May 8, 2012
Tokyo, May 8, 2012 – Fuji Heavy Industries, Ltd. (FHI), the maker of Subaru automobiles, today announced the progress of its five year management plan, Motion-V, for the fiscal years ending March 31, 2012 (FY2012) through March 31, 2016 (FY2016).
Under the five pillars of Motion-V, and its guiding principle "Confidence in Motion", the plan has been progressing well. Therefore there will be no change in the direction and outline of the plan and FHI will continue to implement the plan to achieve its goals.
However, since the plan was first developed, there have been business environment changes such as a better-than-expected sales growth in major markets, centered on North America, a delay in establishing local production in China and the stronger yen exchange rate in world markets. Therefore FHI now includes additional measures in response to those changes. There is no change in business targets.
The consolidated financial results for the fiscal year ended March 2012, which also covers the first year of the Motion-V mid-term plan, posted Subaru global sales of 640 thousand units and operating income of 44.0 billion yen, making a positive start to the plan. (The original targets: global sales of 632 thousand units and operating income of 30.0 billion yen)
(1) Sales plan in the US market was revised upward to 380 thousand units in FY2016, projecting the ongoing positive sales momentum.
(2) In the revised plan for sales expansion in China market, FHI will make a shift from local production scheme to car export scheme.
(1) It seems difficult to establish local production in China during the period of this mid-term plan.
(2) FHI will enhance production capacity of its existing manufacturing bases in Japan and the US.
(3) FHI will start consideration of its production expansion in the US towards the future.
Taking into consideration the business environment changes, which include upward revision of sales target in the US and the current situation regarding the local production plan in China, FHI has revised global sales target to 850 thousand units in FY2016. (The original target: 900 thousand units)
FHI will not change its operating income target of 120 billion yen and operating profit margin at 6 % in FY2016. The calculation was based on newly estimated foreign exchange rates of 80 yen per U.S. dollar and 105 yen per Euro. (The original rates: 90 yen per U.S. dollar and 120 yen per Euro)