Consolidated Financial Results
For the Second Quarter of the Fiscal Year Ending March 31, 2019
(Japan GAAP)
November 5, 2018
Company Name
: SUBARU CORPORATION. (Tokyo Stock Exchange First Section, Code No.7270)
URL: https://www.subaru.co.jp/en/ir/
Representative: Tomomi Nakamura, President and CEO
Contact for Inquiries : Katsuo Saitou, General Manager of Administration Department Phone +81-3-6447-8825
Scheduled date of submitting Quarterly Report: November 9, 2018
Scheduled date for dividend payment: December 5, 2018
Quarterly earnings supplementary explanatory documents: Yes
Holding of quarterly financial results meeting: Yes(for investment analysts and institutional investors)(All amounts have been rounded off to the nearest million yen, unless otherwise specified)

1.Consolidated Results for the 2nd Quarter of FYE 2019 (April 1, 2018 to September 30, 2018)(1) Consolidated Results of Operations (for six-month period)(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)

Net sales
2nd Quarter of
FYE 2019
2nd Quarter of
FYE 2018

Operating income

Ordinary income

Net income attributableto owners of parent

1,486,810(7.5)%

55,040(74.1)%

60,010(71.8)%

44,312(47.9)%

1,608,013

1.9%

212,125

1.7%

212,726(6.6)%

85,005(48.1)%

Note: Comprehensive income 2nd Quarter of FYE 2019: 71,073 million yen (Minus 25.1%) 2nd Quarter of FYE 2018: 94,941
million yen (Minus 21.6%)
Note: Certain presentation methods used in FYE 2018 have been changed from FYE 2019. The changed methods are
retrospectively applied to the amounts in FYE 2018 to conform FYE 2019 presentation.

Net income
Net income per share,per share, basic (Yen)diluted (Yen)
2nd Quarter of
FYE 2019
2nd Quarter of
FYE 2018

57.79-

110.87-(Unit: Millions of yen, except for per share figures)
Shareholders’ equity to
Total assets
Net assets
total assets (%)(2) Consolidated Financial Position
2nd Quarter of
FYE 2019
FYE 2018

2,935,070

1,577,005

53.5%

2,866,474

1,561,023

54.2%

Reference: Shareholders’ equity As of September 30, 2018: 1,569,516 million yen As of March 31, 2018: 1,552,844 million yen
Note: Certain presentation methods used in FYE 2018 have been changed from FYE 2019. The changed methods are retrospectively
applied to the amounts in FYE 2018 to conform FYE 2019 presentation.

2. Dividends
Cash dividends per share (yen)
1st Quarter 2nd Quarter 3rd Quarter Year-end
FYE 2018-

72.00

FYE 2019-

72.00

FYE 2019 (Forecast)

Annual-72.00

144.00-72.00

144.00Note: Revision of the forecasts in the first quarter of the fiscal year ending March 31, 2019: No

3. Projection of Consolidated Results for FYE 2019 (April 1, 2018 to March 31, 2019)(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)

Net sales
Full year 3,210,000(0.7)%

Operating income

Ordinary income

220,000 (42.0)%

229,000 (39.7)%

Net income attributable Net income per
to owners of parent share, basic(Yen)
167,000(24.2)%

217.80Note: Revision of the forecasts at the timing of announcement of the results of first quarter of the fiscal year ending March 31, 2019:
Yes
Regarding the revision of the Projection of Consolidated Results, please refer to "Revision of Performance Projection for the
Fiscal Year Ending March 2019" announced today (November 5, 2018).

4. Others(1) Changes of significant subsidiaries in the second quarter of FYE 2019

: No

(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes

Note: The details please refer to "Quarterly Consolidated Financial Statements (4) Note to Quarterly Consolidated
Financial Statements (Application of Specific Accounting for Preparing the Quarterly Consolidated Financial
Statements)" on page 7.

(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly
consolidated financial statements[1] Changes due to revisions of accounting standards[2] Changes due to other reasons[3] Changes of estimation due to accounting issues[4] Restatements

: No
: Yes
: Yes
: No

Note: The details please refer to "Quarterly Consolidated Financial Statements (4) Note to Quarterly
Consolidated Financial Statements (Changes in accounting policies) on page 7.

