Executive Vice President & CFO, Mitsuru Takahashi

Fuji Heavy Industries Ltd.
May 9, 2014
http://www.fhi.co.jp/english/ir/index.html

00Summary
Financial results full year for the FYE March 2014
 Due to healthy sales of Forester and Impreza, consolidated automobile sales set an
all-time records for 2nd straight year of 825k units for a fiscal year period.
 In addition to gain on currency exchange, improvement in sales volume & mixture andcost reduction brought all time record high for 2nd straight year in net sales and all
profit levels for a fiscal year period.
Net sales

Actual results(YoY)¥2,408.1bil.
(+¥495.2bil.)

Operating income¥326.5bil.

(+¥206.1bil.)

Ordinary income¥314.4bil.

(+¥213.8bil.)

Net income¥206.6bil.

(+¥87.0bil.)

Consolidated
automobile units

825.1k(+100.6k)

Financial projections full year for the FYE March 2015
 Due to new car launches of Legacy, Outback and Levorg, consolidated automobile
sales units plan are projected all-time records for 3rd straight year of 916k units for a fiscal
year period.
 Increase of sales volume will offset increase of SG&A expenses from new cars
introduction. Full year projections of net sales and all profit levels will be all time record
high for 3rd straight year
Net sales

Plan
(YoY)

¥2,720.0bil.
(+¥311.9bil.)

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

Operating income¥340.0bil.

(+¥13.5bil.)

Ordinary income¥330.0bil.

(+¥15.6bil.)

Net income¥215.0bil.
(+¥8.4bil.)

Consolidated
automobile units

916.0k(+90.9k)

1

1

Business results of the FYE March 2014

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

22

Full year : Consolidated Automobile Units（Thousand Units）

Actual results
FYE 2013

Actual results
FYE 2014

Increase/ decrease

Passenger cars

112.8

126.1

+13.4

Minicars

50.4

55.5

+5.1

Domestic total

163.1

181.6

+18.5

U.S.

357.6

441.8

+84.2

Canada

32.6

36.0

+3.4

Russia

14.7

15.3

+0.6

Europe

46.4

31.8

-14.6

Australia

38.1

39.5

+1.4

China

50.2

44.8

-5.4

Others

21.7

34.3

+12.6

Overseas total

561.3

643.5

+82.2

Total

724.5

825.1

+100.6

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

3

Consolidated automobile sales for the fiscal year that ended March 2014 totaled 825.1
thousand units, up 100.6 thousand units year on year, setting a new record high for thesecond consecutive year.
Domestic sales were up 18.5 thousand units to total 181.6 thousand units thanks to strong
sales of the Forester and the Impreza which offset the decreased sales volume of theLegacy.
Overseas sales reached 643.5 thousand units, up 82.2 thousand units, as sales of theForester exceeded the previous year's levels in all markets on top of growing sales in the
U.S.

3Full year : Consolidated Income Statements（100 Million Yen）

Actual results
FYE 2013

Actual results
FYE 2014

Net sales

19,13024,081+4,952

Domestic

6,718

6,721

+2

Overseas12,411

17,361+4,949Operating income

1,204

3,265

+2,061

-198

-121

+78

1,006

3,144

+2,138

-75

144

+220

931

3,289

+2,358Net income

1,196

2,066

+870

FHI exchange rate

¥82/US$¥100/US$+¥17/US$

Total non-operating
income & expenses

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

Increase/ decrease

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

4Both net sales and all income hit a record high for the second year in a row.
Net sales increased 495.2 billion yen year on year to total 2,408.1 billion yen. The main
factors behind this increase include a foreign exchange gain of 272.0 billion yen, a gain of
211.2 billion yen due to better sales mix variances resulting from increased sales volumes
across the globe, as well as a 12.0 billion yen increase in sales at FHI internal companies,
etc.
Operating income rose 206.1 billion yen year on year to total 326.5 billion yen. This jump
was mainly due to foreign exchange gains, improved sales mix variances, and reduced
materials costs, etc., all of which offset an increase in SG&A and R&D expenses.
Ordinary income rose 213.8 billion yen year on year to total 314.4 billion yen.
Income before taxes and minority interests totaled 328.9 billion yen, up 235.8 billion yen
year on year, due to a 47.3 billion yen gain on the sale of investment securities. This
increase came despite an allowance for doubtful accounts totaling 29.6 billion yen that wasposted in March in connection with a court ruling on a lawsuit.
Net income rose 87.0 billion yen to reach 206.6 billion yen.

