Presentation of Business Results
for the 3rd quarter of FYE 2015
Fuji Heavy Industries Ltd.
February 4, 2015
http://www.fhi.co.jp/english/ir/index.html

00Summary
Financial results for the 3rd quarter (9 months) of FYE March 2015
 Due to healthy sales in North America and enjoy sales of new models such as WRX and LEVORG,
consolidated automobile sales set an all-time record high as 3rd quarter periods(9 months).
 In addition to increase in sales volume, gain on currency exchange and cost reduction brought alltime record high in net sales and all profit levels for the 3rd quarter periods(9 months).
Net sales

Actual results(YoY)

2,060.7bil.
(+352.2bil.)

Operating income

310.2bil.

(+76.8bil.)

Ordinary income

288.4bil.

(+66.9bil.)

Net income

190.4bil.
(+8.8bil.)

Consolidated
automobile sales

663.7k(+70.3k)

Financial projections full year for the FYE March 2015
 Due mainly to the revision of assumed exchange rates, business projections for the FYE March
2015 is upwardly-revised.
 Increase of sales volume by healthy sales in US, gain on currency exchange and cost reduction
will offset increase of SG&A expenses. Full year projections of net sales, all profit levels andconsolidated automobile units will be all time record high for the 3rd straight year.
Net sales

Actual results(YoY)

2,850.0bil.
(+441.9bil.)

http://www.fhi.co.jp/english/ir/index.html

Operating income

410.0bil.

(+83.5bil.)

Ordinary income

392.0bil.

(+77.6bil.)

Net income

253.0bil.

(+46.4bil.)

Consolidated
automobile units

906.1k(+81.0k)

1

1

Business results for the 3rd quarter (9 months)of FYE March 2015

http://www.fhi.co.jp/english/ir/index.html

22

9 months : Consolidated Automobile Units（Thousand Units）

Actual Results
9 months
FYE 2014

Actual Results
9 months
FYE 2015

Passenger cars

86.9

83.5

-3.4

Minicars

37.0

22.3

-14.6

123.9

105.9

-18.0

U.S.

326.4

398.7

+72.3

Canada

27.2

32.0

+4.8

Russia

9.5

10.8

+1.3

Europe

23.5

22.9

-0.6

Australia

29.6

28.2

-1.4

China

29.6

40.7

+11.2

Others

23.8

24.5

+0.7

469.5
593.4

557.8
663.7

+88.3
+70.3

Domestic total

Overseas total
Total
http://www.fhi.co.jp/english/ir/index.html

Increase /Decrease* China figures are consolidated on the calendar year basis from Jan. to Sep.

3

Consolidated automobile sales for nine months of the fiscal year ending March 2015
totaled 663.7 thousand units. This was the highest sales figure ever recorded in a ninemonth period.
Domestic sales fell 18 thousand units to hit 105.9 thousand units. The negative impactof the consumption tax hike drove sales of minicars and other models down despite
strong sales of the new Levorg and WRX.
Sales in overseas markets rose 88.3 thousand units to total 557.8 thousand units. This
increase was due to robust performance in the U.S. market where sales of the all-new
Legacy, which was given a major face-lift, the Forester, and other existing models
remained upbeat.

3

9 months : Consolidated Income Statements（100 Million Yen）

Actual results
9 months
FYE 2014

Actual results
9 months
FYE 2015

Increase /Decrease

Net sales

17,08520,607+3,522

Domestic

4,788

4,419

-369

Overseas

12,297

16,189+3,891

Operatingincome

2,334

3,102

+768

-119

-218

-99

2,214

2,884

+669

457

-17

-474

Net income

2,671
1,815

2,867
1,904

+196
+88

FHI exchange rate

¥98/US$¥105/US$+¥7/US$

Total non-operating
income & expenses

Ordinary income
Total extraordinary
income & loss
Income before taxes
and minority interests

http://www.fhi.co.jp/english/ir/index.html

4Figures for net sales and all income categories were the highest they have ever been
for any nine-month period.
Net sales increased 352.2 billion yen year on year to total 2,060.7billion yen. The main
factors behind this increase include a foreign exchange gain of 97.8 billion yen, a 6.9
billion yen increase in sales at FHI internal companies as well as a gain of 247.5 billion
yen due to better sales mix variances resulting from higher sales volumes in overseas
markets.
Operating income rose 76.8 billion yen year on year to total 310.2 billion yen. This uptick
mainly came from better sales mix variances resulting from increased sales volumes,
foreign exchange gains, and reduced materials costs, etc., all of which offset theincrease in SG&A and R&D expenses.
Ordinary income was up 66.9 billion yen to reach 288.4 billion yen. Income before
income taxes and minority interests totaled 286.7 billion yen. This was a 19.6 billion yen
increase over the previous year when a 47.3 billion yen gain on the sale of investment
securities was posted. Net income climbed 8.8 billion yen to reach 190.4 billion yen.

