Subaru Corporation · TSE:7270

Subaru — FY2017 Earnings Presentation

42 slides from Subaru's earnings presentation, May 9, 2017

  1. Slide 1: Consolidated Financial Results for FYE 2017

    Consolidated Financial Results for FYE 2017 SUBARU CORPORATION Toshiaki Okada Corporate Executive Vice President & CFO https://www.subaru.co.jp/en/ir/ May 9, 20170 0

  2. Slide 2: Summary

    Summary Consolidated Financial Results for FYE 2017  Consolidated net sales and global unit sales posted all-time records for the 5th consecutive year.  While posting unit sales growth and cost reduction progress, all profits fell due to increases in SG&A and R&D expenses as well as foreign exchan

  3. Slide 3: Consolidated financial results for FYE 2017

    Consolidated financial results for FYE 2017 https://www.subaru.co.jp/en/ir/ 2 2

  4. Slide 4: FYE 2017: Consolidated Unit Sales

    FYE 2017：Consolidated Unit Sales （Thousand units） Actual Results Actual Results Variance FYE 2016 FYE 2017 Passenger car 111.6 126.4 +14.8 Minicar 33.7 32.5 -1.2 Domestic total 145.3 158.9 +13.6 US 582.7 667.6 +84.9 Canada 47.6 53.1 +5.5 Russia 5.7 5.3 -0.4 Europe 41.8 40.9 -0.9 Australia 44.6 49.1

  5. Slide 5: FYE 2017: Consolidated Income Statements

    FYE 2017：Consolidated Income Statements （100 Million Yen） Actual Results Actual Results Variance FYE 2016 FYE 2017 Net sales 32,323 33,260 +937 Domestic 6,054 6,503 +449 Overseas 26,269 26,756 +488 Operating income 5,656 4,108 -1,548 Total non-operating +114 -165 -279 income & expenses Ordinary inco

  6. Slide 6: FYE 2017: Analysis of Variance in Operating Income (Consolidated)

    FYE 2017 : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Fixed cost : -306 (SUBARU-75, SIA -231) Sales volume Cost SG&A : -656 (SUBARU-48, SOA -549 , others) & mixture reduction Warranty claims : -729 and others +322 US$ : -1,414 +1,377 EURO : -48 CA$ : -69 CNY : -6 Curre

  7. Slide 7: FYE 2017: Analysis of Variance in Operating Income (Consolidated)

    FYE 2017 : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Fixed cost : -306 (SUBARU-75, SIA -231) Sales volume Cost SG&A : -656 (SUBARU-48, SOA -549 , others) & mixture reduction Warranty claims : -729 and others +322 US$ : -1,414 +1,377 EURO : -48 CA$ : -69 CNY : -6 Curre

  8. Slide 8: FYE 2017: Analysis of Variance in Operating Income (Consolidated)

    FYE 2017 : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Fixed cost : -306 (SUBARU-75, SIA -231) Sales volume Cost SG&A : -656 (SUBARU-48, SOA -549 , others) & mixture reduction Warranty claims : -729 and others +322 US$ : -1,414 +1,377 EURO : -48 CA$ : -69 CNY : -6 Curre

  9. Slide 9: Consolidated Balance Sheets

    Consolidated Balance Sheets （100 Million Yen） As of March 31 As of March 31 Variance 2016 2017 Total assets 25,924 27,623 +1,699 Current assets 17,841 18,453 +612 Noncurrent assets 8,083 9,171 +1,088 Interest bearing debts 1,700 1,483 -217 Net assets 13,494 14,649 +1,155 Retained earnings 10,490 11,

  10. Slide 10: FYE 2017: Consolidated Statement of Cash Flows

    FYE 2017: Consolidated Statement of Cash Flows （100 Million Yen） Actual results Actual results Variance FYE 2016 FYE 2017 Net cash provided by (used in) operating activities 6,143 3,454 -2,688 Net cash provided by (used in) investing activities -2,557 -2,543 +14 Free cash flows 3,586 912 -2,674 Net

