presentation of business results...presentation of business results (for the six months ended...
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Fuji Heavy Industries LtdFuji Heavy Industries Ltd
Presentation of Business ResultsPresentation of Business Results(for the six months ended September 30, 2001)(for the six months ended September 30, 2001)
Executive Vice President
Hiroshi Suzuki
Highlights of Operations (Interim period under review )
! Achieved increases in net sales and income despite challenging operating environment
Year on year: Net Sales + 5.4%, Operating income + 32.1%!!!!Operating environment""""
! Economy moving into substantially deeper slump ####Consumer spending continues weak, employment conditions deteriorate, and banks delay disposal of nonperforming loans)
!!!!FHI performance""""! Net sales of the Automobile Division strong in the United
States during the interim period! Other divisions show increases in net sales! Steady progress in reducing costs, foreign exchange gains
! New management team! New team under President Takenaka! One outside board member joins from GM
! Unification of domestic and overseas marketing divisions: “SUBARU Sales & Marketing Division”! Global headquarters with regional marketing
divisions for Japan, the Americas, Europe, and Asia
! Establishment of a global Manufacturing Division
! To structure an optimal, worldwide production system
Highlights ####Corporate organization$$$$
Corporate Planning Group
Corporate Administration Group
Compliance Group
Business Administration Div.
Japan Division
North America & Latin America Region
Europe Region
Asia & Pacific Region
Customer Service Center
SUBARU Sales & Marketing Div.SUBARU Sales & Marketing Div.SUBARU Sales & Marketing Div.SUBARU Sales & Marketing Div. SUBARU Parts & Accessories Div.
SUBARU Product & Portfolio Planning Div.
SUBARU Engineering Div.
Manufacturing Div.Manufacturing Div.Manufacturing Div.Manufacturing Div.
Purchasing Div.
Quality Assurance Div.
Technical Research Center
Industrial Products Div.
Bus Manufactiring & House Prefabricating Div.
Transportation & Ecology System Div.
Aerospace Div.
Bord of Directors
Highlights (Organization chart)
! Outlook for the full fiscal year ending March 31, 2002, is severe because of the deterioration in the operating environment
! Prospects for the U.S. economy unclear following terrorists attacks
! Japanese economy moving into deeper slump
Highlights of Operations (Out look for the full fiscal year )
Senior Vice President
Shunsuke Takagi
Sales Performance in Japan Sales Performance in Japan and Overseasand Overseas
! Minicars ---Favorable salesTotal demand (April to September 2001)% 3.0% !!!!!!!! SUBARU + 3.9%SUBARU + 3.9%
(Share of sales(Share of sales 9.2%9.2%&&&&&&&&9.9%)9.9%)! Tough market for passenger cars
Total demand (April to September 2001)+ 0.9% """""""" SUBARU SUBARU %%%%%%%% 6.9%6.9%
(Share of sales3.0%(Share of sales3.0%&&&&&&&&2.7%)2.7%)! New car models introduced
Legacy MC (May)Traviq (August)
Domestic Sales Performance for the Interim Period of Fiscal 2001
(Year on year)(Year on year)
Background Information: Domestic Sales for the Interim Period
66666666
87878787 82828282 85858585
60606060
5959595957575757 53535353
866893907
686
',946',928',876
2,073
0000
20202020
40404040
60606060
80808080
'00'00'00'00
'20'20'20'20
'40'40'40'40
'60'60'60'60
98/'st half 99/ 'st half 00/ 'st half 0'/ 'st half
0
500
',000
',500
2,000
2,500
Mini carsMini carsMini carsMini cars Passenger carsPassenger carsPassenger carsPassenger cars Total demandTotal demandTotal demandTotal demand
mini carsmini carsmini carsmini cars
Total demandTotal demandTotal demandTotal demand
passenger carspassenger carspassenger carspassenger cars
SUBARU
#',000 Cars$
Total demand
#',000 Cars$
! United StatesSales, especially of WRX, strong along with introduction of Impreza FMC
Total demand (January to June 2001)
% 4.6% !!!!!!!! SOA + 6.8%SOA + 6.8%Domestic total demand +3.3%
! Europe! Continued difficult environment for sales
Total demand (April to September 2001)
+1.8% > SUBARU > SUBARU %%%%%%%%16.4%16.4%
Domestic total demand Domestic total demand %%6.0%6.0%
Overseas Sales Performance for the Interim Period of Fiscal 2001
#',000 cars$
Total demand SOADomestic #Year on year$
US 8,710.8 2,290.1 88.1 (+5.6)
#',000 cars$
Total demand SUBARUDomestic #Year on year$
Europe 7,551.8 789.2 19.0 (!3.7)
(Year on year)(Year on year)
Background Information: Sales in the U.S. Market
92.992.992.992.9 88.788.788.788.7 87.387.387.387.3 95.995.995.995.9 95.'95.'95.'95.'