(4) Number of outstanding shares (Common Stock)[1] Number of outstanding shares
As of September 30, 2018: 769,175,873 shares As of March 31, 2018: 769,175,873 shares(including treasury stock)[2] Number of treasury stock
As of September 30, 2018:
2,414,091 shares As of March 31, 2018:
2,455,039 shares[3] Average number of shares
2nd Quarter of FYE 2019: 766,737,828 shares 2nd Quarter of FYE 2018: 766,696,067 shares(for six-month period)*The status of the implementation of the quarterly review
This quarterly earnings report is not subject to quarterly review based upon the Financial Instruments andExchange Act.
*Proper use of projection of operating results, and other information
The performance projections were based on the information available as of the date when this document was
released. Therefore, actual results may differ considerably due to various factors that might occur in the future.

Index of the attachments
Quarterly Consolidated Financial Statements .................................................................................................. 2(1) Quarterly Consolidated Balance Sheets .................................................................................................... 2(2) Quarterly Consolidated Statements of (Comprehensive) Income .......................................................... 4(3) Quarterly Consolidated Statements of Cash Flows ................................................................................. 6(4) Note to Quarterly Consolidated Financial Statements ............................................................................ 7(Notes on Premise of Going Concern) ......................................................................................................... 7(Notes on Significant Changes in the Amount of Shareholders’ Equity) ................................................ 7(Significant changes in the scope of Consolidation or Equity Method)..................................................... 7(Application of Specific Accounting for Preparing the Quarterly Consolidated Financial
7
Statements)......................................................................................................................................................
(Changes in Accounting policies).................................................................................................................. 7(Additional Information)............................................................................................................................... 8(Notes on Quarterly Consolidated Statements of Income)......................................................................... 8(Segment Information) ................................................................................................................................. 9(Significant Subsequent Event) ................................................................................................................... 9―1―

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Unit: Millions of yen)
FYE 2018(as of March 31, 2018)ASSETSⅠ Current assets
Cash and deposits
Notes and accounts receivable-trade
Lease investment assets
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Ⅱ Noncurrent assets
1. Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Vehicles and equipment on operating leases, net
Construction in progress
Other, net
Total property, plant and equipment
2. Intangible assets
Other
Total intangible assets
3. Investments and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets―2―

2nd Quarter of FYE 2019(as of September 30, 2018)765,397
155,247
17,120242,573
202,435
52,30742,448185,364
107,893(340)
1,770,444

785,214
151,495
15,896146,250
255,00271,34457,722
185,559
112,882(365)
1,780,999

207,133
169,814
184,339
18,63855,90867,276703,108

212,656
197,857
183,304
33,60029,12880,640737,185

28,29328,29327,75927,759113,46582
139,171
115,273(3,362)364,629
1,096,030
2,866,474

121,449
108
138,800
132,099(3,329)389,127
1,154,071
2,935,070

(Unit: Millions of yen)
FYE 2018(as of March 31, 2018)
LIABILITIESⅠ Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for product warranties
Provision for loss on construction contracts
Provision for loss on business liquidation
Provision for loss related to airbags
Other
Total current liabilities
Ⅱ Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Provision for product warranties
Provision for directors' retirement benefits
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Ⅰ Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Ⅱ Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Remeasurements of other postretirement
benefits of foreign consolidated subsidiaries
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets―3―

2nd Quarter of FYE 2019(as of September 30, 2018)

320,137
64,86322,082
42,98245,372
255,914
24,131
34,743160
3,098
64,711
172,813
1,051,006

335,936
63,643
5,025
15,566
13,031
300,400
24,32840,13987
2,984
64,711
201,048
1,066,898

21,1382,466
35,801447
19,337
175,256
254,445
1,305,451

29,1982,822
36,854445
21,277200,571
291,167
1,358,065

153,795
160,197
1,283,539(7,054)
1,590,477

153,795
160,192
1,272,619(6,908)
1,579,698

7,038(36,193)(10,136)

5,901(8,787)(9,068)

1,658

1,772

(37,633)
8,179
1,561,023
2,866,474(10,182)
7,489
1,577,005
2,935,070

(2) Quarterly Consolidated Statements of (Comprehensive) Income
Quarterly Consolidated Statements of Income (for six-month period)(Unit: Millions of yen)
FYE 2018(April 1, 2017 to
September 30, 2017)
Ⅰ Net sales
Ⅱ Cost of sales
Gross profit
Ⅲ Selling, general and administrative expenses
Operating income
Ⅳ Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Foreign exchange gains
Other
Total non-operating income
Ⅴ Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary income
Ⅵ Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Other
Total extraordinary income
Ⅶ Extraordinary loss
Loss on sales and retirement of noncurrent assets
Loss related to airbags
Other
Total extraordinary losses
Income before income taxes
Total Income taxes
Net income
Net income (loss) attributable to non-controlling interests
Net income attributable to owners of parent―4―

