Presentation of Business Results
for the 1st Half of FYE 2015
Director of the Boards & CFO, Mitsuru Takahashi
October 31, 2014
http://www.fhi.co.jp/english/ir/index.html

00Summary
Financial results for the 1st half of FYE March 2015
 Due to healthy sales in overseas such as new LEGACY / OUTBACK launched in North America,
consolidated automobile sales set an all-time record high as 1st half.
 In addition to increase in sales volume, gain on currency exchange and cost reduction brought all-time
record high in net sales and all profit levels for the 1st half.
Net sales

Actualresults¥1,310.2bil.
(+¥184.6bil.)

Operatingincome¥185.7bil.

(+¥35.0bil.)

Ordinary
income¥176.0bil.

(+¥29.7bil.)

Net income¥113.0bil.

(+¥13.2bil.)Automobile
sales

431.6k(+39.0k)(YoY)

Projections for the FYE March 2015
 Due to a depreciation of yen on top of strong sales momentum continued in North America, business projections
for the FYE March 2015 is upwardly-revised.
 Increase of sales volume by new models, such as LEGACY / OUTBACK and LEVORG, will offset
increase of SG&A expenses. Full year projections of net sales and all profit levels will be all time
record high for the 3rd straight year.
Net sales

Plan

(YoY)

¥2,780.0bil.
(+¥371.9bil.)

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

Operatingincome¥382.0bil.

(+¥55.5bil.)

Ordinary
income¥370.0bil.

(+¥55.6bil.)

Net income¥241.0bil.

(+¥34.4bil.)Automobile
sales

909.4k(+84.3k)

1

1

Business results
for the 1st half of FYE March 2015

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

22

1st Half : Consolidated Automobile Sales（Thousand Units）

Actual results
1st half
FYE 2014
61.7

Actual results
1st half
FYE 2015
56.5

Minicar

25.6

15.1

-10.5

Domestic total

87.3

71.5

-15.8

U.S.

208.9

249.9

+41.0

Canada

18.7

22.1

+3.4

Russia

6.8

8.6

+1.8

Europe

15.3

15.6

+0.3

Australia

21.3

19.3

-2.0

China

18.9

28.7

+9.8

Others

15.4

15.9

+0.5

Overseas total

305.3

360.1

+54.8

Total

392.6

431.6

+39.0

Passenger car

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

Increase /Decrease-5.3* China figures are consolidated on the calendar year basis from Jan. to Jun.

3

Consolidated automobile sales for the first six months of the fiscal year ending March
2015 totaled 431.6 thousand units. This was the highest first half sales figure everrecorded.
Domestic sales fell 15.8 thousand units year on year to hit 71.5 thousand units due to theprolonged impact of the consumption tax hike despite upbeat sales of the newly launched
Levorg and the all new WRX.
Sales in overseas markets rose 54.8 thousand units to total 360.1 thousand units. This
increase was due to robust performance in the U.S. market where sales of the Legacy,
which was given a major face-lift, got off to a good start while sales of existing models likethe Forester remained up.

3

1st Half : Consolidated Income Statements（100 Million Yen）

Actual results
1st half
FYE 2014

Actual results
1st half
FYE 2015

Increase /Decrease

Net sales

11,256

13,102+1,846

Domestic

3,306

2,928

-378

Overseas

7,951

10,174+2,224

Operatingincome

1,507

1,857

+350

-45

-97

-52

1,462

1,760

+297

-9

-13

-3

1,453

1,747

+294

998

1,130

+132

¥98/US$¥102/US$+¥4/US$

Total non-operating
income & expenses

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

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

4Figures for net sales and all income categories were the highest they have ever been forany six-month period.
Net sales increased 184.6 billion yen year on year to total 1,310.2 billion yen. The main
factors behind this increase include a foreign exchange gain of 39.9 billion yen, a 7.1
billion yen increase in sales at Fuji Heavy Industries (FHI) companies, etc., as well as again of 137.6 billion yen due to better sales mix variances resulting from higher sales
volumes in overseas markets.
Operating income rose 35.0 billion yen year on year to total 185.7 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 the increasein SG&A and R&D expenses.
Ordinary income was up 29.7 billion yen to reach 176.0 billion yen while income before
income taxes and minority interests increased 29.4 billion yen to hit 174.7 billion yen. Net
income climbed 13.2 billion yen to reach 113.0 billion yen.

