Presentation of Business Results
for the 3rd quarter of FYE 2013
Fuji Heavy Industries Ltd.
February 4, 2014
http://www.fhi.co.jp/english/ir/index.html

00Summary
Financial results for the 3rd quarter (9 months) of FYE March 2014
 Due to healthy sales of Forester in Japan and North America, consolidated automobile
sales set an all-time records of 593k units for a fiscal 9 months period.
 In addition to gain on currency exchange, increase in sales volume, improvement inproduct mix and cost reduction brought all time record high in net sales and all profits fora fiscal 9 months period.
Net sales

Actual results(YoY)¥1,708.5bil.
(+¥337.8bil.)

Operating income¥233.4bil.

(+160.0bil.)

Ordinary income¥221.4bil.

(+¥158.0bil.)

Net income¥181.5bil.

(+¥128.4bil.)

Consolidated
automobile units

593.4k(+66.8k)

Financial projections full year for the FYE March 2014
 Plan to record-setting performance of consolidated automobile units, net sales andall profits Due to improvement of sales volume, product mix in Japan and US and revision ofassumed currency exchange rate, full year projections of net sales and all profits
to be increased compared to previous projections.
Net sales

Actual results(YoY)¥2,380.0bil.
(+¥467.0bil.)

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

Operating income¥310.0bil.

(+¥189.6bil.)

Ordinary income¥294.0bil.

(+¥193.4bil.)

Net income¥221.0bil.

(+¥101.4bil.)

Consolidated
automobile units

829.3k(+104.8k)
1

1

Business results for the 3rd quarter (9 months)of FYE March 2013

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

22

9 months : Consolidated Automobile Units（Thousand Units）

Actual Results
9 months
FYE 2013

Actual Results
9 months
FYE 2014

Passenger cars

76.9

86.9

+10.0

Minicars

34.7

37.0

+2.3

111.5

123.9

+12.3

U.S.

259.4

326.4

+67.0

Canada

23.6

27.2

+3.6

Russia

13.3

9.5

-3.8

Europe

34.9

23.5

-11.4

Australia

28.3

29.6

+1.4

China

40.3

29.6

-10.7

Others

15.3

23.8

+8.4

415.1
526.6

469.5
593.4

+54.5
+66.8

Domestic total

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

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

3

Consolidated automobile sales for the first nine months of the fiscal year ending March2014 totaled 593.4 thousand units. This was the highest sales figure ever recorded for the
first nine-month period thanks to robust sales mainly in the U.S. and Japan.
Domestic sales were up 12.3 thousand units year on year to reach 123.9 thousand units
due to higher sales volumes of the Forester and the Impreza as well as enhanced productcapability of minicars like the Stella and the Pleo.
Sales in overseas markets rose 54.5 thousand units to total 469.5 thousand units thanks tooutstanding sales of the Forester and the Impreza which drove sales performance up in the
U.S., Canada, Australia, and elsewhere.

3

9 months : Consolidated Income Statements（100 Million Yen）

Actual Results
9 months
FYE 2013

Actual Results
9 months
FYE 2014

Net sales

13,707

17,085+3,378Domestic

4,823

4,788

-35

Overseas

8,884

12,297+3,413Operating income

734

2,334

+1,600Ordinary income

634

2,214

+1,580

Income before
taxes and minority
interests

617

2,671

+2,054

Net income

531

1,815

+1,284¥80/US$¥98/US$+¥19/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

Increase /Decrease

4

Looking at our consolidated results for the first nine months of this fiscal year, we see thatboth net sales and income were the highest they have ever been for any nine-month period.
Net sales increased 337.8 billion yen year on year to total 1,708.5 billion yen. The main
factors behind this increase include a foreign exchange gain of 212.8 billion yen, a gain of
122.9 billion yen due to better sales mix variances resulting from increased new car sales,
as well as a 2.1 billion yen increase in sales at Aerospace and Industrial products
companies, etc.
Operating income rose 160.0 billion yen year on year to total 233.4 billion yen. This
increase was mainly due to foreign exchange gains, improved sales mix variances, andreduced materials costs, etc., all of which offset an increase in SG&A and R&D expenses.
Income before taxes and minority interests totaled 267.1 billion yen, up 205.4 billion yen
year on year, due to a gain on the sale of investment securities in addition to higher
ordinary income.
Net income rose 128.4 billion yen to reach 181.5 billion yen.

