Mitsuru Takahashi
Executive Vice President & CFO

Fuji Heavy Industries Ltd.
May 8, 2015
http://www.fhi.co.jp/english/ir/index.html

00Summary
Financial results of the FYE March 2015 (consolidated)
 Consolidated automobile sales set a new record of 911K units for the 3rd consecutive year led by thecontinuous strong sales in North America as well as the introduction of new models such as Legacy,
Outback, Levorg and WRX.
 Net sales and all profit levels also made a new record for the 3rd straight year.

Actual results(YoY)

Net sales

OperatingincomeOrdinary
incomeNet income

Consolidated
automobile sales¥2,877.9 bil.
(+¥469.8 bil.)¥423.0 bil.
(+¥96.6 bil.)¥393.6 bil.
(+¥79.2 bil.)¥261.9 bil.
(+¥55.3 bil.)

910.7K units(+85.6K units)

Financial projection for the FYE March 2016 (consolidated)
 Consolidated automobile sales are projected to hit an all-time high for the 4th consecutive year of 928K

units led by increase mainly from North American markets.
 Gain on exchange rate, increase of sales volume and the progress of cost reduction will offset theincrease of SG&A, R&D and other expenses, thus net sales and income at all levels are projected to hit an
all-time high for the 4th consecutive year.

Plan
(YoY)

Net sales

OperatingincomeOrdinary
incomeNet income

Consolidated
automobile sales¥3,030 bil.
(+¥152.1 bil.)¥503.0 bil.
(+¥80.0 bil.)¥495.0 bil.
(+¥101.4 bil.)¥337.0 bil.
(+¥75.1 bil.)

928.3K units(+17.6K units)

http://www.fhi.co.jp/english/ir/index.html*Net income for FYE2016 (16/3) will be referred to as "Net Income Attributable to Owners of the parent".

11

Business results of the FYE March 2015

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

22

Automobile Sales Volume (consolidated)（Thousand units）

Actual results
FYE 2014

Actual results
FYE 2015

Passenger cars

126.1

127.9

+1.7

Minicars

55.5

34.9

-20.6

Domestic total

181.6

162.8

-18.8

U.S.

441.8

527.6

+85.8

Canada

36.0

42.4

+6.4

Russia

15.3

11.6

-3.8

Europe

31.8

35.7

+4.0

Australia

39.5

38.9

-0.6

China

44.8

53.8

+9.0

Others

34.3

37.9

+3.6

643.5

747.9

+104.4

910.7

+85.6

Overseas total

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

825.1

Variance* Figures of China are consolidated results on the calendar year basis from Jan. to Dec.

3

Consolidated automobile sales for the fiscal year that ended March 2015 were up 85.6
thousand units year on year, reaching a total of 910.7 thousand units that set a newrecord high for the third year in a row.
Domestic sales fell 18.8 thousand units year on year to total 162.8 thousand units overall
due to a decline in minicar sales although passenger vehicle sales grew year on year
thanks to newly launched models like the Levorg and WRX whose sales remained up.
Sales in overseas markets rose 104.4 thousand units to total 747.9 thousand units as salesof the Legacy, Outback and WRX, which were given a major face-lift, as well as theForester remained upbeat.

3

Income Statements (consolidated)（100 Million Yen）

Actual results
FYE 2014

Actual results
FYE 2015

Net sales

24,081

28,779+4,698Domestic

6,721

6,529

-192

Overseas

17,361

22,250+4,890Operating income

3,265

4,230

+966

-121

-294

-173

3,144

3,936

+792

144

-14

-159

Income before income taxes
and minority interests

3,289

3,922

+633

Net income

2,066

2,619

+553

¥100/US$¥108/US$+¥9/US$

Total non-operating
income & expenses

Ordinary income
Total extraordinary
income & loss

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

Variance

4

Both net sales and income hit record highs for the third consecutive year.
Net sales rose 469.8 billion yen year on year to total 2,877.9 billion yen. The main factors
behind this increase include a foreign exchange gain of 163.2 billion yen, an 8.1 billion yen
increase in sales at FHI internal companies, etc., as well as a gain of 298.5 billion yen due
mainly to higher sales volumes.
Operating income climbed 96.6 billion yen year on year to total 423.0 billion yen. This
uptick mainly came from higher sales volumes, foreign exchange gains, and reduced
materials costs, etc., all of which offset increases in SG&A and R&D expenses.
Ordinary income was up 79.2 billion yen to reach 393.6 billion yen while income before
income taxes and minority interests rose 63.3 billion yen to hit 392.2 billion yen. Net
income jumped 55.3 billion yen to reach 261.9 billion yen.