4

1st Half : Analysis of Increase and Decreasein Operating Income Changes (Consolidated)（100 Million Yen）

Improvementof salesvolume &mixtureand others+452

Gain oncurrency
Cost reduction
exchange+215

US$ : +208
EURO : +11
CA$ : -6
CNY : +7
Currency
exchange
adjustment : -5

1,507

Fixed cost : -16 (FHI -4 SIA -12)
SG&A : -226 (FHI -8 SOA -128 and others)
Warranty claims : -60+50

Increase of
Increase of
SG&A
R&D
expensesand others expenses
FHI : +50
(Material cost : -25)
SIA : ±0
(Material cost : -5)

-302

-65

1,857

Domestic : -47 (Increase of sales volume and deterioration of mixture)
Overseas : +484 (Increase of sales volume and deterioration of mixture)
Others : +15

Actual results
Operating income
1st Half
FYE 2014
http://www.fhi.co.jp/english/ir/index.html+35.0 billon

Actual results
Operating income
1st Half
FYE 2015
5

Now let’s look at the reasons behind the year-on-year increase of 35.0 billion yen in operating income that went from150.7 billion yen to 185.7 billion yen.
The primary reason for the increase in operating income was a gain of 45.2 billion yen due to better sales mix variances.
This gain can be broken down into the following three areas.
First, we saw a loss of 4.7 billion yen in domestic new car sales. While our new model, the Levorg, and the all new WRX
were steadily making headway in the market, the prolonged impact of the consumption tax hike put a damper on salesof minicars and existing models, leading to lower sales volumes and a poorer sales mix.
Next, we saw a gain of 48.4 billion yen in overseas new car sales thanks to higher sales volumes in China and the U.S.
where the new Legacy was launched.
Then finally, we had a gain of 1.5 billion yen due to inventory adjustments.
Another contributing factor that brought operating income up was a foreign exchange gain of 21.5 billion yen. This
includes a gain of 20.8 billion yen due to an approximate 4 yen depreciation against the U.S. dollar, a gain of 1.1 billion
yen due to an approximate 10 yen depreciation against the euro, and a loss of 0.6 billion yen due to an approximate 2
yen appreciation 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 loss of 0.5 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 5.0 billion yen from cost cuts. This includes a gain of
5.0 billion yen generated by FHI on top of zero gains and losses at SIA. FHI saw a gain of 7.5 billion yen due to cost
reductions resulting from increased production, etc. and a loss of 2.5 billion yen due to higher materials costs andworsened market conditions. SIA yielded a gain of 0.5 billion yen through cost reductions and a loss of 0.5 billion yen
due to higher material prices, etc.
The main factor bringing operating income down was a loss of 30.2 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 1.6 billion yen due to an increase in fixed manufacturing costs. This includes a loss of 0.4 billion
yen generated by FHI as well as a loss of 1.2 billion yen coming from SIA. FHI generated a gain of 2.8 billion yen due tolower costs for supplier dies and a loss of 3.2 billion yen due to higher fixed processing costs while SIA lost 0.1 billion
yen due to higher costs for supplier dies and lost 1.1 billion yen due to an increase in fixed processing costs.
The second factor is a loss of 22.6 billion yen due to an increase in SG&A expenses. FHI lost 0.8 billion yen due
primarily to mounting transportation and packing costs that went hand in hand with the increasing sales volume. The
22.6 billion yen loss also includes a gain of 0.6 billion yen at domestic dealers, a loss of 12.8 billion yen generated at
SOA, a loss of 1.2 billion yen at our Canadian subsidiary, and a loss of 8.4 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 6.0 billion yen.
Finally, an increase in R&D expenses resulted in a loss of 6.5 billion yen.
These factors combined brought consolidated operating income for the first six-month period of the fiscal year ending
March 2015 up 35.0 billion yen to total 185.7 billion yen.

