Accounting Overview for 2 nd Quarter of FY2014

Transcription

1 1/15 Accounting Overview for 2 nd Quarter of FY2014 October 29, 2013 Yasuhiko Ichihashi President, Member of Board Hino Motors, Ltd. Photos: Vehicles scheduled to be on display at 43rd Tokyo Motor Show (Left: Small electric community bus, Right: Medium-sized plug-in hybrid bus)

2 Forward-looking statements and insider trading 2/15 This material contains forward-looking statements regarding performance, goals, plans, and strategies of Hino Motors (including its consolidated subsidiaries). These forward-looking statements are based on determinations and assumptions that have been derived from information currently available, and may differ considerably from real performance figures and future operations at Hino Motors due to uncertainties inherent in such determinations and assumptions, and or variables including changes in future corporate operations as well as shifts in internal and external conditions. Reminders regarding insider trading: Investors who receive nonpublic information on important facts directly from a company (primary information recipients) are prohibited from selling or buying stocks prior to this information becoming "public" (Article 166 of Financial Instruments and Exchange Act). According to enforcement ordinance of this law, information is deemed to have been made "public" once 12 hours have elapsed after company discloses this information to two or more press organizations, or when information, after a notification to securities exchange, is listed by electronic means (TDnet's Timely Disclosure and Viewing Service) as prescribed by Cabinet Office Ordinance.

3 3/15 Report Contents 1.Summary of first half of FY Forecasts for FY2014 as a whole 3.Initiatives during first half of FY2014

4 1. Summary of first half of FY2014 4/15 Supported by strong demand, domestic sales exceeded those of last year when eco-car subsidy program was in effect. Overseas sales increased in all markets based on healthy domestic demand in emerging economies. Revenues and profits grew due to increased domestic and overseas sales as well as effects of a weaker yen. Starred figures in tables below: Record half-term highs <Unit Sales> 1st half, FY14 1st half, FY13 Change Change % Japan % Overseas % Global % Toyota brand % <Consolidated Income Statement, Dividends> (Unit: thousand vehicles) (Unit: billion yen) 1st half, FY14 1st half, FY13 Change Change % Net sales % Operating income times Net income times Dividends (per share) 18 yen 8 yen + 10 yen 2.3 times

5 2. Forecasts for FY2014 as a whole <Recognition of business climate> 5/15 [Current and Near Future Business Climate] Japan Japan Continued Continued strength strength in in demand demand is is expected expected as as effects effects of of increased increased public public spending spending and and or or economic economic stimuli stimuli become become apparent. apparent. Consumer Consumer tax tax hike hike has has been been decided decided Keep Keep a a close close eye eye on on effects effects of of tax tax hike hike on on demand. demand. Overseas Although Although demand demand in in North North America America is is recovering, recovering, outlook outlook for for global global economy economy remains remains unclear (Europe and China) unclear. (Europe and China). Demand Demand for for commercial commercial vehicles vehicles in in emerging emerging economies economies is is still still projected projected to to grow grow for for mid mid and and long long term, term, although although demand demand appears appears to to have have paused paused for for near-term (Thailand and Indonesia) near-term. (Thailand and Indonesia). With With entry entry of of global global manufacturers, manufacturers, we we expect expect intense intense competition competition to to continue, continue, particularly particularly in in ASEAN ASEAN region. region. Hino s actions Near-term: Careful steering is required to accommodate demand trends in emerging markets. Mid and long term: Continue to implement solid steps to achieve structural reform and organizational improvement. (Aim to become a company that is robust against changes in business environment)

6 2. Forecasts for FY2014 as a whole 6/15 Domestic sales are expected to grow on strong demand. Overseas sales are expected to reflect near-term pause in demand. Forecasts have been revised upwards based on revisions made to sales plan and exchange rates etc... <Unit sales> Forecast for FY14 Updated plan Previous plan FY13 performance Japan Overseas Global Toyota brand Against previous plan Change (%) (+ 5.2%) 6.8 ( 5.2%) 4.5 ( 2.6%) (+ 6.3%) (Unit: thousand vehicles) Against previous FY (+ 7.3%) (+ 11.0%) (+ 10.0%) 3.0 ( 1.6%) <Consolidated Income Statement, Dividends> Forecast for FY14 Updated plan Previous plan FY13 performance Sales 1, , ,541.4 Operating profits Current net profits Against previous plan Change (%) (+ 3.7 %) (+ 17.6%) (+ 20.0%) (Unit: billion yen) Against previous FY (+ 9.0%) (+ 53.6%) (+ 51.0%) Dividends (per share) 36 yen 30 yen 23 yen (+ 20.0%) (+ 56.5%)