4

9 months : Analysis of Increase and Decreasein Operating Income Changes (consolidated)
US$ : +1,271
EURO : +35
CA$ : +71
CNY : -1
Currency
exchange
adjustment : +52（100 Million Yen）

Cost reduction

Gain oncurrency
exchange

R&D expenses+194+1,428
Improvementof salesvolume &mixture andothers-80
Increase of
SG&A
expensesand others

FHI : +159
SIA : +35

+195
734

Increase of-137
・Increase of fixed costand SG&A expenses
・Decrease of warranty claims

2,334

Domestic : Increase of sales volume & deterioration of mixture
Overseas : Improvement of sales volume & mixture

Actual results
Operating income
9 months
FYE March 2013+160.0 billion

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

Actual results
Operating income
9 months
FYE March 20145

Now let’s look at the reasons behind the year-on-year increase of 160.0 billion yen in operating income that went from 73.4 billion yen
to 233.4 billion yen.
The primary reason for the increase in operating income was a foreign exchange gain of 142.8 billion yen. This includes a gain of 127.1
billion yen due to an approximate 19 yen depreciation against the U.S. dollar, a gain of 3.5 billion yen due to an approximate 28 yen
depreciation against the euro, and a gain of 7.1 billion yen due to an approximate 16 yen depreciation against the Canadian dollar.
This figure also includes a gain of 5.2 billion yen due to foreign exchange adjustments for transactions between FHI and its overseas
subsidiaries as well as a loss of 0.1 billion yen as a result of currency translations between the yen and the Chinese yuan.
Another contributing factor that brought operating income up is a favorable sales mix variance that led to a gain of 19.5 billion yen. This
gain can be broken down into the following three areas.
First, we saw a gain of 3.8 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 last year due to the aging Legacy.
Next, we saw a gain of 29.2 billion yen in overseas new car sales.
Both the sales volume and sales mix improved thanks to strong sales of the Forester mainly in North America.
Finally, we had a loss of 13.5 billion yen due to inventory adjustments.
Another factor behind the jump in operating income was a gain of 19.4 billion yen due to cost reduction. This includes a gain of 15.9
billion yen generated by FHI as well as a gain of 3.5 billion yen coming from SIA.
FHI saw a gain of 15.7 billion yen due to cost reductions as a result of increased production, etc. and another gain of 0.2 billion yen due
to lower material costs and better market conditions.
SIA yielded a gain of 2.7 billion yen through cost reductions and a gain of 0.8 billion yen due to materials prices, etc.
On the other hand, The main factor bringing operating income down was a loss of 13.7 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 0.1 billion yen due to an increase in fixed manufacturing costs. This includes a loss of 2.1 billion yen generated
by FHI as well as a gain of 2.0 billion yen coming from SIA.
FHI generated a loss of 1.1 billion yen due to increased costs for suppliers’ dies and a loss of 1.0 billion yen due to higher fixed
processing costs while SIA gained 2.0 billion yen due to lower costs for suppliers' dies.
The second factor is a loss of 17.5 billion yen due to an increase in SG&A expenses.
FHI lost 6.7 billion yen due to an increase in advertising costs, etc. as well as mounting transportation and packing costs that went handin hand with the increasing sales volume.
The 17.5 billion yen loss also includes a loss of 1.9 billion yen at domestic dealers, a loss of 8.9 billion yen generated at SOA, a loss of
1.7 billion yen at our Canadian subsidiary, and a gain of 1.7 billion yen from other operations.
The third factor includes a decrease in costs associated with warranty claims that led to a gain of 3.9 billion yen.
Finally, an increase in R&D expenses resulted in a loss of 8.0 billion yen.
These factors combined brought consolidated operating income for the first nine-month period of the fiscal year ending March 2014 up
160.0 billion yen to total 233.4 billion yen.

5

9 months : Automobile Segment (Consolidated)（100 Million Yen）

Net sales

Operating income+25.5 ％

+226.6 ％15,962

2,203

12,717674

92012年3月期
monthsFYE201392013年3月期
monthsFYE201492012年3月期
monthsFYE201392013年3月期
monthsFYE2014

 Net sales to be increased due to increase of sales in Japan and US
and gain on currency.
 Operating income to be increased due to increase of sales units
and cost reduction offset increase of SG&A costs.
http://www.fhi.co.jp/english/ir/index.html

6

Let's move on to net sales by business segment.
The automobile segment saw net sales rise by 324.5 billion yen year on year to total
1,596.2 billion yen. This increase was due to climbing sales volumes and better sales mix
primarily in Japan and the U.S. on top of a foreign exchange gain of 201.6 billion yen, all ofwhich offset declining sales volumes in Europe and China.
Operating income for the segment rose 152.8 billion yen year on year to total 220.3 billion
yen. This uptick came from increased sales volumes in Japan and the U.S., further cost
reductions, as well as foreign exchange gains totaling 126.9 billion yen, etc. despite anincrease in SG&A, R&D and other expenses.