5Consolidated Balance Sheets（100 Million Yen）

As of Mar. 31
2014

As of Sep. 30
2014

18,884

19,868+985

Current assets

12,73813,096+358

Noncurrent assets

6,146

6,772

+627

Interest bearing debts

2,697

2,322

-375

Net assets

7,701

8,809

+1,109Retained earnings

4,839

5,725

+886

Shareholder’s equity

7,655

8,739

+1,084

Shareholder’s equity tototal assets

40.5%

44.0％

+3.5

0.35

0.27

-0.09

Total assets

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

Increase /Decrease

6

Despite tax and dividend payments for the previous fiscal year, total assets were up 98.5
billion yen from what they were at the end of March 2014 to reach 1,986.8 billion yen. This
increase was due to an jump in net income as well as the weak yen.
Interest-bearing debt was down 37.5 billion yen to total 232.2 billion yen due partially tothe redemption of corporate bonds in July. Net assets rose 110.9 billion yen to reach
880.9 billion yen.
The shareholders’ equity to total assets ratio was 44.0% while the debt-to-equity ratio
stood at 0.27.

6

1st Half : Consolidated Statement of Cash Flows（100 Million Yen）

Actual results
1st half
FYE 2014

Actual results
1st half
FYE 2015

Net cash provided by (usedin) operating activities

1,579

1,347

-232

Net cash provided by (usedin) investing activities

-381

-637

-255

Free cash flows

1,198

711

-487

Net cash provided by (usedin) financing activities

-243

-627

-384

Effect of exchange rate change on
cash and cash equivalents

59

95

+37

Net increase (Decrease) in cash
and cash equivalents

1,014

179

-835

Cash and cash equivalents
at end of period

4,305

5,758

-

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

Increase /Decrease

7

Net cash flow from operating activities amounted to an inflow of 134.7 billion yen due
primarily to net income before taxes and minority interests of 174.7 billion yen despite apayment of corporate income tax, etc., totaling 123.9 billion yen.
Net cash flow from investing activities amounted to an outflow of 63.7 billion yen forinvestments aimed at boosting production capacity.
Free cash flow totaled 71.1 billion yen.
Net cash flow from financing activities resulted in an outflow of 62.7 billion yen due to therepayment of loans, dividend payments, etc.

7

1st Half : Operating Results of Subsidiaries in U.S.
（Million US$）

Actual results
1st half
FYE 2014

Actual results
1st half
FYE 2015

5,179

6,313

+1,134

Operating income

117

218

+101

Net income

72

133

+61

220.3

262.4

+42.1

Actual results
1st half
FYE 2014

Actual results
1st half
FYE 2015

1,883

2,094

+211

Operating income

88

77

-11

Net income

56

51

-5

80.3

92.1

+11.8

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 42.1 thousand units year on year to reach 262.4 thousand units
as sales of the Forester, the XV and the new Legacy Outback remained upbeat.
Net sales also jumped 1,134 million dollars year on year to total 6,313 million dollars.
Operating income was up 101 million dollars year on year to total 218 million dollars. This
increase comes from a gain of 230 million dollars due to favorable sales volume and mix
variances despite a loss of 129 million dollars from higher SG&A expenses.
SIA saw net sales soar 211 million dollars to hit 2,094 million dollars.
Operating income, on the other hand, was down 11 million dollars to total 77 million
dollars. The factors behind the decrease include a gain of 1 million dollars from sales priceand volume variances as well as a loss of 12 million dollars due to higher 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

125.7

-0.4

Minicar

55.5

40.8

-14.7

181.6

166.5

-15.1

U.S.

