Japanese OEMs' Financial Outlook for FY 2016: Downturn in sales and profit due to foreign exchange

OEMs to increase capital and R&D spending in pursuit of mid-term goals

2016/06/15

Summary

Ten Japanese OEMs'Sales

 (Translation note: the Japanese fiscal year runs from April to March of the following calendar year. Because of this, some Japanese OEMs report their fiscal years one year ahead of what is the current fiscal year. In this report, all fiscal years are written so that they roughly correspond to the calendar year. For example, fiscal year 2016 indicates the period from April 2016 to March 2017.)

 Ten Japanese OEMs continued to achieve favorable financial results in the fiscal year 2015 (ended in March 2016). Consolidated sales increased by 6.6% year-over-year (y/y) to JPY 69.21 trillion and operating profit was JPY 5.45 trillion (up 6.3% y/y). The consolidated operating profit margin was unchanged from FY 2014 at 7.9%. In FY 2015, the yen weakened by JPY 11 y/y to JPY 120 to the US dollar. However, the increase in operating profit due to gains from the exchange rate diminished to JPY 140 billion from JPY 590 billion in FY 2014. The Japanese OEMs are assuming an average exchange rate of JPY 106 to USD 1 for FY 2016 owing to the rapid appreciation of the yen that started early in the year. Unfavorable currency exchange rates are projected to decrease the OEMs' total operating profit by JPY 1.8 trillion for the year. Consequently, the OEMs forecast a decrease of 5.2% in their total sales, and 25.5% in the total operating profit in FY 2016. The automakers' average operating profit margin is forecast to decline to 6.2%.

 However, the companies will continue actively investing for their mid-term goals by increasing their total capital spending 4.5% and R&D spending 2.2%. Toyota is making efforts to “create ever-better cars,” as exemplified by its TNGA, and “ever-better plants” that will be represented by its new Mexican plant. Nissan, Mazda, FHI, Suzuki, and Isuzu are planning double digit y/y increases for their capital investments. Suzuki in particular plans to increase its spending by a substantial 28.3% for construction of its new plant in India, which will go on stream in 2017.

 Nissan announced in May 2016 that it will take a 34% stake in Mitsubishi Motors for JPY 237 billion and become the largest shareholder of the OEM, which is in turmoil due to its fuel economy scandal.

 The related reports below are cited to show the efforts of OEMs for overall management efficiency in consideration of their changing earnings situations. In April 2016, Toyota reorganized its structure and created seven product-focused in-house companies that are highly independent and can quickly respond to shifting circumstances. In the new organization, Daihatsu has been given charge of developing the Toyota Group's small cars. Honda announced in February 2016 that it will reform its six region development and production structure, further strengthen its global models, and re-build its supply network to mutually complement products among the various regions.

Related reports:

Honda to reform six-region development strategy (May 2016)

Toyota to make Daihatsu a 100% subsidiary; entrust A-segment development(March 2016)



FY 2015 consolidated sales and operating profits of ten OEMs increase 6.6% and 6.3%, respectively

Operating profit margin

 The FY 2016 consolidated sales of ten Japanese OEMs (excluding Mitsubishi Fuso and UD Trucks, which did not disclose financial results) were JPY 69.21 trillion (6.6% increase y/y) and operating profit was JPY 5.45 trillion (6.3% increase y/y), owing to a weak yen and strong demand in the U.S. market.

 The operating profit margin of the companies stayed at 7.9% in FY 2015, unchanged from that of FY 2014, although the rate of growth declined compared to the high growth rates of FY 2012 and FY 2013. By OEM, Toyota's operating profit margin was 10.0% and Fuji Heavy Industries (FHI: the maker of Subaru automobiles) achieved a margin of 17.5%. In FY 2015, the yen weakened by JPY 11 y/y to JPY 120 to the US dollar.

 Honda's sales increased by 9.6% to JPY 14.60 trillion, but the company's operating profit decreased by 24.9% to JPY 503.3 billion while the other OEMs recorded increases in operating profit. The decrease in Honda's profit was attributed to the allocation of provisions of JPY 436 billion in FY 2015 as well as JPY 120 billion in FY 2014 for airbag inflator quality assurance.









Ten Japanese OEMs' consolidated sales and profit

(in billions of yen)

  FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Sales 49,363 43,636 46,462 45,211 50,847 59,910 64,925 69,208
Operating profit (341) 964 1,919 1,418 2,822 4,535 5,123 5,448
Operating profit margin -0.7% 2.2% 4.1% 3.1% 5.5% 7.6% 7.9% 7.9%
Net income (729) 539 1,364 936 2,039 3,460 3,893 4,073

Year-to-year comparison

  FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Sales - -11.6% 6.5% -2.7% 12.5% 17.8% 8.4% 6.6%
Operating profit - - 99.0% -26.1% 98.9% 60.7% 13.0% 6.3%
Net income - - 152.9% -31.4% 117.8% 69.7% 12.5% 4.6%

Source: Ten Japanese OEMs' financial results



FY 2016 plans: Sales to decrease by 5.2%, operating profit by 25.5%

Effects of changes

 Global sales volume by nine Japanese OEMs (excluding Mitsubishi Motors, which did not release FY 2016 financial forecasts; the same applies to the forecast figures below) is expected to increase 3.0% in FY 2016. However, the OEMs' total sales are forecast to decrease 5.2% to JPY 63.46 trillion and total operating profit is expected to decrease 25.5% to JPY 3.96 trillion. The average operating profit margin among the nine OEMs is forecast to be 6.2%.