4

9 months : Analysis of Increase and Decreasein Operating Income Changes (Consolidated)（100 Million Yen）

Improvementof salesvolume &mixtureand others

Gain oncurrency
Cost reduction
exchange

+621

+84

+646
US$ : +559
EURO : +14
CA$ : +1
CNY : +7
Currency
exchange
adjustment : +40

2,334

Fixed cost : -50 (FHI -28 SIA -22)
SG&A : -341 (FHI -19 SOA -177 and others)
Warranty claims : -78

Increase of
Increase of
SG&A
R&D
expenses
expensesand others

-469

-114

FHI : +75 (Material cost : -31)
SIA : +9 (Material cost : -4)

3,102

Domestic : +24 (Increase of sales volume and deterioration of mixture)
Overseas : +766 (Increase of sales volume and deterioration of mixture)
Others : -144

Actual results
Operating income
9 months
FYE 2014+76.8 billion

http://www.fhi.co.jp/english/ir/index.html

Actual results
Operating income
9 months
FYE 2015
5

Now let’s look at the reasons behind the year-on-year increase of 76.8 billion yen in operating income that went from 233.4 billion
yen to 310.2 billion yen.
The primary reason for the increase in operating income was a gain of 64.6 billion yen due to better sales mix variances.
First, we saw a gain of 2.4 billion yen in domestic new car sales thanks to steady sales of the new Levorg and the WRX although
the consumption tax hike drove sales volumes down.
Next, we saw a gain of 76.6 billion yen in overseas new car sales. Robust sales in the U.S. market as well as growing sales of the
WRX in all markets resulted in a significant year-on-year increase in sales volumes.
Finally, we had a loss of 14.4 billion yen due to inventory adjustments.
Another contributing factor that brought operating income up was a foreign exchange gain of 62.1 billion yen.
This includes a gain of 55.9 billion yen due to an approximate 7 yen depreciation against the U.S. dollar, a gain of 1.4 billion yen
due to an approximate 9 yen depreciation against the euro, and a gain of 0.1 billion yen due to the yen's slight depreciation against
the Canadian dollar. as well as a gain of 0.7 billion yen resulting from currency translations between the yen and the Chinese yuan.
This figure also includes a gain of 4.0 billion yen due to foreign exchange adjustments for transactions between FHI and its
overseas subsidiaries.
Another factor behind the jump in operating income was a gain of 8.4 billion yen due to cost cuts.
This includes a gain of 7.5 billion yen generated by FHI as well as a gain of 0.9 billion yen coming from SIA. FHI saw a gain of 10.6
billion yen due to cost reductions resulting from increased production, etc. and a loss of 3.1 billion yen due to higher materials costs
and worsened market conditions. SIA yielded a gain of 1.3 billion yen through cost reductions and a loss of 0.4 billion yen due tohigher material prices, etc.
The main factor bringing operating income down was a loss of 46.9 billion yen due to increases in SG&A expenses.
First, we saw a loss of 5.0 billion yen due to an increase in fixed manufacturing costs. This includes a loss of 2.8 billion yen
generated by FHI as well as a loss of 2.2 billion yen coming from SIA. FHI generated a gain of 2.7 billion yen due to lower costs for
supplier dies and a loss of 5.5 billion yen due to higher fixed processing costs while SIA lost 0.7 billion yen due to higher costs for
supplier dies and lost 1.5 billion yen due to an increase in fixed processing costs.
The second factor is a loss of 34.1 billion yen due to an increase in SG&A expenses. FHI lost 1.9 billion yen due primarily tomounting transport and packaging costs that went hand in hand with the increasing sales volume. The 34.1 billion yen loss also
includes a gain of 0.2 billion yen at domestic dealers, a loss of 17.7 billion yen generated at SOA, a loss of 1.7 billion yen at our
Canadian subsidiary, and a loss of 13.0 billion yen from other operations.
The third and last factor includes an increase in costs associated with warranty claims that led to a loss of 7.8 billion yen.
Finally, an increase in R&D expenses resulted in a loss of 11.4 billion yen.
These factors combined brought consolidated operating income for the first nine-month period of the fiscal year ending March 2015up 76.8 billion yen to total 310.2 billion yen.