441.8

513.2

+71.4

Canada

36.0

40.7

+4.6

Russia

15.3

18.7

+3.4

Europe

31.8

36.0

+4.2

Australia

39.5

38.2

-1.3

China

44.8

60.0

+15.2

Others

34.3

36.1

+1.9

Overseas total

643.5

742.8

+99.4

Total

825.1

909.4

+84.3

Domestic 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 to reach909.4 thousand units.
After factoring in the impact the consumption tax hike will have on the Japanese market,
we revised our global automobile sales forecast that was announced at the end of the firstquarter. Even though it's 6.6 thousand units shy of what was previously projected, we arestill aiming to set a new record high in automobile sales once again for the third year in arow.
Domestic sales are projected to fall 15.1 thousand units year on year to total 166.5
thousand units due to a decline in minicar sales although the launch of new models likethe Levorg, the WRX, the Legacy, etc. will keep passenger vehicle sales at last year's
level.
Continuing upbeat sales in the U.S. market as well as our efforts to increase sales
volumes in other markets should drive overseas sales up 99.4 thousand units to hit 742.8
thousand units.

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

Actual results
FYE 2014

Plan
FYE 2015

Increase /Decrease

Net sales

24,08127,800+3,719Domestic

6,721

6,582

-138

Overseas

17,361

21,218+3,857

Operating income

3,265

3,820

+555

Ordinary income

3,144

3,700

+556

Income before
income taxes andminority interests

3,289

3,640

+351

Net income

2,066

2,410

+344

¥100/US$¥104/US$+¥4/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

11

In addition to consolidated sales volumes, we also made upward revisions to all our
previous forecasts as we strive to reach new record highs for the third consecutive year.
Net sales are expected to jump 371.9 billion yen year on year to total 2,780.0 billion yen.
This uptick will come from a gain of 291.7 billion yen due to better sales mix variances
resulting from increased sales volumes, a foreign exchange gain of 71.0 billion yen, as
well as a 9.2 billion yen increase in sales at FHI companies, etc.
Operating income is projected to total 382.0 billion yen, up 55.5 billion yen year on year.
This increase will mainly come from better sales mix variances resulting from increased
sales volumes, foreign exchange gains, and reduced materials costs, etc., all of which willoffset an increase in SG&A and R&D expenses.
Ordinary income will rise 55.6 billion yen to reach 370.0 billion yen. This uptick will bringincome before income taxes and minority interests up 35.1 billion yen to total 364.0 billion
yen.
Net income is projected to total 241.0 billion yen for a year-on-year increase of 34.4 billion
yen.

11

Analysis of Increase and Decrease in
Operating Income Changes (consolidated)
US$ : +431
EURO : +11
CA$ : -6
CNY : +8
Currency
exchange
adjustment : -32（100 Million Yen）

Improvement
Gain onof salescurrency
volume &Cost reduction
exchange
mixture+109
and others +412

Fixed cost : -94(FHI : -57 SIA : -37)
SG&A : -429
(FHI : -65 SOA : -194 and other)
Warranty claims : -59+855

Increase of
Increase of
SG&A
R&D
expensesand others expenses
FHI : +110 (Material cost : -49)
SIA : -1 (Material cost : -19)

-582

-239

3,265

3,820

Domestic : +72 (Increase of sales volume and deterioration of mixture)
Overseas : +779 (Increase of sales volume and deterioration of mixture)
Others : +4

Actual results
Operating income
FYE 2014
http://www.fhi.co.jp/english/ir/index.html+55.5 billion

