Consolidated Financial Results for the 1st Quarter of FYE 2017
Mitsuru Takahashi
Executive Vice President & CFO
August 3, 2016
http://www.fhi.co.jp/english/ir/index.html

00Summary
Consolidated Financial Results for the 1st Quarter (3 months) of FYE 2017
 Consolidated net sales and unit sales posted record results for a fiscal first quarter.
 Despite unit sales growth and cost reduction progress, operating income decreased for the
first time in 5 years due to foreign exchange rate losses and increased R&D and SG&A
expenses. The increase in SG&A expenses was due mainly to quality-related costs
associated with airbag inflators. Net income attributable to owners of parent decreased forthe first time in 4 years.

Actual results(YoY)

Net sales

OperatingincomeOrdinary
income¥769.4bil.

¥101.5bil.

¥118.8bil.

(+¥4.1bil.)(-¥32.7bil.)(-¥11.3bil.)

Net income attributableto owners of parent¥78.9bil.

(-¥5.3bil.)

Consolidated
automobile sales

245.2k units(+20.0k units)

Forecasts for FYE 2017
 In view of foreign exchange rate fluctuations and quality-related expenses associatedwith airbag inflators, FHI revised its full-year forecasts for the current fiscal year ending
March 2017. (Currency rate assumptions: 106 yen/US$, 121 yen/euro.) Forecasts for consolidated unit sales remains unchanged.
Net sales
Forecasts(YoY)¥3,190.0bil.
(-¥42.3bil.)

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

Operatingincome¥400.0bil.

(-¥165.6bil.)

Ordinary
income¥410.0bil.

(-¥167.0bil.)

Net income attributableto owners of parent

Consolidated
automobile sales¥285.0bil.

1,049.7k units(-¥151.7bil.)(+91.8k units)
11Consolidated Financial Results for the 1st Quarter(3 months) of FYE 2017

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

22

1Q (3 months) :Consolidated Unit Sales（Thousand Units）

Actual Results
1Q (3 months)
FYE 2016

Actual Results
1Q (3 months)
FYE 2017

Variance

Passenger car

19.9

24.5

+4.6

Minicar

8.1

6.6

-1.5

28.0

31.2

+3.2

US

140.4

155.0

+14.6

Canada

13.9

15.4

+1.5

Russia

1.7

1.9

+0.3

Europe

8.3

8.7

+0.4

Australia

11.3

12.0

+0.7

China

10.1

9.5

-0.6

Others

11.5

11.4

-0.1

Overseas total

197.1

214.0

+16.8

Total

225.1

245.2

+20.0

Domestic total

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

3

Consolidated automobile sales for the first quarter of the fiscal year ending March 2017
totaled 245.2 thousand units, up 20 thousand units year on year for a new first quarter sales
record.
In the domestic market, passenger vehicle sales increased 4.6 thousand units year on year tototal 24.5 thousand units thanks to strong sales of the Forester and the Impreza that
underwent a partial facelift in October 2015. Minicar sales, on the other hand, declined 1.5
thousand units year on year to hit 6.6 thousand units due primarily to a tax hike for lightvehicles. As a result, overall domestic sales totaled 31.2 thousand units for a year-on-yearincrease of 3.2 thousand units.
Sales in overseas markets rose 16.8 thousand units year on year to reach 214 thousand units
thanks to robust sales of the Outback and the Crosstreck primarily in North America, which is
our key market.

3

1Q (3 months) :Consolidated Income Statements（100 Million Yen）

Actual Results
1Q (3 months)
FYE 2016

Actual Results
1Q (3 months)
FYE 2017

Variance

Net sales

7,653

7,694

+41

Domestic

1,245

1,303

+58

Overseas

6,408

6,391

-17

1,342

1,015

-327

Total non-operating
income & expenses

-42

+173

+214

Ordinary income

1,301

1,188

-113

-9

-10

-1

1,291

1,178

-113

842

789

-53

¥120/US$¥111/US$-¥10/US$Operating income

Total extraordinary
income & loss
Income before taxes
and minority interests
Net income attributableto owners of parent

