Japanese OEMs aim for third consecutive year of record sales in FY 2014

Sales in North America and Asia key to reach target of 26.15 million units

2014/05/26

Summary

Seven OEM's operating profit marginsFY 2014 Outlook
 With correction of the yen appreciation, recovering Japanese economy, improved U.S. market, and increased sales in Asia, the ten Japanese automakers achieved the record high combined sales and profits in the fiscal year ended in March 2014 (FY 2013). They also made the largest investment in history in facilities and R&D, aiming for future growth. The automakers plan to mark record highs in sales and profits again in FY 2014. Room to increase revenues and profits, however, will be smaller due to downturn after the consumption tax hike in Japan, increases in capital expenditure and R&D costs, and weakening currencies in emerging countries.

Global sales plan: 26.5 million units
 The ten Japanese OEMs plan to renew the record sales volume for the third consecutive year with a total of 26.15 million units in FY 2014, up 5.4% year-over-year (y/y). In North America, the seven Japanese passenger car OEMs plan to sell 7.27 million units in total, up 5.4% y/y, which exceeds the level before the economic crisis. In "Asia & others", they plan to increase the combined sales by 8.8% to 10.98 million units. Among them, five automakers aim to break their current records: Nissan, Honda, Suzuki, Fuji Heavy Industries (FHI: maker of Subaru automobiles), and Hino.

Revenue plan: JPY 62 trillion
 As a total of the ten OEMs, the target for the FY 2014 consolidated revenues is JPY 62 trillion, up 3.5% y/y, which is close to the highest revenue of JPY 62.3 trillion recorded in 2007. On a company basis, Nissan, Honda, and FHI aim at renewing their records.

Operating profit and operating margin
 Each Japanese OEM plans to increase their profits in FY 2014. The total operating profit of the ten OEMs is projected to increase by 2.2% y/y to JPY 4.63 trillion. Toyota, Suzuki, Mazda, Mitsubishi Motors, and FHI intend to hit record high operating profits.
 In terms of operating profit margins, Toyota, Mazda, and FHI increased their rates significantly in FY 2013. In particular, FHI posted a large margin of 13.6%. Toyota surpassed the level prior to the economic crisis to mark 8.9% in FY 2013. In contrast, Nissan and Honda ended in profit margins lower than the pre-crisis level still in FY 2013. Among the seven passenger car OEMs, Nissan showed the lowest margin, with a lower profitability due to changes in its accounting method in FY 2013.

Related Reports:  FY 2014 Japanese sales outlook exceeds 5.1 million units (Apr. 2014)
Japanese OEMs produce record high 26.4 million vehicles globally in 2013 (May 2014)

Japanese OEMs' FY 2014 plan (bold figures represent record highs)

Automobile sales volume
(in 1,000 units)
Consolidated revenue
(in 100 millions JPY)
Operating profit
(in 100 millions JPY)
Exchange rate of yen to dollar
FY2013
results
FY2014
plan
(Reference)
FY2007
results
FY2013
results
FY2014
plan
(Reference)
FY2007
results
FY2013
results
FY2014
plan
(Reference)
FY2007
results
FY2014
plan
(Reference)
FY2007
results
Toyota 9,116 9,100 8,913 256,919 257,000 262,892 22,921 23,000 22,704 100 114
Nissan
(note 2)
5,188 5,650 3,698 104,825 107,900 108,242 4,984 5,350 7,908 100.0 114.4
Honda 4,323 4,830 3,925 118,424 127,500 120,028 7,502 7,600 9,531 100 114
Suzuki 2,711 2,756 2,406 29,383 30,000 35,024 1,877 1,880 1,494 100 114
Mazda 1,115 1,200 1,240 26,922 29,000 34,758 1,821 2,100 1,621 100 114
Mitsubishi 1,047 1,182 1,337 20,934 23,000 26,821 1,234 1,350 1,086 100 115
Daihatsu 1,109 1,095 945 19,132 18,300 17,026 1,467 1,400 652 100 114
FHI 825 916 597 24,081 27,200 15,723 3,265 3,400 457 100 116
Isuzu 495 517 509 17,609 18,400 19,248 1,742 1,650 1,096 100 115
Hino 166 177 112 16,996 16,000 13,686 1,122 900 459 100 114
Total 24,820 26,151 22,625 599,097 620,000 622,736 45,346 46,330 45,897 100.0 114.4
Source: OEMs' financial flash reports and earnings announcements
(Note) 1. "Total" does not include the consolidated data of Daihatsu and Hino to avoid overlaps with Toyota.
2. Nissan changed its accounting method in FY 2013. The FY 2007 sales volume shows the consolidated volume, but those for FY 2013 and FY 2014 show the global volumes. If revenues are calculated using the same method as in FY 2007, the FY 2013 results are JPY 11.43 trillion and the FY 2014 plan is JPY 11.95 trillion, both of which exceed the FY 2007 level.


Japanese OEMs plan to renew consolidated sales volume record for third consecutive year

Ten Japanese OEMs' unit sales The ten Japanese OEMs plan to sell a total of 26.15 million units on a consolidated basis in FY 2014, up 5.4% y/y, renewing a record for the third straight year. In Japan, an economic upturn is expected following the consumption tax hike in April 2014 and the ten OEMs plan a total of 5.17 million unit sales, a y/y drop of only 2.0%. In overseas markets, they plan to sell 21 million units in FY 2014, up 7.4% y/y.

