Consolidated Financial Results for FYE 2022
SUBARU CORPORATION
Tomomi Nakamura, Representative Director, President & CEO
May 12 th , 2022

https://www.subaru.co.jp/en/ir/

Thank you for attending our FYE 2022 earnings briefing.

Summary(Yen in 100 millions, Units in thousands)

Results

Plan

FYE 2021

FYE 2022

FYE 2022

Results (a)Previous Plan* (b)Results (c)Variance Variance(c)-(a)(c)-(b)FYE 2023

Variance(d)(d)-(c)Consolidated Unit Sales

860

740

734

-126

-6

940

+206

Production

810

-

727

-83

-

1,000

+273

Revenue

28,30227,00027,445-857+445

35,000+7,555

Operating profit

1,025

1,000

905

-120

-95

2,000

+1,095

765

750

700

-65

-50

1,400

+700

¥106

¥112

¥112

+¥6

-¥0

¥120

+¥8

Profit for the period attributableto owners of parent
SUBARU exchange rate
US$

* Announced on February 7, 2022

https://www.subaru.co.jp/en/ir/

2First, let’s look at the results for FYE 2022 and an overview of the full-year plans for FYE 2023.
Our CFO Katsuyuki Mizuma will explain in more detail later.
In FYE 2022, due in part to the continuing global shortage of semiconductors, as well as
restrictions on part supplies caused by the spread of the coronavirus pandemic, we had to adjust
production volume and suspend operations at our domestic and overseas production sites.
Profits at each stage, including operating profit, fell below the previous year due to factors such as
the higher costs of raw materials and a decline in consolidated unit sales caused by a drop in
production.
Now, on our full-year plans for FYE 2023.
In FYE 2023 we anticipate consolidated unit sales of 940.0 thousand units as we expect arecovery mainly in our key North America market.
With regard to production, which upholds our consolidated unit sales, we will set ourselves thechallenge of producing 1.0 million units, with the aims of bringing global inventory levels back asmuch as possible and smoothly delivering vehicles to our waiting customers.
As I have spoken about before, we are accumulating a large number of backorders in the U.S. andother markets. We intend to produce and deliver as many vehicles as possible in order to respondto this strong demand.
While risks related to semiconductor supplies remain, we anticipate an increase in both revenue
and profit this fiscal year, and will continue our efforts with the aim of returning revenue and profit
to the pre-COVID levels of FYE 2020.

Overview of Domestic Production Reorganization Plan

https://www.subaru.co.jp/en/ir/

A year ago, in May of last year, I said in the announcement of “STEP2.0” that we will
“accelerate the roadmap toward electrification.”
This time, as part of our overall strategy toward electrification, I would like to provide youwith an overview of our plan for reorganizing our production structure in Japan.

Roadmap toward 2050

STEP 2.0
CO2 reduction
roadmap (announced at the Subaru Technology Briefing in January 2020)

By 2030Make at least 40% of Subaru’s global sales BEVs or HEVs.

By the 1st half of the 2030s
By 2050

Apply electrification technologies to all Subaru vehicles sold worldwide.

Reduce average well-to-wheel CO2 emissions from new vehicles sold worldwide
by at least 90% compared to 2010 levels.

Contribute toward achieving carbon neutrality

With highly responsive electric motors,
Subaru’s AWD capability and driving dynamics will be further enhanced.
We will continue to enhance the Subaru difference in the age ofelectrification and accelerate the roadmap toward 2050.
https://www.subaru.co.jp/en/ir/

4

As shown on the slide, we presented our roadmap for CO2 reduction toward 2050 at ourTechnology Briefing.
While global efforts are further accelerating and countries around the world are raising
their targets to achieve carbon neutrality, market introduction is starting for our first global
all-electric SUV, the Solterra, which we unveiled last November.
Through our joint development with Toyota, and based on feedback we have received todate on the Solterra, we are convinced that we can continue to enhance the “Subaru
difference” even in the age of electrification.

Introduction of the Solterra with the goal of achieving the “Subaru difference”

Test drive events held in various regions“The Solterra demonstrated amazing
capabilities in harsh conditions.
It thrives in the snow, not in spite of, but
because of being an EV.” *- Takayuki Kinoshita, Sankei Biz (Japan)“Current Subaru owners looking to makethe switch to an EV will stay with the brandbecause the Solterra is exactly what
they’re looking for: an all-electric Subaru.”“Maximum confidence level. All thesensations that give so much pleasurebehind the wheel of a Subaru arepresent. I am so fascinated that I do
not realize that I am driving an EV.” *- Beverly Braga, Motor1.com (U.S.)- Bianca H., Movia News (Europe)* Comments from Japan and Europe have been translated into English from the original languages.