5Consolidated Balance Sheets（100 Million Yen）

As of Mar. 31
2014

As of Dec. 31
2014

18,884

20,674+1,790Current assets

12,73813,588+851

Noncurrent assets

6,146

7,085

+939

Interest bearing debts

2,697

2,268

-429

Net assets

7,701

9,632

+1,932Retained earnings

4,839

6,257

+1,418

Shareholder’s equity

7,655

9,554

+1,899

Shareholder’s equity tototal assets

40.5%

46.2%

+5.7

0.35

0.24

-0.11

Total assets

D/E ratio

Increase /Decrease

http://www.fhi.co.jp/english/ir/index.html

6Total assets were up 179.0 billion yen from what they were at the end of March 2014 tototal 2,067.4 billion yen. This increase came from net income as well as the weakening
yen despite tax and dividend payments for the previous fiscal year.
Interest-bearing debt was down 42.9 billion yen to total 226.8 billion yen.
Net assets rose 193.2 billion yen to reach 963.2 billion yen. The shareholders’ equity tototal assets ratio was 46.2% while the debt-to-equity ratio stood at 0.24.

6

9 months : Consolidated Statement of Cash Flows（100 Million Yen）

Actual results
9 months
FYE 2014

Actual results
9 months
FYE 2015

Net cash provided by (usedin) operating activities

2,215

1,773

-442

Net cash provided by (usedin) investing activities-121-1,165-1,044

Free cash flows

2,094

608

-1,486

Net cash provided by (usedin) financing activities

-547

-935

-388

Effect of exchange rate change on
cash and cash equivalents

145

273

+129

Net increase (Decrease) in cash
and cash equivalents

1,691

-54

-1,745

Cash and cash equivalents
at end of period

4,982

5,524

-

http://www.fhi.co.jp/english/ir/index.html

Increase /Decrease

7

Net cash flow from operating activities amounted to an inflow of 177.3 billion yen due
primarily to net income before income taxes and minority interests of 286.7 billion yen
despite a payment of corporate income tax, etc., totaling 182.5 billion yen as well as anincrease in working capital due to the upswing in operations.
Net cash flow from investing activities amounted to an outflow of 116.5 billion yen forinvestments aimed at boosting production capacity.
Free cash flow totaled 60.8 billion yen.
Net cash flow from financing activities resulted in an outflow of 93.5 billion yen due tothe repayment of loans, dividend payments, etc.

7

9 months : Operating Results of Subsidiaries in U.S.
（Million US$）

Actual results
9 months
FYE 2014

Actual results
9 months
FYE 2015

8,115

10,115+2,000Operating income

199

417

+218

Net income

123

259

+136

330.5

399.9

+69.4

Actual results
9 months
FYE 2014

Actual results
9 months
FYE 2015

2,817

3,424

+607

Operating income

162

121

-41

Net income

102

81

-21

119.7

149.2

+29.5

SOA
Net sales

Retail sales(Thousand units)

SIA
Net sales

Subaru production(Thousand units)

Increase /Decrease

Increase /Decrease

http://www.fhi.co.jp/english/ir/index.html

8

SOA's retail sales climbed 69.4 thousand units year on year to reach 399.9 thousand
units as sales of the Forester, the XV and the all-new Legacy Outback remained upbeat.
Net sales also jumped 2,000 million dollars year on year to total 10,115 million dollars.
Operating income was up 218 million dollars year on year to total 417 million dollars.
This increase comes from a gain of 395 million dollars due to favorable sales volume
and mix variances despite a loss of 177 million dollars from higher SG&A expenses.
SIA saw net sales soar 607 million dollars to hit 3,424 million dollars.
Operating income, on the other hand, fell 41 million dollars to total 121 million dollars.
The factors behind the decrease include a loss of 28 million dollars from sales price andvolume variances, a gain of 9 million dollars brought in by overall cost reduction efforts,
as well as a loss of 22 million dollars due to an increase in fixed costs.

8

Outlook for the FYE March 2015

http://www.fhi.co.jp/english/ir/index.html

99Full Year : Consolidated Automobile Sales（Thousand Units）

Actual results
FYE 2014

Plan
FYE 2015

Increase /Decrease

Passenger car

126.1

124.3

-1.8

Minicar

55.5

37.0

-18.5

181.6

161.3

-20.3

U.S.

441.8

527.3

+85.5

Canada

36.0

42.2

+6.2

Russia

15.3

12.6

-2.7

Europe

31.8

33.8

+2.0

Australia

39.5

38.6

-0.9

China

44.8

53.8

+9.0

Others

34.3

36.6

+2.3

643.5
825.1

744.8
906.1

+101.3+81.0

Domestic total

Overseas total

Total
http://www.fhi.co.jp/english/ir/index.html* China figures are consolidated on the calendar year basis from Jan. to Dec.