4Full year : Analysis of Increase and Decreasein Operating Income Changes (consolidated)
US$ : +1,567
EURO : +49
CA$ : +74
CNY : +6
Currency
exchange
adjustment : +6

Improvement of sales
volume &mixture Cost reduction
Gain onand others+197
currency+511
exchange+1,702

FHI : +156
SIA : +41（100 Million Yen）

Increase of fixed cost
Increase of SG&A expenses
Decrease of warranty claims expenses

Increase of
Increase of
SG&A
expenses R&D expenses
and others
-109

-240

3,265
1,204
Actual results
Operating income
FYE 2013
http://www.fhi.co.jp/english/ir/index.html

Domestic : Increase of sales volume and deterioration of mixture
Overseas : Improvement of sales volume and mixture+206.1 billion

Actual results
Operating income
FYE 2014
5

Now let’s look at the reasons behind the year-on-year increase of 206.1 billion yen in operating income that went from
120.4 billion yen to 326.5 billion yen.
The primary reason for the increase in operating income was a foreign exchange gain of 170.2 billion yen. This includes
a gain of 156.7 billion yen due to an approximate 17 yen depreciation against the U.S. dollar, a gain of 4.9 billion yen due
to an approximate 27 yen depreciation against the euro, and a gain of 7.4 billion yen due to an approximate 13 yen drop
against the Canadian dollar, as well as a gain of 0.6 billion yen as a result of currency translations between the yen and
the Chinese yuan. This figure also includes a gain of 0.6 billion yen due to foreign exchange adjustments for transactions
between FHI and its overseas subsidiaries.
Another contributing factor that brought operating income up is a favorable sales mix variance that led to a gain of 51.1
billion yen. This gain can be broken down into the following three areas.
First, we saw a gain of 5.1 billion yen in domestic new car sales. Overall domestic sales exceeded last year's level thanks
to increased sales of the Forester and the Impreza although the sales mix was not as good as it was a year ago.
Next, we saw a gain of 53.5 billion yen in overseas new car sales. Both the sales volume and sales mix improved thanks
to strong sales of the Forester which were higher than what they were last year across the board in addition to growing
sales of the Impreza in the U.S.
Finally, we had a loss of 7.5 billion yen due to inventory adjustments.
Another factor behind the jump in operating income was a gain of 19.7 billion yen due to cost cuts. This includes a gain of
15.6 billion yen generated by FHI as well as a gain of 4.1 billion yen coming from SIA. FHI saw a gain of 18.8 billion yen
due to cost reductions as a result of increased production, etc. and a loss of 3.2 billion yen due to higher material costs
and worsened market conditions. SIA yielded a gain of 3.0 billion yen through cost reductions and a gain of 1.1 billion yen
due to materials prices, etc.
The main factor bringing operating income down was a loss of 24.0 billion yen due to increases in SG&A expenses. This
loss can be broken down into the following three areas.
First, we saw a loss of 2.7 billion yen due to an increase in fixed manufacturing costs. This includes a loss of 5.9 billion
yen generated by FHI as well as a gain of 3.2 billion yen coming from SIA. FHI generated a loss of 0.6 billion yen due toincreased costs for suppliers’ dies and a loss of 5.3 billion yen due to higher fixed processing costs while SIA gained 2.9billion yen due to cost cuts for suppliers’ dies and 0.3 billion yen due to a reduction in fixed processing costs.
The second factor is a loss of 25.9 billion yen due to an increase in SG&A expenses. FHI lost 7.0 billion yen due to anincrease in advertising costs, etc. as well as mounting transportation and packing costs that went hand in hand with theincreasing sales volume. The 24.0 billion yen loss also includes a loss of 2.1 billion yen at domestic dealers, a loss of
17.2 billion yen generated at SOA, a loss of 2.6 billion yen at our Canadian subsidiary, and a gain of 3.0 billion yen fromother operations.
The third factor includes a decrease in costs associated with warranty claims that led to a gain of 4.6 billion yen.
Finally, an increase in R&D expenses resulted in a loss of 10.9 billion yen.
These factors combined brought the consolidated operating income for the fiscal year that ended March 2014 up 206.1
billion yen to total 326.5 billion yen.