The high level of compatibility between Subaru and BEVs has been felt by
many people through driving the Solterra.
https://www.subaru.co.jp/en/ir/5Here in Japan, we are staring to take orders for the Solterra today on May 12, and sales
on the global market will begin in earnest going forward.
In our key U.S. market, we have already received orders from many customers since thelaunch of the reservation system in February and the price announcement on April 25.

As shown on the slide, we have held test drive events for journalists in various regions
and have received many comments suggesting they could feel the “Subaru difference” inthe Solterra.
As we will be receiving feedback from customers who have actually purchased and driven
the vehicle, we will apply what we learn to our future BEV strategies.

Strategic reorganization of domestic production for the expansion andacceleration of electrified vehicle developmentMid-2020s

2022
BEV

2027 or later

Solterra released(Production launch through the alliance)

Starting in-house BEV production(Starting with ICE/BEV mixed production line)
Adding dedicated BEV
production line
HEV
Introducing next-generation HEV models(Adopting THS* technology)* THS: TOYOTA Hybrid System

We will strategically reorganize production in Japan for the expansion and acceleration of electrified vehicle development with the aims of-

Building a production structure that can flexibly respond to changing demand during the BEV transition period
Improving BEV business profitability through highly efficient production
https://www.subaru.co.jp/en/ir/

6Here I’d like to explain our roadmap for the strategic reorganization of our domestic
production.
First, we are planning to start in-house BEV production around 2025, with which we aim to
respond to the gradual increase in our BEV models and volume.
As a next step, we are considering adding a dedicated BEV production line in 2027 or later.
In addition to these initiatives, we are steadily going forward with our plan to introduce thenext-generation HEV models adopting TOYOTA Hybrid System technology as we
previously announced.
In reorganizing our domestic production, we have the following two main objectives.
First is to build a flexible production structure that can ensure ICE and HEV production asneeded during the BEV transition period.
Second is to achieve efficient in-house BEV production in the aim of improving the BEV
business where there are still challenges regarding profitability.

Strategic reorganization of domestic production2022

Mid-2020s

2027 or later

ICE

Main Plant

Next-gen. HEVICE

Next-gen. HEV

HEVYajima Plant

BEV

Oizumi
Plant

Starting in-house BEV production (ICE/BEV mixed production line)

BEV

Adding dedicated BEV
production line

Engines
Transmissions

Kitamoto
Plant *

Next-gen. HEV transmissions*Formerly a facility to produce industrial products

https://www.subaru.co.jp/en/ir/

7Here are the specific plans for our domestic production reorganization.
To start with, in reorganizing our power unit production, we are launching the Kitamoto
Plant to produce transmissions of the next-generation HEV models. This will be a first stepin preparing for future BEV production at the Oizumi Plant.

In-house BEV production planned to start around 2025 is being prepared to begin with an
ICE/BEV mixed production line at the Yajima Plant.
The addition of a dedicated BEV production line in 2027 or later is being considered with
the Oizumi Plant as our likely candidate.
In advancing our electrification strategy, while we closely watch the changing market
conditions and regulations, we believe our greatest focus should continue to be ourcustomers and it is vital that we remain attentive to changes in their demands, tastes, andvalues as well as the convenience of BEVs for them including the infrastructure.
With that in mind, Subaru will continue to develop products that satisfy and deliver
happiness to Subaru customers and put in place a production structure that can flexibly
respond to the changing market environment.

https://www.subaru.co.jp/en/ir/

8This concludes my presentation.
In the Mid-Term Management Vision “STEP” that we announced in 2018, I said we would
advance qualitative growth while continuing with quantitative growth at a steady pace inorder to be ready for significant changes in the business environment from 2025, and weare continuing to work on those efforts.
Going forward, we will communicate to you our plans for products, technologies,
procurement, and the like in a timely and appropriate manner.
Next, CFO Mizuma will discuss the details of the financial results for the fiscal year ended
March 2022 and explain our investment strategy for the reorganization of production in
Japan along with our capital policy for future growth investment.