10

Consolidated automobile sales for the fiscal year ending March 2015 is projected toreach 906.1 thousand units.
In light of current sales performance in China and Russia, we revised our automobile
sales forecast that was announced at the end of the second quarter. Even though it's
3.3 thousand units shy of what was previously projected, we are still aiming to set a newrecord high in automobile sales for the third year in a row.
Domestic sales are projected to fall 20.3 thousand units year on year to total 161.3
thousand units due to a decline in minicar sales although sales of new models like the
all-new Legacy, which was launched last November, the Levorg, and the WRX willremain up.
Sales in the U.S. market are expected to remain healthy and drive overseas sales up
101.3 thousand units to total 744.8 thousand units.

10Full Year : Consolidated Operating Plan
（100 Million Yen）

Actual results
FYE 2014

Plan
FYE 2015

Increase /Decrease

Net sales

24,081

28,500+4,419Domestic

6,721

6,483

-237

Overseas

17,36122,017+4,656

Operating income

3,265

4,100

+835

Ordinary income

3,144

3,920

+776

Income before
income taxes andminority interests

3,289

3,840

+551

Net income

2,066

2,530

+464

¥100/US$¥108/US$+¥8/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

11

We made upward revisions to all our previous forecasts after factoring in the impact thatcurrent foreign currency exchange rates will have on our performance. We expect
figures for net sales and all operating income categories to reach record high levels forthe third year in a row.
Net sales are expected to jump 441.9 billion yen year on year to total 2,850.0 billion yen.
This uptick will come from a gain of 275.5 billion yen due to better sales mix variances
resulting from increased sales volumes, a foreign exchange gain of 155.9 billion yen, as
well as a 10.5 billion yen increase in sales at FHI internal companies, etc.
Operating income will rise 83.5 billion yen year on year to total 410.0 billion yen. Factors
behind this increase will include foreign exchange gains, better sales mix variances, andreduced materials costs, which will offset increases in SG&A and R&D expenses.
Ordinary income will go up 77.6 billion yen to reach 392.0 billion yen while income
before income taxes and minority interests is expected to increase 55.1 billion yen to hit
384.0 billion yen since we will not post any major extraordinary losses or gains this fiscal
year unlike last fiscal year when a 47.3 billion yen gain on the sale of investment
securities was posted. Net income is projected to increase 46.4 billion yen to total 253.0
billion yen.

11

Analysis of Increase and Decrease in
Operating Income Changes (consolidated)
US$ : +884
EURO : +19
CA$ : +7
CNY : +8
Currency
exchange
adjustment : +22（100 Million Yen）

Improvementof salesvolume &mixture Cost reduction
Gain onand others+117
currency
exchange +585

+940

Fixed cost : -93 (FHI -56 SIA -37)
SG&A : -376 (FHI -57 SOA -200 and others)
Warranty claims : -99

Increase of
Increase of
SG&A
R&D
expensesand others expenses

-568
3,265

-239

FHI : +120 (Material cost : -39)
SIA : -3 (Material cost : -24)

4,100

Domestic : +81 (Increase of sales volume and deterioration of mixture)
Overseas : +721 (Increase of sales volume and deterioration of mixture)
Others : -217

Actual results
Operating income
FYE 2014
http://www.fhi.co.jp/english/ir/index.html+83.5 billion