 By automaker, Nissan, Honda, Suzuki, FHI, and Hino aim to renew their records. Particularly large increases in sales are planned by Honda (up 11.7% y/y to 4.83 million units), Mitsubishi (up 12.9% y/y to 1.18 million units), and FHI (up 11.0% y/y to 920,000 units), through expansion of sales in Japan, Asia, and North America. By contrast, Toyota lowered the target slightly to 9.1 million units on a consolidated basis. As the entire group including its non-consolidated Chinese joint ventures (JVs), however, Toyota plans a slight increase of 10.25 million units.

 By region, the seven Japanese passenger car OEMs plan to sell a total of 7.27 million units, up 5.4% y/y, in North America, which tops the seven million level marked before the economic crisis. In "Asia & others," they plan to achieve sales of 10.98 million units, up 8.8% y/y.

 The ten OEMs' FY 2013 sales increased by 4.5% y/y to 24.82 million units as a total, achieving a record high for the second straight year. Sales grew in Japan due to last-minute demand before the tax hike as well as in North America. Seven OEMs renewed their records: Nissan for the fourth consecutive year, Hino for the third consecutive year, Honda, Suzuki, Daihatsu and FHI for the second consecutive year, and Toyota.

 

 



Revenues: Nissan, Honda, and FHI plan to refresh their records

Ten Japanese OEMs'revenues The ten Japanese OEMs' targets for the FY 2014 consolidated revenues total JPY 62 trillion, up 3.5% y/y. Compared with the total sales volume, the total revenue has shown a slower recovery, but is now coming close to the record high of JPY 62.3 trillion marked in FY 2007.

 Nissan (if calculated based on the previous accounting method), Honda, and FHI aim to renew their record highs also in revenues. Toyota, on the other hand, plans only a slight y/y increase in its revenue to JPY 25.7 trillion, which is lower by JPY 600 billion than its record high.

 In FY 2013, all the ten OEMs significantly raised their consolidated revenues and achieved JPY 59.9 trillion in total, up 17.8% y/y. The growth is supported mainly by increased revenues in Japan (up 13.7% y/y) and an increase in the yen value of the overseas revenues due to a weaker yen. FHI, Mazda, and Nissan achieved an especially large growth, up 25.9%, 22.1%, and 20.0%, respectively. In particular, FHI increased its revenue by more than 25% for the second consecutive year, resulting in an increase of JPY 900 billion in two years.

 

 



Operating profit planned at another record high for JPY 4.63 trillion

Ten Japanese OEMs' operating profits Each Japanese OEM, except for Daihatsu, Isuzu, and Hino, plans to increase their profits in FY 2014 and the total operating profit of the ten OEMs is projected to increase by 2.2% y/y to JPY 4.63 trillion. Although this marks the second consecutive year to hit a record high, the growth rate is smaller compared with significant growths over 50% in FY 2012 and FY 2013. The positive effect of weaker yen is expected to fade out on operating profit, and declining value of currencies in emerging countries will also reduce profits. The combined planned current profit for the ten OEMs is JPY 4.8 trillion, up 3.0% y/y, while the combined net profit is planned at JPY 3.48 trillion, up 0.6% y/y.

 Toyota, Suzuki, Mazda, Mitsubishi Motors, and FHI plan to achieve record highs in operating profits. Toyota aims to raise it by 0.3% y/y to JPY 2.3 trillion. While hoping to achieve a record high for the second consecutive year, the biggest auto company has positioned FY 2014 to be an "intentional plateau,"and allocated a record high R&D budget.

 For FY 2014, all of the Japanese OEMs assume the exchange rate at JPY 100 to the U.S. dollar. To the euro, on the other hand, the assumed exchange rates vary between JPY 135 and JPY 140.

 The combined FY 2013 operating profit of the ten OEMs was JPY 4.53 trillion, up 60.7% y/y. This profit exceeds the previous record high marked in FY 2007, if calculated based on the previous accounting method. Toyota posted JPY 2.29 trillion, up 73.5%, to renew its record high for the first time in six years. The other companies, except for Nissan and Honda, also reported their record profits.

 

 



Factors behind increased profit plans: "Changes in sales" and "Cost reduction"

 The ten OEMs' combined FY 2014 outlook in operating profits is JPY 98.3 billion larger than the FY 2013 results, with a slight y/y increase. The factors behind the expected increase are JPY 305 billion in "Changes in sales", JPY 368.8 billion in "Cost reduction, etc.", and JPY 111 billion in "Others". Meanwhile, the factors behind the expected decrease are JPY 247.7 billion in "Impact from exchange fluctuation" and JPY 438.8 billion in increased "Overhead, R&D costs, etc."

 The ten OEMs' combined FY 2013 operating profit amounted to JPY 4.53 trillion, which is JPY 1.63 trillion higher than the year earlier. "Changes in sales" accounted for a JPY 460 billion increase, "Cost reduction, etc." for a JPY 630.3 billion increase, and "Impact from exchange fluctuation" for a JPY 1.86 trillion increase. On the other hand, increased "Overhead, R&D costs, etc." accounted for a JPY 1.07 trillion decrease.