'9.0'9.0'9.0'9.0 '9.2'9.2'9.2'9.2'8.9'8.9'8.9'8.9 34.834.834.834.8
'6.0'6.0'6.0'6.0 40.'40.'40.'40.' 48.948.948.948.955.755.755.755.7
53.'53.'53.'53.'
24.224.224.224.2
Other 0.7Other 0.7Other 0.7Other 0.7
0
20
40
60
80
'00
'20
'40
'60
'80
200
'997 '998 '999 2000 200' (Plan)
(',000 Cars) Legacy Impreza Forester
Summary of Performance for Summary of Performance for t h e I n t e r i m P e r i o dt h e I n t e r i m P e r i o d(Six months ended September 30, 2001)(Six months ended September 30, 2001)
P/L ####Consolidated basis$$$$(¥100 million)
-¥121/$¥107/$Exchange rate
+214159*%55Net income
+78374296Ordinary income
+107438331Operating income
+3386,5996,261Net sales
Year to year comparison
1st half period 2001
1st half period 2000
* * Including special factors such as the lumpIncluding special factors such as the lump--sum amortization of FHI group pension obligationssum amortization of FHI group pension obligations
Consolidated Sales by Operating Segment
+3386,5996,261Total
+29192163Others
+42307264Aerospace
%28205234Industrial products
+2955,8935,597Automobiles
Year to year
comparison1st half
period 2001
1st half period 2000
(¥100million)
89%89%89%89%
3%3%3%3%5%5%5%5% 3%3%3%3%
Sales by division
AutomobilesIndustrial ProductsAerospaceOther
Decrease in sales %%%% 23
Expenditure for specification improvements in safety and other areas %%%% 25
Increase in R&D expenses %%%% 57
Increase in selling,general and administrative expenses %%%% 92
Gain on currency exchange +171
Others + 15
Reduction in costs+118 Increase in profit of Increase in profit of
¥¥10.7billion year on year10.7billion year on year
Factors underlying increase +304
Factors underlying decrease %%%%197
Analysis of Increases and Decreases in Operating Income(Consolidated basis)
((¥¥100million)100million)
B/S (At the end of September 30, 2001)
%2.2%49.8%+0.1%30.7%Shareholders’ equity to total assets
+0.100.36+0.051.07Debt equity ratio
+4911,633+3824,033Interest bearing debt
+921,462+126963Un-appropriated retained earnings
+614,478+1783,752Shareholders’Equity
+5078,999+53712,222Total assets
Change from previous fiscal
term
Non-consolidated
Change from previous fiscal
termConsolidated
(¥100million)
Cash flow ####Consolidated basis$$$$
+1851,5431,358Cash and cash equivalents at the end of term
+48315267Net increase in cash and cash equivalents
%93321415Cash flows from financial activities
+142%%%%5%148Free cash flows
%67%%%%616%548Cash flows from investment activities
+210611400Cash flows from operating activities
Year to year comparison1st half period
20011st half period
2000
(¥100million)
-¥121/$¥107/$Exchange rate
%3128132Net income
+86307220Ordinary income
+79312233Operating income
+1494,5314,382Net sales
Year to year comparison1st half period
20011st half 2000
P/L ####Non-consolidated basis$$$$
(¥100million)
+1494,5314,382Total
+267144Transportation & Ecology Systems
+46460
Bus Manufacturing & House Prefabricating
+41307265Aerospace
%31161192Industrial Products
%3(359)(363)(Parts and others)
+309(1,838)(1,529)(Overseas)
%199(1,727)(1,927)(Domestic)
+1063,9263,819Automobiles
Year to year comparison
1st half period 2001
1st half period 2000
Sales by Division ####Non-consolidated basis$$$$(¥100million)
Sales by division (Parent company only)
4%
7%
86%
2%1%
AutomobilesIndustrial ProductsAerospaceBus Manufacturing &House PrefabricatingTransportation &Ecology Systems
Analysis of Increases and Decreases in Operating Income
Expenditure for specification improvements in safety and other areas %%%% 25
Decrease in sales %%%% 50
Increase in R&D expenses %%%% 57
Increase in selling,general and administrative expenses %%%% 59
