 2012 Jan. 2013 Summer Summer End of 2016 2013 2014 (Plan) (Plan) Start of Start of Increase of I
Slide 12: Investment Plan
Investment Plan 250 billion yen（50 billion yen per year ） simple average R&D Actual results-FYE 2011: 48.1 billion yen Motion-Ⅴ Actual results-FYE 2012: 49.1 billion yen FYE2012 ‐FYE2016 Plan-FYE 2013: 59.0 billion yen （Five years） 330 billion yen（66 billion yen per year） simple average Capex Actual
Slide 13: Stock Dividend
Stock Dividend End of End of Year Total 2nd Quarter 4th Quarter Actual Results FYE 2012 ¥4.5 ¥4.5 ¥9.0 Actual Results FYE2013 ¥5.0 ¥10.0 ¥15.0 Plan FYE 2014 ¥10.0 ¥10.0 ¥20.0 Considering the business result for the FYE 2013, a year-end dividend per share will be increased by 5 yen to 10 yen. The
Slide 14: Plans for FYE 2014
Mid-term Management Plan Plans for FYE 2014 Consolidated automobile sales : 385,000 units in U.S. Consolidated operating income : 180 billion yen Assessing the progress of the plan and examining the creation of framework to achieve further and solid growth http://www.fhi.co.jp/english/ir/index.html
Slide 15: Board of Directors
Board of Directors Candidates of director of the board (as of Jun. 21, 2013) Representative Director of the Board Yasuyuki Yoshinaga President & CEO Representative Director of the Board Jun Kondo Deputy President Akira Mabuchi Director of the Board Naoto Muto Corporate Executive Tomohiko Ikeda Vice
Slide 16: Corporate Auditors
Corporate Auditors Candidates of corporate auditors (as of Jun. 21, 2013) Masakazu Kimura (current title: Corporate advisor of FHI) Standing corporate auditors Norio Saito (current title: Standing corporate auditor of Subaru Kohsan Co., Ltd.) Shunsuke Takagi Retiring auditors Hiroyuki Oikawa Current
Slide 17: Thank you !
Thank you ! http://www.fhi.co.jp/english/ir/index.html 16
Slide 18: Presentation of Business Results of the FYE 2013
Presentation of Business Results of the FYE 2013 Fuji Heavy Industries Ltd. May 8, 2013 http://www.fhi.co.jp/english/ir/index.html 0
Slide 19: Summary
Summary Financial results of the FYE March 2013 Led by increased sales of the Impreza in all markets as well as good sales of the BRZ, consolidated automobile sales recorded the highest 724 thousand units. Due to overall good automobile sales, consolidated net sales was 1,913.0 billion yen, hitt
Slide 20: Business results of the FYE March 2013
Business results of the FYE March 2013 http://www.fhi.co.jp/english/ir/index.html 2
Slide 21: Consolidated Automobile Sales
Consolidated Automobile Sales （1,000 cars） Actual Results Actual Results Increase / 9 months 9 months Decrease FYE 2012 FYE 2013 Passenger cars 80.2 112.8 +32.6 Minicars 92.2 50.4 -41.8 Domestic total 172.3 163.1 -9.2 U.S. 280.4 357.6 +77.2 Canada 28.2 32.6 +4.4 Russia 15.9 14.7 -1.1 Europe 39.1 46.
