Most Japanese OEMs revise their FY 2013 outlooks upward

Toyota expects record high operating profit; Nissan makes downward revisions

2013/11/22

Summary


 At the beginning of the fiscal year ending March 2014 (FY 2013), Japanese OEMs planned record high sales volumes and profits, backed by depreciation of the yen, a strong U.S. market, and a steady Japanese market. For the first half of FY 2013 (April to September period), all of the ten OEMs increased their revenues, and every company, except for Nissan and Daihatsu, increased operating profit as well. The total sales volume of the ten OEMs increased by 0.5% year-over-year (y/y) to 11.62 million units, with an increase in revenue by 14.5% to JPY 28.6 trillion and operating profit by 56.1% to JPY 2.3 trillion.

 Upon announcements of their financial results for the first half of FY 2013, each company revised the assumed exchange rate of the yen on a weaker yen basis. The automakers also revised their full-year forecasts to reflect changes in the Asian market such as Thailand and Indonesia. When we look at the ten OEMs as a whole, the consolidated sales volume decreased by 240,000 units from the original plan to 24.59 million units (up by 5.2% y/y), the revenue increased by JPY 1.5 trillion to JPY 59 trillion (up by 14.0% y/y), and the operating profit was revised upward by JPY 438 billion to JPY 4.4 trillion (up by 50.0% y/y).

 Revisions to their full-year plans varied in respective companies. Fuji Heavy Industries (FHI: owner of Subaru)) and Daihatsu made upward revisions to their sales volumes, revenues, and operating profits, all of which had originally been planned to attain record highs. In particular, FHI's operating profit is estimated at JPY 278 billion, approximately 2.3 times over the previous record high established in FY 2012.

 Toyota and Mazda made a large upward revision to their forecast for revenues and operating profits. From its original outlook, Toyota revised upward its revenue by JPY 1.5 trillion to JPY 25 trillion and operating profit by JPY 400 billion to JPY 2.2 trillion. The revised forecast is almost equivalent to its operating profit of JPY 2.27 trillion attained in FY 2007, before the economic crisis.

 Nissan, on the other hand, revised its sales volume, revenue, and operating profit all downward. These revisions resulted from decreased sales in emerging countries such as Asia, Russia, and Brazil and recall costs incurred in the U.S. and other countries.

Japanese OEMs' FY2013 outlooks (figures in shaded cells (bold) represent record high)

Automobile sales volume
(1,000 units)
Consolidated revenue
(100 million JPY)
Operating profit
(100 million JPY)
FY2013 plan
(original)
FY2013 outlook
(Upon results
announcement
for the 1H)
FY2013 plan
(original)
FY2013 outlook
(Upon results
announcement
for the 1H)
FY2013 plan
(original)
FY2013 outlook
(Upon results
announcement
for the 1H)
Toyota 9,100 9,100 Unchanged 235,000 250,000 Upward 18,000 22,000 Upward
Nissan 4,889 4,797 Downward 103,700 101,900 Downward 6,100 4,900 Downward
Honda 4,430 4,430 Unchanged 121,000 121,000 Unchanged 7,800 7,800 Unchanged
Suzuki 2,803 2,708 Downward 28,000 28,000 Unchanged 1,500 1,700 Upward
Mazda 1,120 1,130 Upward 24,800 26,500 Upward 1,200 1,600 Upward
Mitsubishi 1,169 1,111 Downward 22,700 21,300 Downward 1,000 1,000 Unchanged
Daihatsu 1,067 1,099 Upward 18,000 18,500 Upward 1,350 1,370 Upward
FHI 752 807 Upward 20,500 23,000 Upward 1,800 2,780 Upward
Isuzu 567 503 Downward 19,200 18,200 Downward 1,800 1,800 Unchanged
Hino 175 170 Downward 16,200 16,800 Upward 850 1,000 Upward
Total 24,830 24,586 574,900 589,900 39,200 43,580

Source: OEMs' financial flash reports and earnings announcements.
(Note) "Total" does not include the consolidated data of Daihatsu and Hino to avoid overlaps with Toyota.


Related Reports: Toyota: FY 2014 forecasted profit is highest since Lehman Brothers crisis (Nov. 2013)




Consolidated sales volume planned at 24.59 million units

 The consolidated sales volume outlook of the ten Japanese OEMs for the full year of FY 2013 is 24.59 million units, a record high for two consecutive years (an increase of 5.2% y/y). The volume, however, decreased by 240,000 units from the original plan, with sluggish sales in "Asia and others" not offset by upward revisions to sales plans for Japan and North America.

 Mazda, Daihatsu, and FHI made upward revisions to their outlooks, with all enjoying strong overseas sales. FHI increased its sales plan for North America, a market that covers a half of its sales, by more than 50,000 units. Toyota and Honda, on the other hand, maintained their estimates. Toyota increased its sales outlook for Japan while reducing its sales plan for Asia, including Thailand and Indonesia. Honda continues its operation with no changes to its plan.

 Meanwhile, Nissan, Suzuki, Mitsubishi, Isuzu, and Hino made downward revisions. Each of these companies reduced their sales plans for Asia because they were affected more than expected by a demand decrease resulting from the end of Thailand's First Car Buyer Rebate scheme in 2012. As for Nissan, sales are not growing in Russia, Brazil, and India.