Consolidated Financial Results for FYE 2022
SUBARU CORPORATION
Katsuyuki Mizuma, Director, Executive Vice President & CFO
May 12 th , 2022

https://www.subaru.co.jp/en/ir/

Consolidated Financial Results for FYE 2022

https://www.subaru.co.jp/en/ir/

10

FYE 2022 ：Consolidated Unit Sales / Complete Cars Production(Thousand Units)FYE 2021

FYE 2022

FYE 2022

Variance

Variance

Results(a)Previous Plan(b)Results(c)(c)-(a)(c)-(b)

Production in U.S.

285

-

272

-14

-

Production in Japan

525

-

455

-70

-

810

-

727

-83

-

Production* Total

Consolidated Unit Sales Total

FYE 2021

FYE 2022

FYE 2022

Variance

Variance

Results(a)Previous Plan(b)Results(c)(c)-(a)(c)-(b)

860

740

734

-126

-6

* Production figures include Toyota GR86.

https://www.subaru.co.jp/en/ir/

11

First is consolidated unit sales and production.
Due in part to the tight supply and demand situation for semiconductors, as well as
restrictions on component supplies caused by the spread of the COVID-19 pandemic, thisyear our domestic and U.S. production sites continued to be hit by the temporary
suspension of operations and production volume adjustments.
With the cooperation of our suppliers and distributors, we carefully examined our
production and sales plans in line with the circumstances, minimizing any negative impact
to produce and sell as many units as possible.
Despite these efforts, production was down 83.0 thousand units year on year to 727.0
thousand units, and consolidated unit sales were down 126.0 thousand units year on year
to 734.0 thousand units, marking a 6.0 thousand unit decline from the previous plan.

FYE 2022 ：C: o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t )(Thousand Units)FYE 2021

FYE 2022

Results

Results

Variance

82

73

Minicars

20

17

-3

Domestic total

102

89

-12

U.S.

612

506

-105

Canada50

49-1

Russia5

4-0Europe1415+1Australia

31

33

+2

China

24

14

-11

Others23

23+0Overseas total

758

645

-114

Total

860

734

-126

Passenger cars

https://www.subaru.co.jp/en/ir/-912

The consolidated unit sales by market are as you see on the slide.
Although consolidated unit sales fell significantly in the U.S. market, this is due to the factthat last year the U.S. market saw a much quicker recovery in demand than other markets,and supply was returned to normal levels.

FYE 2022 :Consolidated Profit Results(100 Million Yen)

Revenue

FYE 2021

FYE 2022

FYE 2022

Variance

Variance

Results(a)Previous Plan(b)Results(c)(c)-(a)(c)-(b)28,30227,00027,445-857+445

Domestic

4,983

4,873

4,880

-103

+7

Overseas

23,31922,12722,565-754+438

Operating profit

1,025

1,000

905

-120

-95

Profit before tax

1,140

1,100

1,070

-70

-30

Profit for the period attributableto owners of parent

765

750

700

-65

-50

SUBARU
exchange rate

US$

¥106

¥112

¥112

+¥6

-¥0

EURO

¥123

¥130

¥130

+¥7

+¥0

CAN$

¥80

¥89

¥89

+¥9

-¥0

https://www.subaru.co.jp/en/ir/

13This is consolidated profit.
Revenue was down 85.7 billion yen year on year to 2,744.5 billion yen due primarily to aworsening in the sales volume & mixture of 188.3 billion yen resulting from decreased unit
sales, despite a gain on currency exchange of 128.3 billion yen.

Operating profit was down 12.0 billion yen year on year to 90.5 billion yen.
Profit before tax was down 7.0 billion yen to 107.0 billion yen, and profit for the period
attributable to owners of parent fell 6.5 billion yen to 70.0 billion yen.

FYE 2022 :A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d )(100 Million Yen)

+115

+421

+4

+73

SG&A expenses,
etc.

Sales volume &mixture, etc.

-725

R&D expenses-8

Gain on currency
exchange

FYE 2021
Results
Curerncy
exchange

Other

Cost reduction,
etc.

FYE 2022
Results-120
Sales volume &+421 SG&A expenses, etc.

+115 mix , etc.

US ＄+477 Fixed manufacturing costEURO

+12 SUBARU

CAN＄

+65

Suppliers'
dies cost-93

Suppliers'
dies cost+23 Domestic dealers

-

Fixed
processing
cost

-38

Fixed
processing
cost

-23

CNY

+1

Currency exchange
adjustment+43

Unrealized gain

-177-131 SIA*1-131 SG&A+0 SUBARU-169 Warranty claims+415 Domestic-121

SOA *2-46

SCI *3-17

Others+15+73 Cost reduction, etc.

