IR Financial Results for Second Quarter of FY2017 (From April 1, 2016 to September 30, 2016) October 27, 2016 Hino Motors, Ltd.
1. Sales Turnover IR 2/17
Global Unit Sales (Retail Sales) IR 3/17 Global unit sales achieved a record high for the first half thanks to sales growth in Japan. Record high for a first half 79,419 +2,365 units (+3.0%) 81,784 (Units) 27,681 Japan +2,312 units (+8.4%) 29,993 Japan 28,503 30,168 Asia Overseas 7,105 6,491 2,936 3,097 2,821 785 51,738 51,791 +53 units (+0.1%) 7,061 6,514 2,949 2,631 2,090 378 15/4-9 16/4-9 Central and South America North America Oceania Middle East Africa Europe
Truck and Bus Market in Japan IR 4/17 Truck market: Cargo trucks performed favorably, sales grew from last year. Hino s sales: Sales grew with a rate exceeding the market growth rate, mainly driven by light-duty truck. Total demand +6,490 units (+6.9%) Hino's sales (Retail) [Share] +2,312 units (+8.4%) (Units) 93,452 99,942 27,681 29.6% 29,993 30.0% Heavy- and medium-duty 42,312 45,781 15,184 35.9% 16,368 35.8% Heavy- and medium-duty Light-duty Bus 46,667 4,473 48,706 5,455 11,135 23.9% 1,362 30.4% 11,959 24.6% 1,666 30.5% 15/4-9 16/4-9 15/4-9 16/4-9 Light-duty Bus
Sales Volumes in Thailand and Indonesia (Retail Sales) IR 5/17 Thailand: Sales volume increased from the previous year due to the growth of demand for construction, but the recovery is still not full-scale. Indonesia: The market remains sluggish, but sales volume for a half-year increased year on year for the first time since the second half of FY2014. Thailand Indonesia (Units) +319 units (+6.1%) +616 units (+6.0%) 10,216 10,832 5,251 5,570 15/4-9 16/4-9 15/4-9 16/4-9
Consolidated Sales of Toyota Brand Vehicles and Unit IR 6/17 Vehicles: Sales of vehicles decreased for both SUV and loading vehicles. Unit: Unit sales increased thanks to the favorable market of pickup trucks in the U.S. Vehicles (Units) Unit (in Thailand and the U.S.) (Units) -6,184 units (-8.0%) +13,763 (+3.8%) Loading Vehicles 77,305 14,961 71,121 14,379 361,405 375,168 SUV 62,344 56,742 15/4-9 16/4-9 15/4-9 16/4-9
IR 7/17 2. Consolidated Financial Results
Consolidated Income Statements IR 8/17 Record high for a first half Item FY2017 1st Half ('16/4-9) FY2016 1st Half ('15/4-9) Change (Billions of yen) Change (%) Net sales 799.1 858.3-59.2 <-2.2p> Operating income 32.9 54.2-21.3 <-2.1p> Ordinary income 32.1 52.0-19.9 Profit attributable <4.1%> <4.0%> <2.8%> <6.3%> <6.1%> <4.3%> <-1.5p> to owners of parent 22.6 37.2-14.6 Note: Figures in parentheses (<>) indicate income margin. <Exchange rate> US$ 107 121 THB 3.04 3.58 IDR(100) 0.81 0.91 A$ 80 93-6.9% -39.3% -38.3% -39.3%
Analysis of Consolidated Income Statements IR 9/17 Income dropped due to the yen appreciation, effects of sales by the decrease in sales for overseas and decrease in Toyota brand vehicles. Profit attributable to owners of parent: -14.6 billion ( 37.2 billion 22.6 billion) Operating income: -21.3 billion ( 54.2 billion 32.9 billion) (Billions of yen) Effects of sales Environmental change Improvement in cost of sales Change in cost structure, etc Non-operating Income taxes 37.2 (4.2) (14.1) 7.2 (10.2) Foreign exchange losses +1.2 Income taxes +6.6 Profit for non-controlling interests, etc. -1.1 6.7 Foreign exchange -18.9 Materials +4.8 22.6 FY2016 1H Results ('15/4-9) FY2017 1H Results ('16/4-9)
Consolidated Operating Income by Segments IR 10/17 Japan: Sales and income declined due to the yen appreciation and the drop in shipment to overseas and drop in Toyota brand vehicles. Asia: Sales dropped considerably, but income grew thanks to profitability improvement efforts in Thailand and Indonesia, etc. Record high for a half-year period Record high for a first half Net sales (Billions of yen) Change Operating income <2.8%> <5.8%> -2.7% -53.2% Japan 659.9 18.5 678.2 39.6-18.3-21.1 <5.2%> <3.6%> -17.6% +18.8% Asia 155.2 8.1 188.2 6.8-33.0 +1.3 Other Areas FY2017 1st Half ('16/4-9) Net sales Operating income FY2016 1st Half ('15/4-9) Net sales Operating income <4.5%> <5.2%> -19.9% -30.7% 94.4 4.2 117.8 6.1-23.4-1.9 Consolidated adjustment -110.4 2.1-125.9 1.7 +15.5 +0.4 <4.1%> <6.3%> -6.9% -39.3% Total 799.1 32.9 858.3 54.2-59.2-21.3 Note: Figures in parentheses (<>) indicate operating income margin. Percentages in the column "Change" indicate year-on-year change.