5Consolidated Balance Sheets（100 Million Yen）

Increase /decrease

As of Mar. 2013

As of Mar. 2014

15,775

18,883+3,109Current assets

9,440

12,738+3,297

Noncurrent assets

6,334

6,146

-188

Interest bearing
debts

3,072

2,697

-375

Net assets

5,968

7,701

+1,733Retained earnings

3,014

4,839

+1,826

Shareholder’s equity

5,954

7,655

+1,702

Shareholder’s equity tototal assets

37.7％

40.5％

+2.8

0.52

0.35

-0.16

Total assets

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

6Total assets increased 310.9 billion yen year on year to total 1,888.3 billion yen. This
increase was due to a jump in net income resulting from higher sales as well as a foreignexchange gain of 62.8 billion yen.
Interest-bearing debt declined 37.5 billion yen to total 269.7 billion yen, and net assets
totaled 770.1 billion yen, up 173.3 billion yen.
The shareholders’ equity to total assets ratio was 40.5% while the debt-to-equity ratio
stood at 0.35.

6Full year : Consolidated Statement of Cash Flows（100 Million Yen）

Actual results
FYE 2013

Actual results
FYE 2014

1,667

3,130

+1,463

-714

-339

+375

953

2,791

+1,838

-608

-630

-22

Effect of exchange rate change on
cash and cash equivalents
Net increase (Decrease) in cash
and cash equivalents
Increase (decrease) in cash andcash equivalents resulting fromchange of scope of consolidation

150

127

-23

495

2,288

+1,793

213

1

-212

Cash and cash equivalents
at end of period

3,289

5,579

-

Net cash provided by (usedin) operating activities
Net cash provided by (usedin) investing activities
Free cash flows

Net cash provided by (usedin) financing activities

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

Increase/ decrease

7

Net cash from operating activities totaled 313.0 billion yen due to better businessperformance that brought net income before taxes and minority interests up.
Net cash used for investment activities totaled negative 33.9 billion yen due to the sale ofinvestment securities in addition to our ongoing initiatives to boost production capacity.
Free cash flows totaled 279.1 billion yen.
Net cash from financing activities came to negative 63.0 billion yen due primarily to therepayment of loans as well as dividend payments.
Cash and cash equivalents totaled 557.9 billion yen.

7

Full year : Operating Results of Subsidiaries in U.S.
（Million US$）

Actual results
FYE 2013

Actual results
FYE 2014

8,805

11,005+2,200Operating income

133

184

+51

Net income

97

111

+14

347.1

442.3

+95.2

Actual results
FYE 2013

Actual results
FYE 2014

4,158

3,848

-310

Operating income

71

265

+194

Net income

46

167

+121

181.2

163.5

-17.7

SOA
Net sales

Retail sales(Thousand units)

SIA
Net sales

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

Increase/ decrease

Increase/ decrease

8

SOA's retail sales climbed 95.2 thousand units year on year to reach 442.3 thousand units
as sales of the new Forester and the XV remained upbeat.
Net sales also jumped 2,200 million dollars year on year to total 11,005 million dollars.
Operating income was up 51 million dollars year on year to total 184 million dollars. This
increase comes from a gain of 258 million dollars due to favorable sales volumes and mix
variances despite a loss of 207 million dollars from higher SG&A expenses.
SIA's net sales totaled 3,848 million dollars for a 310 million dollar year-on-year decline.
Operating income rose 194 million dollars year on year to reach 265 million dollars. The
factors behind the increase include a gain of 107 million dollars due to sales price andvolume variances, a gain of 49 million dollars brought by overall cost reduction efforts aswell as a gain of 38 million dollars due to a decrease in fixed costs.

8

Outlook for the term Ending March 2015

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

99Full Year : Consolidated Automobile Sales Plan（Thousand Units）

Actual results
FYE 2014

Plan
FYE 2015

Increase/ decrease

Passenger cars

126.1

143.7

+17.6

Minicars

55.5

51.2

-4.3

Domestic total

181.6

194.9

+13.3

U.S.