Plan
Operating income
FYE 2015
12

Now let's look at the factors behind the projected year-on-year 83.5 billion yen increase in operating income that willtake us from 326.5 billion yen to 410.0 billion yen.
The primary reason for the increase in operating income will be a foreign exchange gain of 94.0 billion yen.
This includes a gain of 88.4 billion yen due to an approximate 8 yen depreciation against the U.S. dollar, a gain of 1.9
billion yen due to an approximate 6 yen depreciation against the euro, and a gain of 0.7 billion yen due to an
approximate 1 yen depreciation against the Canadian dollar. On top of that is a gain of 0.8 billion yen resulting fromcurrency translations between the yen and the Chinese yuan and a gain of 2.2 billion yen due to foreign exchange
adjustments for transactions between FHI and its overseas subsidiaries.
Another contributing factor that will bring operating income up is a favorable sales mix variance that will lead to a gainof 58.5 billion yen.
First off there will be a gain of 8.1 billion yen associated with domestic sales of new models. The launch of newmodels like the Levorg and the WRX will drive sales volumes up.
Next, we will see a gain of 72.1 billion yen from sales of new models in overseas markets. Growing sales in the U.S.
market as well as increasing sales volumes in China and Canada will bring sales up substantially above last year's
total.
Finally, we expect a loss of 21.7 billion yen due to inventory adjustments.
Another factor behind the jump in operating income will be a gain of 11.7 billion yen from cost cuts.
This includes a gain of 12.0 billion yen generated by FHI as well as a loss of 0.3 billion yen at SIA. FHI is expected togenerate a gain of 15.9 billion yen through cost reductions and a loss of 3.9 billion yen due to increasing materials
costs and other negative market factors. SIA will yield a gain of 2.1 billion yen through cost reductions and a loss of
2.4 billion yen due to lower material prices, etc.
The primary factor that will bring operating income down will be a loss of 56.8 billion yen due to increases in SG&A
expenses.
First, we will see a loss of 9.3 billion yen due to an increase in fixed manufacturing costs. This will include a loss of
5.6 billion yen at FHI as well as a loss of 3.7 billion yen coming from SIA. FHI will generate a gain of 1.0 billion yen
due to cost cuts for suppliers’ dies and a loss of 6.6 billion yen due to higher fixed processing costs. SIA will see aloss of 1.4 billion yen due to increased costs for suppliers’ dies and a loss of 2.3 billion yen due to higher fixed
processing costs.
The second factor will be a loss of 37.6 billion yen due to an increase in SG&A expenses. FHI expects to lose 5.7
billion yen due to mounting expenses for new model launches, etc. The 37.6 billion yen loss will also include a loss of
0.5 billion yen at domestic dealers, a loss of 20.0 billion yen at SOA, a loss of 2.0 billion yen at our Canadiansubsidiary, and a loss of 9.4 billion yen from our other operations.
The third factor will be an increase in costs associated with warranty claims that will lead to a loss of 9.9 billion yen.
Finally, an increase in R&D expenses will result in a loss of 23.9 billion yen.
All these factors combined will bring operating income for the fiscal year ending March 2015 up 83.5 billion yen tototal 410.0 billion yen.

12

Full Year : Operating Plan of Subsidiaries in U.S.
（Million US$）SOA

Actual results
FYE 2014

Plan
FYE 2015

Increase /Decrease

11,005

13,421+2,416

Operating income

184

484

+300

Net income

111

299

+188

442.3

525.9

+83.6

Net sales

Retail sales(Thousand units)

SIA

Actual results
FYE 2014

Plan
FYE 2015

Increase /Decrease

3,848

4,739

+891

Operating income

265

147

-118

Net income

167

95

-72

163.5

206.3

+42.8

Net sales

Subaru production(Thousand units)
http://www.fhi.co.jp/english/ir/index.html

13

Retail sales at SOA for this fiscal year are expected to jump 83.6 thousand units year on
year to total 525.9 thousand units thanks to strong sales of the Forester and the all-new
Legacy Outback.
Net sales will increase 2,416 million dollars year on year to reach 13,421 million dollars.
Operating income will rise 300 million dollars year on year to total 484 million dollars.
This increase will come from a gain of 500 million dollars from favorable sales volumes
and mix variances despite a loss of 200 million dollars due to higher SG&A expenses.
SIA's net sales are expected to increase 891 million dollars year on year to reach 4,739
million dollars.
Operating income will drop 118 million dollars year on year to reach 147 million dollars.
Factors behind the decrease will include a loss of 78 million dollars due to sales priceand volume variances, a loss of 3 million dollars related to cost reduction efforts, as well
as a loss of 37 million dollars due to an increase in fixed costs.

13

Capex / Depreciation / R&D / Interest bearing debt
（100 Million Yen）

Actual Results Actual Results Actual Results
9 months
FYE20149 months
FYE2014(a)
FYE 2015

Plan
FYE2015(b)

Increase/ Decrease(b) - (a)

Capex

412

685

828

1,200

+515

Depreciation

394

549

445

660

+111

R&D

433

601

549

840

+239

2,760

2,697

2,268

2,200

-497

Interest
bearing debt

http://www.fhi.co.jp/english/ir/index.html

14

No revisions have been made to our forecasts for capital investments, depreciation
costs, R&D expenses, and interest-bearing debts since the last time they wereannounced. We will make investments aimed at implementing R&D initiatives focusedon future products as well as other initiatives aligned with our carefully planned
investment strategies.