 The Japanese OEMs anticipate an average exchange rate of JPY 106 to USD 1 (up JPY 14 y/y) and JPY 121 to EUR 1 (up JPY 12) for FY 2016 owing to the rapid appreciation of the yen that started in early 2016. This will result in the nine companies to incurring a total profit loss of over JPY 1.8 trillion. By OEM, Toyota projects a loss of JPY 935 billion. Nissan and Honda forecast losses of JPY 255 billion and JPY 303 billion, respectively. Toyota expects a 40% decrease in its operating profit, the largest decline among the OEMs. Mazda and FHI, which have high export ratios, forecast decreases of 25% in their operating profits. The other OEMs, except for Honda and Isuzu, project decreased operating profits.

 In three years from FY 2012 to FY 2015, the companies’ global sales volume increased by 8%, sales grew by 36%, and operating profit almost doubled due to benefits from the weaker yen and market expansion in North America. However, the OEMs' FY 2016 earnings projections showed a reversal in this trend. While a JPY 17 depreciation against the U.S. dollar contributed to an increase of JPY 1.87 trillion in their FY 2013 operating profit, a JPY 14 appreciation against the U.S. dollar is projected to cause a loss of the almost same amount in operating profit for FY 2016.

OEM business plan for FY 2016

  Sales (billions of yen) Operating profit
(billions of yen)
Unit sales (1,000 units)
  FY2015 FY2016
Forecast
Growth
ratio
FY2015 FY2016
Forecast
Growth
ratio
FY2015 FY2016
Forecast
Growth
ratio
Toyota 28,403 26,500 -6.7% 2,854 1,700 -40.4% 8,681 8,900 2.5%
Nissan 12,190 11,800 -3.2% 793 710 -10.5% 5,423 5,600 3.3%
Honda 14,601 13,750 -5.8% 503 600 19.2% 4,743 4,915 3.6%
Suzuki 3,181 3,100 -2.5% 195 180 -7.8% 2,861 2,956 3.3%
Mazda 3,407 3,280 -3.7% 227 170 -25.0% 1,534 1,550 1.0%
Mitsubishi 2,268 - - 138 - - 1,048 - -
Daihatsu 1,690 - - 83 - - 980 - -
FHI 3,232 3,170 -1.9% 566 420 -25.7% 958 1,050 9.6%
Isuzu 1,927 1,860 -3.5% 172 175 2.0% 509 488 -4.1%
Hino 1,746 1,670 -4.3% 98 80 -18.6% 168 175 4.2%
Ten OEMs 69,208     5,448     25,757    
Nine OEMs 66,940 63,460 -5.2% 5,310 3,955 -25.5% 24,709 25,459 3.0%
Source: Ten OEMs' financial results
Notes
1. The totals show estimated values excluding the data of Mitsubishi Motors, which did not disclose FY 2016 earnings projections because of uncertainty about the impact of its fuel economy scandal.
2. Daihatsu did not disclose FY 2016 earnings projections since its shares are scheduled to be delisted when it becomes a wholly-owned subsidiary of Toyota.
3. The total does not include the data of Daihatsu and Hino Motors, Ltd. since they are included in Toyota's consolidated financial statements.
4. Unit sales by Toyota, FHI, and Isuzu Motors Limited are consolidated sales. For other automakers, sales amounts are either retail-sale units or own-brand units. In either case, they are shown in the OEMs' Supplemental Material for consolidated financial results. (The same applies in the following tables.)
5. Financial results were not disclosed by Mitsubishi Fuso Truck and Bus, and UD Trucks.



 Since the beginning of 2016, the yen has been rising against various currencies such as the euro and Asian currencies, as well as the U.S. dollar. The impact of the yen's appreciation on OEMs' operating profits is increasing. Toyota estimates a profit decrease of JPY 255 billion due to exchange losses from currencies other than the U.S. dollar and euro. Suzuki predicts an exchange loss of JPY 26.6 billion from the Indian rupee and JPY 14.9 billion from the euro. For Mazda, the effect of the yen's fluctuation against the U.S. dollar has lessened as exports from its Mexican plant to the U.S. have increased, but its financial results are increasingly affected by the euro, Canadian dollar, and Australian dollar.

Impact of foreign currency changes on operating profit

(in billions of yen)