4

Analysis of Variance in Operating Income (consolidated)

US$ : +927
EURO : +15
CA$ : +8
CNY : +9
Currency
exchange
adjustment : +78

Gain oncurrency
exchange

Improvementof sales volume
Cost& mixture
reductionand others+703（100 Million Yen）

Fixed cost : -85 (FHI -53 SIA -32)
SG&A : -467 (FHI -81 SOA -190 and others)
Warranty claims : -114

+124

+1,037
FHI : +120
(material cost -34)
SIA : +4
(material cost -17)

3,265

Increaseof SG&A
expensesand others-666

Increaseof R&D
expenses

-232

4,230

Domestic : +96 (Increase of sales volume and deterioration of mixture)
Overseas : +818 (Increase of sales volume and deterioration of mixture)
Others : -211

Actual results
FYE 2014
Operating income

Total: +966

Actual results
FYE 2015
Operating income

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

5

Now let’s look at the reasons behind the year-on-year increase of 96.6 billion yen in operating income that went from 326.5 billion yen
to 423.0 billion yen.
The primary reason for the increase in operating income was a foreign exchange gain of 103.7 billion yen. This includes a gain of 92.7
billion yen due to an approximate 9 yen depreciation against the U.S. dollar. We also had a gain of 1.5 billion yen due to an
approximate 7 yen depreciation against the euro, and a gain of 0.8 billion yen due to an approximate 1 yen depreciation against the
Canadian dollar. On top of that we gained 0.9 billion yen due to currency translations between the yen and the Chinese yuan as well as
7.8 billion yen from foreign exchange adjustments for transactions between FHI and its overseas subsidiaries.
Another contributing factor that brought operating income up was the favorable sales mix variance that led to a gain of 70.3 billion yen.
First, we saw a gain of 9.6 billion yen in domestic new car sales. This year-on-year increase was driven by steady sales of the new
Levorg and WRX which fueled passenger vehicle sales.
Next, we saw a gain of 81.8 billion yen in overseas new car sales. Robust sales of the newly overhauled Legacy Outback and WRX aswell as steady upbeat sales of our older Forester model drove sales way up above where they were last year.
This gain came despite a loss of 21.1 billion yen due to inventory adjustments.
Another factor behind the jump in operating income was a gain of 12.4 billion yen due to cost cuts. This includes a gain of 12.0 billion
yen generated by FHI as well as a gain of 0.4 billion yen coming from SIA. FHI saw a gain of 15.4 billion yen due to cost reductions
resulting from increased production, etc. and a loss of 3.4 billion yen due to higher materials costs and deteriorating market conditions.
SIA yielded a gain of 2.1 billion yen through cost reductions and a loss of 1.7 billion yen due to materials prices, etc.
The main factor bringing operating income down was a loss of 66.6 billion yen due to increases in SG&A expenses.
First, we saw a loss of 8.5 billion yen due to an increase in fixed manufacturing costs. This includes a loss of 5.3 billion yen generated
by FHI as well as a loss of 3.2 billion yen coming from SIA. FHI generated a gain of 1.1 billion yen due to lower costs for supplier diesand a loss of 6.4 billion yen due to higher fixed processing costs while SIA lost 1.3 billion yen due to higher costs for supplier dies andlost 1.9 billion yen due to an increase in fixed processing costs.
The second factor involves a loss of 46.7 billion yen due to an increase in SG&A expenses. FHI lost 8.1 billion yen due to mounting
transport and packing costs despite reduced sales incentives and advertising costs. The 46.7 billion yen loss also includes a loss of 0.8
billion yen at domestic dealers, a loss of 19.0 billion yen generated at SOA, a loss of 2.5 billion yen at our Canadian subsidiary, and aloss of 16.3 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 11.4 billion yen.
Finally, an increase in R&D expenses resulted in a loss of 23.2 billion yen.
These factors combined brought our consolidated operating income for the fiscal year that ended March 2015 up 96.6 billion yen tototal 423.0 billion yen.