Plan
Operating income
FYE 2015
12

Now let's look at the factors behind the projected year-on-year 55.5 billion yen increase in operating income that willtake us from 326.5 billion yen to 382.0 billion yen.
The primary reason for the increase in operating income will be a gain of 85.5 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 7.2 billion yen associated with domestic sales of new models.
We are expecting a boost from the launch of new models like the Levorg as well as the Legacy and the WRX that were
given a major face-lift.
Next, we will see a gain of 77.9 billion yen from sales of new models in overseas markets.
We expect to see a huge year-on-year increase thanks to growing sales in the U.S. market as well as strong sales of
the Forester and the WRX in all markets.
Finally, we expect a gain of 0.4 billion yen due to inventory adjustments.
Another contributing factor that will bring operating income up will be a foreign exchange gain of 41.2 billion yen. This
includes a gain of 43.1 billion yen due to an approximate 4 yen depreciation against the U.S. dollar,a gain of 1.1 billion yen due to an approximate 4 yen depreciation against the euro, and a loss of 0.6 billion yen due toan approximate 1 yen appreciation against the Canadian dollar.
On top of that is a gain of 0.8 billion yen resulting from currency translations between the yen and the Chinese yuan anda loss of 3.2 billion yen due to foreign exchange adjustments for transactions between FHI and its overseas subsidiaries.
Another factor behind the jump in operating income will be a gain of 10.9 billion yen from cost cuts. This includes a gainof 11.0 billion yen to be generated by FHI as well as a loss of 0.1 billion yen coming from SIA.
FHI is expected to generate a gain of 15.9 billion yen through cost reductions and a loss of 4.9 billion yen due toincreasing materials costs and other negative market factors.
SIA will yield a gain of 1.8 billion yen through cost reductions and a loss of 1.9 billion yen due to lower material prices,etc.
The primary factor that will bring operating income down will be a loss of 58.2 billion yen due to increases in SG&A
expenses. This gain can be broken down into the following three areas.
First, we will see a loss of 9.4 billion yen due to an increase in fixed manufacturing costs. This will include a loss of 5.7
billion yen at FHI as well as a loss of 3.7 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 7.2 billion yen due to higher
fixed processing costs.
SIA will see a loss of 1.5 billion yen due to increased costs for suppliers’ dies and a loss of 2.2 billion yen due to higher
fixed processing costs.
The second factor will be a loss of 42.9 billion yen due to an increase in SG&A expenses.
FHI expects to lose 6.5 billion yen due to mounting expenses for new model launches, etc.
The 42.9 billion yen loss will also include a loss of 0.4 billion yen at domestic dealers, a loss of 19.4 billion yen at SOA, aloss of 1.5 billion yen at our Canadian subsidiary, and a loss of 15.1 billion yen from our other operations.
The third and last factor will include an increase in costs associated with warranty claims that led to a loss of 5.9 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 55.5 billion yen to total
382.0 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

13,119+2,114

Operating income

184

443

+259

Net income

111

267

+156

442.3

510.3

+68.0

Net sales

Retail sales(Thousand units)

SIA

Actual results
FYE 2014

Plan
FYE 2015

Increase /Decrease

3,848

4,769

+921

Operating income

265

165

-100

Net income

167

104

-63

163.5

209.4

+45.9

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 68 thousand units year on
year for a total of 510 thousand units thanks to the launch of the new Legacy Outback as
well as strong sales of the Forester.
Net sales will increase 2,114 million dollars year on year to reach 13,119 million dollars
while operating income will rise 259 million dollars year on year to total 443 million dollars.
This increase will come from a gain of 453 million dollars from favorable sales volumes
and mix variances despite a loss of 194 million dollars due to higher SG&A expenses.
SIA's net sales are expected to increase 921 million dollars year on year to reach 4,769
million dollars.
Operating income will drop 100 million dollars year on year to reach 165 million dollars.
Factors behind the decrease will include a loss of 64 million dollars due to sales price andvolume variances, a loss of 1 million dollars related to cost reduction efforts, as well as aloss of 35 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
1st Half
FYE2014
1st Half
FYE2014(a)
FYE 2015

Plan
FYE2015(b)

Increase/ Decrease(b) - (a)

Capex

273

685

597

1,200

+515

Depreciation

260

549

277

660

+111

R&D

299

601

363

840

+239

2,918

2,697

2,322

2,200

-497

Interest
bearing debt

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

14

R&D expenses are projected to total 84.0 billion yen. That's 10.0 billion yen more thanprojected in the previous forecast since we will be shifting R&D into high gear with a focus
on future products.
In light of our current performance, etc., we revised our previous forecast for interest
bearing debt downward by 20.0 billion yen to total 220.0 billion yen.
No revisions have been made to our forecasts for capital investments and depreciation
costs as we move ahead with a focus on 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