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

4

Net sales grew once again for the fifth consecutive year and were the highest ever for any
first quarter. However, operating income and ordinary income decreased for the first time infive years and net income attributable to owners of the parent decreased for the first time in 4
years.
Net sales totaled 769.4 billion yen, up 4.1 billion yen year on year. The main factors behind
this increase include a gain of 71.9 billion yen due to a better sales mix resulting from higher
sales volumes as well as a 0.9 billion yen increase in sales at Fuji Heavy Industries (FHI)
companies, etc. despite a foreign exchange loss of 68.7 billion yen.
While unit sales grew and there was progress with cost reduction efforts, operating income
dropped 32.7 billion to reach 101.5 billion. This decrease was due to foreign exchange losses
on top of increased R&D and SG&A expenses consisting mainly of quality-related costs
associated with airbag inflators.
Ordinary income dropped 11.3 billion yen to reach 118.8 billion yen while income before taxes
and minority interests fell 11.3 billion yen to hit 117.8 billion yen. Net income attributable toowners of the parent also declined 5.3 billion yen to reach 78.9 billion yen.

4

1Q (3 months) :Analysis of Variance in Operating Income (Consolidated)
Sales volume& mixtureand others

+303

+105

FHI : +91
(material cost +55)
SIA : +14
(material cost +6)

1,342

Fixed cost : -71 (FHI -24, SIA -47)
SG&A : -58 (FHI -22, SOA -17, others)
Warranty claims : -263

Cost
reduction

US$ : -283
EURO : -5
CA$ : -24
CNY : -1
Currency exchange
adjustment : -83
Unrealized gain : +104

SG&A
expensesand others-392

Domestic : +49(volume increase、mixture improvement)
Overseas : +264
(volume increase、mixture deterioration)
Others : -10

Actual Results
Operating Income
1Q (3 months)
FYE 2016（100 Million Yen）

Loss oncurrency
exchange

-292

-327

R&D
expenses

-51

1,015

Actual Results
Operating Income
1Q (3 months)
FYE 2017

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

5

Now let’s look at the reasons behind the year-on-year decrease of 32.7 billion yen in operating income that went from 134.2 billion yen to101.5 billion yen.
The primary reason for the increase in operating income was a gain of 30.3 billion yen due to better sales mix variances. This gain can be
broken down into the following three areas.
First, we saw a gain of 4.9 billion yen in domestic new car sales. Passenger vehicle sales offset the decline in minicar unit sales, resulting
in a healthy sales volume and mix.
Next, we saw a gain of 26.4 billion yen in new car sales overseas thanks to increasing sales volumes in North America.
Finally, we had a loss of 1.0 billion yen due to inventory adjustments and other factors.
Another factor that brought operating income up was a gain of 10.5 billion yen resulting from cost reductions. This includes a gain of 9.1
billion yen generated by FHI as well as a gain of 1.4 billion yen from SIA. FHI generated a gain of 3.6 billion yen from cost reductions on
top of a gain of 5.5 billion yen due to lower material costs and better market conditions. SIA yielded a gain of 0.8 billion yen through cost
reductions and a gain of 0.6 billion yen due to lower material prices, etc.
The main factor bringing operating income down was a loss of 39.2 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 7.1 billion yen due to an increase in fixed manufacturing costs. This includes a loss of 2.4 billion yen generated by
FHI as well as a loss of 4.7 billion yen from SIA.
FHI generated a gain of 0.2 billion yen due to lower costs for supplier dies and a loss of 2.6 billion yen due to higher fixed processing costs
while SIA lost 0.4 billion yen due to mounting costs for supplier dies and 4.3 billion yen due to an increase in fixed processing costs.
The second factor is a loss of 5.8 billion yen due to an increase in SG&A expenses.
FHI lost 2.2 billion yen due to increased advertising costs, incentives, etc. The 5.8 billion yen loss also includes zero gains or losses atdomestic dealers, a loss of 1.7 billion yen generated at SOA, a loss of 1.5 billion yen at our Canadian subsidiary, and a loss of 0.4 billion
yen from other operations.
SOA saw a year-on-year decrease in advertising costs, etc., which resulted in a gain of 1.2 billion yen.
The third factor includes an increase in costs associated with warranty claims that led to a loss of 26.3 billion yen.
Another contributing factor that brought operating income down was a foreign exchange loss of 29.2 billion yen.
This includes a loss of 28.3 billion yen due to an approximate 10 yen appreciation against the U.S. dollar, a loss of 0.5 billion yen due to an
approximate 8 yen appreciation against the euro, and another loss of 2.4 billion yen due to an approximate 12 yen appreciation against the
Canadian dollar. On top of that we lost 0.1 billion yen due to foreign currency translations between the yen and the Chinese yuan and lost
8.3 billion yen due to currency exchange adjustments on transactions between FHI and its overseas subsidiaries despite a 10.4 billion yen
gain from unrealized inventory.
Finally, an increase in R&D expenses resulted in a loss of 5.1 billion yen.
These factors combined brought consolidated operating income for the first quarter of the fiscal year ending March 2017 down 32.7 billion
yen to total 101.5 billion yen.