 The following chart on the right shows a comparison between the previous record high operating profit of JPY 4.59 trillion in FY 2007 and a new operating profit record of JPY 4.64 trillion in FY 2013. In this comparison, Nissan's FY 2013 operating profit is adjusted using the same proportionate consolidation method as in FY 2007. Although the exchange rate to the U.S. dollar was JPY 114.4 in FY 2007, the yen rose by JPY 15 to JPY 99.7 in FY 2013, which caused a profit loss of JPY 1.66 trillion due to "Impact from exchange fluctuation". Although the sales volume increased in FY 2013 from the FY 2007 level, "Changes in sales" generated a profit loss of JPY 308.3 billion, partly due to lowered unit prices. In addition, increased "Overhead, R&D costs, etc." accounted for a JPY 1.66 trillion decrease in profit.

 In spite of these factors for profit decline, FY 2013 achieved a record high operating profit thanks to "Cost reduction, etc.", whose effect to increase the profit amounted to JPY 3.1 trillion.

Factors to cause increase in operating profits
of Japanese OEMs (FY 2013 vs FY 2014)
Factors to cause increase in operating profits
of Japanese OEMs (FY 2007 vs FY 2013)
(FY 2013 vs FY 2014) (FY 2007 vs FY 2013)

 

 



Record high investments planned for facilities and R&D again in FY 2014

 The ten OEMs plan to spend a total of JPY 2.89 trillion in capital expenditure in FY 2014, up 1.9% y/y and the highest in six years. Record high capital expenditures are planned by Mazda, Isuzu, and Hino (all for the second consecutive year) as well as by Daihatsu and FHI. Toyota, in contrast, holds it down to JPY 1.02 trillion, up 1.9% y/y but about 60% of its record high.

 As a total of the ten OEMs, the FY 2014 combined R&D cost will increase by 3.7% y/y to JPY 2.56 trillion, marking a record high for the second consecutive year. On a company basis, the record high costs are planned by Toyota, Nissan, Honda, Suzuki, FHI, Isuzu, and Hino.

Ten Japanese OEMs' capital expenditure Ten Japanese OEMs' R&D cost

 

 



Summary of FY 2013 results and FY 2014 plan by Japanese OEMs

Toyota FY 2013 results Toyota marked a record high operating profit for the first time in six years. As the Toyota Group, the global sales topped the 10 million unit level for the first time. A weaker yen and reduced costs contributed to the increase.
FY 2014 plan Toyota plans a record high operating profit for the second consecutive year. In FY 2013, a total of JPY 200 billion was posted for recall settlement in the U.S. and discontinuation of production in Australia, but such allocation is not required in FY 2014 any more. Toyota will allocate resources in facilities and R&D, Toyota has positioned FY 2014 to be an "intentional plateau" for sustainable growth.
Nissan FY 2013 Nissan achieved a record high global sales volume. Nissan enjoyed strong sales of the Dayz in Japan, the Altima in North America, and the Qashqai in China.
FY 2014 plan Newly constructed plants in emerging markets (Mexico, Brazil, Thailand, and China (Dalian)) are scheduled to start operations, which is expected to contribute to increase profit. Nissan aims to increase its sales volume by launching new models including the Murano, global pickup truck, and C-segment hatchback.
Power 88 mid-term
business plan
As goals to achieve by FY 2016, Nissan has set an operating profit of 8% (including China) as its commitment and a market share of 8% as its target (its FY 2013 operating profit and share were 5.3% and 6.2%, respectively).
Honda FY 2013 Honda hit a record high sales volume with strong sales in Japan and North America. Sales declined, however, more than expected in North America (due to cold waves) and Thailand (with slow sales). The operating profit dropped by JPY 30 billion due to recall-related costs.
FY 2014 plan Honda aims to reach a record high sales volume. Expanding operations in Japan, North America, and Asia are expected to contribute to achieve the goal.
Suzuki FY 2013 Suzuki marked a record high operating profit. With a revenue of JPY 2.94 trillion and an operating profit of 6.7%, Suzuki has almost achieved its mid-term targets by FY 2014 (revenue of JPY 3 trillion and operating profit of 6%). Major contributors were good automobile sales in Japan and exchange fluctuation. In contrast, the overseas sales volume dropped slightly due to sluggish sales in China and other countries, despite good results in Indonesia.
FY 2014 plan The operating profit is likely to remain the same level due to expected downturn after the last-minute demand in Japan. In India, Suzuki aims at an increase of 3% while the Indian market, as a whole, is also expected to level off due to increases in fuel prices and interest rates.
Mazda FY 2013 Mazda achieved record highs in both operating profit (JPY 182.1 billion or 6.8%) and net profit (JPY 135.7 billion) for the first time in six years.
FY 2014 plan Mazda aims to renew its records in operating profit (for the second consecutive year), current profit (first time in seven years), and net profit (for the second consecutive year).
 Mazda hopes to increase its profit with the help of its new plant in Mexico, which started operations in January 2014, as well as releasing the new Demio and two models in new categories.
Structural reform plan In its mid-term plan up to FY 2015, Mazda has revised the targets upward for the operating profit from JPY 150 billion to JPY 230 billion and the operating profit margin from 6% or higher to 7% or higher. By contrast, the global sales volume target has been revised downward from 1.7 million units to 1.52 million units.
Mitsubishi FY 2013 Mitsubishi Motors reported a record high operating profit for the first time in six years. The current and net profits also renewed the previous records.
FY 2014 plan Mitsubishi aims to mark record highs in three profit items. As for the operating profit, the company has set its target at JPY 135 billion. This means that Mitsubishi hopes to achieve the mid-term plan target for FY 2016 two years earlier. In Asia, the company plans to sell 431,000 units, up 26% y/y.
Daihatsu FY 2013 Daihatsu achieved record highs in all of sales volume, revenue, and profit. Daihatsu enjoyed strong sales both in and outside Japan.
FY 2014 plan While planning to increase overseas sales, the company expects sales in Japan to drop due to the consumption tax hike, leading to a decrease in the total planned sales volume. Declines are also expected in revenue and operating profit. The biggest cause will be a profit loss of JPY 18 billion due to a weakening Indonesian Rupiah.
FHI FY 2013 FHI achieved major targets in its mid-term management plan targets for FY 2015 two years earlier (targets: operating profit of JPY 120 billion, operating profit margin at 6% level, and global sales volume of 850,000 units). FHI ended FY 2013 with an operating profit of JPY 326.5 billion, an operating profit margin of 13.6%, and a global sales volume of 825,000 units. These good results were achieved mainly by strong sales in North America and Japan as well as a weaker yen.
FY 2014 plan FHI aims to achieve record highs for the third consecutive year in all of sales volume, revenue, and profit. FHI hopes that the new Legacy and Outback will help to achieve these goals. The company intends to increase its profit by increasing investment in facilities and R&D for future growth.
New "Prominence 2020" mid-term management vision As a total of the three years from FY 2014 to FY 2016, FHI aims at a revenue of JPY 8 trillion, an operating profit of JPY 1 trillion, and an operating profit margin of 12.5% (with an assumed exchange rate of JPY 95 to a U.S. dollar).
 The company plans to strengthen its sports utility vehicle segment, with North America positioned as the most important market, followed by Japan and China. FHI intends to sell more than 1.1 million units by FY 2020.
Isuzu FY 2013 Due to significantly reduced sales in Thailand, the sales volume dropped by 7.1%, whereas the revenue increased by 6.4%. Three profit items renewed their record highs for the second consecutive year.
FY 2014 plan Despite expected increases in sales volume and revenue, Isuzu anticipates a decrease in the operating profit for the first time in five years. The major cause is JPY 25 billion allocated as the growth strategy-related cost.
Hino FY 2013 Hino hit record highs in all of sales volume, revenue, and profit, thanks to increased sales in and outside Japan as well as a weaker yen.
FY 2014 plan The operating profit is expected at JPY 90 billion, down 20% y/y. The drop will be attributed to declining sales in Japan and Thailand, in addition to rising material prices.