15

15

1st Half : Non-Operating Income & Expenses andExtraordinary Income & Loss (Consolidated)（100 Million Yen）

Actual results
1st half
FYE 2014
Financial revenue andexpenditure
FOREX effects
Other

Actual results
1st half
FYE 2015

Increase /Decrease

0

-1

-1

-39

-98

-58

-6

1

+7

Total non-operating income &expenses

-45

-97

-52

Gain on sales of noncurrent
assets1

4+3

Gain on sales of investment
securities

1

4

+3

-10

-17

-6

-2

-5

-3

-9

-13

-3

Loss on sales andretirement of
noncurrent assets
Other
Total extraordinary income & loss
http://www.fhi.co.jp/english/ir/index.html

16

16

1st Half : Net Sales and Operating Income
by Business Segment (consolidated)（100 Million Yen）

Net sales

Operating income

Actualresults
1st half
FYE 2014

Actualresults
1st half
FYE 2015

Increase/
Decrease

Actualresults
1st half
FYE 2014

Actualresults
1st half
FYE 2015

Increase/
Decrease

Automobile

10,527

12,280+1,753

1,423

1,785

+362

Aerospace

535

638

+103

69

59

-10

Industrial
products

157

148

-9

2

1

-0

Others

37

36

-1

11

9

-3

2

3

+0

1,507

1,857

+350

Elimination& corporate
Total

11,256

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

13,102+1,84617

17

1st Half : Consolidated Operating Income
by Geographic Area（100 Million Yen）

Net sales

Operating income

ActualActualActualActualIncrease
Increase
results
results
results
results//
1st half
1st half
1st half
1st half
Decrease
Decrease
FYE 2014 FYE 2015
FYE 2014 FYE 2015
Japan

4,691

4,466

-225

1,324

1,358

+34

North
America

5,817

7,264

+1,446

231

416

+185

Other

749

1,373

+625

3

97

+94

-51

-14

+37

1,507

1,857

+350

Elimination
andcorporate
Total

11,256

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

13,102+1,84618

18

1st Half : Overseas Net Sales（100 Million Yen）

Actual results
1st half
FYE 2014

Actual results
1st half
FYE 2015

6,172

7,751

+1,579Europe

562

601

+40

Asia

582

1,183

+600

Other

635

639

+5

7,951

10,174+2,224

North America

Total

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

Increase /Decrease19

19

1st Half : Non-Consolidated Automobiles Sales（Thousand Units）

Actual results
1st half
FYE 2014

Actual results
1st half
FYE 2015

310.1

344.0

+33.9

Domestic sales

91.9

76.0

-15.9

Passenger cars

64.8

60.3

-4.5

Minicars

27.2

15.7

-11.4

231.6

261.3

+29.7

79.9

100.8

+20.9

403.5

438.2

+34.8

Domestic production

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)・
2nd quarter, consolidated statements income
・2nd
・ 1st half, Plan vs. Actual results
・ Full year, Previous plan vs. revised plan

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

21

21

2nd Quarter : Consolidated Automobile Sales（Thousand Units）

Actual results
2nd quarter
FYE 2014
33.0

Actual results
2nd quarter
FYE 2015
36.1

Minicar

13.6

8.3

-5.3

Domestic total

46.6

44.3

-2.3

U.S.

102.5

137.5

+35.0

Canada

9.3

11.3

+2.0

Russia

4.3

4.6

+0.3

Europe

8.1

8.7

+0.6

Australia

9.6

9.8

+0.2

China

13.3

13.1

-0.2

Others

7.8

8.6

+0.8

Overseas total

154.9

193.6

+38.7

Total

201.5

237.9

+36.4

Passenger car

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

Increase /Decrease+3.1* China figures are consolidated on the calendar year basis from Apr. to Jun.