14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

1515

9 months : Non-Operating Income & Expenses andExtraordinary Income & Loss (Consolidated)（100 Million Yen）

Actual results
9 months
FYE 2014

Actual results
9 months
FYE 2015

1

8

+7

-108

-230

-122

-12

4

+16

Total non-operating income &expenses

-119

-218

-99

Gain on sales of noncurrent
assets2

6+4

Gain on sales of investment
securities

472

9

-463

Loss on sales andretirement of
noncurrent assets

-17

-28

-11

-1

-5

-4

457

-17

-474

Financial revenue andexpenditure
FOREX effects
Other

Other
Total extraordinary income & loss
http://www.fhi.co.jp/english/ir/index.html

Increase /Decrease16

16

9 months : Net Sales and Operating Income
by Business Segment (consolidated)（100 Million Yen）

Net sales

Operating income

Actualresults
9 months
FYE 2014

Actualresults
9 months
FYE 2015

Increase/
Decrease

Actualresults
9 months
FYE 2014

Actualresults
9 months
FYE 2015

Increase/
Decrease

Automobile

15,962

19,370+3,407

2,203

2,973

+770

Aerospace

846

980

+133

106

106

+0

Industrial
products

220

203

-18

2

1

-1

Others

56

55

-1

18

17

-2

4

5

+0

2,334

3,102

+768

Elimination& corporate
Total

17,085

http://www.fhi.co.jp/english/ir/index.html

20,607+3,52217

17

9 months : Net Sales and Operating Income
by Geographic Area (consolidated)（100 Million Yen）

Net sales

Operating income

ActualActualActualActualIncrease
Increase
results
results
results
results//
9 months 9 months
9 months 9 months
Decrease
Decrease
FYE 2014 FYE 2015
FYE 2014 FYE 2015
Japan

6,839

6,662

-177

2,038

2,431

+393

North
America

9,084

11,955+2,871

434

773

+338

Other

1,163

1,990

+828

-5

115

+121

-133

-218

-84

2,334

3,102

+768

Elimination
andcorporate
Total

17,085

http://www.fhi.co.jp/english/ir/index.html

20,607+3,52218

18

9 months : Overseas Net Sales（100 Million Yen）

Actual results
9 months
FYE 2014

Actual results
9 months
FYE 2015

9,640

12,688+3,048Europe

837

856

+19

Asia

916

1,675

+758

Other

904

970

+66

12,297

16,189+3,891

North America

Total

http://www.fhi.co.jp/english/ir/index.html

Increase /Decrease19

19

9 months : Non-Consolidated Automobiles Sales（Thousand Units）

Actual results
9 months
FYE 2014

Actual results
9 months
FYE 2015

Domestic production

482.3

528.2

+45.9

Domestic sales

131.2

115.3

-15.9

Passenger cars

90.9

91.0

+0.1

Minicars

40.3

24.3

-16.0

371.6

414.0

+42.4

124.3

164.3

+40.0

627.2

693.7

+66.5

Number of vehicles
exported
Components foroverseas production
Total

Increase /Decrease* Domestic Production figures include Toyota 86.

http://www.fhi.co.jp/english/ir/index.html

2020

Appendix (2)・
3rd quarter・3rd
quarter,, consolidated statements income
・ 4th quarter, consolidated statements income
・ Full year, Previous plan vs. revised plan

http://www.fhi.co.jp/english/ir/index.html

21

21

3rd Quarter : Consolidated Automobile Sales（Thousand Units）

Actual results
3rd quarter
FYE 2014

Actual results
3rd quarter
FYE 2015

Increase /Decrease

Passenger car

25.1

27.1

+1.9

Minicar

11.4

7.3

-4.1

Domestic total

36.5

34.3

-2.2

U.S.

117.5

148.8

+31.3

Canada

8.5

9.9

+1.4

Russia

2.7

2.2

-0.5

Europe

8.1

7.3

-0.9

Australia

8.3

8.9

+0.6

China

10.6

12.0

+1.4

Others

8.4

8.6

+0.2

164.2
200.8

197.7
232.1

+33.5
+31.3

Overseas total

Total
http://www.fhi.co.jp/english/ir/index.html* China figures are consolidated on the calendar year basis from Jul. to Sep.

22

22

3rd Quarter : Consolidated Income Statements（100 Million Yen）

Actual results
3rd quarter
FYE 2014

Actual results
3rd quarter
FYE 2015

Increase /Decrease

Net sales

5,829

7,505

+1,676

Domestic

1,482

1,491

+9

Overseas

4,347

6,014

+1,667

Operating income

827

1,245

+418

Ordinary income

752

1,124

+372

Income before
income taxes andminority interests

1,218

1,120

-98

817

773

-44

¥99/US$¥110/US$+¥11/US$Net income
FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

23

23

3rd Quarter : Analysis of Increase and Decreasein Operating Income Changes (Consolidated)（100 Million Yen）

US$ : +351
EURO : +3
CA$ : +7
CNY : ±0
Currency
exchange
adjustment : +45

+34

+406
Improvementof salesvolume &mixtureand others

+194
827

Fixed cost : -34 (FHI -24 SIA -10)
SG&A : -115 (FHI -11 SOA -49 and others)
Warranty claims : -18