441.8

490.2

+48.4

Canada

36.0

40.4

+4.4

Russia

15.3

19.3

+4.0

Europe

31.8

40.3

+8.5

Australia

39.5

40.1

+0.6

China

44.8

57.3

+12.5

Others

34.3

33.5

-0.8

Overseas total

643.5

721.1

+77.6

Total

825.1

916.0

+90.9

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

10

Global sales will increase 90.9 thousand units year on year to reach 916 thousand units
due to a major facelift for the Legacy, Outback, and WRX as well as the launch of our newmodel, the Levorg. We are aiming to achieve another record high for the third consecutive
year.
In domestic market, the new Levorg is expected to offset a decrease in minicar sales andbring domestic sales up 13.3 thousand units for a total of 194.9 thousand units.
Sales in overseas markets is projected to total 721.1 thousand units, an increase of 77.6
thousand units, due primarily to booming sales in the U.S. where the new Legacy and the
all new WRX will keep our bottom line up.

10

Full Year : Consolidated Operating Plan
（100 Million Yen）

Actual results
FYE 2014

Plan
FYE 2015

Increase/ decrease

Net sales

24,081

27,200+3,119Domestic

6,721

7,032

+312

Overseas

17,361

20,168+2,807

Operating income

3,265

3,400

+135

Ordinary income

3,144

3,300

+156

Income before
taxes and minority

3,289

3,240

-49

2,066

2,150

+84

¥100/US$¥100/US$+¥0/US$

interests
Net income
FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

11

We expect figures for net sales and all operating income categories, with the exception ofincome before taxes and minority interests, to reach record high levels.
Net sales are expected to jump 311.9 billion yen year on year to total 2,720.0 billion yen.
This uptick will come from a gain of 300.3 billion yen due to better sales mix variances
resulting from increased sales volumes, a 9.9 billion yen increase in sales at FHI internal
companies, etc., as well as a foreign exchange gain of 1.7 billion yen.
Operating income will rise 13.5 billion yen year on year to total 340.0 billion yen. Factors
behind this increase will include better sales mix variances and reduced materials costs,
which will offset increases in SG&A and R&D expenses as well as foreign exchange losses.
Ordinary income is projected to total 330.0 billion yen, up 15.6 billion yen, while income
before income taxes and minority interests will fall 4.9 billion yen to reach 324.0 billion yen
due partially to the extraordinary gain on the sale of investment securities that was posted
last fiscal year.
Net income is projected to total 215.0 billion yen for a year-on-year increase of 8.4 billion
yen.

11

Analysis of Increase and Decrease in
Operating Income Changes (consolidated)
Improvement of sales
volume &mixture andCost reduction
others+920+70

FHI : +63
SIA : +7

3,265

Actual results
Operating income
FYE 2014
http://www.fhi.co.jp/english/ir/index.html（100 Million Yen）

Increase of fixed cost
Increase of SG&A expenses
Decrease of warranty claims expenses
US$ : +46
EURO : +5
CA$ : -30
CNY : +2
Currency
exchange
adjustment : -60

Increase of
Increase of
Loss on
SG&A
expenses R&D expenses currency
exchange
and others

-679

-139

-37

3,400

Domestic : Increase of sales volume and deterioration of mixture
Overseas : Increase of sales volume and deterioration of mixture+13.5 billion