69 months : Aerospace Segment (Consolidated)（100 Million Yen）

Net sales

Operating income+33.0 ％

+180.3 ％

846

106

636
38

92012年3月期
monthsFYE201392013年3月期
monthsFYE201492012年3月期
monthsFYE201392013年3月期
monthsFYE2014

 Increase in both sales and operating income.
 Increase in both Defense and Commercial Sectors with gain on
currency exchange.
http://www.fhi.co.jp/english/ir/index.html

7

The aerospace segment saw sales rise in the defense sector as well as an increase in thesales for the Boeing 777, 787 and other models in the commercial aircraft sector. Robust
sales as well as foreign exchange gains brought net sales for the sector up 21.0 billion yen
year on year to total 84.6 billion yen. Operating income also rose 6.8 billion yen for a totalof 10.6 billion yen.

7

9 months : Industrial Products Segment (Consolidated)（100 Million Yen）

Net sales

Operating income-1.5 ％

224-32.9 ％

220
3
292012年3月期
monthsFYE201392013年3月期
monthsFYE20149 2012年3月期
monthsFYE201392013年3月期
monthsFYE2014

 Decrease in both net sales and operating income.
 Despite increase of engines sales in Japan and Asia,
sales decrease in engines for leisure vehicles for North America.
http://www.fhi.co.jp/english/ir/index.html

8

Sales of the industrial products segment's leisure vehicle engines were down in North
America while there were some upbeat developments, including a jump in engine sales inJapan and Asia, as well as foreign exchange gains as a result of the devaluation of theexcessively strong yen. These factors combined brought the segment's net sales down 0.3
billion yen year on year to total 22.0 billion yen. Operating income also fell 0.1 billion yen to
hit 0.2 billion yen.

8

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

Actual Results
9 months
FYE 2013

Actual Results
9 months
FYE 2014

-8

1

+8

FOREX effects

-79

-108

-28

Other

-12

-12

+0

Total non-operating income &expenses

-99

-119

-20

Gain on sales of investment
securities

5

472

+468

-16

-17

-1

-6

1

+7

-17

457

+474

Financial revenue and expenditure

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

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

Increase /Decrease9

Let's move on to non-operating income and expenses as well as extraordinary profit andloss.
Net non-operating income fell 2.0 billion yen year on year, leading to a loss of 11.9 billion
yen.
This includes financial revenue totaling 0.1 billion yen and a loss of 10.8 billion yen due toforeign exchange fluctuations.
Foreign exchange fluctuations had an impact on non-operating income and expenses
mainly in the following two areas: (1) gains and losses on revaluation of derivatives, and(2) foreign exchange gains and losses. Net loss on revaluation of derivatives that totaled
6.4 billion yen in the same period last year decreased by 4.8 billion yen, leading to a net
loss of 1.6 billion yen.
Looking at foreign exchange gains and losses, we saw a year-on-year loss of 5.2 billion
yen in foreign exchange adjustments with overseas subsidiaries as well as a loss of 2.5
billion yen due to the difference between market and hedge rates. These factors combined
generated a loss of 7.7 billion yen, resulting in a net foreign exchange loss of 9.2 billion yen.
Extraordinary gains increased 47.4 billion yen year on year to total 45.7 billion yen due to again of 47.2 billion yen on the sale of investment securities.

9Consolidated Balance Sheets（100 Million Yen）

Increase /Decrease

As of Mar. 2013

As of Dec. 2013

15,775

17,859+2,085Current assets

9,440

11,565+2,124

Noncurrent assets

6,334

6,295

-39

Interest bearing
debts

3,072

2,760

-312

Net assets

5,968

7,643

+1,675Retained earnings

3,014

4,595

+1,581

Shareholder’s equity

5,954

7,612

+1,658

Shareholder’s equity tototal assets

37.7％

42.6％

+4.9

0.52

0.36

-0.15

Total assets

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

10

The balance sheet shows total assets as of the end of December 2013 increasing by 208.5
billion yen from the end of March 2013 to total 1,785.9 billion yen.
This increase was due primarily to a jump in net income resulting from higher sales
volumes as well as the positive impact of currency fluctuations which generated a gain of
59.6 billion yen.
Interest-bearing debt declined 31.2 billion yen to reach 276.0 billion yen due to therepayment of loans.
Net assets totaled 764.3 billion yen, up 167.5 billion yen, due primarily to a 158.1 billion
yen increase in retained earnings.
The shareholders’ equity to total assets ratio rose 4.9 percentage points from what it wasat the end of the previous fiscal year to hit 42.6%. The debt-to-equity ratio climbed 0.15
points to reach 0.36.