5Consolidated Balance Sheets（100 Million Yen）

As of March2016

As of June
2016

Variance

Total assets

25,92425,244-680

Current assets

17,841

17,064-777

Noncurrent assets

8,083

8,180

+97

Total liabilities

12,43011,852

-578

1,700

1,654

-45

13,494

13,392-102

Retained earnings

10,49010,717+227

Shareholders’ equity

13,437

13,338-99

Ratio of shareholders’equity to total assets

51.8％

52.8%

+1.0

0.13

0.12

-0.01

Interest bearing debts
Net assets

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

6

The balance sheet shows total assets as of the end of the first quarter decreasing by 68.0
billion yen from the end of March 2016 to total 2,524.4 billion yen.
The main factor behind this drop includes a 64.0 billion yen decrease in cash in hand, whichis the total amount of cash and deposits as well as marketable securities.
Total liabilities declined by 57.8 billion yen from what they were at the end of March 2016 toreach 1,185.2 billion yen due primarily to a decrease of 69.5 billion yen in corporate income
taxes payable. Interest bearing debts fell 4.5 billion yen to reach 165.4 billion yen while net
assets decreased 10.2 billion yen from what they were at the end of March 2016 to total
1,339.2 billion yen. The ratio of shareholders’ equity to total assets was 52.8% while the debtto-equity ratio stood at 0.12.

61Q (3 months) :Consolidated Statement of Cash Flows（100 Million Yen）

Actual Results
1Q (3 months)
FYE 2016

Actual Results
1Q (3 months)
FYE 2017

Variance

Net cash provided by (used in)operating activities

1,097

621

-477

Net cash provided by (used in)investing activities

-328

-647

-319

769

-26

-795

-385

-610

-224

Effect of exchange rate change
on cash and cash equivalents

37

-198

-236

Net increase (decrease)in cash and cash equivalents

421

-834

-1,255

-1

-

+1

6,541

7,460

-

Free cash flows
Net cash provided by (used in)financing activities

Increase (decrease) in cash andcash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents
at end of period
http://www.fhi.co.jp/english/ir/index.html

7

Net cash flow from operating activities amounted to an inflow of 62.1 billion yen due to net
income before taxes and minority interests totaling 117.8 billion yen, an 18.1 billion yen
decrease in accounts payable, and a payment of 104.2 billion yen in corporate income taxes,
etc. (compared to 58.4 billion yen last fiscal year).
Net cash flow from investing activities amounted to an outflow of 64.7 billion yen forinvestments aimed at boosting production capacity.
Free cash flow was a negative 2.6 billion yen.
Net cash flow from financing activities came to an outflow of 61.0 billion yen due to dividend
payments totaling 54.8 billion yen, a redemption of corporate bonds amounting to 10.0 billion
yen, etc.

7

1Q (3 months) :Operating Results of Subsidiaries in U.S.
（Million US$）

Actual Results
1Q (3 months)
FYE 2016

Actual Results
1Q (3 months)
FYE 2017

3,613

4,079

+466

Operating income

168

219

+51

Net income

99

135

+36

140.8

146.7

+5.9

Actual Results
1Q (3 months)
FYE 2016

Actual Results
1Q (3 months)
FYE 2017

1,326

1,496

+170

Operating income

33

28

-5

Net income

21

18

-3

57.8

65.1

+7.3

SOA
Net sales

Retail sales(Thousand units)

SIA
Net sales

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

Variance

Variance

8

SOA's retail sales climbed 5.9 thousand units year on year to reach a total of 146.7 thousand
units as sales of the Outback and the Crosstreck remained upbeat.
Net sales also jumped 466 million dollars year on year to total 4,079 million dollars.
Despite a loss of 13 million dollars from higher SG&A expenses, favorable sales volume andmix variances resulted in a gain of 64 million dollars that bought operating income up 51
million dollars year on year for a total of 219 million dollars.
SIA saw net sales rise 170 million dollars year on year to hit 1,496 million dollars. However,operating income fell 5 million dollars year on year to reach 28 million dollars. The factors
behind this decrease include a loss of 39 million dollars due to an increase in fixed costs
despite a gain of 22 million dollars due to sales price and volume variances and a gain of 12
million dollars brought by overall cost reduction efforts.