-725

-68 SUBARU-406 SIA*1

Overseas-597

Cost reduction+36

Cost reduction

-319
+35

Sales Incentive+493

Material cost,
etc.

-442

Material cost,
etc.

-354

Others+245*1 SIA: Subaru of Indiana Automotive, Inc. *2 SOA: Subaru of America Inc. *3 SCI: Subaru Canada Inc.
https://www.subaru.co.jp/en/ir/

14This is the analysis of variance in operating profit compared to the previous year’s results.
We compensated for the impact of the decrease in unit sales mainly by reducing sales
incentives, revising selling prices, and increasing the high-profit models in the sales mix.
Although exchange rate fluctuation was an increasing factor, the sharp rise in material
cost, etc. had a significant impact, bringing operating profit down 12.0 billion yen year on
year.
The exchange rate was down around 6 yen to the U.S. dollar, 7 yen to the Euro, and 9
yen to the Canadian dollar.
U.S. sales incentives per unit were down 600 dollars from 1,300 dollars in the previous
year to 700 dollars, bringing the total amount of U.S. sales incentives down 45.6 billionyen.

P r e v i o u s P l a n F Y E 2 0 2 2 ( a s o f F e b r u a r y 7 th) v s R e s u l t s :A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d )(100 Million Yen)

+61

+37

Cost reduction,etc.

R&D expenses-101
SG&A expenses,
etc.

FYE 2022
Previous
Plan

Sales volume &mixture, etc.

-31

+28

Loss oncurrency
exchange

Other

FYE 2022
Results-95+75 SIA*1

Curerncy

Sales volume &-89 exchange-31-14 Fixed manufacturing cost

+29 SG&A-27 Warranty claims

Domestic+13 US＄-56+29 SUBARU+43 (including impact-103 Overseas-331 EURO+3-10+61 SG&A expenses, etc.

Cost reduction, etc.
SUBARU-89

Cost reduction-1

Cost reduction+12 SUBARU

Material cost,
etc.

+76

Material cost,
etc.

-26

+0 SIA *1-101 mix , etc.

Suppliers'
dies cost-4

Suppliers'
dies cost+1 Domestic dealers

Fixed
processing
cost

+4

Fixed
processing
cost

+28

of foreign currency-1 translation)

Sales Incentive+113 CAN＄SOA *2-46

Others+116 CNYSCI *3+4

Currency exchange
adjustment+64

Others-27

Unrealized gain

-32-

*1 SIA: Subaru of Indiana Automotive, Inc. *2 SOA: Subaru of America Inc. *3 SCI: Subaru Canada Inc.
https://www.subaru.co.jp/en/ir/

15This is an analysis of variance in operating profit compared to the previous plan.
Aiming for operating profit of 100.0 billion yen, we engaged in efforts to minimize impacts
from the decrease in unit sales, mainly by further reducing sales incentives.
However, a sudden decline in the yen at the end of the fiscal year impacted the foreign
currency translation of product warranty reserves, causing warranty claims to increase.
As a result, operating profit fell 9.5 billion yen from the previous plan to 90.5 billion yen.

FYE 2022 :Consolidated Statement of Cash Flows / Cash and cash equivalents(100 Million Yen)FYE 2021

FYE 2022

Results

Results

Net cash provided by (used in) operating activities

2,894

1,957

Net cash provided by (used in) investing activities-2,722-1,797

Free cash flows

172

159

Net cash provided by (used in) financing activities

140

-985

As of March 2021

As of March 2022

Variance

Cash and cash equivalents at end of period

9,073

8,831

-243

Interest bearing debts Balance at end of period *

3,339

3,340

+2

Net cash

5,734

5,490

-244

* Lease liabilities are not included in the results above.

https://www.subaru.co.jp/en/ir/

16This is the consolidated statement of cash flows and cash and cash equivalents.
Free cash flows were 15.9 billion yen.
Cash and cash equivalents at the end of period were down 24.3 billion yen from the end of
the previous fiscal year to 883.1 billion yen, while the balance of interest bearing debts
was up 200 million yen to 334.0 billion yen.
As a result, net cash was down 24.4 billion yen from the end of the previous year to 549.0
billion yen.