  11. Slide 11: FYE 2017: Operating Results of Subsidiaries in U.S.

    FYE 2017 : Operating Results of Subsidiaries in U.S. （Million US$） Actual results Actual results SOA FYE 2016 FYE 2017 Variance Net sales 15,203 17,947 +2,744 Operating income 770 671 -99 Net income 480 421 -59 Retail sales 581.4 625.0 +43.6 (Thousand units) Actual results Actual results SIA FYE 201

  12. Slide 12: Forecasts for FYE 2018

    Forecasts for FYE 2018 https://www.subaru.co.jp/en/ir/ 9 9

  13. Slide 13: FYE 2018: Consolidated Unit Sales Plan

    FYE 2018：Consolidated Unit Sales Plan （Thousand units） Actual results Plan Variance FYE 2017 FYE 2018 Passenger car 126.4 134.2 +7.8 Minicar 32.5 37.8 +5.3 Domestic total 158.9 172.1 +13.1 US 667.6 687.7 +20.1 Canada 53.1 54.6 +1.5 Russia 5.3 6.6 +1.3 Europe 40.9 39.2 -1.7 Australia 49.1 52.6 +3.5 C

  14. Slide 14: FYE 2018: Consolidated Operating Plan

    FYE 2018 : Consolidated Operating Plan （100 Million Yen） Actual results Plan Variance FYE 2017 FYE 2018 Net sales 33,260 34,200 +940 Domestic 6,503 6,680 +176 Overseas 26,756 27,520 +764 Operating income 4,108 4,100 -8 Ordinary income 3,943 4,100 +157 Income before taxes and minority interests 3,947

  15. Slide 15: FYE 2018: Analysis of Variance in Operating Income (Consolidated)

    FYE 2018 : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Gain on Fixed cost : -245 (SUBARU -99, SIA -146) currency SG&A : -436 (SUBARU -90, SOA -300, others) Sales volume exchange Warranty claims : +403 & mixture +211 and others SUBARU : -76 +328 (material cost -160) SIA

  16. Slide 16: FYE 2018: Analysis of Variance in Operating Income (Consolidated)

    FYE 2018 : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Gain on Fixed cost : -245 (SUBARU -99, SIA -146) currency SG&A : -436 (SUBARU -90, SOA -300, others) Sales volume exchange Warranty claims : +403 & mixture +211 and others SUBARU : -76 +328 (material cost -160) SIA

  17. Slide 17: FYE 2018: Analysis of Variance in Operating Income (Consolidated)

    FYE 2018 : Analysis of Variance in Operating Income (Consolidated) （100 Million Yen） Gain on Fixed cost : -245 (SUBARU -99, SIA -146) currency SG&A : -436 (SUBARU -90, SOA -300, others) Sales volume exchange Warranty claims : +403 & mixture +211 and others SUBARU : -76 +328 (material cost -160) SIA

  18. Slide 18: FYE 2018: Operating Plan of Subsidiaries in U.S.

    FYE 2018 : Operating Plan of Subsidiaries in U.S. （Million US$） Actual results Plan SOA FYE 2017 FYE 2018 Variance Net sales 17,947 18,485 +538 Operating income 671 538 -133 Net income 421 338 -83 Retail sales 625.0 670.0 +45.0 (Thousand units) Actual results Plan SIA FYE 2017 FYE 2018 Variance Net

  19. Slide 19: Capex / Depreciation / R&D / Interest bearing debt

    Capex / Depreciation / R&D / Interest bearing debt （100 Million Yen） Actual Results Plan Actual Results Variance FYE 2017 FYE 2018 FYE 2016 (b) - (a) (a) (b) Capex 1,357 1,585 1,500 -85 Depreciation 650 770 920 +150 R&D 1,024 1,142 1,340 +198 Interest 1,700 1,483 1,000 -483 bearing debt https://www.