  FY2013 FY2014 FY2015 FY2016
Forecast
Details by currency for FY 2016
Toyota 900 280 160 (935) U.S. dollars: decrease of JPY 630 billion; euro: decrease of JPY 50 billion; other currencies: decrease of JPY 255 billion.
Nissan 248 69 (13) (255)  
Honda 289 79 (60) (303) U.S. dollars to yen: decrease of JPY 182; Brazilian real, Canadian dollars, and Mexican peso to U.S. dollars: decrease of JPY 14 billion; key Asian currencies to the yen (see Note 1); decrease of JPY 53.5 billion; other currencies: decrease of JPY 53.5 billion.
Suzuki 54 22 (3) (62) U.S. dollars: decrease of JPY 7.2 billion; euro: decrease of JPY 13.4 billion; Indian rupee: decrease of JPY 26.6 billion; Indonesian rupiah: decrease of JPY 2.6 billion; Thai baht: gain of JPY 4.3 billion gain.
Mazda 113 17 (42) (81) U.S. dollars: decrease of JPY 15.6 billion; euro: decrease of JPY 14.9 billion; Canadian dollars: decrease of JPY 12.9 billion; Australian dollars: decrease of JPY 13.8 billion; U.K. pound: decrease of JPY 11 billion; other currencies: decrease of JPY 12.8 billion.
Mitsubishi 66 12 (17) -  
Daihatsu 9 (8) (4) -  
FHI 170 104 108 (169)  
Isuzu 25 8 8 (17)  
Total 1,865 591 140 (1,822)  
Source: OEMs' financial results
(Notes)
1. The figure shows the total impact of five currencies consisting of the Indian rupee, Thai baht, Vietnamese dong, Chinese yuan, and Indonesian rupiah.
2. Hino does not provide data about the effects from foreign exchange changes.


Japanese OEMs plan to expand global passenger-car sales by 770,000 units in FY 2016

 The FY 2016 total global sales target for the six passenger-car OEMs, excluding Mitsubishi Motors, is 24.97 million units, an increase of 770,000 units (3.2%) y/y from 24.20 million units, as all the companies are expecting sales increases. The automakers are planning to expand unit sales in Japan by a total of 200,000 units (the first Japanese market expansion in three years), and in Asia and other emerging markets by a total of 220,000 units. However, the OEMs plan to increase sales by a total of only 210,000 units in the North American market, which, along with the yen's depreciation, contributed to increases in the OEMs' profits in FY 2014 and FY 2015 due to sales increasing by slightly more than 500,000 units respectively in the corresponding fiscal years.

Seven passenger-car OEMs' unit sales by region

(1,000 units)

    FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Forecast
Japan Toyota 2,163 1,913 2,071 2,279 2,365 2,154 2,059 2,240
Nissan 630 600 655 647 719 623 573 580
Honda 646 582 588 692 818 761 668 650
Suzuki 622 588 596 672 728 756 630 650
Mazda 221 206 206 216 244 225 232 233
Mitsubishi 171 164 152 134 143 115 102 -
FHI 171 158 172 163 182 163 145 156
7 OEMs 4,624 4,211 4,440 4,803 5,199 4,797 4,409  
6 OEMs             4,307 4,509
North America Toyota 2,098 2,031 1,872 2,469 2,529 2,715 2,839 2,850
Nissan 1,067 1,245 1,404 1,466 1,648 1,829 2,011 2,070
Honda 1,297 1,458 1,323 1,731 1,757 1,750 1,929 1,990
Suzuki 41 33 32 30 - - - -
Mazda 307 342 372 372 391 425 438 449
Mitsubishi 88 94 106 85 97 117 135 -
FHI 250 307 309 390 478 570 630 696
7 OEMs 5,148 5,510 5,418 6,543 6,900 7,406 7,982  
6 OEMs             7,847 8,055
Europe Toyota 858 796 798 799 844 859 844 920
Nissan 517 607 713 660 676 755 754 770
Honda 249 198 158 171 169 161 172 190
Suzuki 281 244 223 197 205 195 207 232
Mazda 239 212 183 172 207 229 257 260
Mitsubishi 169 218 218 181 202 227 206 -
FHI 39 60 55 61 47 47 48 50
7 OEMs 2,352 2,335 2,348 2,241 2,350 2,473 2,488  
6 OEMs             2,282 2,422
Emerging
markets
Toyota 2,118 2,568 2,611 3,324 3,378 3,244 2,939 2,890
Nissan 1,301 1,733 2,073 2,141 2,145 2,111 2,085 2,180
Honda 1,200 1,274 1,039 1,420 1,579 1,695 1,974 2,085
Suzuki 1,407 1,778 1,710 1,761 1,778 1,917 2,025 2,074
Mazda 426 513 486 475 489 518 607 608
Mitsubishi 532 511 525 587 605 631 605 -
FHI 103 132 104 110 118 131 134 148
7 OEMs 7,087 8,509 8,548 9,818 10,092 10,247 10,369  
6 OEMs             9,764 9,985
Worldwide Toyota 7,237 7,308 7,352 8,871 9,116 8,972 8,681 8,900
Nissan 3,515 4,185 4,845 4,914 5,188 5,318 5,423 5,600
Honda 3,392 3,512 3,108 4,014 4,323 4,367 4,743 4,915
Suzuki 2,350 2,643 2,560 2,660 2,711 2,868 2,861 2,956
Mazda 1,193 1,273 1,247 1,235 1,331 1,397 1,534 1,550
Mitsubishi 960 987 1,001 987 1,047 1,090 1,048 -
FHI 563 657 640 724 825 911 958 1,050
7 OEMs 19,210 20,565 20,753 23,405 24,541 24,923 25,248  
6 OEMs             24,200 24,971
Source: OEMs' financial results
(Notes)
1. Daihatsu's and Hino's results are included in Toyota's consolidated unit sales.
2. The total for the six OEMs excludes the data of Mitsubishi Motors.


Capital investment and R&D spending: Continued active investment with an aim for further growth

Ten OEMs'CapitalandR&D spending

 Having generated strong earnings over the past three to four years, Japanese OEMs will increase their spending on capital investments and R&D in FY 2016 to achieve further growth.