Gain on currency exchange +160
Others + 10
Reduction in costs +100 Increase in profit of ¥7.9 billion year on year
Factors underlying increase +270
Factors underlying decrease %%%%191
((¥¥100million100million))
Outlook for the full fiscal Outlook for the full fiscal year ending March 31, year ending March 31,
20022002
Forecast sales of volume (Non-consolidated basis)
%8104112Components for overseas production
+ 3183180Sales by SOA on a calendar-year basis
%5101106Production by SIA on a calendar-year basis
%31565596Total sales
%6174180Number of vehicles exported
+ 2175173Minicars
%18113131Passenger cars
%17287304Domestic sales
%27455482Domestic production
DivergenceOutlook for full year
Outlook announced in May 2001
(1,000cars)
Operating plan (Consolidated basis)
%100300400Net income
%160610770Ordinary income
%140700840Operating income
+2607,1606,900Overseas%5606,5407,100Domestic%30013,70014,000Sales
DivergenceOutlook for full year
Outlook announced in
May 2001
(¥100million)
Operating plan (Consolidated basis)
+ 74300226Net income
%105610715Ordinary income
%116700816Operating income
+ 9247,1606,236Overseas
%3416,5406,881Domestic
+ 58213,70013,118Sales
DivergenceOutlook for full year
Actual results of fiscal 2000
(¥100million)
Plan for Increase/Decrease in Operating Profits (Consolidated basis)
Expenditure for specification improvements in safety and other areas %%%% 126
Increase in R&D expenses%%%% 90
Decrease in sales %%%% 90
Increase in selling, general and administrative expenses
%%%% 260
Gain on currency exchange +270
Reduction in costs +180
Decrease in profit of Decrease in profit of ¥¥11.6 billion 11.6 billion year on yearyear on year
Factors underlying increase +450
Factors underlying decrease %%%%566
((¥¥100 million)100 million)
Operating plan (Non-consolidated basis)
DivergenceOutlook for full year
Outlook announced in
May 2001
-¥120/$¥115/$Exchange rate
%80250330Net income
%120520640Ordinary income
%140530670Operating income
+ 1274,3274,200Overseas
%5274,8735,400Domestic
%4009,2009,600Sales
(¥100million)
』
Operating plan (Non-consolidated basis)
DivergenceOutlook for full year
Actual results of fiscal 2000
-¥120/$¥109/$Exchange rate
%53250303Net income
%24520544Ordinary income
%34530564Operating income
+ 3784,3273,949Overseas
%4094,8735,282Domestic
%319,2009,231Sales
(¥ 100million)
Plan for Increase/Decrease in Operating Profits (Non-consolidated)
Increase in R&D expenses
Expenditure for specification improvements in safety and other areas %%%% 94
Increase in selling, general and administrative expenses %%%% 120
Gain on currency exchange +250
Reduction in costs +150
Factors underlying increase +400
Factors underlying decrease %%%%434
Decrease in profit of Decrease in profit of ¥¥3.4 3.4 billion year on yearbillion year on year Decrease in sales %%%% 130
((¥¥100 million)100 million)
%%%%90
Progress toward Strategic Alliances with GM
!! SUBARU Traviq on sale in showrooms beginning in SUBARU Traviq on sale in showrooms beginning in AugustAugust
Supplied on an OEM basis by GM !! Entry into GM AutoWorld Entry into GM AutoWorld
Sales of SUBARU automobiles begin in GM AutoWorld retailers in the Philippines and Indonesia
!! Japan Automotive Web Service Co., Ltd., establishedJapan Automotive Web Service Co., Ltd., establishedEntry into e-business focused around automobile purchasing services together with GM, Suzuki, and Isuzu
!! AWDAWD--CoE CoE Manufactured test version of Traviq all-wheel drive vehicle
““Our objective is to be a Our objective is to be a 21st century global player 21st century global player with premium brandswith premium brands””