Capex / Depreciation / R&D(100 Million Yen)FYE 2021

FYE 2022

FYE 2022

Variance

Variance

Results(a)Previous Plan(b)Results(c)(c)-(a)(c)-(b)Capex *1

862

900

861

-1

-39

Depreciation *1

950

1,000

946

-4

-54

1,016

1,200

1,138

+121

-62

R&D expenditures *2*1 : Leases, capex & amortization for intangible assets and lease liabilities are not included in the results and forecast above.
*2 : Research and development activity related costs incurred during the reporting period are written.
In accordance with IFRS, as a part of research and development expenditures is recorded as an intangible asset and amortized over its estimated useful life,
this amount is different from "Research and development expenses" on Consolidated Statements of Income on IFRS.
(It matches with R&D expenses in consolidated statement of income on JGAAP)

https://www.subaru.co.jp/en/ir/

The results for Capex and so on are as shown on this slide.

17

Forecast for FYE 2023

https://www.subaru.co.jp/en/ir/

18

FYE 2023 Plan ：Consolidated Unit Sales / Complete Cars Production(Thousand Units)FYE 2022

FYE 2023

Results

Plan

Variance

Production in U.S.

272

-

-

Production in Japan

455

-

-

727

1,000

Production* Total

FYE 2022

FYE 2023

Results

Plan

Consolidated Unit Sales Total

734

940

+273

Variance+206* Production figures include Toyota GR86.

https://www.subaru.co.jp/en/ir/

19

Now, let’s look at the full-year plan for FYE 2023.
This is consolidated unit sales and production.
Although future uncertainty remains, market demand is strong, and we expect a strong
recovery mainly in our core North America market. We anticipate consolidated unit salesof 940.0 thousand units.
To bring global inventory levels back as much as possible and smoothly deliver vehicles to
our waiting customers, we will set ourselves the challenge of producing 1.0 million units.

FYE 2023 Plan ：C: o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t )(Thousand Units)FYE 2022

FYE 2023

Results

Plan

Variance

Passenger cars

73

91

+18

Minicars

17

24

+7

Domestic total

89

115

+25

U.S.

506

636

+130

Canada

49

53

+3

China

14

19

+5

Others

75

118

+43

Overseas total

645

826

+181

Total

734

940

+206

https://www.subaru.co.jp/en/ir/

The consolidated unit sales plans by market are as you see on the slide.

20

FYE 2023 Plan ：Consolidated Profit Plan
(Yen in 100 millions, Units in thousands)

Revenue

FYE 2022

FYE 2023

Results

Plan

Variance

27,44535,000+7,555

Operating profit

905

2,000

+1,095

Profit before tax

1,070

2,000

+930

700

1,400

+700

¥112

¥120

+¥8

EURO

¥130

¥130

-¥0

CAN$

¥89

¥95

+¥6

Profit for the period attributable toowners of parent
SUBARUUS$
exchange rate

* Production figures include Toyota GR86.
https://www.subaru.co.jp/en/ir/

21This is consolidated profit.
We will aim to boost revenue by 755.5 billion yen from the previous year to 3,500.0 billion
yen, and increase operating profit by 109.5 billion yen to 200.0 billion yen. We will aim forprofit before tax of 200.0 billion yen and profit for the period attributable to owners ofparent of 140.0 billion yen.

FYE 2023 Plan ：A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d )(100 Million Yen)

+859

-1,006

Gain on currency
exchange

SG&A expenses,
etc.

+2,365-987-156
Cost reduction,etc.

New car sales total：+2,553

by sales volume +1,647
by price & mixture +906

Sales volume &mixture, etc.

905
FYE 2022
Results
Sales volume &mix , etc.

+20

R&D expenses

Other

2,000
FYE 2023
Plan+1,095Curerncy+2,365 exchange+859 SG&A expenses, etc.

Domestic+261 US＄+932 Fixed manufacturing cost

Overseas+2,292 EURO

Sales Incentive-406 CAN＄

Others+218 CNY-1 SUBARU-225 SIA*1-1,006 Cost reduction, etc.
-346 Warranty claims-37 SUBARU-208

Cost reduction+28

Cost reduction+27

Material cost,
etc.

-682

Material cost,
etc.