Plan
Operating income
FYE 2015
12

Now let's look at the factors behind the projected year-on-year 13.5 billion yen increase in operating incomethat will take us from 326.5 billion yen to 340.0 billion yen.
The primary reason for the increase in operating income will be a gain of 92.0 billion yen due to better sales
mix variances. This gain can be broken down into the following three areas.
First off there will be a gain of 23.7 billion yen associated with domestic sales of new models. We are
expecting a boost from the launch of new models like the Levorg.
Next, we will see a gain of 66.0 billion yen from sales of new models in overseas markets. The new Legacy
and the WRX in addition to the Forester, which will continue to enjoy robust sales, are expected to drive sales
up.
Finally, we expect a gain of 2.3 billion yen due to inventory adjustments.
Another factor behind the expected increase in operating income will be a gain of 7.0 billion yen resulting fromcost cuts. This will include a gain of 6.3 billion yen to be generated by FHI as well as a gain of 0.7 billion yen
coming from SIA. FHI will see a gain of 14.5 billion yen due to cost reductions as a result of increased
production, etc. and losses related to material costs and market conditions totaling 8.2 billion yen. SIA will see
a gain of 1.6 billion yen due to a reduction in material costs while rising raw material prices will lead to a loss
of 0.9 billion yen.
The primary factor that will bring operating income down will be a loss of 67.9 billion yen due to increases in
SG&A expenses. This loss can be broken down into the following three areas.
First, we will see a loss of 10.9 billion yen due to an increase in fixed manufacturing costs. This will include aloss of 6.3 billion yen to be generated by FHI as well as a loss of 4.6 billion yen coming from SIA. FHI will
generate a gain of 1.5 billion yen due to cost cuts for suppliers’ dies and a loss of 7.8 billion yen due to higher
fixed processing costs. SIA will see a loss of 1.3 billion yen due to increased costs for suppliers’ dies andanother loss of 3.3 billion yen due to higher fixed processing costs.
The second factor will be a loss of 57.4 billion yen due to an increase in SG&A expenses. FHI will see a lossof 14.3 billion yen due to a hike in transportation expenses, etc. as well as other mounting costs associatedwith the increasing sales volume. The 43.1 billion yen loss will also include a loss of 2.2 billion yen atdomestic dealers, a loss of 19.0 billion yen at SOA, a loss of 2.2 billion yen at our Canadian subsidiary, and aloss of 19.7 billion yen from other operations.
The third factor will be a decrease in costs associated with warranty claims that will lead to a gain of 0.4
billion yen.
Finally, an increase in R&D expenses will result in a loss of 13.9 billion yen.
Another contributing factor that will bring operating income down will be a foreign exchange loss of 3.7 billion
yen. This drop will include a gain of 4.6 billion yen due to a slight depreciation of the yen against the U.S.
dollar, a gain of 0.5 billion yen due to an approximate 2 yen depreciation against the euro, and a loss of 3.0
billion yen due to an approximate 5 yen appreciation against the Canadian dollar along with a gain of 0.2
billion yen as a result of currency translations between the yen and the Chinese yuan. The total will also
include a loss of 6.0 billion yen due to foreign exchange adjustments for transactions between FHI and its
overseas subsidiaries.
All these factors combined will bring operating income for the fiscal year ending March 2015 up 13.5 billion
yen to total 340.0 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

12,508+1,503Operating income

184

345

+161

Net income

111

202

+91

442.3

470.0

+27.7

Net sales

Retail sales(Thousand units)

SIA

Actual results
FYE 2014

Plan
FYE 2015

Increase/ decrease

3,848

4,761

+913

Operating income

265

109

-156

Net income

167

65

-102

163.5

208.8

+45.3

Net sales

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

13

Retail sales at SOA for this fiscal year is expected to jump 27.7 thousand units year on
year for a total of 470 thousand units thanks to the launch of the new Legacy and Outback
as well as the Forester, for which momentum should continue to build.
Net sales will increase 1,503 million dollars year on year to reach 12,508 million dollars
while operating income will rise 161 million dollars year on year to total 345 million dollars.
This increase will come from a gain of 352 million dollars due to favorable sales volumes
and mix variances despite a loss of 191 million dollars resulting from higher SG&A
expenses.
SIA's net sales are expected to increase 913 million dollars year on year to reach 4,761
million dollars.
Operating income will drop 156 million dollars year on year to reach 109 million dollars.
Factors for the decrease will include a loss of 117 million dollars due to sales price andvolume variances, a gain of 0.8 million dollars to be brought by cost reduction efforts, aswell as a loss of 47 million dollars due to an increase in fixed costs.

13

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

Actual results
FYE 2013

Actual results
FYE 2014
(a)

Capex

702

685

1,200

+515

Depreciation

559

549

660

+111

R&D

491

601

740

+139

3,072

2,697

2,400

-297

Interest
bearing debt

Plan
FYE2015(b)

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

Increase/ decrease(b) - (a)14

Capital expenditures for the fiscal year ending March 2015 will be up 51.5 billion yen year
on year to total 120.0 billion yen. This increase will include the costs for boostingproduction capacity at our main factory and the Oizumi Plant in Japan as well as at SIA,
our U.S.-based production subsidiary.
Depreciation costs are projected to increase 11.1 billion yen to total 66.0 billion yen while
R&D expenses will total 74.0 billion for an increase of 13.9 billion yen as we step up ourefforts focused on future products.
Interest-bearing debt is expected to total 240.0 billion yen.