5Balance Sheets (consolidated)（100 Million Yen）

As of March 31
2014

As of March 31
2015

18,884

21,997+3,114Current assets

12,73814,733+1,995

Noncurrent assets

6,146

7,264

+1,119Interest bearing debts

2,697

2,112

-585

Net assets

7,701

10,307+2,606

Retained earnings

4,839

6,974

+2,135

Shareholders’ equity

7,655

10,224+2,569

Shareholders’ equity tototal assets

40.5%

46.5％

+6.0

0.35

0.21

-0.15

Total assets

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

Variance

6

Total assets were up 311.4 billion yen from what they were at the end of March 2014 tototal 2,199.7 billion yen.
This increase was due primarily to a jump in net income resulting from higher sales as well
as a foreign exchange gain of 102.6 billion yen.
Interest-bearing debt fell 58.5 billion yen to hit 211.2 billion yen while net assets rose
260.6 billion yen to total 1,030.7 billion yen.
The shareholders’ equity to total assets ratio was 46.5% while the debt-to-equity ratio
stood at 0.21.

6

Statement of Cash Flows (consolidated)（100 Million Yen）

Net cash provided by (used in)operating activities
Net cash provided by (used in)investing activities
Free cash flows
Net cash provided by (used in)financing activities
Effect of exchange rate change
on cash and cash equivalents
Net increase (decrease)in cash and cash equivalents
Increase (decrease) in cash
and cash equivalents resulting
from change of scope of
consolidation
Cash and cash equivalents
at the end of period
http://www.fhi.co.jp/english/ir/index.html

Actual results
FYE 2014

Actual results
FYE 2015

Variance

3,130

3,115

-15

-339

-1,728-1,389

2,791

1,388

-1,404-630-1,105

-475

127

260

+133

2,288

542

-1,746

1

-

-1

5,579

6,121

7

Net cash flow from operating activities amounted to an inflow of 311.5 billion yen due
primarily to net income before taxes and minority interests of 392.2 billion yen despite apayment of corporate income tax, etc., totaling 193.1 billion yen.
Net cash flow from investing activities amounted to an outflow of 172.8 billion yen forinvestments aimed at boosting production capacity.
Free cash flow totaled 138.8 billion yen.
Net cash flow from financing activities amounted to an outflow of 110.5 billion yen due tothe repayment of loans, dividend payments, redemption of corporate bonds, etc.

7

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

Actual results
FYE 2014

Actual results
FYE 2015

11,005

13,393+2,388Operating income

184

490

+306

Net income

111

309

+198

442.3

530.5

+88.2

Actual results
FYE 2014

Actual results
FYE 2015

3,848

4,770

+922

Operating income

265

108

-157

Net income

167

70

-97

163.5

206.7

+43.2

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 88.2 thousand units year on year to reach 530.5 thousand units
as sales of the new Legacy, Outback, Forester, and XV remained upbeat.
Net sales also jumped 2,388 million dollars year on year to total 13,393 million dollars.
Operating income was up 306 million dollars year on year to total 490 million dollars. This
increase came from a gain of 495 million dollars due to favorable sales volume and mix
variances despite a loss of 189 million dollars from higher SG&A expenses.
SIA's net sales totaled 4,770 million dollars for a 922 million dollar year-on-year increase.
Operating income, on the other hand, dropped 157 million dollars year on year, falling to
108 million dollars. The factors behind this decrease include a loss of 128 million dollars
due to sales price and volume variances, a gain of 4 million dollars brought about by
overall cost reduction efforts, as well as a loss of 33 million dollars due to an increase in
fixed costs.

8

Outlook for the FYE March 2016

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

99Automobile Sales Volume (consolidated)（Thousand units）

Actual results
FYE 2015

Plan
FYE 2016

Variance

Passenger cars

127.9

106.7

-21.2

Minicars

34.9

37.6

+2.7

Domestic total

162.8

144.2

-18.5

U.S.

527.6

554.0

+26.4

Canada

42.4

46.2

+3.8

Russia

11.6

12.8

+1.2

Europe

35.7

37.7

+2.0

Australia

38.9

42.3

+3.4

China

53.8

49.7

-4.1

Others

37.9

41.4

+3.5

747.9

784.1

+36.2

928.3

+17.6

Overseas total

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

910.7* Figures of China are consolidated results on the calendar year basis from Jan. to Dec.