 

 



Data

Ten Japanese OEMs' consolidated unit sales of automobiles

(in 1,000 units)
FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 2014
plan
TotalToyota 8,913 7,567 7,237 7,308 7,352 8,871 9,116 9,100
Nissan (note 5) 3,698 3,138 3,159 3,888 4,456 4,914 5,188 5,650
Honda 3,925 3,517 3,392 3,512 3,108 4,014 4,323 4,830
Suzuki 2,406 2,306 2,350 2,643 2,560 2,661 2,711 2,756
Mazda 1,240 1,116 963 1,100 1,016 1,053 1,115 1,200
Mitsubishi 1,337 1,011 805 987 1,001 987 1,047 1,182
Daihatsu 945 945 869 893 973 1,042 1,109 1,095
FHI 597 555 563 657 640 724 825 916
Isuzu 509 401 288 408 381 534 495 517
Hino 112 99 83 113 129 155 166 177
Total 22,624 19,611 18,757 20,503 20,514 23,758 24,820 26,151
JapanToyota 2,188 1,945 2,163 1,913 2,071 2,279 2,365 2,210
Nissan 684 576 599 573 639 647 719 640
Honda 615 556 646 582 588 692 818 990
Suzuki 673 665 622 588 596 672 728 675
Mazda 257 220 219 206 226 226 250 235
Mitsubishi 214 164 170 164 152 134 143 147
Daihatsu 571 587 568 527 606 655 701 663
FHI 209 179 171 158 172 163 182 195
Isuzu 74 58 42 47 54 63 68 74
Hino 46 35 27 30 37 44 52 50
Total 4,914 4,363 4,632 4,231 4,498 4,876 5,273 5,166
OverseasToyota 6,725 5,622 5,074 5,395 5,281 6,592 6,751 6,890
Nissan 3,013 2,562 2,560 3,315 3,817 4,267 4,469 5,010
Honda 3,310 2,961 2,746 2,930 2,520 3,322 3,505 3,840
Suzuki 1,732 1,641 1,729 2,053 1,964 1,989 1,983 2,081
Mazda 983 896 744 894 790 827 865 965
Mitsubishi 1,123 847 635 823 849 853 904 1,035
Daihatsu 374 358 301 366 368 387 408 432
FHI 388 377 392 499 468 561 643 721
Isuzu 435 343 246 361 327 471 427 443
Hino 66 64 56 83 92 111 114 127
Total 17,709 15,248 14,126 16,270 16,016 18,882 19,547 20,985
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 achieved 10.13 million unit sales in FY 2013. It plans to achieve 10.25 million total group unit sales for FY 2014 including the units of non-consolidated JVs.
5. Nissan's figures for FY 2012 and later represent global sales volumes while those up to FY 2011 show consolidated volumes. This is because the company's accounting method was changed in FY 2013.
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," but 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" are 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 agreements with other automakers. The FY2012 overseas sales include some estimated values by Suzuki.
8. The FY2010 data of Mazda include 16,000 units arising from the 15-month business term of its overseas subsidiaries which changed the account settlement period.
9. Mitsubishi's sales volumes from FY2010 in the table show retail sales volumes of Mitsubishi brand cars, although the OEM has revised its method to count sales volumes since FY 2011. It counts all the shipment including those supplied under the agreements with other automakers
10. Daihatsu and Hino show the sales volumes of their own brand vehicles (Toyota's sales volume includes those of Daihatsu and Hino).
11. 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).