7 3. Initiatives during first half of FY2014: 1) The concept of Total Support <Hino s strategy for sustainable growth> 7/15 To be chosen by our customers as a manufacturer of commercial vehicles. Market best-fit vehicles Modularization plan is now complete. Now entering production preparation phase. Quickly Optimum products Global production structure Reorganize domestic factories. Establish regional production bases overseas. Total Support to our customers Provide with added value Environmental technologies Drive development with hybrid technology at core. After-sale services and and helpful activities Establish Establish a a system system that that supports supports our our customers customers operations operations throughout throughout lifetime lifetime of of Hino Hino vehicles vehicles from from purchase purchase to to scrapping. scrapping.

8 3. Initiatives during first half of FY2014: 1) The concept of Total Support 8/15 <Concept> After-sale Total Support Support our customers operations Value for our customers Hino s Total Support Maximize up up time time of of vehicles owned Minimize lifetime costs Support customers management Activity perspectives Enhance Enhance service service quality quality Shorten Shorten lead lead times times Minimize Minimize running running costs costs Helpful Helpful activities activities Relevant capabilities Superb servicing capabilities Stable, quick, and high-quality supply Ability to provide suggestions as only possible by a manufacturer For all customers worldwide.

9 3. Initiatives during first half of FY2014: 2) Superb servicing capabilities 9/15 1Utilization of accumulated know-how on establishing service centers (1/2): Concept Standardize specifications for each specific service center and promote utilization Enhance service efficiency Know-how gleaned to date on establishing service centers High quality From Conception to Design Site/building layout, zoning Building structure Servicing facilities, processes, tools, etc. Excellent efficiency Environmentally friendly Secure and safe working environment Standardize Actively utilize to establish centers at home and overseas.

10 3. Initiatives during first half of FY2014: 2) Superb servicing capabilities 10/15 1Utilization of accumulated know-how on establishing service centers (2/2): Examples Know-how leveraged to establish highly efficient, flexible, and environmentally friendly service centers. Excellent Excellent efficiency efficiency Flexible Flexible Environmentally Environmentally friendly friendly Actively deployed latest equipment (2-piller lifts, floor lifts) Built servicing lanes optimized for each center in accordance with customer ownership makeup. Quick response for all vehicle types: heavy-, medium-, and light-duty. Ground water-driven air conditioning system, natural lighting, rainwater recirculation system, etc. Kyoto Hino, Head office relocation (Aug 2013) Nagano Hino, Matsumoto branch upgrades (Jul 2013) Okinawa Hino, Head office relocation (Apr 2013) Examples of know-how deployment Sales and servicing center in Thailand scheduled to open mid Being utilized overseas as well.

11 3. Initiatives during first half of FY2014: 2) Superb servicing capabilities 11/15 2 Promote training of servicing staff Hone skills and train talent worldwide Enhance Hino group s service quality. Hino Organize skill contests in Japan Provide service manuals and like Implement a skills qualification system Provide training at facilities in Japan Training facility in Japan: Hino Motors 21st Century Center Establish training support centers overseas Dealers in Japan Overseas distributors Organize various seminars Lateral dissemination of Kaizen cases and or matters Organize skill contests for respective countries Overseas dealers Provide high-quality servicing Customers Service Support Center for Central and South America region in Panama (Since Apr 2013) Skill Contest in Central and South America region. Example: Skill Contest in Canada

12 1 Upgrade our replacement parts supply system 12/15 3. Initiatives during first half of FY2014: 3) Stable, quick, and high-quality supply New parts depot established in Dubai Shorter replacement part supply lead times to Middle Eastern markets Parts Depot for European, African, and Middle Eastern markets (Since July 1974) Belgium Japan California Parts Depot for Central and South American markets (Since Oct 2008) Middle East Parts Depot, Dubai (Since Aug 2013) Began shipments to UAE domestic market (Aug 2013). Scheduled to gradually increase range of delivery destinations.