10

Consolidated global automobile sales for the fiscal year ending March 2016 is projected toreach 928.3 thousand units and set a new record high for a fourth consecutive year.
Domestic sales are projected to dip 18.5 thousand units year on year to total 144.2
thousand units as sales of new models are expected to slow down.
Sales in overseas markets are projected to increase 36.2 thousand units year on year toreach 784.1 thousand units due primarily to growing sales in the U.S.

10

Operating Plan (consolidated)（100 Million Yen）

Actual results
FYE 2015

Plan
FYE 2016

Variance

Net sales

28,77930,300+1,521

Domestic

6,529

5,655

-874

Overseas

22,25024,645+2,395

Operating income

4,230

5,030

+800

Ordinary income

3,936

4,950

+1,014

Income before income taxes
and minority interests

3,922

4,850

+928

Net income

2,619

3,370

+751

¥108/US$¥118/US$+¥10/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html*Net income for FYE2016 (16/3) will be referred to as "Net Income Attributable to Owners of the parent".

11

Under our consolidated operating plan, we expect figures for net sales and all income
categories to reach record high levels for a fourth year in a row.
Net sales are expected to jump 152.1 billion yen year on year to total 3,030.0 billion yen.
This uptick will come from a gain of 19.0 billion yen due to increased sales volumes inoverseas markets, a 2.0 billion yen increase in sales at FHI companies, etc. as well as aforeign exchange gain of 131.1 billion yen.
Operating income will rise 80.0 billion yen year on year to total 503.0 billion yen. Factors
behind this increase will include foreign exchange gains, better sales mix variances, andreduced materials costs, which will offset rising SG&A and R&D expenses.
Ordinary income will climb 101.4 billion yen to reach 495.0 billion yen while income before
income taxes and minority interests will increase 92.8 billion yen to hit 485.0 billion yen.
Net income is expected to rise 75.1 billion yen to reach 337.0 billion yen.

11

Analysis of Variance in Operating Income (consolidated)

US$ : +1,010
EURO : -40
CA$ : -6
CNY : +1
Currency
exchange
adjustment : -138（100 Million Yen）

Improvementof sales volume
Cost& mixture
reduction
Gain onand others
currency+133+306
exchange+827

FHI : +100
(material cost : -22)
SIA : +33
(material cost : -2)

4,230

Fixed cost : -122 (FHI : -38 SIA : -84)
SG&A : -257 (FHI : +33 SOA : -168 and others)
Warranty claims : +48

Increaseof SG&A
expensesand others-331

Increaseof R&D
expenses

-135

5,030

Domestic : -231 (decrease of sales volume and deterioration of mixture)
Overseas : +166 (increase of sales volume and deterioration of mixture)
Others : +371

Actual results
FYE 2015
Operating income
http://www.fhi.co.jp/english/ir/index.html

Total: +800

Plan
FYE 2016
Operating income
12

Now let's look at the factors behind the projected year-on-year 80.0 billion yen increase in operating income that will take us from
423.0 billion yen to 503.0 billion yen.
The primary reason for the increase in operating income will be a foreign exchange gain of 82.7 billion yen. This will include a gain of
101.0 billion yen due to an approximate 10 yen depreciation against the U.S. dollar. Along with the gain will come a loss of 4.0 billion
yen due to an approximate 15 yen appreciation against the euro, and a loss of 0.6 billion yen due to an approximate 1 yen appreciation
against the Canadian dollar.
This will be accompanied by a gain of 0.1 billion yen as a result of currency translations between the yen and the Chinese yuan. The
total will also include a loss of 13.8 billion yen due to foreign exchange adjustments for transactions between FHI and its overseas
subsidiaries.
Another contributing factor to bring operating income up will be a favorable sales mix variance leading to a gain of 30.6 billion yen.
First off there will be a loss of 23.1 billion yen associated with domestic sales of new models.
The sales volume is expected to fall below the figure it reached last fiscal year when demand surged before the consumer tax break
was revised and as the impact of new models wanes.
Next, we will see a gain of 16.6 billion yen from sales of new models in overseas markets.
Sales are expected to grow mainly in the North American market where sales remain strong.
Finally, we expect a gain of 37.1 billion yen due to inventory adjustments.
Another factor behind the jump in operating income will be a gain of 13.3 billion yen from cost cuts. This will include a gain of 10.0
billion yen at FHI as well as a gain of 3.3 billion yen coming from SIA.
FHI is expected to generate a gain of 12.2 billion yen through cost reductions and a loss of 2.2 billion yen due to increasing materials
costs and other negative market factors. SIA will see a gain of 3.5 billion yen due to a reduction in material costs while rising raw
material prices will lead to a loss of 0.2 billion yen.
The primary factor that will bring operating income down will be a loss of 33.1 billion yen due to increases in SG&A expenses.
First, we will see a loss of 12.2 billion yen due to an increase in fixed manufacturing costs. This will include a loss of 3.8 billion yen at
FHI as well as a loss of 8.4 billion yen coming from SIA.
FHI will generate a loss of 5.4 billion yen due to higher costs for suppliers’ dies and a gain of 1.6 billion yen due to a decrease in fixed
processing costs. SIA will see a loss of 1.4 billion yen due to increased costs for suppliers’ dies and another loss of 7.0 billion yen due tohigher fixed processing costs.
The second factor will be a loss of 25.7 billion yen due to an increase in SG&A expenses.
This will include a gain of 3.3 billion yen at FHI, a gain of 0.7 billion yen at domestic dealers, a loss of 16.8 billion yen at SOA, a loss of
1.4 billion yen at our Canadian subsidiary, and a loss of 11.6 billion yen coming from other operations.
The third factor will be a decrease in costs associated with warranty claims that will lead to a gain of 4.8 billion yen.
Finally, an increase in R&D expenses will result in a loss of 13.5 billion yen.
All these factors combined will bring operating income for the fiscal year ending March 2016 up 80.0 billion yen to total 503.0 billion
yen.