22

22

2nd Quarter : Consolidated Income Statements（100 Million Yen）

Actual results
2nd quarter
FYE 2014

Actual results
2nd quarter
FYE 2015

Increase /Decrease

Net sales

5,787

7,168

+1,381

Domestic

1,729

1,766

+38

Overseas

4,058

5,402

+1,344

Operating income

811

1,069

+259

Ordinary income

817

954

+137

Income before
income taxes andminority interests

812

940

+128

Net income

513

608

+94

¥98/US$¥102/US$+¥4/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

23

23

2nd Quarter : Analysis of Increase and Decreasein Operating Income Changes (Consolidated)（100 Million Yen）

Improvement
Gain onof salescurrency
volume &exchange Cost reduction
mixture+20
and others +123

Fixed cost : -26 (FHI : -15 SIA : -11)
SG&A : -166 (FHI : -11 SOA : -97 and other)
Warranty claims : -30+372

US$ : +104
EURO : +5
CA$ : ±0
CNY : -1
Currency
exchange
adjustment : +15

811

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

-222

-34

FHI : +25 (Material cost : -9)
SIA : -5 (Material cost : -7)

1,069

Domestic : +47 (Increase of sales volume and deterioration of mixture)
Overseas : +287 (Increase of sales volume and deterioration of mixture)
Others : +38

Actual results
Operating income
2nd Quarter
FYE 2014
http://www.fhi.co.jp/english/ir/index.html+25.9 billion

Actual results
Operating income
2nd Quarter
FYE 2015
24

24

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

Plan
1st half
FYE 2015
70.5

Actual results
1st half
FYE 2015
56.5

Minicar

22.6

15.1

-7.5

Domestic total

93.2

71.5

-21.6

U.S.

233.9

249.9

+16.0

Canada

21.7

22.1

+0.4

Russia

9.2

8.6

-0.6

Europe

18.4

15.6

-2.8

Australia

19.0

19.3

+0.3

China

27.6

28.7

+1.2

Others

15.8

15.9

+0.1

Overseas total

345.6

360.1

+14.4

Total

438.8

431.6

-7.2

Passenger car

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

Increase /Decrease-14.1* China figures are consolidated on the calendar year basis from Jan. to Jun.

25

25

(Plan vs. Results)
1st Half : Consolidated Income Statements（100 Million Yen）

Plan
1st half
FYE 2015

Actual results
1st half
FYE 2015

Increase /Decrease

Net sales

13,00013,102+102

Domestic

3,426

2,928

-498

Overseas

9,574

10,174+600

Operating income

1,600

1,857

+257

Ordinary income

1,560

1,760

+200

Income before
income taxes andminority interests

1,540

1,747

+207

Net income

1,010

1,130

+120

¥100/US$¥102/US$+¥2/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

26

26

(Plan vs. Results) 1st Half : Analysis of Increase and Decreasein Operating Income Changes (Consolidated)（100 Million Yen）

US$ : +121
EURO : +4
CA$ : +11
CNY : +5
Currency
exchange
adjustment : +27

Increase of
SG&A
expenses Cost reduction
and others
Gain oncurrency
exchange

+91

+20

+168
FHI : +21
(Material : +9)
SIA : -1
(Material : ±0)

1,600
Plan
Operating income
1st Half
FYE 2015
http://www.fhi.co.jp/english/ir/index.html

Domestic : -152
(Deterioration of sales volume and mixture)
Overseas : +110
(Increase of sales volume
and deterioration of mixture)
Others : +21

Deterioration Increase ofof salesR&D
volume & expenses
mixture-1
and others

-21

1,857

Fixed cost : +20 (FHI +17 SIA +3)
SG&A : +132 (FHI +71 SOA +23 and other)
Warranty claims : -61+25.7 billion

Actual results
Operating income
1st Half
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

143.7

125.7

-18.0

Minicar

51.2

40.8

-10.4

194.9

166.5

-28.4

U.S.