Slide 22: Consolidated Statements of Income
Consolidated Statements of Income （100 Million Yen） Actual Results Actual Results Increase / 9 months 9 months Decrease FYE 2012 FYE 2013 Net sales 15,171 19,130 +3,959 Domestic 4,985 6,718 +1,733 Overseas 10,186 12,411 +2,225 Operating income 440 1,204 +765 Ordinary income 373 1,006 +633 Income bef
Slide 23: Analysis of Increase and Decrease in Operating Income Changes
Analysis of Increase and Decrease in Operating Income Changes (consolidated) （100 Million Yen） Domestic : Improvement of sales volume & mixture Gain on Overseas : Improvement of sales volume & mixture currency Increase of fixed cost and Improvement exchange SG&A expenses of sales Reduction Decrease
Slide 24: Automobile Segment (Consolidated)
Automobile Segment (Consolidated) （100 Million Yen） Net sales Operating income +28.1 ％ +181.7 ％ 17,790 1,110 13,891 394 2012年3月期 2013年3月期 2012年3月期 2013年3月期 FYE 2012 FYE2013 FYE2012 FYE2013 Both net sales and operating income increased from the same period of the previous fiscal year. Improvement
Slide 25: Aerospace Segment (Consolidated)
Aerospace Segment (Consolidated) （100 Million Yen） Net sales Operating income +11.1％ +136.6 ％ 891 803 68 29 2012年3月期 2013年3月期 2012年3月期 2013年3月期 FYE 2012 FYE2013 FYE2012 FYE2013 Both net sales and operating income increased from the same period of the previous fiscal year. The commercial sector b
Slide 26: Industrial Products Segment (Consolidated)
Industrial Products Segment (Consolidated) （100 Million Yen） Net sales Operating income -10.3 ％ +27.2 ％ 336 6 301 5 2012年3月期 2013年3月期 2012年3月期 2013年3月期 FYE 2012 FYE2013 FYE2012 FYE2013 Net sales decreased from the same period of the previous fiscal year due to decreased sales volume both in Japan
Slide 27: Non-Operating Income & Expenses and Extraordinary Income & Loss
Non-Operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （億円） Actual Results Actual Results Increase / FYE 2012 FYE 2013 Decrease Financial revenue and expenditure -17 -7 +10 FOREX effects -28 -172 -144 Equity in earnings of affiliates 8 0 -8 Other -30 -19 +10 Total non-operati
Slide 28: Consolidated Balance Sheets
Consolidated Balance Sheets （100 Million Yen） Increase / As of Mar. 2012 As of Mar. 2013 Decrease Total assets 13,525 15,775 +2,249 Current assets 7,625 9,440 +1,815 Noncurrent assets 5,900 6,334 +434 Interest bearing 3,410 3,072 -338 debts Net assets 4,516 5,968 +1,452 Retained earnings 1,885 3,014
Slide 29: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows （100 Million Yen） Actual Results Actual Results Increase / FYE 2012 FYE 2013 Decrease Net cash provided by (used in) operating activities 549 1,667 +1,119 Net cash provided by (used in ) investing activities -266 -714 -448 Free cash flows 283 953 +671 Net cash pr
Slide 30: Operating Results of Subsidiaries in U.S.
Operating Results of Subsidiaries in U.S. （Million US$） Actual Results Actual Results Increase / SOA FYE 2012 FYE 2013 Decrease Net sales 6,923 8,805 +1,882 Operating income 105 133 +28 Net income 74 97 +23 Retail sales (Thousand units) 279.2 347.1 +67.9 Actual Results Actual Results Increase / SIA
Slide 31: Outlook for the term Ending FYE March 2014
Outlook for the term Ending FYE March 2014 http://www.fhi.co.jp/english/ir/index.html 13
Slide 32: Consolidated Automobile Sales
Consolidated Automobile Sales （1,000 cars） Actual results Plan Increase / FYE 2013 FYE 2014 Decrease Passenger cars 112.8 101.6 -11.1 Minicars 50.4 53.9 +3.5 Domestic Total 163.1 155.5 -7.6 U.S. 357.6 384.9 +27.3 Canada 32.6 35.5 +2.9 Russia 14.7 12.6 -2.1 Europe 46.4 41.8 -4.6 Australia 38.1 42.5 +
Slide 33: Consolidated Operating Plan
Consolidated Operating Plan （100 Million Yen） Actual results Plan Increase / FYE 2013 FYE 2014 Decrease Net sales 19,130 20,500 +1,370 Domestic 6,718 6,081 -638 Overseas 12,411 14,419 +2,008 Operating Income 1,204 1,800 +596 Ordinary income 1,006 1,750 +744 Income before taxes and minority 931 1,680
Slide 34: Analysis of Increase and Decrease in Operating Income Changes
Analysis of Increase and Decrease in Operating Income Changes (consolidated) Improvement （100 Million Yen） of sales Increase of volume & SG&A Gain on Reduction mixture and expenses Increase currency and others of R&D in cost others expenses exchange 37 -101 120 -99 639 Increase of fixed cost and SG&
Slide 35: 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 2012 FYE2013 Decrease Net sales 8,805 9,537 +732 Operating income 133 137 +4 Net income 97 86 -11 Retail sales (Thousand units) 347.1 365.0 +17.9 Actual results Plan Increase / SIA FYE 2012 FYE201
Slide 36: Capex / Depreciation / R&D / Interest bearing debt
Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Actual results Plan Increase / FYE 2012 FYE2013 FYE2014 Decrease (a) (b) (b) – (a) Capex 543 702 670 -32 Depreciation 537 559 550 -9 R&D 481 491 590 +99 Interest 3,410 3,072 2,800 -272 bearing debt http://www.fhi.co.