 While downward revisions were made in some sections, all OEMs, except for Mazda, Mitsubishi and Isuzu, are planning record high sales volumes.

 During the first half of FY 2013, the ten automakers' consolidated sales volume increased by 0.5% y/y to 11.62 million units. In Japan, the negative effect of the terminated Eco-car Subsidy Program was minimized, mostly by the sales increase of mini vehicles, resulting in a decrease of 3.8% y/y to 2.37 million units. Sales outside Japan increased by 1.7% to 9.26 million units, mainly due to the expansion of the North American market. Only FHI showed two-digit growth, an increase of 12.9% to 393,000 units. Each company aims to expand their sales further in the second half of FY 2013.

Ten Japanese OEMs' consolidated unit sales of automobiles

(1,000 units)
  (Reference)
FY2007
FY2011 FY2012 FY2013 (Planned) First half Second half
  FY2012 FY2013 FY2012 FY2013
(Planned)
  Original Upon results announce
-ment for the 1H period
Total Toyota 8,913 7,352 8,871 9,100 9,100 4,516 4,468 4,355 4,632
Nissan 3,698 4,456 4,533 4,889 4,797 2,197 2,164 2,336 2,633
Honda 3,925 3,108 4,014 4,430 4,430 1,995 2,046 2,019 2,384
Suzuki 2,406 2,560 2,660 2,803 2,708 1,275 1,273 1,385 1,435
Mazda 1,240 1,016 1,053 1,120 1,130 502 524 551 606
Mitsubishi 1,337 1,001 987 1,169 1,111 478 499 509 612
Daihatsu 945 973 1,042 1,067 1,099 529 519 513 580
FHI 597 640 724 752 807 348 393 376 414
Isuzu 509 381 534 567 503 248 255 286 248
Hino 112 129 155 175 170 76 79 79 91
Total 22,624 20,514 23,376 24,830 24,586 11,559 11,622 11,817 12,964
Japan Toyota 2,188 2,071 2,279 2,120 2,230 1,192 1,101 1,087 1,129
Nissan 684 639 620 632 652 294 304 326 348
Honda 615 588 692 825 825 354 320 338 505
Suzuki 673 596 672 660 682 341 341 331 341
Mazda 257 226 226 228 232 115 116 111 116
Mitsubishi 214 152 134 148 148 63 66 71 82
Daihatsu 571 606 655 634 664 338 322 317 342
FHI 209 172 163 156 170 72 87 91 83
Isuzu 74 54 63 63 70 30 32 33 38
Hino 46 37 44 45 47 20 21 24 26
Total 4,914 4,498 4,849 4,832 5,009 2,461 2,367 2,388 2,642
Outside of Japan Toyota 6,725 5,281 6,592 6,980 6,870 3,324 3,367 3,268 3,503
Nissan 3,013 3,817 3,913 4,257 4,145 1,903 1,861 2,010 2,284
Honda 3,310 2,520 3,322 3,605 3,605 1,641 1,726 1,681 1,879
Suzuki 1,732 1,964 1,989 2,143 2,026 934 932 1,055 1,094
Mazda 983 790 827 892 898 387 408 440 490
Mitsubishi 1,123 849 853 1,021 963 415 433 438 530
Daihatsu 374 368 387 433 435 191 197 196 238
FHI 388 468 561 596 637 276 305 285 332
Isuzu 435 327 471 504 433 218 223 253 210
Hino 66 92 111 130 123 56 58 55 65
Total 17,709 16,016 18,528 19,998 19,577 9,098 9,255 9,430 10,322
Source: OEMs' financial flash reports and earnings announcements.
(Note) 1. Daimler's subsidiary, Mitsubishi Fuso, and Volvo's subsidiary, UD Trucks, did not disclose their business results.
2. Toyota and Honda follow the U.S. Generally Accepted Accounting Principles. Mitsubishi represents Mitsubishi Motors.
3. The ten OEMs' total does not include the consolidated data of Daihatsu and Hino to avoid overlaps with Toyota. Consolidated unit sales include components for production.
4. Toyota plans to achieve 10.10 million total group unit sales for FY2013 including the non-consolidated JVs. the figure was 9.692 million units for FY2012.
5. The FY2013 plan and the half result of Nissan are reference values. It is calculated from the announced global sales volume plans. The global sales volumes are based on a retail basis which include components for production and assembled vehicles at Nissan's equity method foreign affiliates.
6. Honda has changed its range of disclosed items for its unit sales from FY2012. Before FY2012, the disclosed unit sales were a sum of "(A) units sold by Honda and its consolidated subsidiaries" and "(B) sales of parts for local production at Honda's subsidiaries accounted for under the equity method of accounting." However, from FY2012, only (A) is disclosed as its "consolidated unit sales." The sum of (A) and the "unit sales made by Honda's subsidiaries accounted for under the equity method of accounting" is now disclosed as the "Honda group unit sales." Honda's figure in the table above shows "Honda group unit sales," starting from the FY2011.
7. Suzuki's sales volume shows the number of Suzuki brand vehicles, excluding those supplied under the OEM agreement. The FY2013 overseas sales include some estimated values by Suzuki
8. Mitsubishi Motors has revised its method to count sold vehicles from FY2011. The newly counted (wholesale) sales volume includes those supplied under the OEM agreement.
9. Daihatsu and Hino show the sales volumes of their own brand vehicles (Toyota's sales volume includes those of Daihatsu and Hino). The two OEM's sales volumes from FY2011 in the table show their global sales volumes.
10. Isuzu's FY2007 data include the 15-month results of its eight overseas consolidated subsidiaries (the overseas sales volume was 385,000 units on a 12-month basis).
11. The planned figures for the second half of FY2013 are calculated values based on the ten companies' FY2013 full-year plans and the first half-year performances.