Seven Japanese passenger car OEMs' sales volume by region

(in 1,000 units)
ToyotaNissanHondaSuzukiMazdaMitsubishiFHITotal
JapanFY2007 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
FY 2013 2,365 719 818 728 244 143 182 5,199
FY 2014 plan 2,210 640 990 675 230 147 195 5,087
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
FY 2013 2,529 1,648 1,757 - 391 97 478 6,900
FY 2014 plan 2,620 1,760 1,810 - 440 109 531 7,270
EuropeFY2007 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
FY 2013 844 676 169 205 207 202 47 2,350
FY 2014 plan 850 780 170 208 220 225 60 2,513
Asia & othersFY2007 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
FY 2013 3,378 2,145 1,579 1,778 489 605 118 10,092
FY 2014 plan 3,420 2,470 1,860 1,873 530 701 130 10,984
TotalFY2007 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
FY 2013 9,116 5,188 4,323 2,711 1,331 1,047 825 24,541
FY 2014 plan 9,100 5,650 4,830 2,756 1,420 1,182 916 25,854
Source: OEMs' financial flash reports and earnings announcements
(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).

Ten Japanese OEMs' consolidated revenues

(in 100 millions JPY)
FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 2014
plan
RevenueToyota 262,892 205,296 189,509 189,937 185,837 220,641 256,919 257,000
Nissan (note 2) 108,242 84,370 75,173 87,731 94,090 87,373 104,825 107,900
Honda 120,028 100,112 85,792 89,368 79,481 98,779 118,424 127,500
Suzuki 35,024 30,049 24,691 26,082 25,122 25,783 29,383 30,000
Mazda 34,758 25,359 21,639 23,257 20,331 22,053 26,922 29,000
Mitsubishi 26,821 19,736 14,456 18,285 18,073 18,151 20,934 23,000
Daihatsu 17,026 16,314 15,747 15,594 16,313 17,649 19,132 18,300
FHI 15,723 14,458 14,287 15,806 15,171 19,130 24,081 27,200
Isuzu 19,248 14,247 10,809 14,155 14,001 16,556 17,609 18,400
Hino 13,686 10,695 10,235 12,427 13,146 15,414 16,996 16,000
Total 622,738 493,626 436,356 464,621 452,105 508,466 599,097 620,000
Revenue
in Japan
Toyota 61,362 54,218 57,291 53,250 56,621 55,026 64,067
Nissan 21,878 20,383 18,032 18,694 19,466 19,041 20,771
Honda 15,858 14,465 15,773 15,038 15,179 16,530 19,125
Suzuki 9,814 9,656 9,526 9,374 9,868 10,409 11,327 10,500
Mazda 8,801 6,203 5,750 5,415 5,602 5,880 6,557 6,300
Mitsubishi 4,885 3,984 3,685 3,633 3,571 3,295 4,741 5,000
Daihatsu 11,771 11,913 11,296 10,567 11,608 11,820 12,629
FHI 5,440 5,075 5,208 4,673 4,985 6,718 6,721 7,032
Isuzu 6,547 5,338 4,330 4,986 5,584 5,922 6,306 6,600
Hino 9,246 6,944 6,754 8,455 8,926 9,854 10,837
Total 134,586 119,322 119,595 115,063 120,877 122,821 139,615
Revenue
outside
of Japan
Toyota 201,530 151,078 132,218 136,687 129,215 165,615 192,852
Nissan 86,364 63,987 57,141 69,037 74,624 68,332 84,054
Honda 104,171 85,647 70,019 74,330 64,302 82,249 99,299
Suzuki 25,210 20,393 15,165 16,708 15,254 15,374 18,056 19,500
Mazda 25,957 19,156 15,889 17,842 14,729 16,173 20,365 22,700
Mitsubishi 21,936 15,752 10,771 14,652 14,502 14,856 16,193 18,000
Daihatsu 5,255 4,401 4,452 5,027 4,705 5,829 6,503
FHI 10,284 9,383 9,079 11,132 10,186 12,411 17,361 20,168
Isuzu 12,701 8,909 6,479 9,170 8,417 10,634 11,303 11,800
Hino 4,440 3,751 3,481 3,972 4,220 5,560 6,159
Total 488,153 374,304 316,761 349,558 331,228 385,644 459,483
Source: OEMs' financial flash reports and earnings announcement documents
(Note) 1. Japan/overseas revenues represent revenues by the external customer location.Blanks mean that the data are not announced by the automakers.
2. In FY 2013, Nissan changed the consolidation method for its Chinese JVs from the proportionate consolidation method to the equity method. Nissan's FY 2012 data in the table have been revised retroactively. Using the proportionate consolidation method, revenues are calculated as JPY 9.63 trillion in FY 2012, JPY 11.43 trillion in FY 2013, and JPY 11.95 trillion for the FY 2014 plan.
3. The source for Daihatsu' revenues in Japan and overseas has been changed to its financial flash reports from FY2011 figures.