13 3. Initiatives during first half of FY2014: 3) Stable, quick, and high-quality supply 13/15 2 Supply market-optimum parts (Secondary genuine parts) Provide replacement parts with basic performance to support vehicle quality at affordable prices. Specifications and prices that meet market needs Cut down on customers running costs Stable and quick supply Reduce lead times (Maximize up times) Example: J-Filter (Thailand) Oil and fuel filters started >>> Reason: Replacement frequency and Maximize effects of running cost reductions. In process of increasing delivery destinations (Thailand Asia Central and South America and Middle East) Jan 2012 : Company founded Nov 2012~: Shipments to Thailand domestic market. (Unit: thousand) 350 千個 Cumulative shipment performance Jan 2013~: Shipments expanded to or markets Nov, 年 月 12 Dec 月 13 Jan, 年 月 Feb 2 月 3 Mar 月 4 Apr 月 5 May 月 Jun 6 月 7 Jul 月 Aug 8 月 9 Sep 月 Ensure that vehicle quality is maintained for as many customers as possible.

14 3. Initiatives during first half of FY2014: 4) Ability to provide suggestions as only possible by a manufacturer 1 Fuel-efficient driving seminars in Japan and overseas 14/15 Facility in Japan have been expanded in response to receiving a positive reception, * and overseas implementation is also underway. Customer Technical Center, Hamura, Tokyo Jun. 2005: The center opened as first manufacturer-operated seminar facility in Japan. Feb. 2013: Facilities received upgrades and enhancements, with an increase in training capacity. The center has been taking in trainees at a rapid pace ever since. (Unit: thousand) Cumulative total projected to reach 50,000 by end of <Cumulative visitors> Test drive track at center has been expanded FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Sep, 年度 06 年度 07 年度 08 年度 09 年度 10 年度 11 年度 12 年度 13 年 /9 月 The center has provided training also to instructors from overseas distributors. To customers in different countries and regions via se instructors from overseas distributors About 5,000 have taken part in over 10 countries in 2013 (Jan to Sep)

15 15/15 The Hino Credo: Corporate Mission To make world a better place to live by helping people and goods get to where y need to go -safely, economically and with environmental responsibility - while focusing on sustainable development.

16 IR 1/18 Financial Results for Second Quarter of FY2014 (From April 1, 2013 to September 30, 2013) October 29, 2013 Hino Motors, Ltd.

17 IR 2/18 1. Sales Turnover

18 Global Unit Sales IR 3/18 Record-High for a half-year By Geographic Region (Units) Change Change (%) Japan 21,073 19,618 +1, % Asia 37,679 37, % Central and South FY2014 1st Half ('13/4-9) FY2013 1st Half ('12/4-9) 6,778 5, % America North America 4,593 4, % Europe/Africa 4,371 4, % Oceania 2,706 2, % Middle East 2,019 1, % Overseas Total 58,146 56,071 +2, % Total 79,219 75,689 +3, %

19 Truck and Bus Market in Japan IR 4/18 Record-High in 1st half Hino Registered Japan Market FY2014 1st Half ('13/4-9) FY2013 1st Half ('12/4-9) (Units) Change Change (%) Heavy-duty trucks 5,973 5, % (share) (31.4%) (31.6%) (-0.2p) Medium-duty trucks 5,546 5, % (share) (38.0%) (37.2%) (+0.8p) Light-duty trucks 8,346 7, % (share) (20.7%) (20.7%) (0.0p) Total trucks 19,865 18,516 +1, % (share) (26.8%) (26.9%) (-0.1p) Buses 1,208 1, % (share) (30.8%) (30.0%) (+0.8p) Total 21,073 19,618 +1, % (share) (27.0%) (27.1%) (-0.1p) Heavy-duty trucks 19,028 17,986 +1, % Medium-duty trucks 14,579 13, % Light-duty trucks 40,397 36,905 +3, % Total trucks 74,004 68,832 +5, % Buses 3,921 3, % Total 77,925 72,507 +5, %

20 IR 5/18 2. Consolidated Financial Results

21 Consolidated Unit Sales IR 6/18 Record-High for a half-year Record-High in 1st half FY2014 1st Half ('13/4-9) By Geographic Region (Units) Change Change (%) Japan 22,133 20,261 +1, % Asia 36,480 36, % Central and South America 6,524 6, % North America 4,788 5, % Europe/Africa 4,462 4, % Oceania 2,589 2, % Middle East 2,168 1, % Overseas Total 57,011 56, % Total 79,144 76,828 +2, % Supplies and parts for FY2013 1st Half ('12/4-9) overseas production 1,898 3,466-1, % Total 81,042 80, %

22 Consolidated Unit Sales of Toyota Brand Vehicles and Engines IR 7/18 Toyota Brand FY2014 1st Half ('13/4-9) FY2013 1st Half ('12/4-9) (Units) Change Change (%) SUV 73,290 62, , % Loading Vehicles 19,202 22,817-3, % Total 92,492 85,739 +6, % Engines Japan Overseas FY2014 1st Half ('13/4-9) FY2013 1st Half ('12/4-9) (Units) Change Change (%) 5,921 6, % 4,822 9,428-4, % Total 10,743 15,632-4, % * Engines are Hino shipment base.