8Forecasts for FYE 2017

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

99FYE 2017 :Consolidated Operating Plan
（100 Million Yen）

Actual results
FYE 2016 (a)Plan FYE 2017
Original

Variance

Revised (b)(b) - (a)Net sales

32,32331,70031,900-423

Domestic

6,054

6,103

6,103

+49

Overseas

26,26925,597

25,797-472

Operating income

5,656

4,200

4,000

-1,656

Ordinary income

5,770

4,200

4,100

-1,670Net income attributableto owners of parent

4,367

2,930

2,850

-1,517

FHI exchange rate

¥121/US$¥105/US$¥106/US$-¥15/US$

Consolidated
Automobile Unit Sales

957.9kunits

1,049.7k
units

1,049.7k
units+91.8kunits

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

10

Looking at the consolidated operating plan for the fiscal year ending March 2017, we haverevised the initial full-year forecasts for the current fiscal year which were announced on May
12, 2016 in light of foreign exchange rate fluctuations and quality-related costs associatedwith airbag inflators. Under the revised forecasts, we expect that net sales will total 3,190
billion yen, operating income 400 billion yen, ordinary income 410 billion yen, and net income
attributable to owners of the parent 285 billion yen.
No revision has been made to our dividend forecast. The dividend for this fiscal year will be
144 yen as initially announced, with an interim dividend of 72 yen and a year-end dividend of
72 yen.
Consolidated automobile sales forecast figures also remain as initially announced.
We will go into further detail about the revisions on the following page.

10

Original Plan vs. Revised Plan: FYE 2017
Analysis of Variance in Operating Income (Consolidated)
Gain oncurrency
exchange（100 Million Yen）

Warranty claims : -300

+100

4,200

Original Plan
Operating Income
FYE2017
http://www.fhi.co.jp/english/ir/index.html

US$ : +107
EURO : +3
CA$ : +7
CNY : +1
Unrealized gain : -18

-200

SG&A
expensesand others

-300

4,000

Revised Plan
Operating Income
FYE2017
11

First of all we revised our projection for exchange rates in light of the current currency
fluctuations.
The projected exchange rate for the US dollar has been revised from 105 yen to 106 yen, theeuro from 120 yen to 121 yen, and the Canadian dollar from 80 yen to 81 yen.
Due to these revisions we expect operating income to be 10 billion yen more than originallyprojected. This will include a gain of 10.7 billion yen due to an approximate 1 yen depreciation
against the U.S. dollar, a gain of 0.3 billion yen due to an approximate 1 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, there will be a gain of 0.1 billion yen resulting
from currency translations between the yen and the Chinese yuan and a loss of 1.8 billion
yen from unrealized inventory.
On the other hand, we expect a loss of 30 billion yen due to mounting SG&A expenses as aresult of the higher-than-expected quality-related costs associated with airbag inflators.
While all other factors contributing to operating income remain the same, the changes willbring our initial operating income projection for the fiscal year ending March 2017 down 20
billion yen to total 400 billion yen.
Please refer to the appendix (page 21) for the factors behind the projected year-on-yearchange in the operating income forecast for this fiscal year.

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

Actual Results
1Q (3 months)
FYE2016

Actual Results Actual Results
FYE2016
1Q (3 months)(a)
FYE 2017

Plan
FYE2017(b)

Variance(b) - (a)

Capex

171

1,357

368

1,600

+243

Depreciation

154

650

159

800

+150

R&D

185

1,024

236

1,200

+176

2,011

1,700

1,654

1,650

-50

Interest
bearing debt

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

12Finally, among the expenditure items planned for the full year, capital investments,
depreciation costs, R&D expenses, and interest bearing debts all remain the same.
We will make investments aimed at boosting production capacity, implementing R&D
initiatives focused on future products, as well as other initiatives aligned with our carefullyplanned investment strategies.
The following pages provide segment information, various KPIs, and other data for yourreference.
This concludes the briefing on our financial results for the first quarter of the fiscal year
ending March 2017.
Thank you very much.