  20. Slide 20: 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) ・

  21. Slide 21: FYE 2017: Non-operating Income & Expenses and Extraordinary Income & Loss

    FYE 2017 : Non-operating Income & Expenses and Extraordinary Income & Loss (Consolidated) （100 Million Yen） Actual Results Actual Results Variance FYE 2016 FYE 2017 Financial revenue and expenditure 27 28 +1 FOREX effects 78 -90 -169 Others 9 -102 -111 Total non-operating income& expenses 114 -165 -

  22. Slide 22: FYE 2017: Net Sales and Operating Income by Business Segment

    FYE 2017 : 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 2016 FYE 2017 FYE 2016 FYE 2017 Automobile 30,394 31,520 +1,125 5,436 3,977 -1,460 Aerospace 1,5

  23. Slide 23: FYE 2017: Net Sales and Operating Income by Geographic Area

    FYE 2017 : 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 2016 FYE 2017 FYE 2016 FYE 2017 Japan 9,621 9,705 +84 4,457 2,945 -1,511 North America 19,878 20,

  24. Slide 24: FYE 2017: Overseas Net Sales (Consolidated)

    FYE 2017 : Overseas Net Sales (Consolidated) （100 Million Yen） Actual Results Actual Results Variance FYE 2016 FYE 2017 North America 21,045 21,923 +878 Europe 1,262 1,126 -136 Asia 2,373 2,113 -260 Other 1,589 1,595 +6 Total 26,269 26,756 +488 https://www.subaru.co.jp/en/ir/ 19 19

  25. Slide 25: FYE 2017: Non-consolidated Unit Sales

    FYE 2017 : Non-consolidated Unit Sales （Thousand units） Actual Results Actual Results FYE 2016 FYE 2017 Variance Domestic production 714.9 720.5 +5.6 Domestic sales 150.0 163.7 +13.7 Passenger cars 114.4 129.6 +15.2 Minicars 35.6 34.1 -1.5 Number of exported vehicles 576.5 570.7 -5.7 Components for

  26. Slide 26: 4th Quarter (3 months): Consolidated Unit Sales

    4th Quarter (3 months) : Consolidated Unit Sales （Thousand units） Actual results Actual results Variance 4Q FYE 2016 4Q FYE 2017 Passenger cars 35.7 43.3 +7.6 Minicars 9.7 10.2 +0.4 Domestic total 45.4 53.4 +8.0 U.S. 136.4 166.3 +29.9 Canada 10.9 12.6 +1.7 Russia 1.0 1.3 +0.3 Europe 13.2 11.2 -2.0 A

  27. Slide 27: 4th Quarter (3 months): Consolidated Income Statements

    4th Quarter (3 months) : Consolidated Income Statements （100 Million Yen） Actual results Actual results Variance 4Q FYE 2016 4Q FYE 2017 Net sales 8,136 8,981 +845 Domestic 1,772 2,054 +282 Overseas 6,364 6,927 +562 Operating income 1,298 1,041 -258 Ordinary income 1,430 971 -459 Income before taxes

  28. Slide 28: 4th Quarter (3 months): Analysis of Variance in Operating Income

    4th Quarter (3 months) : Analysis of Variance in Operating Income (Consolidated) Sales volume （100 Million Yen） & mixture Cost and Others reduction US$ : -85 +342 +21 EURO : -7 CA$ : +8 CNY : -1 Currency exchange adjustment: +55 Unrealized gain: -172 SUBARU: +15 SG&A (material cost -13) SIA : +6 exp

  29. Slide 29: FYE 2017 Plan vs. Actual Results: Consolidated Unit Sales

    FYE 2017 Plan vs. Actual Results： Consolidated Unit Sales （Thousand units） Plan Actual results Variance FYE 2017 FYE 2017 Passenger cars 127.5 126.4 -1.1 Minicars 34.0 32.5 -1.4 Domestic total 161.5 158.9 -2.5 U.S. 667.4 667.6 +0.2 Canada 52.9 53.1 +0.2 Russia 5.6 5.3 -0.3 Europe 41.1 40.9 -0.2 Aust