Seven Japanese OEMs' sales volume by region

(1,000 units)
Toyota Nissan Honda Suzuki Mazda Mitsubishi FHI Total
Japan FY2007 2,188 721 615 673 256 219 209 4,881
FY2008 1,945 612 556 665 219 168 179 4,344
FY2009 2,163 630 646 622 221 171 171 4,624
FY2010 1,913 600 582 588 206 164 158 4,211
FY2011 2,071 655 588 596 206 152 172 4,440
FY2012 2,279 647 692 672 216 134 163 4,803
FY2013 Plan
(original)
2,120 660 825 660 220 148 156 4,789
FY2013 outlook (Upon results
announcement for the 1H)
2,230 680 825 682 225 148 170 4,960
North
America
FY2007 2,958 1,352 1,850 n.a. 406 160 210 6,936
FY2008 2,212 1,133 1,496 85 347 119 207 5,599
FY2009 2,098 1,067 1,297 41 307 88 250 5,148
FY2010 2,031 1,245 1,458 33 342 94 307 5,510
FY2011 1,872 1,404 1,323 32 372 106 309 5,418
FY2012 2,469 1,466 1,731 30 372 85 390 6,543
FY2013 Plan
(original)
2,640 1,610 1,795 3 415 100 420 6,983
FY2013 outlook (Upon results
announcement for the 1H)
2,630 1,650 1,795 n.a. 415 107 471 7,068
Europe FY2007 1,284 636 391 n.a. 327 341 86 3,065
FY2008 1,062 530 350 302 322 272 78 2,916
FY2009 858 517 249 281 239 169 39 2,352
FY2010 796 607 198 244 212 218 60 2,335
FY2011 798 713 158 223 183 218 55 2,348
FY2012 799 660 171 197 172 181 61 2,241
FY2013 Plan
(original)
830 720 185 220 200 212 54 2,421
FY2013 outlook (Upon results
announcement for the 1H)
840 660 185 211 200 206 50 2,352
Asia &
others
FY2007 2,483 1,061 1,069 n.a. 374 640 92 n.a.
FY2008 2,348 1,136 1,115 1,253 373 507 92 6,824
FY2009 2,118 1,301 1,200 1,407 426 532 103 7,087
FY2010 2,568 1,733 1,274 1,778 513 511 132 8,509
FY2011 2,611 2,073 1,039 1,710 486 525 104 8,548
FY2012 3,324 2,141 1,420 1,761 475 587 110 9,818
FY2013 Plan
(original)
3,510 2,310 1,625 1,920 500 709 121 10,695
FY2013 outlook (Upon results
announcement for the 1H)
3,400 2,210 1,625 1,815 495 650 116 10,311
Total FY2007 8,913 3,770 3,925 2,406 1,363 1,360 597 22,334
FY2008 7,567 3,411 3,517 2,305 1,261 1,066 555 19,682
FY2009 7,237 3,515 3,392 2,350 1,193 960 563 19,210
FY2010 7,308 4,185 3,512 2,643 1,273 987 657 20,565
FY2011 7,352 4,845 3,108 2,560 1,247 1,001 640 20,753
FY2012 8,871 4,914 4,014 2,660 1,235 987 724 23,405
FY2013 Plan
(original)
9,100 5,300 4,430 2,803 1,335 1,169 752 24,889
FY2013 outlook (Upon results
announcement for the 1H)
9,100 5,200 4,430 2,708 1,335 1,111 807 24,691
Source: OEMs' financial flash reports and earnings announcement documents
(Note) 1. Figures for Toyota, Honda, and Fuji Heavy Industries are based on consolidated sales volumes.
2. Nissan's figures show global sales volume (which includes vehicles assembled by its affiliates that are applicable to the equity method, using shipped parts for the production).
3. Honda's figures before FY2011 are based on unit sales. From FY2011, the figures are based on Honda group's unit sales.
4. Mazda's figures show global sales volume (representing all retailed volume under the Mazda brand).
5. The figures for Mitsubishi Motors are based on retail sales (a new counting method was introduced from the FY2010 performance).

 

 



Revenue plan revised upward by JPY 1.5 trillion to JPY 59 trillion

 The FY 2013 planned consolidated revenue of the ten Japanese OEMs was JPY 59 trillion, up 14.0% y/y. From the original plans, the sales volume was revised downward while the revenue was revised upward by JPY 1.5 trillion in total, due to the yen depreciating more than expected.