14

Appendix (1)・Non-operating income & expenses and extraordinary
・Non-operating
income & loss・Segment information (by Business / Geographic)
・Segment・Overseas net sales
・Overseas・
Non-consolidated automobile sales
・Non-consolidated
・
4th quarter (3 months), consolidated statements income
・4th・
Full year of FYE2014, plan vs. actual results
・Full・ 1st half, consolidated statements income

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

1515

Full year : Non-Operating Income & Expenses andExtraordinary Income & Loss (Consolidated)（100 Million Yen）

Actual results
FYE 2013

Actual results
FYE 2014

Increase/ decrease

-7

1

+8

-172

-95

+77

-19

-27

-8

-198

-121

+78

Gain on sales of investment
securities

6

473

+468

Provision of allowance for
doubtful accounts

-

-296

-296

-81

-33

+48

-75

144

+220

Financial revenue and expenditure
FOREX effects
Other

Total non-operating
income & expenses

Other

Total extraordinary
income & loss

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

1616Full year : Net Sales and Operating Income
by Business Segment (consolidated)（100 Million Yen）

Net sales

Operating income

ActualResults
FYE 2013

ActualResults
FYE 2014

Increase /Decrease

ActualResults
FYE 2013

ActualResults
FYE 2014

Increase /Decrease

Automobile

17,79022,466+4,677

1,110

3,090

+1,980Aerospace

891

1,244

+353

68

141

+73

Industrial
products

301

298

-4

6

6

-0

Others

147

73

-74

16

21

+5

4

6

+3

1,204

3,265

+2,061Eliminationand corporate

Total

19,130

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

24,081+4,95217

17

Full year : Consolidated Operating Income
by Geographic Area（100 Million Yen）

Net sales

Operating income

ActualActualActualActualIncrease /Increase /Results
Results
Results
Results
Decrease
Decrease
FYE 2013 FYE 2014
FYE 2013 FYE 2014
Japan

9,131

9,674

+543

1,114

2,823

+1,709North
America

8,372

12,371+3,999

226

528

+302

Other

1,627

2,036

+409

2

51

+49

-137

-137

-0

1,204

3,265

+2,061Eliminationand corporate

Total

19,130

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

24,081+4,95218

18

Full year : Overseas Net Sales（100 Million Yen）

Actual results
FYE 2013

Actual results
FYE 2014

North America

8,960

13,228+4,268Europe

1,272

1,347

+75

Asia

1,132

1,544

+412

Other

1,047

1,242

+195

12,411

17,361+4,949Total

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

Increase/ decrease

19

19

Full year : Non-Consolidated Automobiles Units（Thousand Units）

Actual results
FYE 2013

Actual results
FYE 2014

Domestic production

583.1

649.9

+66.8

Domestic sales

166.7

185.8

+19.1

Passenger cars

116.3

128.1

+11.7

Minicars

50.4

57.8

+7.4

384.0

499.2

+115.2

185.7

165.6

-20.2

736.4

850.6

+114.1

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

20

20

4th Quarter : Consolidated Automobile Units（Thousand Units）

Actual results
Q4 FYE 2013

Actual results
Q4 FYE 2014

Increase/ decrease

Passenger cars

35.9

39.3

+3.4

Minicars

15.7

18.5

+2.7

Domestic total

51.6

57.7

+6.2

U.S.