12

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

Actual results
FYE 2015

Plan
FYE 2016

Variance

13,393

14,265+872

Operating income

490

500

+10

Net income

309

299

-10

530.5

546.7

+16.2

Net sales

Retail sales(thousand units)

SIA

Actual results
FYE 2015

Plan
FYE 2016

Variance

4,770

5,233

+463

Operating income

108

129

+21

Net income

70

73

+3

206.7

227.5

+20.8

Net sales

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

13

Retail sales at SOA for this fiscal year are expected to jump 16.2 thousand units year on year to reach a totalof 546.7 thousand units thanks to the launch of new Legacy and Outback as well as the maintained strong
sales momentum of other models.
Net sales will increase 872 million dollars year on year to reach 14,265 million dollars while operating income
will rise 10 million dollars year on year to total 500 million dollars. This increase will come from a gain of 163
million dollars due to favorable sales volumes and mix variances despite a loss of 153 million dollars causedby higher SG&A expenses.
SIA's net sales are expected to increase 463 million dollars year on year to reach 5,233 million dollars.
Operating income will rise 21 million dollars year on year to reach 129 million dollars. Factors for the increase
will include a gain of 70 million dollars due to sales price and volume variances, a gain of 28 million dollars to
be brought about by cost reduction efforts, as well as a loss of 77 million dollars due to an increase in fixed
costs.

13

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

Actual results
FYE 2014

Actual results
FYE 2015(a)Plan
FYE 2016
(b)

Capex

685

1,107

1,300

+193

Depreciation

549

648

670

+22

R&D

601

835

970

+135

2,697

2,112

1,800

-312

Interest
bearing debt

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

Variance(b) - (a)14

Capital expenditures for the fiscal year ending March 2016 will go up 19.3 billion yen year
on year to total 130.0 billion yen.
Depreciation costs are projected to jump 2.2 billion yen to reach 67.0 billion yen while
R&D expenses will total 97.0 billion for an increase of 13.5 billion yen as we pick up thepace on efforts geared to future products.
We will also zero in on reducing interest-bearing debt with an eye to bringing it down to180.0 billion yen.

14

Appendix (1)・Non-operating income & expenses
・Non-operatingand extraordinary income & loss・Segment information (by business / by geographic area)
・Segment・Overseas net sales
・Overseas・
Non-consolidated automobile sales
・Non-consolidated
th quarter (3 months)
・Consolidated income statement in 4th・Consolidated
・ FYE 2015 plan vs. actual results
・ Consolidated income statement in 1stst half of FY

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

1515

Non-Operating Income & Expenses
and Extraordinary Income & Loss (consolidated)（100 Million Yen）

Actual results
FYE 2014

Actual results
FYE 2015

1

12

+11

FOREX effects

-95

-263

-168

Others

-27

-43

-17

Total non-operating income& expenses

-121

-294

-173

Gain on sales of investment
securities

473

11

-463

Provision of allowance for
doubtful accounts

-296

-

+296

Others

-33

-25

+8

144

-14

-159

Financial revenue and expenditure

Total extraordinary income& losshttp://www.fhi.co.jp/english/ir/index.html

Variance

16

16

Net Sales and Operating Income
by Business Segment (Consolidated)（100 Million Yen）