 Five OEMs, Toyota, Mazda, Daihatsu, FHI, and Hino made upward revisions. In particular, Toyota revised to a large extent by JPY 1.5 trillion from its original plan. Honda and Suzuki maintained their plans, while Nissan, Mitsubishi, and Isuzu made downward revisions, all of which also revised their sales volume plans downward. Nissan, however, maintained its original plan in terms of the estimate made under the previous consolidation method and is expected to achieve record-high revenue.

 Honda, Daihatsu, FHI, and Hino are also planning to attain record high revenues.

 The consolidated revenue of the ten OEMs for the first half of FY 2013 increased by 14.5% y/y to JPY 28.6 trillion. All the OEMs recorded gains in the consolidated revenue. A large increase rate was attained by FHI (25.3%), Mazda (22.6%), and Honda (21.6%). Honda showed a noticeably large increase rate in its revenue (21.6%), compared with that in the sales volume (2.6%).

 

Ten Japanese OEMs' consolidated revenues

( in 100 million JPY)
  (Reference)
FY2007
FY2011 FY2012 FY2013 (Planned) First half Second half
  FY2012 FY2013 FY2012 FY2013
(Planned)
  Original Upon results announce
-ment for the 1H period
Revenue Toyota 262,892 185,837 220,641 235,000 250,000 109,083 125,374 111,558 124,626
Nissan (Note2) 108,242 94,090 96,296 103,700 101,900 45,468 47,562 50,828 54,338
Honda 120,028 79,481 98,779 121,000 121,000 47,072 57,243 51,707 63,757
Suzuki 35,024 25,122 25,783 28,000 28,000 12,268 13,702 13,515 14,298
Mazda 34,758 20,331 22,053 24,800 26,500 10,235 12,543 11,818 13,957
Mitsubishi 26,821 18,073 18,151 22,700 21,300 8,600 9,290 9,551 12,010
Daihatsu 17,026 16,313 17,649 18,000 18,500 8,627 9,001 9,022 9,499
FHI 15,723 15,171 19,130 20,500 23,000 8,980 11,256 10,150 11,744
Isuzu 19,248 14,001 16,556 19,200 18,200 7,801 8,752 8,755 9,448
Hino 13,686 13,146 15,414 16,200 16,800 7,454 8,354 7,960 8,446
Total 622,738 452,105 517,389 574,900 589,900 249,507 285,722 267,882 304,178
Revenue
in Japan
Toyota 61,362 56,621 55,026
Nissan 21,878 19,466 19,041 9,273 9,266 9,768
Honda 15,858 15,179 16,530 8,496 7,819 8,034
Suzuki 9,814 9,868 10,409 9,800 10,000 5,151 5,043 5,258 4,957
Mazda 8,801 5,602 5,880 5,900 6,100 2,945 3,052 2,935 3,048
Mitsubishi 4,885 3,571 3,295 4,700 4,700 1,549 2,026 1,746 2,674
Daihatsu 11,771 11,608 11,820 6,211 5,764 5,609
FHI 5,440 4,985 6,718 6,081 6,437 3,098 3,306 3,620 3,131
Isuzu 6,547 5,584 5,922 6,000 6,200 2,794 2,894 3,128 3,306
Hino 9,246 8,926 9,854
Total 134,586 120,877 122,821
Revenue
outside of Japan
Toyota 201,530 129,215 165,615
Nissan 86,364 74,624 77,255 36,195 38,296 41,060
Honda 104,171 64,302 82,249 38,576 49,424 43,673
Suzuki 25,210 15,254 15,374 18,200 18,000 7,117 8,659 8,257 9,341
Mazda 25,957 14,729 16,173 18,900 20,400 7,290 9,491 8,883 10,909
Mitsubishi 21,936 14,502 14,856 18,000 16,600 7,051 7,264 7,805 9,336
Daihatsu 5,255 4,705 5,829 2,416 3,237 3,413
FHI 10,284 10,186 12,411 14,419 16,563 5,883 7,951 6,528 8,612
Isuzu 12,701 8,417 10,634 13,200 12,000 5,007 5,858 5,627 6,142
Hino 4,440 4,220 5,560
Total 488,153 331,228 394,567
Source: OEMs' financial flash reports and earnings announcements
(Note) 1. Japan/overseas revenues represent revenues by the external customer location.
2. Nissan changes the consolidation method for its Chinese JV from proportionate consolidation to the equity method from FY2013. Nissan's financial data presented in this report are also based on the equity method (hereafter calculated in the same way). The total planed revenue estimated by the previous method is JPY 11.2 trillion , the highest in history.
3. The source for Daihatsu' revenues in Japan and overseas has been changed to its financial flash reports since FY2011 figures.

 

 



Net profit to exceed pre-economic crisis level

 The outlook of total profit of the ten OEMs was revised upward with a JPY 438 billion increase from the original plan to JPY 4.36 trillion for their operating profit (a 50.0% increase from last year).All the OEMs except Nissan revised upward or maintained their original plans. Five OEMs: Suzuki, Daihatsu, FHI, Isuzu, and Hino are planning to renew their records. Toyota revised its profit upward by JPY 400 billion from the original plan to JPY 2.2 trillion, almost the same level as the previous record of JPY 2.27 trillion marked in FY 2007. With the exchange rate of JPY 95 to the U.S. dollar assumed for the second half of FY 2013, the company may exceed the 2007 record high if the exchange rate remains in the same range between JPY 97 and 99 to the U.S. dollar as in mid-November 2013.