109 months : Consolidated Statement of Cash Flows（100 Million Yen）

Net cash provided by (used in)operating activities
Net cash provided by (usedin) investing activities

Actual Results
9 months
FYE 2013

Actual Results
9 months
FYE 2014

1,113

2,215

+1,102

-467

-121

+345

Increase /Decrease

646

2,094

+1,447

Net cash provided by (used in)financing activities

-439

-547

-108

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

45

145

+99

252

1,691

+1,438

2,581

3,289

+709

213

1

-212

3,046

4,982

-

Free cash flows

Cash and cash equivalents
at end of period
http://www.fhi.co.jp/english/ir/index.html

11Moving on to cash flows, we see that net cash from operating activities totaled 221.5 billion
yen for a 110.2 billion yen year-on-year increase. This jump is due to better businessperformance that brought net income before taxes and minority interests up as well as thedevaluation of the yen against other currencies.
Net cash used for investment activities increased 34.5 billion yen, resulting in a cash
outflow of 12.1 billion yen. This increase was due to the sale of investment securities in
addition to our ongoing initiatives to boost production capacity as well as other investments
made according to our carefully planned investment strategies.
Free cash flows increased by 144.7 billion yen to reach 209.4 billion yen.
Net cash from financing activities dropped 10.8 billion yen to a negative 54.7 billion yen
due primarily to the repayment of loans as well as dividend payments.
Cash and cash equivalents totaled 498.2 billion yen.

11

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

Actual Results
9 months
FYE 2013

Actual Results
9 months
FYE 2014

6,385

8,115

+1,730

130

199

+69

Net income

85

123

+38

Retail sales

254.9

331.0

+76.1

Actual Results
9 months
FYE 2013

Actual Results
9 months
FYE 2014

3,021

2,817

-204

Operating income

30

162

+132

Net income

19

102

+83

131.7

119.7

-12.0

SOA
Net sales
Operating income(Thousand units)

SIA
Net sales

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

Increase /Decrease

Increase /Decrease

12

SOA's retail sales climbed 76.1 thousand units year on year to reach 331 thousand units
as sales of the new Forester and the XV remained upbeat.
Net sales also jumped 1,730 million dollars year on year to total 8,115 million dollars.
Operating income was up 69 million dollars year on year to total 199 million dollars. This
increase comes from a gain of 181 million dollars due to favorable sales volume and mix
variances despite a loss of 112 million dollars from higher SG&A expenses.
SIA's net sales totaled 2,817 million dollars, down 204 million dollars year on year.
Operating income rose 132 million dollars year on year to reach 162 million dollars. The
factors behind the increase include a gain of 63 million dollars due to sales price andvolume variances, a gain of 44 million dollars brought by overall cost reduction efforts aswell as a gain of 25 million dollars due to a decrease in fixed costs.

12

Outlook for the term Ending March 2014

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

1313

Full Year : Consolidated Automobile Sales Plan（Thousand Units）

Actual results
FYE 2013

Plan
FYE 2014

Increase /Decrease

Passenger cars

112.8

135.0

+22.3

Minicars

50.4

53.8

+3.4

163.1

188.8

+25.7

U.S.

357.6

439.8

+82.3

Canada

32.6

36.0

+3.4

Russia

14.7

15.4

+0.7

Europe

46.4

31.9

-14.5

Australia

38.1

39.1

+1.0

China

50.2

44.8

-5.4

Others

21.7

33.4

+11.7

561.3
724.5

640.5
829.3

+79.1
+104.8Domestic total

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

14

Consolidated automobile sales for the fiscal year ending March 2014 is projected to reachan all-time high of 829.3 thousand units.
We expect that sales of the Forester and the Impreza will remain robust and drive thedomestic sales volume up 25.7 thousand units year on year to reach 188.8 thousand units.
The overseas sales volume is projected to total 640.5 thousand units, an increase of 79.1
thousand units, due to healthy sales in North America and other markets.
We expect the sales volume total to be 22 thousand units higher than our previous forecast
announced at the end of the second quarter, with an increase of 18.9 thousand units indomestic passenger vehicle sales and a sales volume increase of 3.1 thousand units in the
U.S.