-360

+55

Suppliers'
dies cost-99

Suppliers'
dies cost-30 Domestic dealers

-26

-

Fixed
processing
cost

Fixed
processing
cost

SOA *2

-89

-126

-7

SCI *3-16

Others-7

Currency exchange
adjustment-73

Unrealized gain

-54-398 SUBARU-987-262 SG&A-654 SIA*1-333*1 SIA: Subaru of Indiana Automotive, Inc. *2 SOA: Subaru of America Inc. *3 SCI: Subaru Canada Inc.
https://www.subaru.co.jp/en/ir/

22This is the analysis of variance in operating profit compared to the previous year’s results.
The main factor behind the increase in profits is sales volume & mixture, etc., and weanticipate an improvement of 236.5 billion yen.
In addition to a 164.7 billion yen increase from the 206.0 thousand unit increase inconsolidated unit sales, we also expect an increase of 90.6 billion yen from an
improvement in model/grade composition and revised selling prices.
On the other hand, due to skyrocketing material cost, etc., including for steel and precious
metals, we anticipate a year on year decline of 104.2 billion yen.
This assumes a roughly 8 yen depreciation of the yen against the U.S. dollar.
Factoring in rising interest rates, we also expect U.S. sales incentives per unit to increase
200 dollars from 700 dollars in the previous year to 900 dollars, bringing the total amountof U.S. sales incentives up 33.3 billion yen.

Capex / Depreciation / R&D(100 Million Yen)FYE 2022

FYE 2023

Results

Plan

Variance

Capex *1

861

1,400

+539

Depreciation *1

946

1,000

+54

1,138

1,200

+62

R&D expenditures *2*1 : Leases, capex & amortization for intangible assets and lease liabilities are not included in the results and forecast above.
*2 : Research and development activity related costs incurred during the reporting period are written.
In accordance with IFRS, as a part of research and development expenditures is recorded as an intangible asset and amortized over its estimated useful life,
this amount is different from "Research and development expenses" on Consolidated Statements of Income on IFRS.
(It matches with R&D expenses in consolidated statement of income on JGAAP)

https://www.subaru.co.jp/en/ir/

Capex, depreciation, and R&D expenditures are as you can see.

23

For the Acceleration of Electrification
 Strategic reorganization of domestic production
Capex

Starting full-scale
investment in production
reorganization

Capex (100 million yen)

• In FYE 2024, starting full-scale investment in reorganizationof production including production of BEVs and HEVs.

Capex to revenue ratio (%)
1800

8.0%

1,400

1600

1400

1,140

1,260

7.0%

6.0%

1200

Reorganization into flexible andefficient production structure

1000

800

3.6%

3.8%

862

861

3.0%

3.1%

4.0%

5.0%

4.0%

600

3.0%

In-house production of BEVs
Next-gen e-BOXER

250 billion yen
in 5 years

400

2.0%

200

0

1.0%

FYE2019 FYE2020 FYE2021 FYE2022 FYE2023 FYE2024＊Leases, capex & amortization for intangible assets and lease liabilities are not includedin the results and forecast above.
＊All figures are based on IFRS.

R&D expenditures• Maintain a level of around 120 billion yen/year as previously announced in May 2021 byreallocating resources, strengthening alliances and so on while accelerating electrification.
https://www.subaru.co.jp/en/ir/

24

I will explain the future investment strategy for the strategic reorganization of production in
Japan that was explained by President Nakamura in the first part.
Over the next five years, we plan to put 250 billion yen into Capex for the reorganization of
production in Japan in the aim of- Building a production structure that can flexibly respond to changing demandduring the BEV transition period- Improving BEV business profitability through highly efficient production- A Better Working environment
The full-scale investment for in-house production of BEVs including a dedicated BEV
production line which is under consideration as well as next-gen e-BOXER production
begins in FYE 2024.
As for R&D expenditures, we are accelerating the electrification strategy, but we will workon reallocating management resources and R&D that balances competition andcollaboration through full utilization of alliances, so there are no changes to the level of120 billion yen per year announced last year.

For the Acceleration of Electrification
 Financial policy updated to utilize net cash for future growth investment• Utilization of yen funds and debt financing as needed
considering business portfolio and the global financial environment.
• Ensuring high financial soundness while maintaining a capital equity ratioof 50%.

Cash and cash equivalents at the end of FYE2022(100 million yen)

JPY etc.
3,331

USD
5,500

• Targets remain unchanged at industry-leading operating margin of 8%
and ROE of at least 10%.

 Our stance on shareholder return remains unchanged while striving to generate cash flow
• Positioning dividends as the main form of return to shareholders with emphasis on stable, continuous returns.
Based on the performance-linked approach, dividend payments will be determined considering the businessperformance of each fiscal year, investment plans, and the business environment.
(Consolidated payout ratio: 30%–50%)• Conducting share repurchases flexibly in line with our cash flow.
https://www.subaru.co.jp/en/ir/

25

Next, I will explain the capital policy for future growth and our stance on shareholder return.
We will update the financial policy of “maintaining two months’ worth of sales at aminimum “and utilize net cash to invest in future growth. Specifically, in order to enhance
our US-centered business strategy, we plan to raise yen funds primarily through liabilities
as necessary while keeping a certain amount of US$ funds.
Today, we talked about our new Capex plan and updating our financial policy, but our
stance on shareholder return remains unchanged.