Net sales

Operating income

Actualresults
FYE 2014

Actualresults
FYE 2015

Variance

Actualresults
FYE 2014

Actualresults
FYE 2015

Variance

Automobile

22,46626,990+4,524

3,090

4,009

+919

Aerospace

1,244

1,428

+184

141

189

+48

Industrial
products

298

290

-7

6

8

+1

Others

73

71

-2

21

19

-2

6

6

-0

3,265

4,230

+966

Eliminationand corporate

Total

24,081

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

28,779+4,69817

17

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

Net sales
ActualActualresults
results
FYE 2014 FYE 2015

Operating income
Variance

ActualActualresults
results
FYE 2014 FYE 2015

Variance

Japan

9,674

9,722

+48

2,823

3,518

+695

North
America

12,371

16,250+3,879

528

909

+381

Others

2,036

2,807

+770

51

140

+88

-137

-336

-199

3,265

4,230

+966

Eliminationand corporate

Total

24,081

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

28,779+4,69818

18

Overseas Net Sales（100 Million Yen）

Actual results
FYE 2014

Actual results
FYE 2015

North America

13,22817,309+4,082Europe

1,347

1,233

-114

Asia

1,544

2,387

+844

Others

1,242

1,321

+78

Total

17,361

22,250+4,890

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

Variance

19

19

Non-Consolidated Automobile Sales（Thousand units）

Actual results
FYE 2014

Actual results
FYE 2015

Domestic production

649.9

707.7

+57.8

Domestic sales

185.8

167.1

-18.7

Passenger cars

128.1

131.6

+3.5

Minicars

57.8

35.6

-22.2

Number of vehicles
exported

499.2

545.6

+46.4

Components for
production in overseas

165.6

222.5

+57.0

850.6

935.3

+84.7

Total

Variance* Domestic production figures include Toyota 86.

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

20

20

Automobile Sales Volume (consolidated)
4th Quarter (3 months)（Thousand units）

Actual results
4Q FYE 2014

Actual results
4Q FYE 2015

Variance

Passenger cars

39.3

44.4

+5.1

Minicars

18.5

12.5

-5.9

Domestic total

57.7

56.9

-0.8

U.S.

115.4

128.9

+13.5

Canada

8.8

10.5

+1.6

Russia

5.8

0.7

-5.1

Europe

8.3

12.8

+4.6

Australia

9.9

10.7

+0.8

China

15.2

13.1

-2.1

Others

10.5

13.4

+2.8

174.0

190.1

+16.2

247.0

+15.3

Overseas total

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

231.7* Figures of China are consolidated results on the calendar year basis from Oct. to Dec.

21

21

Income Statements (consolidated)
4th Quarter (3 months)（100 Million Yen）

Actual results
4Q FYE 2014

Actual results
4Q FYE 2015

Variance

Net sales

6,996

8,172

+1,176

Domestic

1,933

2,110

+177

Overseas

5,063

6,062

+998

Operating income

931

1,129

+198

Ordinary income

930

1,053

+123

Income before income taxes
and minority interests

618

1,055

+438

Net income

251

715

+464

¥103/US$¥118/US$+¥16/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

2222

Analysis of Variance in Operating Income (consolidated)
4th Quarter (3 months)
US$ : +368
EURO : +1
CA$ : +7
CNY : +2
Currency
exchange
adjustment : +38

Improvementof sales volume
Cost
Gain on& mixture
reduction
currency
and othersexchange
+40

+416

+57

FHI : +45
(material cost -3)
SIA : -5(material cost -13)931

（100 Million Yen）

Fixed cost : -35 (FHI -25 SIA -10)
SG&A : -126 (FHI -62 SOA -13 and others)
Warranty claims : -36

Increaseof SG&A
expensesand others-197

Increaseof R&D
expenses

-118

1,129

Domestic : +72 (Improvement of sales volume and mixture)
Overseas : +52 (Increase of sales volume and deterioration of mixture)
Others : -67

Actual results
4Q FYE 2014
Operating income
http://www.fhi.co.jp/english/ir/index.html

Total: +198

Actual results
4Q FYE 2015
Operating income
2323Automobile Sales Volume (consolidated)
FYE 2015 Plan vs. Actual Results（Thousand units）

Plan
FYE 2015

Actual results
FYE 2015

Variance

Passenger cars

124.3

127.9

+3.6

Minicars

37.0

34.9

-2.1

Domestic total

161.3

162.8

+1.5

U.S.