Cost reduction

Gain oncurrency
exchange

Increase of
Increase of
SG&A
R&D
expenses
expensesand others

-167

-49

FHI : +25 (Material cost : -6)
SIA : +9 (Material cost : +1)

1,245

Domestic : +71 (Increase of sales volume and deterioration of mixture)
Overseas : +282 (Increase of sales volume and deterioration of mixture)
Others : -159

Actual results
Operating income
3rd Quarter
FYE 2014
http://www.fhi.co.jp/english/ir/index.html+41.8 billion

Actual results
Operating income
3rd Quarter
FYE 2015
24

24

4th Quarter : Consolidated Automobile Sales（Thousand Units）

Actual results
4th quarter
FYE 2014

Plan
4th quarter
FYE 2015

Increase /Decrease

39.3
18.5

40.8
14.6

+1.5
-3.9

Domestic total

57.7

55.4

-2.3

U.S.

115.4

128.6

+13.2

Canada

8.8

10.2

+1.4

Russia

5.8

1.8

-4.0

EuropeAustralia

8.3
9.9

10.9
10.4

+2.6
+0.5

China

15.2

13.1

-2.1

Others

10.5

12.1

+1.5

174.0
231.7

187.0
242.4

+13.0
+10.7

Passenger car
MinicarOverseas total

Total
http://www.fhi.co.jp/english/ir/index.html* China figures are consolidated on the calendar year basis from Oct. to Dec.

25

25

4th Quarter : Consolidated Income Statements（100 Million Yen）

Actual results
4th quarter
FYE 2014

Plan
4th quarter
FYE 2015

Increase /Decrease

Net sales

6,996

7,893

+897

Domestic

1,933

2,065

+132

Overseas

5,063

5,828

+765

Operating income

931

999

+67

Ordinary income

930

1,036

+106

Income before
income taxes andminority interests

618

973

+356

Net income

251

626

+376

¥103/US$¥116/US$+¥13/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

26

26

4th Quarter : Analysis of Increase and Decreasein Operating Income Changes (Consolidated)（100 Million Yen）

US$ : +325
EURO : +5
CA$ : +6
CNY : +1
Currency
exchange
adjustment : -18

Gain oncurrency
Cost reduction
exchange

+319

+33

Fixed cost : -43 (FHI -28 SIA -15)
SG&A : -35 (FHI -38 SOA -23 and others)
Warranty claims : -21

Increase of
R&D
Increase of
Deterioration
expensesSG&A
of sales-125 expenses volume&
andothers
FHI : +45 (Material cost : -8)
mixture
SIA : -12 (Material cost : -20)-99
and others

-61

931

999

Domestic : +57 (Improvement of sales volume and mixture)
Overseas : -45 (Increase of sales volume and deterioration of mixture)
Others : -73

Actual results
Operating income
4th Quarter
FYE 2014
http://www.fhi.co.jp/english/ir/index.html+6.7 billion

Plan
Operating income
4th Quarter
FYE 201527

27

(Previous Plan vs. Revised Plan)
Full Year : Consolidated Automobile Sales（Thousand Units）

Previous plan
FYE 2015

Revised plan
FYE 2015

Increase /Decrease

Passenger car

125.7

124.3

-1.4

Minicar

40.8

37.0

-3.8

166.5

161.3

-5.2

U.S.

513.2

527.3

+14.1

Canada

40.7

42.2

+1.5

Russia

18.7

12.6

-6.1

Europe

36.0

33.8

-2.2

Australia

38.2

38.6

+0.4

China

60.0

53.8

-6.2

Others

36.1

36.6

+0.4

742.8
909.4

744.8
906.1

+2.0
-3.3

Domestic total

Overseas total

Total
http://www.fhi.co.jp/english/ir/index.html* China figures are consolidated on the calendar year basis from Jan. to Dec.

28

28

(Previous Plan vs. Revised Plan)
Full Year : Consolidated Income Statements（100 Million Yen）

Previous plan
FYE 2015

Revised plan
FYE 2015

Increase /Decrease

Net sales

27,80028,500+700

Domestic

6,582

6,483

-99

Overseas

21,21822,017+799

Operating income

3,820

4,100

+280

Ordinary income

3,700

3,920

+220

Income before
income taxes andminority interests

3,640

3,840

+200

Net income

2,410

2,530

+120

¥104/US$¥108/US$+¥4/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

2929

(Previous Plan vs. Revised Plan) Full Year : Analysis of Increase andDecrease in Operating Income Changes (Consolidated)
US$ : +453
EURO : +8
CA$ : +13
CNY : ±0
Currency
exchange
adjustment : +54（100 Million Yen）