Slide 37: Appendix
Appendix http://www.fhi.co.jp/english/ir/index.html 19
Slide 38: Net Sales and Operating Income by Business Segment
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 Decrease Decrease FYE 2012 FYE 2013 FYE 2012 FYE 2013 Automobile 13,891 17,790 +3,899 394 1,110 +716 Aerosp
Slide 39: Consolidated Operating Income by Geographic Area
Consolidated Operating Income by Geographic Area （100 Million Yen） Net sales Operating income Actual Actual Actual Actual Increase / Increase / Results Results Results Results Decrease Decrease FYE 2012 FYE 2013 FYE 2012 FYE 2013 Japan 8,006 9,131 +1,125 189 1,114 +925 North 6,613 8,372 +1,759 231 2
Slide 40: Overseas Net Sales
Overseas Net Sales （100 Million Yen） Actual Results Actual Results Increase / FYE 2012 FYE 2013 Decrease North America 7,104 8,960 +1,856 Europe 1,128 1,272 +144 Asia 967 1,132 +165 Other 986 1,047 +61 Total 10,186 12,411 +2,225 http://www.fhi.co.jp/english/ir/index.html 22
Slide 41: Non-Consolidated Automobiles Sales
Non- Consolidated Automobiles Sales （1,000 cars） Actual Results Actual Results Increase / FYE 2012 FYE 2013 Decrease Domestic production 468.0 583.1 +115.1 Domestic sales 180.0 166.7 -13.3 Passenger cars 83.6 116.3 +32.8 Minicars 96.5 50.4 -46.1 Number of vehicles 315.0 384.0 +69.0 exported Componen
Slide 42: 4th Quarter: Consolidated Automobile Sales
4th Quarter : Consolidated Automobile Sales （1,000 cars） Actual Results Actual Results Increase / Q4 Q4 Decrease FYE 2012 FYE 2013 Passenger cars 28.3 35.9 +7.6 Minicars 30.3 15.7 -14.6 Domestic Total 58.6 51.6 -7.0 U.S. 91.7 98.2 +6.4 Canada 9.5 9.0 -0.4 Russia 4.8 1.5 -3.3 Europe 14.8 11.5 -3.3 Au
Slide 43: 4th Quarter: Consolidated Statements of Income
4th Quarter : Consolidated Statements of Income （100 Million Yen） Actual Results Actual Results Increase / Q4 Q4 Decrease FYE 2012 FYE 2013 Net sales 4,877 5,422 +545 Domestic 1,610 1,895 +286 Overseas 3,267 3,527 +260 Operating Income 161 470 +309 Ordinary income 86 372 +286 Income before taxes and
Slide 44: 4th Quarter: Analysis of Increase and Decrease in Operating Income
4th Quarter : Analysis of Increase and Decrease in Operating Income Changes (consolidated) <Appendix> US$ : +207 Increase of （100 Million Yen） EURO : +15 SG&A CA$ : +19 Reduction expenses Increase Currency exchange adjustment : +21 Gain on in cost and others of R&D currency 6 -49 expenses exchange 1
Slide 45: Consolidated Automobile Sales Plan vs. Actual Results
Consolidated Automobile Sales Plan vs. Actual results （1,000 cars） Plan Actual results Increase / FYE 2013 FYE 2013 Decrease Passenger cars 108.8 112.8 +4.0 Minicars 50.9 50.4 -0.5 Domestic Total 159.6 163.1 +3.5 U.S. 357.2 357.6 +0.3 Canada 32.6 32.6 +0.0 Russia 14.8 14.7 -0.1 Europe 47.1 46.4 -0.7
Slide 46: Consolidated Statement of Income Plan vs. Actual Results
Consolidated Statement of Income Plan vs. Actual Results （100 Million Yen） Plan Actual results Increase / FYE 2013 FYE 2013 Decrease Net sales 18,900 19,130 +230 Domestic 6,596 6,718 +123 Overseas 12,304 12,411 +107 Operating Income 1,070 1,204 +134 Ordinary income 990 1,006 +16 Income before taxes
Slide 47: Analysis of Operating Income Changes Plan vs. Actual
Analysis of Increase and Decrease in Operating Income Changes Plan vs. Actual Plan （100 Million Yen） Decrease Gain on of R&D currency Reduction in cost expenses exchange 130 20 18 9 -43 Decrease of Deterioration SG&A of sales expenses FHI : +15 volume & and others SIA : +5 mixture and Decrease of fi
Slide 48: 1st Half: Consolidated Automobile Sales Plan
1st Half : Consolidated Automobile Sales Plan （1,000 cars） Actual Results Plan Increase / 1st Half 1st Half Decrease FYE 2013 FYE 2014 Passenger cars 45.4 55.1 +9.7 Minicars 26.6 25.9 -0.7 Domestic Total 72.0 80.9 +8.9 U.S. 164.4 210.5 +46.2 Canada 16.3 18.7 +2.4 Russia 11.1 4.6 -6.5 Europe 25.4 16.