 With the exception of Hino and Honda, all automakers will increase their capital investments in FY 2016. The nine companies plan to spend a total of JPY 3.05 trillion for capital expenditures, up 4.5% y/y. The amount is an all-time high, exceeding the JPY 2.99 trillion (excluding expenditures by Mitsubishi Motors) that was spent in 2007 before the Lehman crisis.

 Toyota will add a new line at its plant in Guangzhou, China, and construct a new plant in Mexico. It will reportedly construct a small plant in Malaysia that is slated to begin operations in 2018 with a production capacity of 50,000 units. Production of TNGA models will begin serially, and the company's investment will be kept at a high level for the time being. Nissan, Mazda, FHI, Suzuki, and Isuzu plan to increase their capital investments by double-digits y/y. Suzuki in particular plans to increase its spending by a substantial 28.3% for construction of its new plant in India, which will go on stream in 2017. Mitsubishi Motors, which did not announce its FY 2016 plan, will begin operations at its plant in Indonesia in 2017.

 The nine OEMs also plan to increase their total spending on R&D by 2.2% to JPY 2.81 trillion in FY 2016. FHI will increase its R&D spending by 17.2% to JPY 120 billion as it plans to introduce a newly-designed downsized turbo engine in 2019 and a new electric vehicle in 2021.

Capital Investment and R&D costs

■Capital Investment (in billions of yen)   ■R&D costs   (in billions of yen)
  FY
2014
FY
2015
FY2016
Forecast
Growth
rate
  FY
2014
FY
2015
FY2016
Forecast
Growth
rate
Toyota 1,177 1,293 1,350 4.4% Toyota 1,005 1,056 1,080 2.3%
Nissan 463 479 540 12.7% Nissan 506 532 560 5.3%
Honda 658 647 560 -13.5% Honda 663 720 690 -4.1%
Suzuki 195 172 220 28.3% Suzuki 126 131 140 6.9%
Mazda 131 89 105 17.7% Mazda 108 117 125 7.2%
Mitsubishi 68 69 - - Mitsubishi 75 79 - -
Daihatsu 129 86 - - Daihatsu 45 47 - -
FHI 111 136 160 17.9% FHI 84 102 120 17.2%
Isuzu 78 98 110 12.2% Isuzu 78 91 94 3.2%
Hino 69 88 83 -5.8% Hino 50 61 61 0.0%
10 OEMs 2,881 2,982   10 OEMs 2,643 2,827  
9OEMs   2,913 3,045 4.5% 9OEMs   2,748 2,809 2.2%
Source: OEMs' financial results
(Note)The total for the nine OEMs excludes the data of Mitsubishi Motors.


Six passenger-car OEMs' action plans from FY 2016 onward

OEMs

Description

Toyota

 In the midst of facing challenges like the financial losses after the Lehman financial crisis, Toyota has aimed at developing ever-better cars in an effort to achieve sustainable growth. The company recognizes that it is at a turning point this year, but it will continue making purposeful investments. Toyota is making efforts to create “ever-better cars” as exemplified by its TNGA, “ever-better plants” that will be represented by its new plant in Mexico, and new types of value (that can contribute to society beyond the perceived scope of its own industry) typified by the Toyota Research Institute, a R&D enterprise specializing in artificial intelligence. In April 2016, Toyota split its organization into smaller independent and product-focused companies so as to take another step toward creating “ever-better cars.”

 In addition to new plants in Guangzhou, China (scheduled to go on stream in 2017) and in Mexico (scheduled to open in 2019), Toyota will reportedly construct a small plant in Malaysia. The plant is slated to begin operations in 2018 with a production capacity of 50,000 units.

Nissan

Nissan reported a growth of 7.2% in net revenues and a substantial increase of 34.6% in operating profit at the announcement of its financial results for FY 2015. Strong sales of new models in North America, Western Europe, and China offset the impact of negative shifts in foreign exchange rates and slowing sales in emerging markets. Nissan made conservative financial forecasts for FY 2016 in consideration of unstable market conditions and currency movements. However, it will continue to improve its products by adopting autonomous driving technology among other efforts, and work toward the high aims set forth in its "Nissan Power 88" mid-term plan.

On the same day it announced its financial results in May 2016, Nissan announced that it will take a 34% stake in Mitsubishi Motors for JPY 237 billion and become its largest shareholder. The automaker intends to deepen the partnership between the two companies by dispatching a top development executive to Mitsubishi Motors. The two companies also plan to unify development and procurement with the aim of creating synergies in like manner with the Renault-Nissan Alliance.

Honda

 As announced in its financial results for FY 2015, Honda's operating profit decreased by 25% to JPY 503.3 billion at the same time that other OEMs recorded increases. The decrease in Honda's profit was attributed to the allocation of JPY 436 billion in FY 2015 and JPY 120 billion in FY 2014 for airbag inflator quality assurance. Since provisions related to Takata Corporation's airbags have been fully allocated, Honda forecasts a 19.2% increase in operating profit this fiscal year as other OEMs expect decreases.

 To accommodate fluctuations in exchange rates Honda will take measures including the following: (1) Increase the local-content ratio for locally produced models, (2) seek to balance products that are subject to its complementary global supply system so they have greater resilience against exchange rate fluctuations.