 Nissan was the only company to revise the original operating profit plan downward, from JPY 610 billion to JPY 490 billion. This reduction resulted mainly from weak sales in emerging countries and recall costs incurred in the U.S. and other countries.

 The combined current profit for the ten OEMs was also revised upward to JPY 4.44 trillion (up by 50.5% y/y), with a planned net profit of JPY 3.2 trillion (up by 56.7% y/y). The net profit is expected to exceed the previous record of JPY 3.1 trillion established in FY 2007.

 The profits for the Japanese manufacturers increased, with the exception of Nissan and Daihatsu, during the first half of FY 2013. When we looking at the total figure of ten OEMs, every profit related item showed an increase of approximately 50% from the previous year, with JPY 2.29 trillion for the operating profit, JPY 2.34 trillion for the ordinary profit, and JPY 1.71 trillion for the net profit.

 The full-year average assumed exchange rate for FY 2013 was JPY 97.0 to the U.S. dollar (at the time of fiscal announcement for the first half-year), calculated from the average rate of JPY 98.2 used for account settling for the first half and that of JPY 95.6 assumed for the second half. If the rate remains between JPY 97 and 99 as in mid-November 2013, OEMs' performances may be increased further.

 

Ten Japanese OEMs' consolidated operating profits/current profits/net profits

( in 100 million JPY)
  (Reference)
FY2007
FY2011 FY2012 FY2013 (Planned) First half Second half
  FY2012 FY2013 FY2012 FY2013
(Planned)
  Original Upon results
announce
-ment for the 1H period
Operating
profit
Toyota 22,704 3,556 13,208 18,000 22,000 6,937 12,554 6,271 9,446
Nissan 7,908 5,458 5,235 6,100 4,900 2,870 2,219 2,365 2,681
Honda 9,531 2,313 5,448 7,800 7,800 2,768 3,564 2,680 4,236
Suzuki 1,494 1,193 1,446 1,500 1,700 661 903 785 797
Mazda 1,621 (387) 539 1,200 1,600 115 740 424 860
Mitsubishi 1,086 637 674 1,000 1,000 308 508 366 492
Daihatsu 652 1,155 1,330 1,350 1,370 737 702 593 668
FHI 457 440 1,204 1,800 2,780 433 1,507 771 1,273
Isuzu 1,096 974 1,308 1,800 1,800 573 903 735 897
Hino 459 375 651 850 1,000 297 605 354 395
Total 45,897 14,184 29,062 39,200 43,580 14,665 22,898 14,397 20,682
Current
profit
Toyota 24,372 4,328 14,036 18,900 22,900 7,945 13,435 6,091 9,465
Nissan 7,664 5,351 5,293 6,450 5,150 2,756 2,313 2,537 2,837
Honda 8,958 2,574 4,888 7,800 7,650 3,010 3,376 1,878 4,274
Suzuki 1,569 1,306 1,556 1,650 1,800 700 924 856 876
Mazda 1,485 (368) 331 970 1,230 4 363 327 867
Mitsubishi 857 609 939 900 1,000 316 610 623 390
Daihatsu 666 1,282 1,481 1,500 1,520 789 780 692 740
FHI 454 373 1,006 1,750 2,720 453 1,462 553 1,258
Isuzu 1,223 1,029 1,417 1,900 1,900 604 966 813 934
Hino 410 346 669 810 960 281 575 388 385
Total 46,583 15,202 29,466 40,320 44,350 15,788 23,449 13,678 20,901
Net
profit
Toyota 17,179 2,835 9,621 13,700 16,700 5,482 10,006 4,139 6,694
Nissan 4,823 3,414 3,424 4,200 3,550 1,783 1,898 1,641 1,652
Honda 6,000 2,114 3,671 5,800 5,800 2,139 2,428 1,532 3,372
Suzuki 803 539 804 900 1,000 419 517 385 483
Mazda 918 (1,077) 343 700 1,000 57 250 286 750
Mitsubishi 347 239 380 500 700 301 467 79 233
Daihatsu 349 651 814 820 800 444 367 370 433
FHI 185 385 1,196 1,100 2,070 404 998 792 1,072
Isuzu 760 913 965 1,150 1,150 421 568 544 582
Hino 222 163 477 600 720 185 396 292 324
Total 31,015 9,362 20,404 28,050 31,970 11,006 17,132 9,398 14,838
Source: OEMs' financial flash reports and earnings announcements.
(Note) 1. The Current Profit data of Toyota and Honda shows respective pre-tax current profits since they adopt the U.S. Generally Accepted Accounting Principles.
2. Nissan's profits revised plans estimated by the previous method are JPY 600 billion for operating profit, JPY 545 billion for current profit and JPY 355 billion for net income.
3. Honda changed its method of depreciation for its tangible fixed assets (excluding operating lease assets) from a fixed percentage method to a straight-line method from FY2012. As a result, the net profit for FY2012 increased by JPY 35.7 billion from the figure based on the previous method.
4. FHI announced that the company had revised its FY2013 net income plan to JPY 207 billion from JPY 178 billion. It was announced after the release of the financial results of the first half on November 13, 2013.
5. The red figure in brackets indicates a loss or negative value (this also applies to the following tables).