490.2

513.2

+23.0

Canada

40.4

40.7

+0.3

Russia

19.3

18.7

-0.6

Europe

40.3

36.0

-4.3

Australia

40.1

38.2

-1.9

China

57.3

60.0

+2.7

Others

33.5

36.1

+2.6

Overseas total

721.1

742.8

+21.7

Total

916.0

909.4

-6.6

Domestic 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

27,20027,800+600

Domestic

7,032

6,582

-450

Overseas

20,16821,218+1,050Operating income

3,400

3,820

+420

Ordinary income

3,300

3,700

+400

Income before
income taxes andminority interests

3,240

3,640

+400

Net income

2,150

2,410

+260

¥100/US$¥104/US$+¥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)（100 Million Yen）

US$ : +385
EURO : +6
CA$ : +24
CNY : +6
Currency
exchange
adjustment : +28

Fixed cost : +15 (FHI : +6 SIA : +9)

Gain oncurrency
exchange+449

Decrease of
SG&A : +146 (FHI : +78 SOA : -4 and other)
SG&A
Warranty claims : -63
expenses
Cost reduction
and others

+98

+39

Increase of Improvement
R&D
of salesexpenses
volume &FHI : +47 (Material cost : +33)
SIA : -8 (Material cost : -10)

3,400

-100

mixtureand others

-66

3,820

Domestic : -165 (Deterioration of sales volume and mixture)
Overseas : +118 (Increase of sales volume and deterioration of mixture)
Others : -19

Previous Plan
Operating income
FYE 2015
http://www.fhi.co.jp/english/ir/index.html+42.0 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
Net Sales(100 million yen)

¥79/$

¥77/$

¥78/$

¥81/$

¥79/$

¥79/$

¥89/$

¥98/$

¥98/$

¥99/$

¥103/
$

¥102/
$

Net Sales

5,422 5,469
4,877

5,000

1,200

1,069

Operating Income

6,000

Operating
Income（100 million yen)

7,168

6,996

7,000

¥102/
$

5,787 5,829

4,691 4,727

1,000

931

827

811

4,289

5,934

800

787

696

4,000 3,546 3,744

600

3,000

470

2,000

400

301

1,000

91

81

259

161

200

173

0

0
2Q

3Q

4Q

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

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE2014

4Q

1Q

2Q

FYE201532

32

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

OPM

250
Consolidated Automobile Sales

198

200

183
166

150

166

232

OPM

208
178

238

191

202

14.0%
12.7%

148

14.9%

201

194
14.2%

13.3%

13.3%

18%
15%
12%
9%

8.7%

100
6%

6.4%
5.5%

50

4.0%
2.3%

2.4%

3%

3.3%

0

0%
2Q

3Q

4Q

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

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE2014

4Q

1Q

2Q

FYE201533

33

Completed Cars Production & Retail Units
Units（1000 units)

250

Production
196

200

150 136150

196

Retail Units

191

167

158

207

197
182

178

172

237

228
213 212 210 211

211
195 197

211 214

225

193

177

100

50

0
Jul.Sep.

Oct.Dec.

Jan.Mar.

2011

Apr.Jun.

Jul.Sep.

2012

Oct.Dec.

Jan.Mar.

Apr.Mar.

Jul.Sep.

2013

Oct.Dec.

Jan.Mar.

Apr.Jun.

Jul.Sep.

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

44.0%

2,791

Shareholders' Equity to Total Assets

45%

42.6%

2,300

41.2%
39.9%

42.9%

2,094
40%

40.5%

1,800
37.7%

1,198

1,300
35.2%

800
300

34.2%

33.7%

33.3%

283
47

-42

2Q

3Q

33.7%

953

778

711

34.2%

35%

516

646

221

-163

-200

30%
4Q

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

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE2014

4Q

1Q

2Q

FYE201535

35

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

4,000

D/E ratio

3,866

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

0.85
0.89

0.76

2,000

0.74

0.69

1.0
0.8

0.64
0.52

0.6
0.46

1,000

0.41

0.36

0.35

0.32

0.4

0.27

0.2

0

0.0
2Q

3Q

4Q

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

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE2014

4Q

1Q

2Q

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