23 Consolidated Income Statement IR 8/18 Record-High for a half-year FY2014 (Billions of yen) Item 1st Half 1st Half Change Change (%) ('13/4-9) FY2013 ('12/4-9) Net sales % <+3.2p> Operating income times Non-operating income (loss) (2.9) (1.1) Investment gain (loss) on equity method (0.1) (0.5) <+3.1p> Ordinary income times Extraordinary income % Extraordinary loss % Net income before income taxes and minority interests <7.2%> <6.9%> <7.0%> <4.7%> <4.0%> <3.8%> <3.7%> <+3.3p> times <2.5%> <+2.2p> Net income times Note: Figures in parenses (<>) indicate income margin.

24 Consolidated Net Sales IR 9/18 Japan Overseas FY2014 1st Half ('13/4-9) FY2013 1st Half ('12/4-9) (Billions of yen) Change Change (%) Heavy-duty trucks % Medium-duty trucks % Light-duty trucks % Total trucks % Buses % Subtotal % Completed vehicles % Supplies and parts for overseas production % Subtotal % Total trucks and buses Service parts Ors Toyota % % % Vehicles % Overseas unit supply % Ors % Subtotal % Total net sales %

25 Consolidated Operating Income by Segments IR 10/18 (Billions of yen) FY2014 1st Half ('13/4-9) FY2013 1st Half ('12/4-9) Change Net sales Operating income Net sales Operating income Net sales Operating income <7.2%> <3.5%> +9.8% 2.3 times Japan <6.2%> <4.2%> +19.3% +77.3% Asia <4.9%> <2.0%> +17.2% 2.9 times Or Areas Consolidated adjustment (156.5) (6.6) (135.5) (1.4) <7.2%> <4.0%> +12.1% 2.0 times Total Note: Figures in parenses (<>) indicate operating income margin.

26 Analysis of Consolidated Operating Income IR 11/18 Increase Increase in in operating operating income: income: billion billion ( 29.7 ( 29.7 billion billion to to billion) billion) (Billions of yen)

27 Trends in Quarterly Consolidated Sales and Operating Income IR 12/

28 IR 13/18 3. Sales Forecasts for FY2014

29 Global Unit Sales IR 14/18 (Thousand units) FY2014 ('13/4-'14/3) Forecasts announced on October 29 FY2014 ('13/4-'14/3) Forecasts announced on April 25 Change Change(%) FY2013 ('12/4-'13/3) Results Change Change(%) Japan % % Overseas % % Total % % Toyota brand (*) % % *Including Dyna for Indonesia.

30 IR 15/18 4. Consolidated Financial Forecasts for FY2014

31 Consolidated Income Statement IR 16/18 Item FY2014 ('13/4-'14/3) Forecasts announced on October 29 FY2014 ('13/4-'14/3) Forecasts announced on April 25 Change Change(%) FY2013 ('12/4-'13/3) Results Change (Billions of yen) Change(%) Net sales Operating income Ordinary income 1, , % 1, % <6.0%> <5.2%> <+0.8p> <4.2%> <+1.8p> % % <5.7%> <5.0%> <+0.7p> <4.3%> <+1.4p> % % Net income <4.3%> <3.7%> <+0.6p> <3.1%> <+1.2p> Note: Figures in parenses (<>) indicate income margin % %

32 Analysis of Consolidated Operating Income (Comparison with forecasts announced on April 25) IR 17/18 Increase Increase in in operating operating income: income: billion billion ( 85.0 ( 85.0 billion billion to to billion) billion) (Billions of yen)

33 Analysis of Consolidated Operating Income (Year-on-year comparison) IR 18/18 Increase Increase in in operating operating income: income: billion billion ( 65.1 ( 65.1 billion billion to to billion) billion) (Billions of yen)