Suzuki

 Suzuki's financial results for FY 2015 showed increases in both sales and profit. Operating profit increased by 8.9% y/y to JPY 195.3 billion. This was primarily because of strong sales in India, where the company sold an all-time high of 1.31 million units. Net income reached an all-time high of JPY 116.7 billion.

 Suzuki forecasts decreases in both sales and profit for FY 2016 due to losses from foreign exchange amounting to JPY 62 billion, including a loss of JPY 26.6 billion from the Indian rupee. Suzuki will strive to reform all of its departments in an effort to exceed the consolidated financial forecasts (net sales: JPY 3.1 trillion; operating profit: JPY 180 billion) it announced.

Mazda

 Mazda's production outside Japan increased to 581,798 units in FY 2015 and accounted for 37% of its global production. The increased overseas production ratio contributes to an increased resilience against currency fluctuation. Mazda will enter the second stage of structural reforms in order to achieve qualitative growth of its business and increase its brand value. The company will continuously enhance Skyactiv models, and develop and introduce Skyactiv GEN2 models. With regard to production, the company will deploy Monotsukuri (manufacturing) Innovation globally to accelerate cost improvements.

FHI

 FHI plans to sell 1.05 million vehicles globally in FY 2016, surpassing the 1-million milestone for the first time in the company's history. FHI reviewed its mid-term plan and increased its global sales target for 2020 from 1.10 million units to 1.20 million units. The Subaru Global Platform will be initially used for the all-new Impreza that will launch in 2016, and successively underpin all Subaru models.

 FHI will change its company name to Subaru Corporation effective April 2017.

Source: OEMs’ financial results and media reports


Fact sheets (Part 1): Sales, operating profit/ordinary profit/net income, ratio of the figures on the left to sales

Consolidated sales of ten OEMs

(in billions of yen)

  FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY2016
Forecast
Consolidated Sales Toyota 18,951 18,994 18,584 22,064 25,692 27,235 28,403 26,500
Nissan 7,517 8,773 9,409 8,737 10,483 11,375 12,190 11,800
Honda 8,579 8,937 7,948 9,878 11,842 13,328 14,601 13,750
Suzuki 2,469 2,608 2,512 2,578 2,938 3,016 3,181 3,100
Mazda 2,164 2,326 2,033 2,205 2,692 3,034 3,407 3,280
Mitsubishi 1,446 1,829 1,807 1,815 2,093 2,181 2,268 -
Daihatsu 1,575 1,559 1,631 1,765 1,913 1,817 1,690 -
FHI 1,429 1,581 1,517 1,913 2,408 2,878 3,232 3,170
Isuzu 1,081 1,416 1,400 1,656 1,761 1,879 1,927 1,860
Hino 1,024 1,243 1,315 1,541 1,700 1,685 1,746 1,670
10 OEMs 43,636 46,462 45,211 50,847 59,910 64,925 69,208  
9 OEMs             66,940 63,460
Domestic Toyota 5,729 5,325 5,662 5,503 6,407 6,096 6,265 -
Nissan 1,803 1,869 1,947 1,904 2,077 1,853 1,800 -
Honda 1,577 1,504 1,518 1,653 1,913 1,800 1,754 -
Suzuki 953 937 987 1,041 1,133 1,095 1,048 1,030
Mazda 575 542 560 588 656 617 661 660
Mitsubishi 368 363 357 330 474 445 413 -
Daihatsu 1,130 1,057 1,161 1,182 1,263 1,211 1,093 -
FHI 521 467 499 672 672 653 605 610
Isuzu 433 499 558 592 631 682 693 720
Hino 675 846 893 985 1,084 1,110 1,143 -
10 OEMs 11,959 11,506 12,088 12,282 13,962 13,241 13,239 -
Overseas Toyota 13,222 13,669 12,922 16,562 19,285 21,139 22,138 -
Nissan 5,714 6,904 7,462 6,833 8,405 9,522 10,390 -
Honda 7,002 7,433 6,430 8,225 9,930 11,528 12,847 -
Suzuki 1,517 1,671 1,525 1,537 1,806 1,921 2,133 2,070
Mazda 1,589 1,784 1,473 1,617 2,037 2,417 2,746 2,620
Mitsubishi 1,077 1,465 1,450 1,486 1,619 1,735 1,855 -
Daihatsu 445 503 471 583 650 606 598 -
FHI 908 1,113 1,019 1,241 1,736 2,225 2,627 2,560
Isuzu 648 917 842 1,063 1,130 1,198 1,234 1,140
Hino 348 397 422 556 616 575 603 -
10 OEMs 31,676 34,956 33,123 38,564 45,948 51,684 55,969 -
Source: OEMs' financial results
(Note)Japan domestic sales figures and overseas sales figures are shown by the location of external customers.