14

Full Year : Consolidated Operating Plan
（100 Million Yen）

Actual results
FYE 2013

Plan
FYE 2014

Increase /Decrease

Net sales

19,13023,800+4,670

Domestic

6,718

6,495

-223

Overseas12,411

17,305+4,893Operating income

1,204

3,100

+1,896

Ordinary income

1,006

2,940

+1,934

Income before
taxes and minority
interests

931

3,331

+2,400

1,196

2,210

+1,014¥82/US$¥99/US$+¥17/US$Net income
FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

15

Moving on to our consolidated operating plan, we project that net sales will rise 467.0
billion yen year on year to total 2,380 billion yen. This increase will come from a gain of
180.4 billion yen resulting from a better sales mix variance in North America and othermarkets as well as a gain of 21.3 billion yen from increased sales at the FHI companies,
etc. on top of a foreign exchange gain of 265.3 billion yen.
Operating income is projected to be up 189.6 billion yen year on year for a total of 310.0
billion yen. The factors behind this increase include foreign exchange gains, a better sales
mix variance, and reduced materials costs, which will offset the higher SG&A and R&D
expenses.
Income before taxes and minority interests is projected to total 333.1 billion yen, up 240.0
billion yen since we posted a gain on the sale of investment securities. Net income is
projected to increase 101.4 billion yen over what it was last fiscal year when we reposted
deferred tax assets. The total for net income will reach 221.0 billion yen since we expect
tax expenses to be at a normal level.
We made upward revisions to our performance forecast announced previously, including
increases of 80.0 billion yen for net sales, 32.0 billion yen for operating income, 22.0 billion
yen for ordinary income, 22.0 billion yen for income before taxes and minority interests,
and 14.0 billion yen for net income.

15

Analysis of Increase and Decrease in
Operating Income Changes (consolidated)
US$ : +1,497
EURO : +48
CA$ : +77
CNY : +7
Currency
exchange
adjustment : -9（100 Million Yen）

Gain oncurrency

Cost reduction

Increase of R&D+210

expenses-109

exchange+1,620
Improvementof salesvolume &mixture andothers+484
1,204Actual results
Operating income
FYE March 2013

FHI : +172
SIA : +38

Increase of
SG&A
expensesand others

-309

3,100

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

Domestic : Improvement of sales volume & mixture
Overseas : Improvement of sales volume & mixture+189.6 billion

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

Plan
Operating income
FYE March 201416

Now let's look at the factors behind the projected year-on-year 189.6 billion yen increase in operating income that will take us from
120.4 billion yen to 310.0 billion yen.
The primary reason for the increase in operating income will be a foreign exchange gain of 162.0 billion yen. This includes a gain of
149.7 billion yen due to an approximate 16 yen depreciation against the U.S. dollar, a gain of 4.8 billion yen due to an approximate 27
yen appreciation against the euro, a gain of 7.7 billion yen due to an approximate 13 yen drop against the Canadian dollar, as well as again of 0.7 billion yen as a result of currency translations between the yen and the Chinese yuan.
This figure also includes a 0.9 billion yen loss due to foreign exchange adjustments for transactions between FHI and its overseas
subsidiaries.
Another contributing factor that will bring operating income up is a favorable sales mix variance that will lead to a gain of 48.4 billion yen.
This gain can be broken down into the following three areas.
First off there will be a gain of 3.6 billion yen associated with domestic sales of new models.
Next, we will see a gain of 48.5 billion yen from sales of new models in overseas markets.
We expect increased sales volumes in North America as well as strong sales of the Forester worldwide will improve both the sales
volume and sales mix.
Finally, we expect a loss of 3.7 billion yen due to inventory adjustments.
Another factor behind the jump in operating income will be a gain of 21.0 billion yen from cost cuts. This will include a gain of 17.2
billion yen to be generated by FHI as well as a gain of 3.8 billion yen coming from SIA.
FHI is expected to generate a gain of 21.0 billion yen through cost reductions and a loss of 3.8 billion yen due to the rising cost of
materials and other negative market factors.
SIA will generate a gain of 2.9 billion yen due to cost cuts and a gain of 0.9 billion yen as a result of lower material costs.
The primary factor that will bring operating income down will be a loss of 30.9 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 1.9 billion yen due to an increase in fixed manufacturing costs. This includes a loss of 4.8 billion yen comingfrom FHI as well as a gain of 2.9 billion yen coming from SIA.
FHI is expected to generate a loss of 0.8 billion yen due to increased costs for suppliers’ dies and a loss of 4.0 billion yen due to higher
fixed processing costs.
SIA is expected to gain 2.8 billion yen due to lower costs for suppliers‘ dies and gain 0.1 billion yen due to lower fixed processing costs.
Next we will see a loss of 32.7 billion yen due to an increase in SG&A expenses. This will include losses of 8.8 billion yen at FHI, 2.2
billion yen at domestic dealers, 17.4 billion yen at SOA, 2.6 billion yen at our Canadian subsidiary, and 1.7 billion yen coming from otheroperations.
Most of these increases are associated with the growing sales volume, but also included future investment for strengthening our sales
network in the US.
The third factor includes a decrease in costs associated with warranty claims that will lead to a gain of 3.7 billion yen.
Finally, an increase in R&D expenses is expected to result in a loss of 10.9 billion yen.
All these factors combined will bring consolidated operating income for the fiscal year ending March 2014 up 189.6 billion yen year on
year to total 310.0 billion yen.