12Appendix(1)・Non-operating income&expenses and extraordinary income&loss (1Q)
・Segment information by business & geographic (1Q)
・Overseas net sales (1Q)
・Non-consolidated unit sales (1Q)
・Revised plan for FYE 2017
・Revised plan for 1st half of FYE 2017

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

1313

1Q (3 months) : Non-operating Income & Expenses andExtraordinary Income & Loss (Consolidated)（100 Million Yen）

Actual Results
1Q (3 months)
FYE2016

Actual Results
1Q (3 months)
FYE 2017

Variance

6

6+0

FOREX effects

-46

+171

+218

Other

-1

-5

-4

-42

+173

+214

Gain on sales of noncurrent assets

0

0

-0

Gain on sales of investment securities

1

1

+0

-12

-10

-1

1

-0

-2

-9

-9

-1

Financial revenue and expenditure

Total non-operating income & expenses

Loss on sales and retirementof noncurrent assets
Other
Total extraordinary income & loss

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

1414

1Q (3 months) : Net Sales and Operating Income
by Business Segment (Consolidated)（100 Million Yen）

Net Sales

Operating Income

Actual Results
1Q(3 months)
FYE 2016

Actual Results
1Q(3 months)
FYE 2017

Variance

Actual Results
1Q(3 months)
FYE 2016

Actual Results
1Q(3 months)
FYE 2017

Variance

Automobile

7,188

7,245

+56

1,288

993

-295

Aerospace

358

352

-6

44

17

-27

Industrial
products

90

80

-10

2

-3

-5

Others

17

17

+0

7

6

-0

2

2

+0

1,342

1,015

-327

Elimination& Corporate
Total

7,653

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

7,694

+41

15

15

1Q (3 months) : Net Sales and Operating Income
by Geographic Area (Consolidated)（100 Million Yen）

Net Sales
Actual Results
1Q(3 months)
FYE 2016

Actual Results
1Q(3 months)
FYE 2017

Japan

2,140

North
America
OthersOperating Income
Variance

Actual Results
1Q(3 months)
FYE 2016

Actual Results
1Q(3 months)
FYE 2017

Variance

2,217

+76

1,009

667

-342

4,872

4,871

-1

266

240

-26

640

606

-34

27

16

-12

39

93

+53

1,342

1,015

-327

Elimination&
Corporate
Total

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

7,653

7,694

+41

16

16

1Q (3 months) :Overseas Net Sales (Consolidated)（100 Million Yen）

Actual Results
1Q (3 months)
FYE 2016

Actual Results
1Q (3 months)
FYE 2017

Variance

5,183

5,177

-6

Europe

272

269

-2

Asia

551

531

-20

Other

403

413

+10

Total

6,408

6,391

-17

North America

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

1717

1Q (3 months) :Non-consolidated Unit Sales（Thousand Units）

Actual Results
1Q (3 months)
FYE 2016

Actual Results
1Q (3 months)
FYE 2017

171.0

179.4

+8.4

Domestic sales

31.3

32.8

+1.5

Passenger cars

21.7

26.0

+4.3

Minicars

9.6

6.8

-2.8

137.2

148.2

+11.0

54.5

75.2

+20.8

223.0

256.3

+33.3

Domestic production

Number of exported vehicles
Components for overseas
production

Total

Variance* Domestic production figures include Toyota 86.