10 OEMs' Operating profit/Ordinary profit/Net income

(in billions of yen)

  FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Forecast
Operating
profit
Toyota 148 468 356 1,321 2,292 2,751 2,854 1,700
Nissan 312 538 546 439 498 590 793 710
Honda 364 570 231 545 750 671 503 600
Suzuki 79 107 119 145 188 179 195 180
Mazda 10 24 (39) 54 182 203 227 170
Mitsubishi 14 40 64 67 123 136 138 -
Daihatsu 41 103 115 133 147 111 83 -
FHI 27 84 44 120 327 423 566 420
Isuzu 11 88 97 131 174 171 172 175
Hino 1 29 38 65 112 106 98 80
10 OEMs 964 1,919 1,418 2,822 4,535 5,123 5,448  
9 OEMs             5,310 3,955
Ordinary
profit
Toyota 291 563 433 1,404 2,441 2,893 2,983 1,900
Nissan 208 538 535 504 527 694 862 800
Honda 336 631 257 489 729 806 635 705
Suzuki 94 123 131 156 198 194 209 185
Mazda 5 37 (37) 33 141 213 224 176
Mitsubishi 13 39 61 94 130 152 141 -
Daihatsu 44 112 128 148 163 127 92 -
FHI 22 82 37 101 314 394 577 420
Isuzu 11 91 103 142 187 187 187 187
Hino (2) 25 35 67 109 105 96 79
10 OEMs 980 2,103 1,520 2,922 4,666 5,533 5,818  
9 OEMs             5,477 4,373
Net
income
Toyota 209 408 284 962 1,823 2,173 2,313 1,500
Nissan 42 319 341 341 389 458 524 525
Honda 268 534 211 367 574 509 345 390
Suzuki 29 45 54 80 108 97 117 93
Mazda (7) (60) (108) 34 136 159 134 115
Mitsubishi 5 16 24 38 105 118 89 -
Daihatsu 21 53 65 81 84 68 42 -
FHI (17) 50 39 120 207 262 437 293
Isuzu 8 52 91 97 119 117 115 115
Hino (3) (10) 16 48 89 75 65 55
10 OEMs 5,393 13,640 9,362 20,391 34,600 3,893 4,073  
9 OEMs             3,983 3,031
Source: OEMs' financial results

Ratio of 10 OEMs' operating profit/ordinary profit/net Income to sales

  FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Forecast
Operating
profit
Toyota 0.8% 2.5% 1.9% 6.0% 8.9% 10.1% 10.0% 6.4%
Nissan 4.1% 6.1% 5.8% 5.0% 4.8% 5.2% 6.5% 6.0%
Honda 4.2% 6.4% 2.9% 5.5% 6.3% 5.2% 3.4% 4.4%
Suzuki 3.2% 4.1% 4.7% 5.6% 6.4% 5.9% 6.1% 5.8%
Mazda 0.4% 1.0% -1.9% 2.4% 6.8% 6.7% 6.7% 5.2%
Mitsubishi 1.0% 2.2% 3.5% 3.7% 5.9% 6.2% 6.1% -
Daihatsu 2.6% 6.6% 7.1% 7.5% 7.7% 6.1% 4.9% -
FHI 1.9% 5.3% 2.9% 6.3% 13.6% 14.7% 17.5% 13.2%
Isuzu 1.0% 6.2% 7.0% 7.9% 9.9% 9.1% 8.9% 9.4%
Hino 0.1% 2.3% 2.9% 4.2% 6.6% 6.3% 5.6% 4.8%
10 OEMs 2.2% 4.1% 3.1% 5.5% 7.6% 7.9% 7.9% 6.2%
Ordinary
profit
Toyota 1.5% 3.0% 2.3% 6.4% 9.5% 10.6% 10.5% 7.2%
Nissan 2.8% 6.1% 5.7% 5.8% 5.0% 6.1% 7.1% 6.8%
Honda 3.9% 7.1% 3.2% 4.9% 6.2% 6.0% 4.4% 5.1%
Suzuki 3.8% 4.7% 5.2% 6.0% 6.7% 6.4% 6.6% 6.0%
Mazda 0.2% 1.6% -1.8% 1.5% 5.2% 7.0% 6.6% 5.4%
Mitsubishi 0.9% 2.1% 3.4% 5.2% 6.2% 7.0% 6.2% -
Daihatsu 2.8% 7.2% 7.9% 8.4% 8.5% 7.0% 5.4% -
FHI 1.6% 5.2% 2.5% 5.3% 13.1% 13.7% 17.9% 13.2%
Isuzu 1.1% 6.5% 7.3% 8.6% 10.6% 10.0% 9.7% 10.1%
Hino -0.2% 2.0% 2.6% 4.3% 6.4% 6.2% 5.5% 4.7%
10 OEMs 2.2% 4.5% 3.4% 5.7% 7.8% 8.5% 8.4% 6.9%
Net income Toyota 1.1% 2.1% 1.5% 4.4% 7.1% 8.0% 8.1% 5.7%
Nissan 0.6% 3.6% 3.6% 3.9% 3.7% 4.0% 4.3% 4.4%
Honda 3.1% 6.0% 2.7% 3.7% 4.8% 3.8% 2.4% 2.8%
Suzuki 1.2% 1.7% 2.1% 3.1% 3.7% 3.2% 3.7% 3.0%
Mazda -0.3% -2.6% -5.3% 1.6% 5.0% 5.2% 3.9% 3.5%
Mitsubishi 0.3% 0.9% 1.3% 2.1% 5.0% 5.4% 3.9% -
Daihatsu 1.3% 3.4% 4.0% 4.6% 4.4% 3.7% 2.5% -
FHI -1.2% 3.2% 2.5% 6.3% 8.6% 9.1% 13.5% 9.2%
Isuzu 0.8% 3.6% 6.5% 5.8% 6.8% 6.2% 6.0% 6.2%
Hino -0.3% -0.8% 1.2% 3.1% 5.2% 4.4% 3.7% 3.3%
10 OEMs 1.2% 2.9% 2.1% 4.0% 5.8% 6.0% 5.9% 4.8%
Source: OEMs' financial results  