Exchange rate of yen to dollar and euro by ten Japanese OEMs (results and forecast)

(JPY)
  (Reference)
FY2007
FY2011 FY2012 FY2013 (Planned) First half Second half (forecast)
  FY2012 FY2013
  Original Upon results
announce-
ment for the
1H period
US Dollar Toyota 114 79 83 90 97 79 99 95
Nissan 114.4 79.1 82.9 95.0 97.9 79.4 98.9 97.0
Honda 114 79 84 95 97 79 99 95
Suzuki 114 79 83 90 97 79 99 95
Mazda 114 79 83 90 97 79 99 95
Mitsubishi 115 79 82 95 97 79 98 95
Daihatsu 114 80 84 93 97 79 97 97
FHI 116 79 82 90 97 80 98 95
Isuzu 115 79 82 95 96 80 96 96
Hino 114 79 82 90 97 80 98 96
平均 114.4 79.1 82.8 92.3 97.0 79.3 98.2 95.6
Euro Toyota 162 109 107 120 130 101 130 130
Nissan 161.6 109.0 106.8 122.0 130.0 100.5 130.0 130.0
Honda 162 108 108 120 127 101 130 125
Suzuki 160 109 107 120 127 101 130 125
Mazda 162 109 107 120 128 101 130 125
Mitsubishi 162 111 105 125 126 101 129 125
Daihatsu 161 109 102
FHI 108 106 120 127 103 129 125
Isuzu
Hino
平均 161.5 109.0 106.7 121.0 127.9 101.3 129.7 126.4
Source: OEMs' financial flash reports and earnings announcements.
(Note) 1. If an OEM announced multiple figures for the exchange rate, the rate used for sales is included in the table above.
2. Assumed rates for the second half of FY 2013 include estimates by MarkLines.

 

 



Operating profit plan increased by JPY 1.5 trillion due to exchange fluctuations

 The consolidated operating profit plan for FY 2013 of the ten OEMs increased by JPY 438 billion from the original plan to JPY 4.36 trillion, mainly resulting from an increase due to "exchange fluctuation" factor. The figure for this factor increased by JPY 462 billion from JPY 1.07 trillion to JPY 1.53 trillion because the assumed exchange rate of the yen was revised weaker The increase from "Cost reduction, etc." also increased from JPY 420.9 billion to JPY 481.3 billion.

 The ten OEMs' total operating profit for the first half of FY 2013 was JPY 2.29 trillion, an increase of JPY 823.3 billion from last year. The increase from sales changes accounted for JPY 28.8 billion, and those from exchange rate fluctuation and cost reductions accounted for JPY 1.09 trillion and JPY 248.6 billion, respectively. Meanwhile, the decrease from increased costs of "Overhead, R & D, etc." came to JPY 437.6 billion.

 