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

(in 100 millions JPY)
FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 2014
plan
Operating profitToyota 22,704 (4,610) 1,475 4,682 3,556 13,208 22,921 23,000
Nissan 7,908 (1,379) 3,116 5,375 5,458 4,388 4,984 5,350
Honda 9,531 1,896 3,637 5,697 2,313 5,448 7,502 7,600
Suzuki 1,494 769 794 1,069 1,193 1,446 1,877 1,880
Mazda 1,621 (284) 95 238 (387) 539 1,821 2,100
Mitsubishi 1,086 39 139 403 637 674 1,234 1,350
Daihatsu 652 382 407 1,034 1,155 1,330 1,467 1,400
FHI 457 (58) 274 841 440 1,204 3,265 3,400
Isuzu 1,096 217 110 882 974 1,308 1,742 1,650
Hino 459 (194) 11 289 375 651 1,122 900
Total 45,897 (3,410) 9,640 19,187 14,184 28,215 45,346 46,330
Current profitToyota 24,372 (5,604) 2,914 5,632 4,328 14,036 24,410 23,900
Nissan 7,664 (1,727) 2,077 5,378 5,351 5,044 5,272 6,200
Honda 8,958 1,617 3,361 6,305 2,574 4,888 7,289 7,450
Suzuki 1,569 797 938 1,225 1,306 1,556 1,978 1,980
Mazda 1,485 (187) 46 369 (368) 331 1,407 2,100
Mitsubishi 857 (149) 130 389 609 939 1,295 1,380
Daihatsu 666 395 438 1,122 1,282 1,481 1,634 1,530
FHI 454 (46) 224 822 373 1,006 3,144 3,300
Isuzu 1,223 152 114 913 1,029 1,417 1,866 1,750
Hino 410 (304) (19) 251 346 669 1,091 860
Total 46,583 (5,147) 9,804 21,033 15,202 29,217 46,661 48,060
Net profitToyota 17,179 (4,369) 2,094 4,081 2,835 9,621 18,231 17,800
Nissan 4,823 (2,337) 424 3,192 3,414 3,411 3,890 4,050
Honda 6,000 1,370 2,684 5,340 2,114 3,671 5,741 5,950
Suzuki 803 274 289 452 539 804 1,075 1,150
Mazda 918 (715) (65) (600) (1,077) 343 1,357 1,600
Mitsubishi 347 (549) 48 156 239 380 1,047 1,100
Daihatsu 349 221 212 526 651 814 836 820
FHI 185 (699) (165) 503 385 1,196 2,066 2,150
Isuzu 760 (269) 84 516 913 965 1,193 1,000
Hino 222 (618) (30) (100) 163 477 891 580
Total 31,015 (7,294) 5,393 13,640 9,362 20,391 34,600 34,800
Source: OEMs' financial flash reports and earnings announcement documents
(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. In FY 2013, Nissan changed the consolidation method for its Chinese JVs from the proportionate consolidation method to the equity method. Nissan's FY 2012 data in the table has been revised retroactively. Using the proportionate consolidation method, operating profits are calculated as JPY 523.5 billion in FY 2012, JPY 605.7 billion in FY 2013, and JPY 680 billion for the FY 2014 plan. In the same way, current profits are calculated as JPY 529.3 billion in FY 2012, JPY 552.4 billion in FY 2013, and JPY 675 billion for the FY 2014 plan.
3. 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 net profit for FY2012 increased by JPY 35.7 billion from the previous method.


Data 2

Ten Japanese OEMs' operating profit margin

FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 2014
plan
Toyota 8.6% -2.2% 0.8% 2.5% 1.9% 6.0% 8.9% 8.9%
Nissan 7.3% -1.6% 4.1% 6.1% 5.8% 5.0% 4.8% 5.0%
Honda 7.9% 1.9% 4.2% 6.4% 2.9% 5.5% 6.3% 6.0%
Suzuki 4.3% 2.6% 3.2% 4.1% 4.7% 5.6% 6.4% 6.3%
Mazda 4.7% -1.1% 0.4% 1.0% -1.9% 2.4% 6.8% 7.2%
Mitsubishi 4.0% 0.2% 1.0% 2.2% 3.5% 3.7% 5.9% 5.9%
Daihatsu 3.8% 2.3% 2.6% 6.6% 7.1% 7.5% 7.7% 7.7%
FHI 2.9% -0.4% 1.9% 5.3% 2.9% 6.3% 13.6% 12.5%
Isuzu 5.7% 1.5% 1.0% 6.2% 7.0% 7.9% 9.9% 9.0%
Hino 3.4% -1.8% 0.1% 2.3% 2.9% 4.2% 6.6% 5.6%
Total 7.4% -0.7% 2.2% 4.1% 3.1% 5.5% 7.6% 7.5%

 

Exchange rate of yen to dollar and euro by ten Japanese OEMs

(JPY)
FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 2014
plan
U.S. dollarToyota 114 101 93 86 79 83 100 100
Nissan 114.4 100.7 92.9 85.7 79.1 82.9 100.2 100
Honda 114 101 93 86 79 84 100 100
Suzuki 114 101 93 86 79 83 100 100
Mazda 114 101 93 86 79 83 100 100
Mitsubishi 115 101 92 85 79 82 100 100
Daihatsu 114 101 92 85 80 84 99 100
FHI 116 102 93 86 79 82 100 100
Isuzu 115 101 91 85 79 82 98 100
Hino 114 101 93 86 79 82 100 100
Average 114.4 101.1 92.6 85.7 79.1 82.8 99.7 100.0
EuroToyota 162 144 131 113 109 107 134 140
Nissan 161.6 144.1 131.2 113.1 109.0 106.8 134.2 140.0
Honda 162 142 130 114 108 108 136 135
Suzuki 160 144 131 113 109 107 134 135
Mazda 162 144 131 113 109 107 134 135
Mitsubishi 162 144 130 113 111 105 134 138
Daihatsu 161 152 131 110 109
FHI 147 132 114 108 106 133 135
Isuzu
Hino
Average 161.5 145.1 130.9 112.9 109.0 106.7 134.2 136.9

Source: OEMs' financial flash reports
(Note) If an OEM announced multiple figures for the exchange rate, the rate used for sales is included in the table above.