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

1818

Plan for FYE 2017 :Consolidated Unit Sales（Thousand Units）

Actual Results
FYE2016Plan
FYE2017

Variance

Passenger car

111.6

119.0

+7.5

Minicar

33.7

37.3

+3.6

145.3

156.3

+11.0

US

582.7

643.1

+60.4

Canada

47.6

52.6

+5.0

Russia

5.7

9.6

+3.9

Europe

41.8

40.1

-1.7

Australia

44.6

48.2

+3.6

China

44.4

48.5

+4.1

Others

45.8

51.2

+5.4

Overseas total

812.6

893.4

+80.8

Total

957.9

1,049.7+91.8

Domestic total

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

19

19

Revised Plan for FYE 2017 :Consolidated Income Statements（100 Million Yen）

Actual Results
FYE2016

Revised PlanFYE2017

Variance

Net sales

32,32331,900-423

Domestic

6,054

6,103

+49

Overseas

26,26925,797-472

Operating income

5,656

4,000

-1,656

Ordinary income

5,770

4,100

-1,670

Income before taxes
and minority interests

6,190

4,030

-2,160Net income attributableto owners of parent

4,367

2,850

-1,517¥121/US$¥106/US$-¥15/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

20

20

Revised Plan FYE 2017:
Analysis of Variance in Operating Income (Consolidated)
US$ : -1,612
EURO : -37
CA$ : -80
CNY : -4
Currency exchange adjustment : +5
Unrealized gain: +142

Cost
Sales volume
reduction& mixtureand others
+320

+999

FHI : +256
(material cost+148)
SIA : +64(material cost+25)

5,656

Domestic : +56(volume increase、
mixture deterioration)
Overseas : +779
(volume increase、
mixture deterioration)
Others : +164

Actual Results
Operating Income
FYE 2016
http://www.fhi.co.jp/english/ir/index.html（100 Million Yen）

Fixed cost : -383 (FHI -98, SIA -285)
SG&A : -436 (FHI -54, SOA -273, others)
Warranty claims : -394

Loss oncurrency
exchange-1,586
SG&A expenses
and others-1,213-1,656

R&D
expenses

-176

4,000

Revised Plan
Operating Income
FYE 2017
21

21

Revised Plan for 1st Half of FYE 2017:
Consolidated Unit Sales Plan（Thousand Units）

1st Half Actual Results
FYE 2016

1st Half PlanFYE 2017

Variance

Passenger car

49.8

50.5

+0.7

Minicar

16.7

14.6

-2.1

Domestic total

66.5

65.1

-1.4

US

290.6

315.1

+24.5

Canada

26.1

28.2

+2.1

Russia

3.5

5.3

+1.9

Europe

19.6

19.3

-0.3

Australia

23.0

22.3

-0.7

China

20.5

24.0

+3.5

Others

22.5

22.5

+0.0

Overseas total

405.7

436.7

+31.0

Total

472.2

501.8

+29.6

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

22

22

Revised Plan for 1st Half of FYE 2017 :Consolidated Income Statements（100 Million Yen）

1st Half Actual Results
FYE 2016(a)1st Half Plan FYE 2017

Variance

Original

Revised (b)(b) - (a)Net sales

16,015

15,335

15,535-480

Domestic

2,852

2,796

2,796

-56

Overseas

13,163

12,53912,739-424

Operating income

2,851

2,100

2,040

-811

Ordinary income

2,850

2,140

2,140

-710

Income before taxes
and minority interests

2,831

2,120

2,120

-711

Net income attributableto owners of parent

1,932

1,480

1,480

-452

¥122/US$¥105US$¥107US$-¥15/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

2323Original Plan vs. Revised Plan: 1st Half of FYE 2017
Analysis of Variance in Operating Income (Consolidated)
US$ : +107
EURO : +3
CA$ : +7
CNY : +1

Unrealized gain : -18（100 Million Yen）

Gain oncurrency
exchange+100

Warranty claims : -160

SG&A
expensesand others

2,100

-160

Original Plan
Operating Income
1st Half
FYE2017
http://www.fhi.co.jp/english/ir/index.html

-60

2,040

Revised Plan
Operating Income
1st Half
FYE201724

24

Revised Plan for 1st Half of FYE 2017:
Analysis of Variance in Operating Income (Consolidated)
Sales volume& mixtureand others

+474

+207

FHI : +158
(material cost +112)
SIA : +49
(material cost +23)

2,851

US$ : -828EURO : -20
CA$ : -59
CNY: -1
Currency exchange adjustment : -43
Unrealized gain : +209

Cost
reduction

Original Plan
Operating Income
1st Half
FYE2017
http://www.fhi.co.jp/english/ir/index.html

Fixed cost：-172(FHI -43, SIA -129)
SG&A：-211(FHI-40, SOA -119, others)
Warranty claims：-270