Gain oncurrency
exchange

Cost reduction

+8

+528
Decrease of
SG&A
expensesand others+15
Fixed cost : +1 (FHI +1)
SG&A : +54 (FHI +8 SOA -6 and others)
Warranty claims : -40

3,820

FHI : +10 (Material cost : +10)
SIA : -2 (Material cost : -5)

Deteriorationof salesvolume &mixtureand others

-271

4,100

Domestic : +9 (Decrease of sales volume and improvement of mixture)
Overseas : -58 (Increase of sales volume and deterioration of mixture)
Others : -222

Previous Plan
Operating income
FYE 2015
http://www.fhi.co.jp/english/ir/index.html+28.0 billion

Actual results
Operating income
FYE 201530

30

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/ir/index.html

31

31

Net Sales & Operating Income¥77/$
Net Sales(100 million yen)

¥78/$

¥81/$

¥79/$

¥79/$

¥89/$

¥98/$

¥98/$

¥99/$

¥103/
$

¥102/
$

¥102/
$

8,000
Net sales

7,000

Operating income

6,000
4,877
4,289

7,505

1,245

5,934

5,787 5,829

1,069

931

4,691 4,727

4,000 3,744

900

827

811

787

696

3,000

Operating
Income（100 million yen)

1,200

5,422 5,469

5,000

7,168

6,996

¥110/
$

600

470

2,000

0
3Q

173

161

91

300

301

259

1,000

0
4Q

1Q

FYE2012
http://www.fhi.co.jp/english/ir/index.html

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE2014

4Q

1Q

2Q

3Q

FYE201532

32

Consolidated Automobile Sales& Operating Income Margin
Automobile sales(1,000 cars)

OPM

250

Consolidated automobile sales
208

198

200

183
166

166

178

191

202

12.7%

232

16.6%

201

14.0%

150

238

232

OPM

20%
18%

194
14.9%

14.2%

13.3%

13.3%

15%
13%
10%

8.7%

100
5.5%

50

3.3%

8%

6.4%

5%

4.0%

3%

2.4%

0

0%
3Q

4Q

1Q

FYE2012
http://www.fhi.co.jp/english/ir/index.html

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE2014

4Q

1Q

2Q

3Q

FYE201533

33

Completed Cars Production & Retail Units
Units（1000 units)

250

200

Production
196

196

191

Retail Units

228
207

197
182
167

158

178

172

211 214213 212 210 211

211
195 197225

237 241 234

193

177

150

100

50

0
Oct. Dec.

Jan. Mar.

Apr. Jun.

2011

Jul. Sep.

2012

Oct. Dec.

Jan. Mar.

Apr. Jun.

Jul. Sep.

2013

Oct. Dec.

Jan. Mar.

Apr. Jun.

Jul. Sep.

Oct. Dec.

2014* Production figures include Toyota 86.

http://www.fhi.co.jp/english/ir/index.html

34

34

Free Cash Flows & Shareholders’ Equity to Total Assets
Shareholders’Equity to
Total Assets

FCF（100 million yen)

FCF

2,800

50%

2,791

Shareholders' equity to total assets

46.2%

2,300

2,094

45%

42.6%
41.2%

1,800

44.0%
42.9%

39.9%

1,300
778

800
33.7% 33.3% 33.7%

300
-200

-42

283

221

3Q

4Q

1Q

FYE2012
http://www.fhi.co.jp/english/ir/index.html

40%

40.5%

1,198

37.7%

953

646
35.2%

711

516

608

35%

34.2%

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE2014

4Q

-163
1Q

30%
2Q

3Q

FYE201535

35

Interest-Bearing Debt & D/E Ratio
Interest
Bearing Debt
(100 million yen)

4,000

D/E ratio

3,688
3,410 3,381

Interest-bearing debt
3,301 3,236

3,072

3,000

2,967 2,918

1.4

D/E ratio

1.2
2,760 2,697

2,574
2,322 2,268

0.76

0.85

2,000

0.74

0.69

1.0
0.8

0.64

0.6

0.52

0.46

0.41

1,000

0.36

0.35

0.32

0.4

0.27

0.2

0.24

0

0.0
3Q

4Q

FYE2012
http://www.fhi.co.jp/english/ir/index.html

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE2014

4Q

1Q

2Q

3Q

FYE201536

36

Forward-looking statements including projections and future strategies mentioned in this presentation are basedon 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 limitation, economic conditions,market demand and fluctuations in foreign exchange rates.
Investors are asked not to rely solely on the information in this presentation when they make their final investment
decisions.
http://www.fhi.co.jp/english/ir/index.html

3737

http://www.fhi.co.jp/english/ir/index.html

3838