Factors to cause increase/decrease in operating profits of Japanese OEMs

(in 100 million JPY)
  (Reference)
FY2007
FY2011 FY2012 FY2013 (Planned) First half Second half
  FY2012 FY2013 FY2012 FY2013
(Planned)
  Original Upon results announce
-ment for the 1H period
Total for 10 OEMs Operating profit 45,897 14,184 29,062 39,200 43,580 14,665 22,898 4,522 20,682
Changes in operating profits 2,571 (5,003) 14,877 10,137 14,517 9,744 8,232 (197) 6,285
Changes in Sales 6,260 1,518 10,774 4,016 4,282 10,369 288 4,763 3,994
Impact from exchange fluctuation 863 (6,575) 2,574 10,719 15,339 (1,718) 10,904 (5,475) 4,435
Cost reduction etc. 3,111 2,153 9,426 4,209 4,813 4,659 2,486 688 2,327
Overhead, R&D costs, etc. (5,849) (2,226) (7,000) (6,106) (6,776) (3,231) (4,376) (218) (2,400)
Others (1,814) 127 (897) (2,701) (3,141) (335) (1,070) 45 (2,071)
Toyota Operating profit 22,704 3,556 13,208 18,000 22,000 6,937 12,554 6,271 9,446
Changes in operating profits 317 (1,126) 9,652 4,792 8,792 7,263 5,617 2,389 3,175
Operation/sales 2,900 1,500 6,500 800 1,150 5,800 400 700 750
Cost improvements 1,200 1,500 4,500 1,600 2,000 2,300 1,400 2,200 600
Impact from exchange fluctuation 0 (2,500) 1,500 4,000 7,400 (600) 5,400 2,100 2,000
Miscellaneous expenditures (3,302) (1,000) (3,000) (1,608) (1,758) (200) (1,900) (2,800) 142
(thereof:) R&D cost (681) (500) (200) (300) 100 0
(thereof:) Facility cost (997) 300 200 0 200 0
(thereof:) Labor cost (602) (1,000) (700) (150) (550) 0
(thereof:) Others (1,022) 200 (2,300) 250 (2,550) 0
Others (481) (626) 152 (37) 317 189 (317)
Nissan
(Note1)
Operating profit 7,908 5,458 5,235 6,100 4,900 2,870 2,219 2,365 2,681
Changes in operating profits 353 83 (223) 865 (335) (227) (651) 4 316
Impact from exchange fluctuation (162) (1,700) 302 2,250 2,150 (349) 1,449 651 701
Sales volume/mix 750 2,236 (572) 800 200 896 (607) (1,468) 807
Purchase cost, etc. 882 845 1,904 1,600 1,600 833 857 1,071 743
Production & Recall cost (537) (300) (461) (537) 161
Sales finance 498 2 (150) (150) (51) 53 (150)
R & D cost (15) (331) (370) (389) (154) 19 154
Sales cost (381) (1,513) (535) (1,900) (1,900) (738) (1,061) 203 (839)
Effect on equity method (900) (1,100) (428) (672)
Others (721) 48 (417) (835) (835) (429) (246) 12 (589)
Honda Operating profit 9,531 2,313 5,448 7,800 7,800 2,768 3,564 2,680 4,236
Changes in operating profits 1,012 (3,384) 3,134 2,351 2,351 2,017 795 1,117 1,556
Difference from sales fluctuation/ mix 1,700 (1,551) 2,934 1,316 1,436 2,444 (120) 490 1,556
Impact from exchange fluctuation 376 (1,140) 358 2,480 2,480 (342) 1,766 700 714
Effects of cost reduction etc. 115 (928) 1,666 200 200 1,192 (351) 474 551
R & D cost (361) (322) (404) (475) (475) (282) (138) (122) (337)
Sales administration cost (818) 558 (1,419) (1,170) (1,290) (995) (361) (424) (929)
Suzuki (Note2) Operating profit 1,494 1,193 1,446 1,500 1,700 661 903 785 797
Changes in operating profits 165 124 253 54 254 14 242 239 12
Sales/mix, etc. 408 (542) 327 34 209 184 178 143 31
Impact from exchange fluctuation 225 (289) (69) 260 425 (169) 342 100 83
Cost reduction 284 226 284 280 270 83 92 201 178
Depreciation (117) 353 94 (210) (160) 18 (59) 76 (101)
R & D cost (166) (57) (95) (110) (110) (63) (17) (32) (93)
Miscellaneous expenditures (469) 433 (288) (200) (380) (39) (294) (249) (86)
Mazda Operating profit 1,621 (387) 539 1,200 1,600 115 740 424 860
Changes in operating profits 36 (625) 926 661 1,061 331 625 595 436
Volume/vehicle type mix 80 (363) 338 499 620 235 213 103 407
Impact from exchange fluctuation 234 (376) 184 560 900 (111) 603 295 297
Improving product appeal (133) 171 (171) 0
Cost reduction 158 56 367 157 157 107 367 50
Sales costs (42) (27) (68) (183) (204) (29) (124) (39) (80)
Others (261) 85 105 (372) (412) 65 (174) 40 (238)
Mitsubishi Operating profit 1,086 637 674 1,000 1,000 308 508 366 492
Changes in operating profits 684 234 37 326 326 (34) 200 71 126
Volume/vehicle type mix 543 168 123 280 70 (9) (102) 132 172
Impact from exchange fluctuation 146 (105) (34) 280 400 (87) 307 53 93
Cost reduction, etc. 154 272 432 200 280 187 190 245 90
Others (106) (323) (174) (134) (81) (14) (242) (120)
Sales costs (64) 5 (161) (260) (290) (44) (181) (117) (109)
US sales finance business (95)
Daihatsu (Note3) Operating profit 652 1,154 1,330 1,350 1,370 737 702 593 668
Changes in operating profits 109 120 176 20 40 317 (34) (141) 74
Sales/vehicle type mix 190 237 267 110 240 423 (25) (156) 265
Impact from exchange fluctuation 39 (39) 55 100 140 (19) 117 74 23
Cost reduction 106 78 55 60 60 25 22 30 38
Miscellaneous expenditures (227) (156) (202) (250) (400) (113) (148) (89) (252)
FHI
(note 4)
Operating profit 457 440 1,204 1,800 2,780 433 1,507 771 1,273
Changes in operating profits (22) (401) 764 596 1,576 245 1,074 519 502
Sales/mix difference (8) 12 817 37 437 596 213 221 224
Impact from exchange fluctuation 10 (420) 293 639 1,334 (43) 872 336 462
Cost reduction etc. 70 (22) 315 120 174 144 135 171 39
Testing and research costs (13) (52) (10) (99) (109) (20) (50) 10 (59)
Miscellaneous expenditures (81) 80 (650) (101) (260) (432) (96) (218) (164)
Isuzu Operating profit 1,096 974 1,308 1,800 1,800 573 903 735 897
Changes in operating profits 26 92 334 492 492 135 330 199 162
Difference from sales fluctuation/ mix (113) 58 307 250 160 223 113 84 47
Impact from exchange fluctuation 34 (45) 40 250 250 (17) 165 57 85
Changes in economic conditions (82) (74) 44 (60) (50) 12 (4) 32 (46)
Streamlining 172 112 89 132 202 34 89 55 113
Compressing costs etc. 92 (131) (80) (70) (114) (33) (17) (37)
Effect of pervious FY (Earthquake disaster) (51) (15) (3) (12)
Improvement of profitability etc. 76
Facility/R&D related (137)
Changed accounting period of subsidiaries 76
Hino Operating profit 459 375 651 850 1,000 297 605 354 395
Changes in operating profits 92 86 276 199 349 148 308 128 41
Impact on sales 82 360 308 100 130 303 110 5 20
Changes in business climate (36) (308) 28 30 130 (51) 195 79 (65)
Cost improvements 190 186 199 200 200 86 82 113 118
Changes in costs (144) (152) (198) (131) (111) (190) (79) (8) (32)
Operating profit (61) (61)
Source: OEMs' financial flash reports and earnings announcements.
(Note) 1. Nissan's "Purchase costs etc." include costs for raw material and energy.
2. Suzuki's fluctuation in "sales/mix etc." includes influence from raw material cost.
3. Daihatsu's "miscellaneous expenditures" includes depreciation.
4. FHI's "cost reduction etc." includes influence from rising raw material cost.