Shareholder Returns(Yen) Dividend per share
FYE 2023

FYE 2022

Forecast *Interim dividend28

28Year-end Dividend

28

28

Total

56

56

61.3%

30.7%

Payout ratio＊Payout ratio：Based on the number of shares in the previous term

https://www.subaru.co.jp/en/ir/

26

Last is our return to shareholders for FYE 2022 and FYE 2023.
As already explained, COVID-19 and the shortage of semiconductors have had a verysignificant impact on our business performance. In addition, the business environment
remains uncertain. We have conducted a comprehensive review that includes things likefuture funding demand, and as a result, we plan to provide an annual dividend per shareof 56 yen for FYE 2022 as set forth in the most recent dividend forecast.
The annual dividend per share for FYE 2023 is expected to be on par with FYE 2022 at 56
yen.
We will continue working to ensure that we meet your expectations, and we look forward
to your support as we do so.
The remaining pages contain segment information, etc. for your reference.
This concludes the briefing on our financial results for the fiscal year ended March 31,
2022. Thank you.

Appendix• Segment information by Business & Geographic• Consolidated Financial Results for 4th Quarter (3 months)• Overseas Revenue• FYE 2022 Results (by Quarter)• Consolidated Statement of Financial Position• Complete Cars Production / Retail Sales Units• Non-consolidated Unit Sales• Operating Results of Subsidiaries in U.S.

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27

FYE 2022 ：Revenue and Operating Profit by Business Segment (Consolidated)(100 Million Yen)

Revenue
FYE 2021

FYE 2022

Results

Results

Operating profit
Variance

FYE 2021

FYE 2022

Results

Results

Variance

Automobile

27,375

26,775

-600

1,091

925

-165

Aerospace

877

623

-254

-98

-70

+28

Other

50

48

-3

31

48

+17

1

1

-0

1,025

905

-120

Elimination & Corporate

Total

https://www.subaru.co.jp/en/ir/

28,30227,445-857

28

FYE 2022 ：Revenue and Operating Profit by Geographic Area (Consolidated)(100 Million Yen)

Revenue
FYE 2021

FYE 2022

Results

Results

Operating profit
Variance

FYE 2021

FYE 2022

Results

Results

Variance

Japan

6,752

6,663

-90

-356

-195

+161

North America

20,302

19,688

-614

1,027

1,109

+82

Other

1,247

1,094

-153

31

29

-2

322

-39

-361

1,025

905

-120

Elimination & Corporate

Total

https://www.subaru.co.jp/en/ir/

28,30227,445-857

29

FYE 2022 ：Overseas Revenue (Consolidated)(100 Million Yen)

North America

FYE 2021

FYE 2022

Results

Results

Variance

20,83020,040-791

Europe

536

642

+106

Asia

940

734

-206

Other

1,012

1,149

+137

Total

23,31922,565-754

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30Consolidated Statement of Financial Position(100 Million Yen)

As of March
2021
Total assets

As of March
2022

Variance

34,11735,438+1,320Current assets

19,82820,422+594

Non-current assets

14,28915,015+726

16,253

16,427

+174

3,339

3,340

+2

17,86419,010+1,146

Retained earnings

14,353

14,663+310

Equity attributable to owners of parent

17,777

18,908+1,131

Ratio of equity attributable to ownersof parent to total assets

52.1%

53.4%

+1.3%

0.19

0.18

-0.01

Total liabilities
Interest bearing debts
Total equity

D/E ratio
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31

FYE 2022 ：Non-consolidated Unit Sales:(Thousand Units)FYE 2021

FYE 2022

Results

Results

Variance

Domestic production*

525

455

-70

Domestic sales

106

90

-15

Passenger cars

84

73

-11

Minicars

21

17

-4

Export total

439

371

-68

Components for overseas
production

276

308

+32

Total

820

769

-51

* Production figures include Toyota GR86.