16

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

Actual results
FYE 2013

Plan
FYE 2014

Increase /Decrease

8,805

10,935+2,130

133

175

+42

Net income

97

109

+12

Retail sales(Thousand units)

347.1

435.1

+88.0

SIA

Actual results
FYE 2013

Net sales
Operating incomePlan
FYE 2014

Increase /Decrease

4,158

3,839

-319

Operating income

71

257

+186

Net income

46

155

+109

181.2

163.5

-17.7

Net sales

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

17

SOA's retail sales for this fiscal year is expected to jump 88 thousand units year on year fora total of 435.1 thousand units as we work to keep the momentum up.
Net sales will increase 2,130 million dollars year on year to reach 10,935 million dollars
while operating income will rise 42 million dollars year on year to total 175 million dollars.
This increase will come from a gain of 249 million dollars from favorable sales volumes andmix variances despite a loss of 207 million dollars due to higher SG&A expenses.
SIA's net sales are expected to decline 319 million dollars before totaling out at 3,839
million dollars.
Operating income will climb 186 million dollars year on year to reach 257 million dollars.
Factors for the increase will include a gain of 105 million dollars due to sales price andvolume variances, a gain of 46 million dollars from cost reduction efforts, as well as a gainof 35 million dollars generated by a decrease in fixed costs.

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

FYE2013FYE2014

Actual Results
Actual results
Actual results
Full year
9 months
9 months(a)

Plan
Full year(b)

Increase/ Decrease(b) - (a)

Capex

484

702

412

720

+18

Depreciation

389

559

394

550

-9

R&D

353

491

433

600

+109

3,236

3,072

2,760

2,700

-372

Interest
bearing debt

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

1818

Appendix (1)・Segment information (by Business / Geographic)
・Segment・Overseas net sales
・Overseas・
Non-consolidated automobile sales
・Non-consolidated
・
3rd quarter (3 months), consolidated statements income
・3rd・
2nd half (6 months), consolidated statements income
・2nd・ Full year, Previous plan vs. revised plan

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

1919

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

Net sales

Operating income

ActualResults
9 months
FYE 2013

ActualResults
9 months
FYE 2014

Increase/
Decrease

ActualResults
9 months
FYE 2013

ActualResults
9 months
FYE 2014

Increase/
Decrease

Automobile

12,717

15,962+3,245674

2,203+1,528Aerospace

636

846

+210

38

106

+68

Industrial
products

224

220

-3

3

2

-1

Others

130

56

-73

15

18

+3

4

4

+1

734

2,334

+1,600Eliminationand corporate

Total

13,707

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

17,085+3,37820

20

9 months : Consolidated Operating Income
by Geographic Area（100 Million Yen）

Net sales

Operating income

ActualActualActualActualIncrease
Increase
Results
Results
Results
Results//
9 months 9 months
9 months 9 months
Decrease
Decrease
FYE 2013 FYE 2014
FYE 2013 FYE 2014
Japan

6,600

6,839

+238

595

2,038

+1,443

North
America

5,859

9,084

+3,225

146

434

+288

Other

1,248

1,163

-86

-2

-5

-3

-6

-133

-128

734

2,334

+1,600Elimination
andcorporate
Total

13,707

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

17,085+3,37821

21

9 months : Overseas Net Sales（100 Million Yen）

Actual Results
9 months
FYE 2013

Actual Results
9 months
FYE 2014

6,273

9,640

+3,367

Europe

960

837

-124

Asia

880

916

+36

Other

771

904

+133

8,884

12,297+3,413

North America

Total

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

Increase /Decrease22

22

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

Actual Results
9 months
FYE 2013

Actual Results
9 months
FYE 2014

Domestic production

425.6

482.3

+56.7

Domestic sales

119.4

131.2

+11.8

Passenger cars

84.5

90.9

+6.5

Minicars

34.9

40.3

+5.4

284.6

371.6

+87.0

136.0

124.3

-11.6

539.9

627.2

+87.3

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

23

23

3rd Quarter : Consolidated Automobile Units（Thousand Units）

Actual Results
Q3
FYE 2013

Actual Results
Q3
FYE 2014

Passenger cars

31.5

25.1

-6.4

Minicars

8.1

11.4

+3.3

39.6

36.5

-3.0

U.S.