Fact sheets (Part 2): Foreign exchange rates, capital investment/depreciation/R&D costs, analysis of consolidated operating profit

Foreign exchange rates

(yen)

  FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
Forecast
US
Dollar
Toyota 93 86 79 83 100 110 120 105
Nissan 92.9 85.7 79.1 82.9 100.2 109.8 120.2 105.0
Honda 93 86 79 84 100 110 120 105
Suzuki 93 86 79 83 100 110 120 105
Mazda 93 86 79 83 100 110 120 110
Mitsubishi 92 85 79 82 100 109 121 -
Daihatsu 92 85 80 84 99 108 120 -
FHI 93 86 79 82 100 108 121 105
Isuzu 91 85 79 82 98 107 120 110
Hino 93 86 79 82 100 109 120 105
Average 92.6 85.7 79.1 82.8 99.7 109.1 120.2 106.3
Euro Toyota 131 113 109 107 134 139 133 120
Nissan 131.2 113.1 109.0 106.8 134.2 138.7 132.6 120.0
Honda 130 114 108 108 136 139 - -
Suzuki 131 113 109 107 134 139 133 120
Mazda 131 113 109 107 134 139 133 125
Mitsubishi 130 113 111 105 134 139 133 -
Daihatsu 131 110 109 - - - - -
FHI 132 114 108 106 133 140 133 120
Average 130.9 112.9 109.0 106.7 134.2 139.1 132.9 121.0
Source: OEMs' financial results

10 OEMs' Capital investment/Depreciation expenses/R&D costs

(in billions of yen)

  FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
Plan
Capital
Investment
Toyota 579 642 707 853 1,001 1,177 1,293 1,350
Nissan 274 312 406 469 536 463 479 540
Honda 330 311 407 594 726 658 647 560
Suzuki 131 130 127 169 214 195 172 220
Mazda 30 45 78 77 133 131 89 105
Mitsubishi 47 53 71 51 72 68 69 -
Daihatsu 37 41 69 73 97 129 86 -
FHI 56 43 54 70 69 111 136 160
Isuzu 26 29 33 58 82 78 98 110
Hino 29 30 43 50 66 69 88 83
10 OEMs 1,472 1,566 1,883 2,341 2,833 2,881 2,982 3,045
Depreciation
Expenses
Toyota 1,032 812 733 727 776 806 885 930
Nissan 363 372 334 297 347 373 402 400
Honda 367 325 294 287 346 408 440 440
Suzuki 142 138 103 94 117 134 168 170
Mazda 76 72 69 60 58 69 79 83
Mitsubishi 69 63 53 50 53 53 54 -
Daihatsu 73 64 61 56 60 73 73 -
FHI 57 50 54 56 55 65 65 80
Isuzu 40 36 36 36 42 48 56 60
Hino 45 46 44 41 38 38 43 47
10 OEMs 2,146 1,869 1,676 1,606 1,793 1,957 2,149 2,163
R&D costs Toyota 725 730 780 807 911 1,005 1,056 1,080
Nissan 386 399 428 458 501 506 532 560
Honda 463 488 520 560 634 663 720 690
Suzuki 109 104 110 119 127 126 131 140
Mazda 85 91 92 90 99 108 117 125
Mitsubishi 44 49 55 60 68 75 79 -
Daihatsu 44 38 34 36 46 45 47 -
FHI 37 43 48 49 60 84 102 120
Isuzu 55 59 59 61 67 78 91 94
Hino 38 41 40 43 46 50 61 61
10 OEMs 1,905 1,963 2,091 2,205 2,466 2,643 2,827 2,809
Source: OEMs' financial results

Analysis of Consolidated Operating Profit

(in billions of yen)

  FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Forecast
Toyota Operating profit 148 468 356 1,321 2,292 2,751 2,854 1,700
Increase (decrease) in operating profit 609 321 (113) 965 971 458 103 (1,154)
Sales & marketing activities (370) 490 150 650 180 (70) (120) 135
Cost improvements 520 180 150 450 290 280 390 340
Financial business 270              
Currency impact (320) (290) (250) 150 900 280 160 (935)
Total expenses 470 (30) (100) (300) (480) (160) (340) (540)
(Above amount only for) R&D expenses 179 (25) (50) (20) (100) (100) (50) (25)
(Above amount only for) capital investment expenses 38 120 30 20 10 (10) (50) (100)
(Above amount only for) labor costs 63 (40) (100) (70) (100) (80) (110) (115)
(Above amount only for) other costs 191 (85) 20 (230) (290) 30 (130) (300)
Others 39 (29) (63) 15 81 128 (130) (154)
Nissan Operating profit 312 538 546 524 498 590 793 710
Increase (decrease) in operating profit 450 226 8 (22) (25) 91 204 (83)
Currency impact (163) (148) (170) 30 248 69 (13) (255)
Sales volume/model mix effect 27 433 224 (57) 70 32 113  
Purchasing costs, etc. 215 106 85 190 203 113 224  
Production/quality-related costs       (54) (109) (20) (20) 112
Sales financing 142 30 50          
R&D expenses 65 (19) (33) (37) (24)   (24)  
Marketing expenses 27 (192) (151) (54) (267) (83) (72) 60
Applying equity method of accounting         (107)      
Others 136 15 5 (42) (39) (19) (3)  
Honda Operating profit 364 570 231 545 750 652 503 600
Increase (decrease) in operating profit 174 206 (338) 313 205 (99) (167) 97
Changes to revenue/model-mix (247) 322 (155) 293 53 (83) 220 50
Currency impact (168) (138) (114) 36 289 79 (60) (303)
Cost-reductions 67 153 (93) 167 15 34 110 113
R&D expenses 100 (24) (32) (40) (49) (18) (40) (54)
Sales-management expenses 421 (62) 56 (142) (102) (112) (397) 291
Natural disasters   (46)            
Suzuki Operating profit 79 107 119 145 188 179 195 180
Increase (decrease) in operating profit 3 28 12 25 43 (8) 16 (15)
Changes in revenue/model-lineup (70) 25 (54) 33 48 (18) 59 55
Currency impact (47) (28) (29) (7) 54 22 (3) (62)
Cost reductions 17 36 23 28 25 27 25 29
Depreciation expenses (1) 3 35 9 (24) (17) (34) (2)
R&D expenses 6 5 (6) (10) (8) 1 (5) (9)
Misc. expenses, etc. 96 (13) 43 (29) (53) (24) (25) (26)
Mazda Operating profit 10 24 (39) 54 182 203 227 170
Increase (decrease) in operating profit 38 14 (63) 93 128 21 24 (57)
Volume change/model mix (61) 36 (36) 34 55 49 56 18
Currency impact (77) (44) (38) 18 113 17 (42) (81)
Cost reductions 68 11 6 37 22 18 44 31
Marketing expenses 23 (6) (3) (7) (19) (15) 2 (4)
Others 84 17 9 11 (42) (47) (35) (21)
Mitsubishi Operating profit 14 40 64 67 123 136 138 -
Increase (decrease) in operating profit 10 26 23 4 56 13 3 -
Volume/model mix (86) 53 17 12 (5) (7) 19 -
Currency impact (42) (34) (11) (3) 66 12 (17) -
Cost reductions 54 21 27 43 40 29 31 -
Others 58 (9) (11) (32) (15) (15) (25) -
Marketing expenses 25 (5) 1 (16) (30) (8) (5) -
Daihatsu Operating profit 41 103 115 133 147 111 83 -
Increase (decrease) in operating profit 3 63 12 18 14 (36) (27) -
Changes in revenue structure/model mix (26) 22 24 27 39 (19) (42) -
Currency impact (8) (2) (4) 6 9 (8) (4) -
Cost reductions 12 15 8 6 6 11 14 -
Marketing expenses   (4)           -
Misc. expenses 24 31 (16) (20) (40) (20) 5 -
FHI Operating profit 27 84 44 120 327 423 566 420
Increase (decrease) in operating profit 33 57 (40) 76 206 97 143 (146)
Model mix 9 83 1 82 51 70 59 100
Currency impact (30) (36) (42) 29 170 104 108 (169)
Cost reductions 26 9 (2) 32 20 12 33 32
Testing/R&D expenses 6 (6) (5) (1) (11) (23) (19) (18)
Misc. expenses 23 6 8 (65) (24) (67) (39) (91)
Isuzu Operating profit 11 88 97 131 174 171 172 175
Increase (decrease) in operating profit (11) 77 9 33 43 (3) 1 3
Fluctuations in revenue/in model mix (81) 71 6 31 7 11 (4) 1
Currency impact (2) (2) (5) 4 25 8 8 (17)
Economic changes 18 (10) (7) 4 (5) (2) 7 7
Cost reductions/Rationalizing 13 18 11 9 20 15 21 20
Spending changes, etc. 41 1 9 (13) (5) (9) (6) 1
Growth-strategy expenses           (27) (25) (9)
Residual factors from previous years (idle time due to natural disasters, etc.)     (5) (2)        
Hino Operating profit 1 29 38 65 112 106 98 80
Increase (decrease) in operating profit 21 28 9 28 47 (7) (7) (18)
Sales activities 23 34 36 31 18 (10) (5) 6
Changes in management environment (7) (11) (31) 3 22 (3) 4 (27)
Cost improvements 20 19 19 20 20 19 17 20
Cost fluctuations, etc. 19 (14) (15) (20) (12) (13) (23) (17)
Other (35)     (6)        
10 OEMs
(9 OEMs for FY 2017)
Operating profit 964 1,919 1,418 2,906 4,535 5,104 5,448 3,955
Increase (decrease) in operating profit 1,305 955 (500) 1,488 1,628 569 325 (1,355)
Fluctuations in revenue (877) 1,513 152 1,077 460 (15) 401 359
Currency impact (848) (719) (658) 257 1,865 591 140 (1,822)
Cost reductions, etc. 1,023 535 215 943 630 520 871 566
General expenses/R&D expenses 1,262 (345) (223) (700) (1,067) (508) (966) (391)
Other 746 (29) 13 (90) (259) (19) (121) (67)
Source: OEMs' financial results

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