Trends in the Quarterly Consolidated Sales and Operating Income IR 11/17 100.0 80.0 60.0 ( 億 40.0 20.0 Sales FY2016 FY2017 407.0 381.5 Operating Income 25.4 14.9 451.3 447.8 439.4 417.6 28.8 27.1 18.0 Previous FY 17.0 (Billions of yen) Current FY 500.0 400.0 300.0 200.0 0.0 1Q 2Q 3Q 4Q 100.0 FY2016 FY2017 FY2016 FY2017 FY2016 FY2017 FY2016 FY2017 <Exchange rate> US$ 120 111 123 103 121 118
IR 12/17 3. Sales Forecasts for FY2017
Global Unit Sales (Retail Sales) IR 13/17 Japan: Unit sales are progressing almost as announced on Apr. 27, and there are no significant changes. Overseas: Revised downwardly by 3,000 units, mainly in the U.S. and Middle East. FY2017 ('16/4-'17/3) Forecasts announced on October 27 FY2017 ('16/4-'17/3) Forecasts announced on April 27 (Thousand units) Change Change (%) FY2016 ('15/4-'16/3) Results (Thousand units) Change Change (%) Japan 64.1 63.8 +0.3 +0.5% 60.7 +3.4 +5.7% Overseas 108.0 111.0-3.0-2.7% 107.0 +1.0 +1.0% Total 172.1 174.8-2.7-1.5% 167.6 +4.5 +2.7% Toyota brand (*) *Including Dyna for Indonesia. 144.4 140.0 +4.4 +3.1% 154.9-10.5-6.8%
IR 14/17 4. Consolidated Financial Forecasts for FY2017
Consolidated Income Statements IR 15/17 Considering recent demand and the effects of exchange rate, the estimated operating income announced on Apr. 27 has been revised downwardly to 60 billion yen. Item FY2017 ('16/4-'17/3) Forecasts announced on October 27 FY2017 ('16/4-'17/3) Forecasts announced on April 27 (Billions of yen) Change Change (%) FY2016 ('15/4-'16/3) Results (Billions of yen) Change Change (%) Net sales 1,630.0 1,670.0-40.0-2.4% 1,745.5-115.5-6.6% <3.7%> <4.8%> <-1.1p> <5.6%> <-1.9p> Operating income 60.0 80.0-20.0-25.0% 98.3-38.3-39.0% <3.6%> <4.7%> <-1.1p> <5.5%> <-1.9p> Ordinary income 59.0 79.0-20.0-25.3% 95.9-36.9-38.5% Profit attributable <2.5%> <3.3%> <-0.8p> <3.7%> <-1.2p> to owners of parent 41.0 55.0-14.0-25.5% 65.1-24.1-37.0% Note: Figures in parentheses (<>) indicate income margin. <Exchange rate> 下期レート Second half FY2016 US$ 104 105 100 120 THB 2.93 3.11 2.85 3.46 IDR(100) 0.78 0.83 0.76 0.89 A$ 77 84 75 89
Analysis of Consolidated Operating Income (Comparison with forecasts announced on April 27) IR 16/17 Decrease in operating income: -20.0 billion ( 80.0 billion 60.0 billion) (Billions of yen) Effects of sales Environmental change Improvement in cost of sales Change in cost structure, etc (7.0) (8.0) (1.0) (4.0) 80.0 Foreign exchange -12.0 Materials +4.0 60.0 FY2017 ('16/4-'17/3) Forecasts announced on April 27 FY2017 ('16/4-'17/3) Forecasts announced on October 27
Analysis of Consolidated Operating Income (Year-on-year comparison) IR 17/17 Decrease in operating income: -38.3 billion ( 98.3 billion 60.0 billion) (Billions of yen) Effects of sales Environmental change Improvement in cost of sales Change in cost structure, etc (1.0) (35.0) 19.0 (21.3) 98.3 Foreign exchange -40.0 Materials +5.0 60.0 FY2016 ('15/4-'16/3) Results FY2017 ('16/4-'17/3) Forecasts announced on October 27