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

(in 100 millions JPY)
FY2007FY2008FY2009FY2010FY2011FY2012FY2013FY2014
plan
TotalOperating profit 45,897 (3,410) 9,640 19,187 14,184 29,062 45,346 46,330
Changes in operating profits 2,571 (49,306) 13,050 9,547 (5,003) 14,877 16,283 983
Changes in sales 6,260 (26,333) (8,774) 15,132 1,518 10,774 4,600 3,050
Impact from exchange fluctuation 863 (15,604) (8,479) (7,193) (6,575) 2,574 18,647 (2,477)
Cost reduction, etc. 3,111 (2,416) 10,226 5,347 2,153 9,426 6,303 3,688
Overhead, R&D costs, etc. (5,849) (4,348) 12,615 (3,449) (2,226) (7,000) (10,674) (4,388)
Others (1,814) (605) 7,462 (290) 127 (897) (2,593) 1,110
ToyotaOperating profit 22,704 (4,610) 1,475 4,682 3,556 13,208 22,921 23,000
Changes in operating profits 317 (27,314) 6,085 3,207 (1,126) 9,652 9,712 79
Operation/sales 2,900 (14,800) (3,700) 4,900 1,500 6,500 1,800 (450)
Cost improvements 1,200 0 5,200 1,800 1,500 4,500 2,900 1,650
Financial business 2,700
Impact from exchange fluctuation 0 (7,600) (3,200) (2,900) (2,500) 1,500 9,000 (950)
Miscellaneous expenditures (3,302) (4,791) 4,700 (300) (1,000) (3,000) (4,800) (2,000)
(thereof:) R&D cost (681) 548 1,787 (250) (500) (200) (1,000) (500)
(thereof:) Facility cost (997) (904) 378 1,200 300 200 100 (350)
(thereof:) Labor cost (602) 1,088 627 (400) (1,000) (700) (1,000) (650)
(thereof:) Others (1,022) (5,523) 1,908 (850) 200 (2,300) (2,900) (500)
Others (481) (122) 385 (293) (626) 152 812 1,829
Nissan
(note 1)
Operating profit 7,908 (1,379) 3,116 5,375 5,458 5,235 4,984 5,350
Changes in operating profits 353 (9,287) 4,495 2,259 83 (223) (251) 366
Impact from exchange fluctuation (162) (2,230) (1,625) (1,475) (1,700) 302 2,476 (550)
Sales volume/mix 750 (5,252) 269 4,331 2,236 (572) 704 250
Purchase cost, etc. 882 (1,342) 2,154 1,058 845 1,904 2,026 850
Production & recall cost (537) (1,089)
Sales finance 295 498 2
Reserve for loss of leasing (918) 1,417
R&D cost (15) 645 (185) (331) (370) (242)
Sales cost (381) 271 (1,915) (1,513) (535) (2,665)
Effect on equity method (1,073)
Others (721) 455 1,364 150 48 (417) (388) (184)
HondaOperating profit 9,531 1,896 3,637 5,697 2,313 5,448 7,502 7,600
Changes in operating profits 1,012 (7,634) 1,741 2,060 (3,384) 3,134 2,054 97
Difference from sales fluctuation/mix 1,700 (2,477) (2,465) 3,222 (1,551) 2,934 533 1,257
Impact from exchange fluctuation 376 (2,695) (1,675) (1,376) (1,140) 358 2,887 (670)
Effects of cost reduction, etc. 115 (1,825) 674 1,533 (928) 1,666 150 500
R&D cost (361) 247 998 (242) (322) (404) (493) (120)
Sales administration cost (818) (883) 4,209 (620) 558 (1,419) (1,023) (870)
Impact from earthquake (457)
Suzuki
(note 2)
Operating profit 1,494 769 794 1,069 1,193 1,446 1,877 1,880
Changes in operating profits 165 (725) 25 275 124 253 431 3
Sales/mix, etc. 408 (1,422) (696) 253 (542) 327 478 33
Impact from exchange fluctuation 225 (707) (469) (283) (289) (69) 543 (90)
Cost reduction 284 201 172 355 226 284 252 250
Depreciation (117) 204 (6) 34 353 94 (235) (80)
R&D cost (166) (63) 62 47 (57) (95) (78) (30)
Miscellaneous expenditures (469) 1,062 962 (131) 433 (288) (529) (80)
MazdaOperating profit 1,621 (284) 95 238 (387) 539 1,821 2,100
Changes in operating profits 36 (1,905) 379 143 (625) 926 1,282 279
Volume/vehicle type mix 80 (865) (606) 357 (363) 338 550 600
Impact from exchange fluctuation 234 (1,020) (765) (437) (376) 184 1,127 (30)
Improving product appeal (133) (190)
Cost reduction 158 440 680 112 56 367 220 100
Raw material market conditions (440)
Sales costs (42) 65 227 (56) (27) (68) (192) (150)
Others (261) 105 843 167 85 105 (423) (241)
MitsubishiOperating profit 1,086 39 139 403 637 674 1,234 1,350
Changes in operating profits 684 (1,047) 100 264 234 37 560 116
Volume/vehicle type mix 543 (720) (856) 533 168 123 (48) 310
Impact from exchange fluctuation 146 (761) (418) (342) (105) (34) 659 (130)
Cost reduction, etc. 154 365 544 211 272 432 404 180
Impact from rising raw material costs (317)
Others 335 578 (86) (106) (323) (152) (174)
Sales costs (64) 174 252 (51) 5 (161) (303) (70)
U.S. sales finance business (95) (123)
Daihatsu
(note 3)
Operating profit 652 381 407 1,034 1,154 1,330 1,467 1,400
Changes in operating profits 109 (271) 26 627 120 176 137 (67)
Sales/vehicle type mix 190 113 (258) 224 237 267 393 (70)
Impact from exchange fluctuation 39 (80) (79) (17) (39) 55 88 (170)
Cost reduction 106 105 123 150 78 55 60 60
Sales related costs (37)
Miscellaneous expenditures (227) (408) 239 306 (156) (202) (404) 113
FHI
(note 4)
Operating profit 457 (58) 274 841 440 1,204 3,265 3,400
Changes in operating profits (22) (515) 332 567 (401) 764 2,061 135
Sales/mix difference (8) 3 87 831 12 817 511 920
Impact from exchange fluctuation 10 (435) (304) (356) (420) 293 1,702 (37)
Cost reduction, etc. 70 (32) 260 89 (22) 315 197 70
Testing and research costs (13) 92 57 (57) (52) (10) (109) (139)
Miscellaneous expenditures (81) (143) 232 61 80 (650) (240) (679)
IsuzuOperating profit 1,096 217 110 882 974 1,308 1,742 1,650
Changes in operating profits 26 (879) (107) 772 92 334 434 (92)
Difference from sales fluctuation/mix (113) (800) (807) 705 58 307 72 130
Impact from exchange fluctuation 34 (156) (23) (24) (45) 40 253 (20)
Changes in economic conditions (82) (273) 181 (98) (74) 44 (45) (40)
Streamlining 172 190 130 177 112 89 202 150
Compressing costs etc. 412 12 92 (131) (48) (62)
Growth strategy-related cost (250)
Effect of pervious FY (earthquake disaster) (51) (15)
Improvement of profitability, etc. 76 344
Costs for facilities and R&D (137) (108)
Changed accounting period of subsidiaries 76 (76)
HinoOperating profit 459 (194) 11 289 375 651 1,122 900
Changes in operating profits 92 (653) 205 278 86 276 471 (222)
Impact on sales 82 (330) 231 337 360 308 180 (100)
Changes in business climate (36) (366) (70) (111) (308) 28 215 (195)
Cost improvements 190 163 199 187 186 199 195 200
Changes in costs (144) (120) 190 (135) (152) (198) (119) (127)
Impact from earthquake (61)
Fluctuation in sales volume (345)
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.