95.0

117.5

+22.4

Canada

7.3

8.5

+1.2

Russia

2.2

2.7

+0.5

Europe

9.5

8.1

-1.4

Australia

6.2

8.3

+2.1

China

13.7

10.6

-3.1

Others

4.7

8.4

+3.8

138.6
178.2

164.2
200.8

+25.6
+22.6

Domestic total

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

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

24

24

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

Actual Results
Q3
FYE 2013

Actual Results
Q3
FYE 2014

Net sales

4,727

5,829

+1,102

Domestic

1,725

1,482

-243

Overseas

3,002

4,347

+1,345

Operating income

301

827

+525

Ordinary income

181

752

+571

Income before
taxes and minority
interests

159

1,218

+1,059Net income

127

817

+690

¥79/US$¥99/US$+¥20/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

Increase /Decrease

25

25

3rd Quarter : Analysis of Increase and Decrease in
Operating Income Changes (consolidated)
US$ : +512
EURO : +15
CA$ : +22
CNY : -1
Currency
exchange
adjustment : +7

Gain oncurrency
exchange+556

R&D expenses

+59

-30
Increase of
SG&A
expenses

FHI : +43
SIA : +16

and others-41

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

301
Actual results
Operating income
3rd quarter
FYE March 2013
http://www.fhi.co.jp/english/ir/index.html（100 Million Yen）

Increase of
Cost reduction

Deteriorationof salesvolume &mixture andothers-18

827

Domestic : Deterioration of sales volume & mixture
Overseas : Improvement of sales volume & mixture+52.5 billion

Plan
Operating income
3rd quarter
FYE March 201426

26

2nd Half : Consolidated Automobile Sales Plan（Thousand Units）

Actual Results
2nd Half
FYE 2013

Plan
2nd Half
FYE 2014

Increase /Decrease

Passenger cars

67.4

73.3

+5.9

Minicars

23.8

28.2

+4.4

Domestic total

91.1

101.5

+10.3

U.S.

193.2

230.9

+37.7

Canada

16.3

17.3

+1.0

Russia

3.6

8.6

+5.0

Europe

21.0

16.5

-4.5

Australia

16.1

17.8

+1.8

China

23.6

25.9

+2.3

Others

11.0

18.1

+7.0

284.9
376.0

335.2
436.6

+50.3
+60.6

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

27

27

2nd Half : Consolidated Operating Plan
（100 Million Yen）

Actual Results
2nd Half
FYE 2013

Plan
2nd Half
FYE 2014

Increase /Decrease

Net sales

10,14912,544+2,394

Domestic

3,621

3,189

-431

Overseas

6,529

9,354

+2,825

Operating income

772

1,593

+821

Ordinary income

553

1,478

+925

Income before
taxes and minority
interests

472

1,878

+1,406

Net income

791

1,212

+420

¥84/US$¥99/US$+¥15/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

28

28

2nd Half : Analysis of Increase and Decrease in
Operating Income Changes (consolidated)
US$ : +738
EURO : +28
CA$ : +28
CNY : +7
Currency exchange
adjustment : -53（100 Million Yen）

Gain oncurrency

Increase of
R&D expenses

exchange

Cost
reduction+748
Improvementof salesvolume &mixture andothers

+271

+75

-58
Increase of
SG&A
expensesand others

-215

1,593

FHI : +56
SIA : +19

772

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

Domestic : Deterioration of sales volume & mixture
Overseas : Improvement of sales volume & mixture

Actual results
Operating income
2nd half
FYE March 2013
http://www.fhi.co.jp/english/ir/index.html+82.1 billion

Plan
Operating income
2nd half
FYE March 201429

29

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

Previous plan
FYE 2014

Revised plan
FYE 2014

Increase /Decrease

Passenger cars

116.3

135.0

+18.7

Minicars

53.6

53.8

+0.2

169.9

188.8

+18.9

U.S.