527.3

527.6

+0.4

Canada

42.2

42.4

+0.2

Russia

12.6

11.6

-1.0

Europe

33.8

35.7

+2.0

Australia

38.6

38.9

+0.3

China

53.8

53.8

±0

Others

36.6

37.9

+1.3

744.8

747.9

+3.1

906.1

910.7

+4.6

Overseas total

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

24

24

Income Statements (consolidated)
FYE 2015 Plan vs. Actual Results（100 Million Yen）

Plan
FYE 2015

Actual results
FYE 2015

Variance

Net sales

28,50028,779+279

Domestic

6,483

6,529

+46

Overseas

22,01722,250+233

Operating income

4,100

4,230

+130

Ordinary income

3,920

3,936

+16

Income before income taxes
and minority interests

3,840

3,922

+82

Net income

2,530

2,619

+89

¥108/US$¥108/US$+¥1/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html

25

25

Analysis of Variance in Operating Income (consolidated)
FYE 2015 Plan vs. Actual Results

Improvementof sales volume& mixtureand others

+118

4,100

Gain oncurrency
exchange

Cost
reduction

Increaseof R&D
expenses

+7

+97

+7

（100 Million Yen）

Fixed cost : +8 (FHI +3 SIA +5)
SG&A : -91(FHI -24 SOA +10 and others)
Warranty claims : -15

FHI : ±0 (material cost +5)
SIA : +7 (material cost +7)
US$ : +43
EURO : -4
CA$ : +1
CNY : +1
Currency
exchange
adjustment : +56

Increaseof SG&A
expensesand others

-98

4,230

Domestic : +15 (Increase of sales volume and deterioration of mixture)
Overseas : +97 (Improvement of sales volume and mixture)
Others : +6

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

Total: +130

Actual results
FYE 2015
Operating income
2626

Automobile Sales Volume (consolidated)
Plan for 1st Half of FYE 2016
（Thousand units）

Actual results
1st half FYE 2015Plan
1st half FYE 2016

Passenger cars

56.5

48.5

-8.0

Minicars

15.1

18.3

+3.2

Domestic total

71.5

66.8

-4.8

U.S.

249.9

270.9

+21.0

Canada

22.1

25.8

+3.8

Russia

8.6

6.2

-2.5

Europe

15.6

18.1

+2.5

Australia

19.3

21.9

+2.6

China

28.7

21.5

-7.2

Others

15.9

22.4

+6.5

360.1

386.8

+26.8

431.6

453.6

+22.0

Overseas total

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

Variance* Figures of China are consolidated results on the calendar year basis from Jan. to Jun.

27

27

Operating Plan (consolidated)
1st Half of FYE 2016（100 Million Yen）

Actual results
1st half FYE 2015Plan
1st half FYE 2016

Variance

Net sales

13,102

14,750+1,648Domestic

2,928

2,650

-278

Overseas

10,174

12,100+1,925

Operating income

1,857

2,440

+583

Ordinary income

1,760

2,400

+640

Income before income taxes
and minority interests

1,747

2,350

+603

Net income

1,130

1,630

+500

¥102/US$¥118/US$+¥16/US$FHI exchange rate
http://www.fhi.co.jp/english/ir/index.html*Net income for FYE2016 (16/3) will be referred to as "Net Income Attributable to Owners of the parent".

28

28

Analysis of Variance in Operating Income (consolidated)
1st Half of FYE 2015 Results vs. FYE 2016 Plan
US$ : +799
EURO : -16
CA$ : +5
CNY : ±0
Currency
Exchange
Adjustment : -27

Improvementof sales volume
Cost
Gain on& mixture
reduction
currency
and others+75
exchange+761

Fixed cost：-70(FHI：-36 SIA：-34)
SG&A：-214(FHI：-15 SOA：-96 and others)
Warranty claims：+11+127

FHI : +68
(material cost：+3)
SIA : +7(material cost：-5)

1,857（100 Million Yen）

Increaseof SG&A
expensesand others-273

Increaseof R&D
expenses

-107

2,440

Domestic : -87 (Decrease of sales volume and deterioration of mixture)
Overseas : +118 (Increase of sales volume and deterioration of mixture)
Others : +96