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FYE 2022 ：Operating Results of Subsidiaries in U.S.
（Million US$）SOA *1FYE 2021

FYE 2022

Results

Results

Net sales

Variance

18,02816,257-1,771

Operating income

966

1,096

+130

Net income

831

852

+21

Retail sales (Thousand units)

640

553

-87

SIA *2

Net sales

FYE 2021

FYE 2022

Results

Results

Variance

7,252

7,109

-143

Operating income

-42

-260

-217

Net income

-30

-212

-182

Production sales (Thousand units)

285

272

-14

*1 SOA: Subaru of America Inc. *2 SIA: Subaru of Indiana Automotive, Inc.
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4 th Q u a r t e r ( 3 mo n t h s ) ：C: o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t )(Thousand Units)

Passenger cars

FYE 2021

FYE 2022

4Q Results

4Q Results

27

Variance
19-8

Minicars

55-0

Domestic total

32

24

-8

U.S.

155

135

-20

Canada11

10-1

Russia2

1-1

Europe43-1Australia

11

7

-4

China

4

3

-1

Others105-5Overseas total

197

163

-34

Total

229

187

-43

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4 th Q u a r t e r ( 3 mo n t h s ) :Consolidated Profit Results(100 Million Yen)

Revenue

FYE 2021

FYE 2022

4Q Results

4Q Results

Variance

7,554

7,370

-184

Domestic

1,558

1,423

-135

Overseas

5,996

5,947

-49

Operating profit

42

133

+91

Profit before tax

83

157

+75

Profit for the period attributableto owners of parent

23

71

+48

US$

¥104

¥115

+¥10

EURO

¥126

¥130

+¥3

CAN$

¥82

¥90

+¥8

SUBARU
exchange rate

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35

4 th Q u a r t e r ( 3 mo n t h s ) :A: n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d )+225(100 Million Yen)

-239

+7

+69

R&D expenses
SG&A expenses,
etc.

+31

-2
Cost reduction,etc.

Results
4Q (3 months)
FYE 2021
Curerncy
exchange

Gain on currency
exchange+186 Fixed manufacturing cost

EURO

Sales volume &+69 Cost reduction, etc.
-40 SG&A-29 Warranty claims+138 SUBARU-239 mix , etc.

-112 SIA*1-127 Domestic-2-49-23 SUBARU-43Cost reduction-5

Cost reduction+11 Overseas

-178

+8

Suppliers'
dies cost-21

Suppliers'
dies cost-2 Domestic dealers+3

Material cost,
etc.

-107

Material cost,etc.

-138 Sales Incentive

+171

Fixed
processing
cost

Fixed
processing
cost

Others

+54

+4

-21

- SUBARU

CAN＄

Results
4Q (3 months)
FYE 2022+91+225 SG&A expenses, etc.

US ＄

Other

Sales volume &mixture, etc.

CNY

+1

Currency exchange
adjustment+13

Unrealized gain

+17

-17 SIA*1

SOA *2+22

SCI *3-2

Others-9*1 SIA: Subaru of Indiana Automotive, Inc. *2 SOA: Subaru of America Inc. *3 SCI: Subaru Canada Inc.
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36

FYE 2022 Results(by Quarter)(Yen in 100 millions, Units in thousands)

FYE 2022
Results

1Q

2Q

3Q

4Q

Consolidated Unit Sales

175

200

172

187

Production *

184

158

207

177

6,352

7,065

6,659

7,370

Operating profit

295

249

227

133

Profit for the period attributableto owners of parent

185

263

181

71

SUBARU exchange rate
US$

¥109

¥110

¥113

¥115

Revenue* Production figures include Toyota GR86.

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37

Complete Cars Production / Retail Sales Units(1,000units）

Production

Retail Sales

300

254
260

262

271

209

207
182

193
177

182

JulSep

OctDecJanMar

184

196

204

200

229

240

240

236

242
227

254
262

277

OctDec

269
262

269
271

JulSep

250

241

278
264

252
257

249

253

261

270
268

276

276

280

269
273

264
258

237

242
245

JulSep

248
242

231

AprJun

249

233
229

244
237

253

250

158

150

100
92

50

0
JanMar

OctDec2015

JanMar

AprJunJulSep

OctDec2016

JanMar

AprJunJulSep2017

OctDecJanMar

AprJun2018

JanMar

AprJunJulSep2019

OctDecJanMar

AprJunJulSep2020

OctDecJanMar

AprJun2021

2022* Production figures include Toyota GR86.
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38

Forward-looking statements including projections and future strategies mentioned in this presentation are based on currently
available information and assumptions and are subject to risks and uncertainties. Actual results may vary materially as a resultof various factors including, without limitation, economic conditions, market demand and fluctuations in foreign exchange rates.
Investors are asked not to rely solely on the information in this presentation when they make their final investment decisions.

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39