434.8

439.8

+5.0

Canada

35.9

36.0

+0.1

Russia

15.4

15.4

-0.0

Europe

34.6

31.9

-2.8

Australia

39.9

39.1

-0.8

China

44.2

44.8

+0.6

Others

32.5

33.4

+0.9

637.4
807.3

640.5
829.3

+3.1
+22.0

Domestic total

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

30

30

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

Previous plan
FYE 2014

Revised plan
FYE 2014

Increase /Decrease

Net sales

23,00023,800+800

Domestic

6,437

6,495

+58

Overseas

16,563

17,305+742

Operating income

2,780

3,100

+320

Ordinary income

2,720

2,940

+220

Income before
taxes and minority
interests

3,111

3,331

+220

Net income

2,070

2,210

+140

¥97/US$¥99/US$+¥2/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

3131Full Year : Analysis of Increase and Decrease in
Operating Income Changes Previous Plan vs. Revised Plan
US$ : +233
EURO : +6
CA$ : +1
CNY : +7
Currency exchange
adjustment : +39（100 Million Yen）

Gain oncurrency

Cost reduction+36

exchange+286

Increase of
SG&A
expenses

Improvementof salesvolume &mixture andothers+47

and others
FHI : +34
SIA : +2

-49

3,100

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

2,780

Domestic : Improvement of sales volume & mixture
Overseas : Improvement of sales volume & mixture

Previous plan
Operating Income
FYE March 2014
http://www.fhi.co.jp/english/ir/index.html+32.0 billion

Revised plan
Operating Income
FYE March 201432

32

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

33

33

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

Operating Income（100 million yen)

¥83/$

6,000

¥83/$

¥82/$

¥79/$

Net sales

¥77/$

¥78/$

¥81/$

¥79/$

¥89/$

¥98/$

¥98/$

¥99/$

5,787 5,829

Operating income

5,422 5,469

4,877

5,000
4,000 3,706¥79/$

4,691 4,727

900

827

811

800

4,289

4,059
3,546

700

696

3,744

600

3,004

3,000

1,000

500

470

400
2,000
161

1,000

107

107

4Q

1Q

FYE2011
http://www.fhi.co.jp/english/ir/index.html

2Q

100

91

81

3Q

200

173

161

0

300

301

259

0
3Q

FYE2012

4Q

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE201434

34

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

OPM

Consolidated automobile sales
208

OPM

18%
198

200

183
169

166

157

166

178

202

201
15%

14.0%

14.2%

12.7%

148

150

191

12%

118
9%

8.7%

100

6%

6.4%
5.5%

4.4%

50

3.6%
2.3%

2.6%

2.4%
3.3%

4.0%

3%

0

0%
3Q

4Q

1Q

FYE2011
http://www.fhi.co.jp/english/ir/index.html

2Q

3Q

FYE2012

4Q

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE201435

35

Complete Cars Production & Retail Units
Units（1000 units)

Production

196

200
164

162

156

150

211 213207
195197
193

Retail Units

147 150
136

138

196 191
158

197
182
178
172
167

212
210

177

111
100

50

0
Oct.Dec.

2011

Jan.Mar.

Apr.Jun.

Jul.Sep.

2012

Oct.Dec.

Jan.Mar.

Apr.Jun.

Jul.Sep.

2012

Oct.Dec.

Jan.Mar.

Apr.Jun.

Jul.Sep.

Oct.Dec.

2013* Production figures include Toyota 86.

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

3636

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

FCF（100 million yen)

2,094
1,900

45%

42.6%

FCF

41.2%

Shareholders' equity to total assets
39.9%

1,400

40%

1,198
953

900

871

778

35.4%
34.7%

400

397

34.2%

34.7%

33.7%

33.3%

47

-42

1Q

2Q

3Q

35.2%

33.7%

35%

516

34.2%

221

283
78

37.7%

646

-100

30%
3Q

4Q

FYE2011
http://www.fhi.co.jp/english/ir/index.html

FYE2012

4Q

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE201437

37

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

D/E ratio

4,500
3,965 3,866

4,000
3,500

3,179

3,410 3,381

3,306

3,000
2,500

Interest bearing debt

0.91

0.80

0.76

D/E ratio

1.4

3,688

0.89

3,301 3,236

1.2
3,072

2,967 2,918

2,760

1.0

0.85
0.76

0.74

2,000

0.69

0.8
0.64

0.6

0.52

1,500

0.46

1,000

0.36

0.4

0.41

0.2

500
0

0.0
3Q

4Q

1Q

FYE2011
http://www.fhi.co.jp/english/ir/index.html

2Q

3Q

FYE2012

4Q

1Q

2Q

3Q

FYE2013

4Q

1Q

2Q

3Q

FYE201438

38

Forward-looking statements including projections and future strategies mentioned in this presentation are
based on currently available information and assumptions and are subject to risks and uncertainties.
Actual results may vary materially as a result of various factors including, without 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

3939

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

4040