Actual results
1st half
FYE 2015
Operating income
http://www.fhi.co.jp/english/ir/index.html

Total: +583

Plan
1st half
FYE 2016
Operating income2929Appendix (2)・Net sales / Operating income
・Net・
Consolidated automobile sales / OPM
・Consolidated・Complete cars production / Retail sales units
・Complete
・FCF / Shareholder’s equity to total assets
・FCF
Shareholder’s・Interest-bearing debt / D/E ratio
・Interest-bearing

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

30

30

Net Sales & Operating Income¥78/$
Net Sales（100 million yen）

¥81/$

¥79/$

¥79/$

¥89/$

¥98/$

¥98/$

¥99/$

¥103/$¥102/$¥110/$¥118/$

Operating
Income（100 million yen）

8,172

8,000

Net sales

Operating income

7,168

6,996

7,000
6,000
5,000

¥102/$

5,422 5,469

4,877
4,289

1,129

1,069

4,691 4,727

1,200

1,245

5,934

5,787 5,829

900

931
827

811

4,000

1,500

7,505

787

696

600

3,000
470

2,000
259

1,000

300

301

173

161

0

0
4Q

FYE2012

1Q

2Q

3Q

FYE2013

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

4Q

1Q

2Q

3Q

FYE2014

4Q

1Q

2Q

3Q

4Q

FYE201531

31

Automobile Sales Volume &Operating Income Margin (consolidated)
Automobile sales（1,000 units）

250

OPM

Automobile sales
208

OPM
198

200

183
166

191

238

232
202

14.2%
13.3%

14%

14.9%
13.8%

13.3%

12.7%

11%

8.7%

6.4%

8%
5%

5.5%

50

3.3%

20%
17%

194

14.0%

100

232
16.6%

201

178

150

247

4.0%

2%

0

-1%
4Q

FYE2012

1Q

2Q

3Q

FYE2013

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

4Q

1Q

2Q

3Q

FYE2014

4Q

1Q

2Q

3Q

4Q

FYE2015
32

32

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

250
200

Production
196 191

Retail sales
207

197
182
167

178

172

237

228
213 212210 211211
195 197

211 214225

241
237 244
234

193

177

150
100
50
0
Jan.Mar.

Apr.Jun.

Jul.Sep.

2012

Oct.Dec.

Jan.Mar.

Apr.Jun.

Jul.Sep.

2013

Oct.Dec.

Jan.Mar.

Apr.Jun.

Jul.Sep.

2014

Oct.Dec.

Jan.Mar.

2015* Production figures include Toyota 86.

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

33

33

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

FCF（100 million yen）

2,791

FCF

2,800

46.5%

Shareholders' equity to total assets
42.6%
41.2%

1,800

39.9%
37.7%

1,300
778

800
33.3%

300

45%

46.0%

44.0%

2,300

283

2,094

953

34.2% 646

1,388

40%

1,198

35.2%

33.7%

221

42.9%
40.5%

711

608

2Q

3Q

516

35%

-163

-200

30%
4Q

FYE2012

1Q

2Q

3Q

FYE2013

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

4Q

1Q

2Q

3Q

FYE2014

4Q

1Q

4Q

FYE201534

34

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

D/E ratio

Interest-bearing debt

4,000
3,500
3,000

3,410 3,381

0.76

3,301 3,236

3,072

D/E ratio

2,967 2,918

0.74

2,500

0.69

1.2
1.0

2,760 2,697

2,574
2,322 2,268

0.64

2,000

0.8
2,112
0.6

0.52
0.46

1,500

0.41

0.36

0.35

0.32

1,000

0.4
0.27

0.24

0.21

0.2

500
0

0.0
4Q

FYE2012

1Q

2Q

3Q

FYE2013

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

4Q

1Q

2Q

3Q

FYE2014

4Q

1Q

2Q

3Q

4Q

FYE201535

35

Forward-looking statements including projections and future strategies mentioned in this presentation are basedon currently available information and assumptions and are subject to risks and uncertainties.
Actual results may vary materially as a result of various factors including, without limitation, economic conditions,market demand and fluctuations in foreign exchange rates.
Investors are asked not to rely solely on the information in this presentation when they make their final
investment decisions.
http://www.fhi.co.jp/english/ir/index.html

3636

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

3737