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

(in 100 millions JPY)
FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 2014
plan
Capital
expenditure
Toyota 14,802 13,025 5,790 6,423 7,067 8,527 10,007 10,200
Nissan 4,289 3,836 2,736 3,120 4,064 4,687 5,363 5,250
Honda 6,540 5,991 3,297 3,113 4,065 5,936 7,261 6,500
Suzuki 2,436 2,162 1,312 1,303 1,267 1,693 2,136 2,300
Mazda 755 818 298 447 780 772 1,332 1,500
Mitsubishi 567 719 471 525 710 514 722 900
Daihatsu 1,117 767 367 406 693 731 973 1,150
FHI 563 580 561 431 543 702 685 1,200
Isuzu 506 667 257 294 333 575 819 1,000
Hino 437 584 285 300 429 499 662 890
Total 30,458 27,798 14,722 15,656 18,829 23,406 28,325 28,850
DepreciationToyota 10,424 10,721 10,320 8,123 7,329 7,273 7,759 8,100
Nissan 3,709 4,212 3,633 3,721 3,344 2,966 3,471 3,750
Honda 4,173 4,082 3,666 3,252 2,937 2,866 3,758 4,150
Suzuki 1,616 1,412 1,418 1,384 1,031 937 1,172 1,250
Mazda 665 752 764 716 688 600 577 700
Mitsubishi 719 790 690 627 534 503 527 580
Daihatsu 665 837 729 637 611 562 596 670
FHI 655 651 571 498 537 559 549 660
Isuzu 415 396 395 364 360 356 416 470
Hino 442 475 452 457 435 408 379 410
Total 22,376 23,016 21,457 18,685 16,760 16,060 18,229 19,660
R&D costToyota 9,588 9,040 7,253 7,303 7,798 8,074 9,105 9,600
Nissan 4,575 4,555 3,855 3,993 4,280 4,578 5,006 5,000
Honda 5,879 5,631 4,633 4,875 5,198 5,602 6,341 6,450
Suzuki 1,087 1,150 1,088 1,041 1,098 1,193 1,271 1,300
Mazda 1,144 960 852 910 917 899 994 1,000
Mitsubishi 776 640 444 494 550 599 675 720
Daihatsu 442 442 437 382 338 357 464 460
FHI 520 428 372 429 481 491 601 740
Isuzu 603 677 552 586 588 612 666 760
Hino 395 409 381 411 404 434 463 520
Total 24,172 23,081 19,049 19,631 20,910 22,048 24,659 25,570

Source: OEMs' financial flash reports and earnings announcements
(Note) 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.

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