98.2

115.4

+17.2

Canada

9.0

8.8

-0.2

Russia

1.5

5.8

+4.4

Europe

11.5

8.3

-3.2

Australia

9.9

9.9

+0.0

China

9.9

15.2

+5.4

Others

6.4

10.5

+4.1

Overseas total

146.3

174.0

+27.7

Total

197.8

231.7

+33.9

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

21

21

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

Actual results
Q4 FYE 2013

Actual results
Q4 FYE 2014

Net sales

5,422

6,996

+1,574

Domestic

1,895

1,933

+38

Overseas

3,527

5,063

+1,536

Operating income

470

931

+461

Ordinary income

372

930

+558

Income before
taxes and minority

313

618

+304

665

251

-414

¥89/US$¥103/US$+¥13/US$interests
Net income
FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

Increase/ decrease

22

22

4th Quarter : Analysis of Increase and Decrease in
Operating Income Changes (consolidated)（100 Million Yen）

US$ : +297
EURO : +14
CA$ : +3
CNY : +7
Currency
exchange
adjustment : -46

Gain onIncrease of fixed costcurrency
Increase of SG&A expenses
Improvement exchange Cost reduction
Decrease of warranty claims expensesof sales+274+3volume &mixture andothersIncrease of
Increase of
SG&A
+316
expenses R&D expenses
and others
FHI : -3
SIA : +6

-103

-29

931
470
Actual results
Operating income
Q4
FYE 2013
http://www.fhi.co.jp/english/ir/index.html

Domestic : Increase of sales volume and deterioration of mixture
Overseas : Improvement of sales volume and mixture+46.1 billion

Actual results
Operating income
Q4
FYE 2014
23

23

Full Year : Consolidated Automobile Units
Plan vs. Actual results（Thousand Units）

Plan
FYE 2014

Actual results
FYE 2014

Increase/ decrease

Passenger cars

135.0

126.1

-8.9

Minicars

53.8

55.5

+1.7

Domestic total

188.8

181.6

-7.2

U.S.

439.8

441.8

+2.0

Canada

36.0

36.0

+0.0

Russia

15.4

15.3

-0.1

Europe

31.9

31.8

-0.1

Australia

39.1

39.5

+0.4

China

44.8

44.8

±0

Others

33.4

34.3

+0.8

Overseas total

640.5

643.5

+3.0

Total

829.3

825.1

-4.2

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

24

24

Full Year : Consolidated Income Statements
Plan vs. Actual results（100 Million Yen）

Plan
FYE 2014

Actual results
FYE 2014

Increase/ decrease

Net sales

23,80024,081+281

Domestic

6,495

6,721

+226

Overseas

17,305

17,361+56

Operating income

3,100

3,265

+165

Ordinary income

2,940

3,144

+204

Income before
taxes and minority

3,034

3,289

+254

Net income

1,920

2,066

+146

FHI exchange rate

¥99/US$¥100/US$+¥1/US$

interests

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

2525

Full Year : Analysis of Increase and Decrease in
Operating Income Changes Plan vs. Actual results
US$ : +70
EURO : +1
CA$ : -3
CNY : -1
Currency
exchange
adjustment : +15

Decrease of Improvement of sales
volume & mixture andSG&A
expenses others
and others

Gain oncurrency
exchange

+82

3,100
Plan
Operating income
FYE 2014
http://www.fhi.co.jp/english/ir/index.html

+69

+27

（100 Million Yen）

FHI : -16
SIA : +3

Cost reduction-13
Domestic :Increase of sales volume
and deterioration of mixture
Overseas :Improvement of sales volume
and mixture

3,265

Increase of fixed cost
Decrease of SG&A expenses
Decrease of warranty claims expenses+16.5 billion

Actual results
Operating income
FYE 2014
26

26

1st Half : Consolidated Automobile Sales Plan（Thousand Units）

Actual results
1H FYE 2014

Plan
1H FYE 2015

Increase/ decrease

Passenger cars

61.7

70.5

+8.8

Minicars

25.6

22.6

-3.0

Domestic total

87.3

93.2

+5.8

U.S.