Loss oncurrency
exchange-742

Domestic : +24(volume increase, mixture improvement)
Overseas : +428
(volume increase、mixture deterioration)
Others : +22-811（100 Million Yen）

SG&A
expensesand others

-653

R&D
expenses

-97

2,040

Revised Plan
Operating Income
1st Half
FYE201725

25

Appendix (2)・ Net sales / Operating income
・Consolidated unit sales / OPM
・Complete cars production / Retail sales units
・FCF / Shareholder’s equity to total assets
・Interest-bearing debt / D/E ratio

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

26

26

Net Sales / Operating Income
Operating
Income（100 million yen）
¥111/$Net Sales（100M yen）
¥98/$

¥98/$

9000

¥99/$

¥103/$Net sales¥102/$¥102/$

7000

7,505

¥123/$

7,653¥121/$¥118/$

8,362 8,172 8,136

1,245

5000

1,500

1,015

900

787

696

3000

1,200

1,298

1,129

931
827

811

7,694

1,509
1,506

1,069

4000

1,800

1,342

5,934

5,787 5,829¥120/$

8,172

7,168

6,996
5,469

¥118/$

Operating income

8000

6000

¥110/$

600

2000

300

1000
0

0
1Q

2Q

3Q

FYE2014
http://www.fhi.co.jp/english/ir/index.html

4Q

1Q

2Q

3Q

FYE2015

4Q

1Q

2Q

3Q

FYE2016

4Q

1Q

FYE201727

27

Consolidate Unit Sales & Operating Income Margin
Unit sales（1,000 units）

Consolidated unit sales
232
OPM

250

200

150

OPM

191

202

201

238

247
232

247

14.0%

14.2%

194

17.5%

18%

18.1%

15%

16.0%
13.8%

13.3%

245

18.4%

14.9%
13.3%

246

225

16.6%

12.7%

240

13.2%

12%
9%

100

6%
50

3%

0

0%
1Q

2Q

3Q

FYE2014
http://www.fhi.co.jp/english/ir/index.html

4Q

1Q

2Q

3Q

FYE2015

4Q

1Q

2Q

3Q

FYE2016

4Q

1Q

FYE201728

28

Complete Cars Production / Retail Sales Units（1,000 units）

Production

Retail sales

250
228
213 212 210211

211

200

197

211 214225

237 241 234 237

244

253
229 233 231

242

237

245
242

JanMar

AprJun248 249

193

150

100

50

0
AprJunJulSep

OctDec2013

JanMar

AprJunJulSep2014

OctDecJanMar

AprJunJulSep2015

OctDec2016※ Production figures include Toyota 86

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

29

29

Free Cash Flows &Ratio of Shareholders’ Equity to Total Assets
FCF（100M yen）

Ration of shareholders’Equity to total assets

FCF

4,000

3,586

Shareholders' equity ratio

52.5%

3,500

46.0%

2,094

2,000
41.2%

2,535

44.0%
42.9%

42.6%
39.9%

46.5%

45%

1,860

40.5%

55%

50%

48.8%

2,791

2,500

1,388

1,198

40%

1,000
500

52.8%

50.2%

3,000

1,500

51.8%

711

516

769

608

35%

0

-26

-163

-500
1Q

2Q

3Q

FYE2014
http://www.fhi.co.jp/english/ir/index.html

4Q

1Q

30%
2Q

3Q

FYE2015

4Q

1Q

2Q

3Q

FYE2016

4Q

1Q

FYE201730

30

Interest Bearing Debt & D/E Ratio
Interest
bearing debt
（100M yen）

D/E ratio

Interest bearing debt

3500

1.0

D/E ratio
3000

2,967 2,918

2,760 2,697

0.9
0.8

2,574

2500

2,322 2,268

2,112

2000

0.7
2,011 2,014

1,865

0.46

0.6
1,700 1,654

0.41

1500

0.36

0.35

0.4

0.32
0.27

1000

0.5

0.24

0.21

0.3
0.18

0.17

0.15

500

0.13

0.12

0.2
0.1
0.0

0
1Q

2Q

3Q

FYE2014
http://www.fhi.co.jp/english/ir/index.html

4Q

1Q

2Q

3Q

FYE2015

4Q

1Q

2Q

3Q

FYE2016

4Q

1Q

FYE201731

31

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

32

32

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

3333