Slide 49: 1st Half: Consolidated Operating Plan
1st Half : Consolidated Operating Plan （100 Million Yen） Actual Results Plan Increase / 1st Half 1st Half Decrease FYE 2013 FYE 2014 Net sales 8,980 10,300 +1,320 Domestic 3,098 3,100 +3 Overseas 5,883 7,200 +1,317 Operating Income 433 950 +517 Ordinary income 453 925 +472 Income before taxes and mi
Slide 50: 1st Half: Analysis of Operating Income Changes
1st Half : Analysis of Increase and Decrease in Operating Income Changes (consolidated) （100 Million Yen） US$ : +387 EURO : +18 Reduction CA$ : +31 in cost Increase Gain on of R&D Currency exchange adjustment : +11 90 -143 expenses currency exchange 162 Increase of SG&A -39 Improvement of sales expe
Slide 51: 2nd Half: Consolidated Automobile Sales Plan
2nd Half : Consolidated Automobile Sales Plan （1,000 cars） Actual Results Plan Increase / 2nd Half 2nd Half Decrease FYE 2013 FYE 2014 Passenger cars 67.4 46.6 -20.8 Minicars 23.8 28.0 +4.2 Domestic Total 91.1 74.6 -16.6 U.S. 193.2 174.3 -18.9 Canada 16.3 16.8 +0.4 Russia 3.6 7.9 +4.3 Europe 21.0 25
Slide 52: 2nd Half: Consolidated Operating Plan
2nd Half : Consolidated Operating Plan （100 Million Yen） Actual Results Plan Increase / 2nd Half 2nd Half Decrease FYE 2013 FYE 2014 Net sales 10,149 10,200 +51 Domestic 3,621 2,980 -640 Overseas 6,529 7,220 +691 Operating Income 772 850 +78 Ordinary income 553 825 +272 Income before taxes and minor
Slide 53: 2nd Half: Analysis of Operating Income Changes
2nd Half : Analysis of Increase and Decrease in Operating Income Changes (consolidated) （100 Million Yen） Increase of Decrease of fixed cost Decrease of SG&A Gain on SG&A Reduction expenses and currency expenses Increase in cost warranty claims exchange and others of R&D -125 expenses 30 192 41 Dete
Slide 54: Net Sales & Operating Income
Net Sales & Operating Income Operating Income Net Sales （100 million yen) (100 million yen) ¥92/$ ¥88/$ ¥83$ ¥83/$ ¥82/$ ¥79/$ ¥77/$ ¥77/$ ¥81/$ ¥79/$ ¥79/$ ¥89/$ 6,000 5,422 500 Net sales Operating income 4,877 470 5,000 4,691 4,727 400 4,337 4,289 347 4,059 4,000 3,703 3,706 3,744 3,546 301 300 3,
Slide 55: Consolidated Automobile Sales & Operating Income Margin
Consolidated Automobile Sales & Operating Income Margin Operating Net Sales Income (100 million yen) （100 million yen) 250 10% Consolidated automobile sales Oprating income margin 8.7% 208 8.0% 200 8% 183 178 198 169 166 166 6.1% 181 157 148 150 6.4% 6% 150 5.5% 118 4.4% 100 3.6% 4.0% 4% 3.3% 2.6% 2
Slide 56: Retail Sales & Complete Cars Production Units
Retail Sales & Complete Cars Production Units （1000 units) Production Retail Sales 207 203 196 196 197 200 191 182 178 177 174 172 162160 161 164 167 156 162 158 147 150 150 138 136 111 100 50 0 Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Jun. Sep. Dec. Mar. Jun. Sep. Dec
Slide 57: Free Cash Flows & Shareholders' Equity to Total Assets
Free Cash Flows & Shareholders’ Equity to Total Assets FCF in bar graph Shareholders’ Equity to （100 million yen) Total Assets in line graph 37.7% 40% 35.4% 35.2% 1,100 33.6% 34.7% 34.7% 34.2% 33.7% 34.2% 33.3% 953 871 33.7% 32% 900 31.9% 778 700 640 646 24% 500 397 16% 283 300 246 221 78 8% 100 47
Slide 58: Interest Bearing Debts & D/E Ratio
Interest Bearing Debts & D/E Ratio Interest Bearing Debts (100 million yen) D/E ratio 4,500 Interest bearing debt D/E ratio 3,965 3,866 1.4 4,000 3,688 3,473 3,367 3,410 3,381 1.2 3,500 3,306 3,301 3,236 3,179 3,072 3,000 0.91 1.0 0.89 0.85 0.82 2,500 0.76 0.89 0.69 0.8 0.80 0.64 2,000 0.76 0.74 0.6
Slide 59: Thank you !
Thank you ! http://www.fhi.co.jp/english/ir/index.html 41