208.9

233.9

+25.0

Canada

18.7

21.7

+3.0

Russia

6.8

9.2

+2.4

Europe

15.3

18.4

+3.1

Australia

21.3

19.0

-2.2

China

18.9

27.6

+8.6

Others

15.4

15.8

+0.4

Overseas total

305.3

345.6

+40.3

Total

392.6

438.8

+46.1

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

27

27

1st Half : Consolidated Operating Plan
（100 Million Yen）

Actual results
1H FYE 2014

Plan
1H FYE 2015

Increase/ decrease

Net sales

11,256

13,000+1,744

Domestic

3,306

3,426

+120

Overseas

7,951

9,574

+1,623Operating income

1,507

1,600

+93

Ordinary income

1,462

1,560

+98

Income before
taxes and minority

1,453

1,540

+87

998

1,010

+12

¥98/US$¥100/US$+¥2/US$

interests
Net income
FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

28

28

1st Half : Analysis of Increase and Decrease in
Operating Income Changes (consolidated)（100 Million Yen）

Improvementof salesGain onvolume &currency
mixture andexchange Cost reduction
others

+473

+47

+30

US$ : +87
EURO : +7
CA$ : -17
CNY : +2
Currency
exchange
adjustment : -32

1,507

Increase of fixed cost
Increase of SG&A expenses
Decrease of warranty claims expenses

Increase of
Increase of
SG&A
expenses R&D expenses
and others
-63

-394

FHI : +29
SIA : +1

1,600

Domestic : Increase of sales volume and deterioration of mixture
Overseas : Increase of sales volume and deterioration of mixture

Actual results
Operating income
1st Half
FYE 2014
http://www.fhi.co.jp/english/ir/index.html+9.3 billon

Plan
Operating income
1st Half
FYE 2015
29

29

Appendix (2)・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

30

30

Net Sales & Operating Income
Net Sales(100 million yen)

¥83/$

¥82/$

¥79/$

¥77/$

¥78/$

¥81/$

¥79/$

¥79/$

¥89/$

¥98/$

¥98/$

¥99/$

6,996

7,000

931

Net sales

6,000

Operating income
5,422 5,469
4,877

5,000
4,000

4,691 4,727

3,546

470

107

161

81

400

301

259
107

800

827

811

600

2,000
1,000

5,787 5,829

3,744

3,004

3,000

1,000

696

4,289

4,059

Operating
Income（100 million yen)¥103/$

200

173

91

0

0
4Q

FYE2011

1Q

2Q

3Q

FYE2012

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

4Q

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

4Q

FYE20143131

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

OPM

Automobile sales

232

OPM
208

198

200

183
169

166

166

191

201
14.2%

178
12.7%

148

150

202

14.0%

13.3%

118

15%
12%
9%

8.7%

100

18%

6%

6.4%
5.5%

50

3.6%
2.3%

2.6%

2.4%

3.3%

4.0%

3%

0

0%
4Q

FYE2011

1Q

2Q

3Q

FYE2012

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

4Q

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

4Q

FYE201432

32

Complete Cars Production & Retail Units
Units（1000 units)

250

Production

Retail Units
196

200
162
147

150 138

150

196

191

197
182
167

158

207

178 172228
213 212 210 211

211
195 197

193

177

136

111

100

50

0
Jan.Mar.

Apr.Jun.

2011

Jul.Sep.

Oct.Dec.

Jan.Mar.

Apr.Jun.

Jul.Sep.

2012

Oct.Dec.

Jan.Mar.

Apr.Jun.

Jul.Sep.

2013

Oct.Dec.

Jan.Mar.

2014* Production figures include Toyota 86.

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

33

33

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

FCF（100 million yen)

2,791

2,900
FCF

Shareholders' equity to total assets

42.6%

2,400

41.2%

1,900

2,094
40.5%

39.9%

40%

37.7%

1,400
900

45%

35.2%

34.7%

871

34.2%
34.7%

33.7%

33.3%

78

47

-100

FYE2011

34.2%

35%

516

646
778

400

4Q

33.7%

1,198

953

1Q

2Q

283
-42
3Q

FYE2012

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

221
30%

4Q

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

4Q

FYE201434

34

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

D/E ratio

Interest bearing debt

4,500

3,965 3,866

4,000
3,500

1.4
3,688
3,410 3,381

3,306

3,000

0.91

2,500

D/E ratio

0.89

3,301 3,236

1.2
3,072

2,967 2,918

2,760 2,697

1.0

0.85
0.76

0.80

0.74

0.69

2,000

0.8
0.64
0.52

1,500

0.6
0.46

0.41

1,000

0.35

0.4

0.36

0.2

500
0

0.0
4Q

FYE2011

1Q

2Q

3Q

FYE2012

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

4Q

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

4Q

FYE201435

35

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

3636

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

3737