  30. Slide 30: FYE 2017 Plan vs. Actual Results: Consolidated Income Statements

    FYE 2017 Plan vs. Actual Results : Consolidated Income Statements （100 Million Yen） Plan Actual results Variance FYE 2017 FYE 2017 Net sales 33,100 33,260 +160 Domestic 6,511 6,503 -7 Overseas 26,589 26,756 +167 Operating income 4,100 4,108 +8 Ordinary income 4,120 3,943 -177 Income before taxes and

  31. Slide 31: FYE 2017 Plan vs. Actual Results: Analysis of Variance in Operating Income

    FYE 2017 Plan vs. Actual Results : Analysis of Variance in Operating Income (consolidated) （100 Million Yen） US$: +19 Domestic : -5 EURO: -1 SG&A (volume increase, mixture deterioration) CA$ : +6 Cost Overseas : +44 CNY: +1 expenses reduction (volume increase, mixture deterioration) Currency exchang

  32. Slide 32: Plan for 1st Half of FYE 2018: Consolidated Unit Sales

    Plan for 1st Half of FYE 2018 : Consolidated Unit Sales （Thousand units） Actual results Plan Variance 1st half FYE 2017 1st half FYE 2018 Passenger cars 52.5 65.2 +12.7 Minicars 15.6 17.4 +1.8 Domestic total 68.0 82.6 +14.5 U.S. 326.9 335.0 +8.0 Canada 28.4 30.1 +1.7 Russia 3.7 3.7 -0.0 Europe 18.4

  33. Slide 33: Plan for 1st Half of FYE 2018: Consolidated Income Statements

    Plan for 1st Half of FYE 2018 : Consolidated Income Statements （100 Million Yen） Actual results Plan Variance 1st half FYE 2017 1st half FYE 2018 Net sales 15,777 16,890 +1,113 Domestic 2,860 3,286 +426 Overseas 12,916 13,604 +688 Operating income 2,085 2,100 +15 Ordinary income 2,278 2,100 -178 Inc

  34. Slide 34: 1st Half FYE 2017 Results vs. FYE 2018 Plan: Variance in Operating Income

    1st Half of FYE 2017 Results vs. FYE 2018 Plan： Analysis of Variance in Operating Income (consolidated) Gain on Fixed Cost：-127 （100 Million Yen） currency (SUBARU -46, SIA -81) Sales volume SG&A：-352 exchange & mixture (SUBARU -72, SOA -242, others) and Others +147 Warranty claims：+239 +304 SG&A exp

  35. Slide 35: Appendix (2)

    Appendix (2) ・Net sales / Operating income ・Consolidated unit sales / OPM ・Complete cars production / Retail sales units ・FCF / Shareholder’s equity to total assets ・Interest-bearing debt / D/E ratio https://www.subaru.co.jp/en/ir/ 30 30

  36. Slide 36: Net Sales / Operating Income

    Net Sales / Operating Income ¥103/ ¥102/ ¥102/ ¥110/ ¥118/ ¥120/ ¥123/ ¥121/ ¥118/ ¥111/ ¥104/ ¥105/ ¥114/ $ $ $ $ $ $ $ $ $ $ $ $ $ Net Sales Operating （100M yen） Income （100 million yen） https://www.subaru.co.jp/en/ir/ 31 31

  37. Slide 37: Consolidate Unit Sales & Operating Income Margin

    Consolidate Unit Sales & Operating Income Margin Unit sales （1,000 units） OPM https://www.subaru.co.jp/en/ir/ 32 32

  38. Slide 38: Complete Cars Production / Retail Sales Units

    Complete Cars Production / Retail Sales Units （1,000 units） ※ Production figures include Toyota 86 https://www.subaru.co.jp/en/ir/ 33 33

  39. Slide 39: 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 https://www.subaru.co.jp/en/ir/ 34 34

  40. Slide 40: Interest Bearing Debt & D/E Ratio

    Interest Bearing Debt & D/E Ratio Interest bearing debt （100M yen） D/E ratio https://www.subaru.co.jp/en/ir/ 35 35

  41. Slide 41: 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

  42. Slide 42: https://www.subaru.co.jp/en/ir/

    https://www.subaru.co.jp/en/ir/ 37 37

Subaru — FY2017 Earnings Presentation on 6ix