 

 



Capital expenditure and R & D cost plans maintained at high level

 The total capital expenditure plan of the ten OEMs for FY 2013 increased by 16.5% y/y to JPY 2.79 trillion, which reached the highest level in five years. This is a slight increase from the original plan, which resluted froman increase in the yen equivalent value of overseas investments largely due to a weaker yen..

 The R&D cost for the ten companies combined also increased slightly from the original plan. This is an increase of 11.2% y/y to JPY 2.47 trillion, which is likely to exceed the previous record marked in FY 2007.

 

Ten Japanese OEMs' consolidated capital expenditure, depreciation and R&D costs

( in 100 million JPY)
  (Reference)
FY2007
FY2011 FY2012 FY2013 (Planned) First half Second half
  FY2012 FY2013 FY2012 FY2013
(Planned)
  Original Upon results announce
-ment for the 1H period
Capital expenditure Toyota 14,802 7,067 8,527 9,100 9,400 3,192 4,272 5,335 5,128
Nissan 4,289 4,064 5,245 5,200 5,200 1,936 2,223 2,128 2,977
Honda 6,540 4,065 5,936 7,000 7,000 2,507 3,037 1,558 3,963
Suzuki 2,436 1,267 1,693 2,700 2,400 770 1,010 497 1,390
Mazda 755 780 772 1,300 1,400 339 487 441 913
Mitsubishi 567 710 514 800 800 258 328 452 472
Daihatsu 1,117 693 731 1,150 1,050 272 379 421 671
FHI 563 543 702 670 720 339 273 204 447
Isuzu 506 333 575 1,000 1,000 269 348 64 652
Hino 437 429 499 800 700 204 159 225 541
Total 30,458 18,829 23,964 27,770 27,920 9,610 11,978 10,679 15,942
Depreciation Toyota 10,424 7,329 7,273 7,500 7,700 3,436 3,687 3,893 4,013
Nissan 3,709 3,344 3,158 3,300 3,300 1,566 1,560 1,778 1,740
Honda 4,173 2,937 2,866 3,600 3,700 1,311 1,842 1,626 1,858
Suzuki 1,616 1,031 937 1,150 1,100 458 517 573 583
Mazda 665 688 600 580 580 298 268 390 312
Mitsubishi 719 534 503 600 600 242 260 292 340
Daihatsu 665 611 562 620 600 269 284 342 316
FHI 655 537 559 550 550 247 260 290 290
Isuzu 415 360 356 400 400 169 195 191 205
Hino 442 435 408 380 380 195 188 240 192
Total 22,376 16,760 16,252 17,680 17,930 7,727 8,589 9,033 9,341
R & D cost Toyota 9,588 7,798 8,074 8,900 9,000 4,074 4,769 3,724 4,231
Nissan 4,575 4,280 4,699 5,080 5,080 2,149 2,343 1,844 2,737
Honda 5,879 5,198 5,602 6,300 6,300 2,661 2,927 2,214 3,373
Suzuki 1,087 1,098 1,193 1,300 1,300 578 595 463 705
Mazda 1,144 917 899 1,000 1,000 427 494 483 506
Mitsubishi 776 550 599 730 730 281 317 213 413
Daihatsu 442 338 357 420 450 167 210 215 240
FHI 520 481 491 590 600 249 299 180 301
Isuzu 603 588 612 640 640 298 339 288 301
Hino 395 404 434 440 455 204 216 207 239
Total 24,172 20,910 22,169 24,540 24,650 10,717 12,083 9,409 12,567
Source: OEMs' financial flash reports and earnings announcements.
(Note) 1. Nissan's revised plans estimated by the previous method are JPY 570 billion for capital expenditure, JPY 350 billion for depreciation and JPY 520 billion for R & D cost.
2. Honda revised its method of depreciation for its tangible fixed assets (excluding operating lease assets) from a fixed percentage method to a straight-line method from FY2012. As a result, the depreciation cost for FY2012 decreased by JPY 56.3 billion from the previous method.

<Automotive Industry Portal MarkLines>