FYE 2019(April 1,2018 toSeptember 30, 2018)

1,608,013
1,192,083
415,930
203,805
212,125

1,486,810
1,228,118
258,692
203,652
55,040

2,692
522
399
5,751
1,520
10,8845,562
400
10,2552,560
18,777

791
7,748
1,744
10,283
212,726

386
178
11,0172,226
13,80760,010

155
630
17
802

1,048
3,571
1,695
6,314

2,899
81,261884
85,044
128,484
43,04385,441436
85,005

2,471
856
3,327
62,997
19,22043,777(535)
44,312

Quarterly Consolidated Statements of Comprehensive Income (for six-month period)(Unit: Millions of yen)
FYE 2018(April 1, 2017 to
September 30, 2017)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Remeasurements of other postretirement benefits offoreign consolidated subsidiaries
Share of other comprehensive income (loss) of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income (loss) attributable to non-controllinginterests―5―

FYE 2019(April 1,2018 toSeptember 30, 2018)85,441

43,777

2,000
5,884
1,252

(1,137)27,391
1,068

(9)

114

373

(140)

9,500
94,941

27,296
71,073

94,284

71,763

657(690)

(3) Quarterly Consolidated Statements of Cash Flows(Unit: Millions of yen)
FYE 2018(April 1, 2017 to
September 30,2017)
Ⅰ Net cash provided by (used in) operating activities
Income (loss) before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss related to airbags
Interest and dividends income
Interest expenses
Loss (gain) on sales and retirement of non-current assets
Loss (gain) on sales and valuation of investment securities
Decrease (increase) in operating loans receivable
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued expenses
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Ⅱ Net cash provided by (used in) investing activities
Net decrease (increase) in time deposits
Purchase of short-term investment securities
Proceeds from sales of short-term investment securities
Purchase of non-current assets
Proceeds from sales of non-current assets
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Ⅲ Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Ⅳ Effect of exchange rate change on cash and cash equivalents
Ⅴ Net increase (decrease) in cash and cash equivalents
Ⅵ Cash and cash equivalents at beginning of period
Ⅶ Decrease in cash and cash equivalents
resulting from change of scope of consolidation
Increase (decrease) in cash and cash equivalents resulting fromchange in fiscal period of consolidated subsidiaries
Ⅷ Cash and cash equivalents at end of period―6―

FYE 2019(April 1, 2018 toSeptember 30,2018)

128,484
48,555(178)
81,261(3,214)
791
2,744
(535)
(3,164)
4,034(8,869)(54,292)(409)
37,413
232,6213,564(862)(27,501)
207,82262,99751,401(8)(5,962)386
1,423(3,343)(654)
4,400(74,195)
10,00537,932
24,851
109,233
6,192(455)(50,295)
64,675(14,001)(67,856)
71,597(76,586)627(28,142)
16,359(62,495)
60,278(1,213)(101,432)

4,094(56,909)54,790(79,555)
3,799(30,135)
22,597(58,318)
60,669(1,016)(79,984)(8,422)
3,400(42,572)(55,154)(579)(103,327)
2,708
5,771
728,616(16,913)
10,400(29,758)(55,189)(863)(92,323)
28,252(79,380)
765,591

(534)

-

3,690

-

737,543686,211

(4) Note to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
FYE 2019 (April 1, 2018 to September 30, 2018)
Not Applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
FYE 2019 (April 1, 2018 to September 30, 2018)
Not Applicable(Significant changes in the Scope of Consolidation or Equity Method)FYE 2019 (April 1, 2018 to September 30, 2018)
Significant changes in the scope of equity method
Newly established SUBARU-SBI Innovation Fund is included in the scope of the equity method from thesecond quarter consolidated accounting period ended September 30, 2018.
(Application of Specific Accounting for Preparing the Quarterly Consolidated Financial Statements)
FYE 2019 (April 1, 2018 to September 30, 2018)
Income tax expense was calculated as multiplying income before income taxes by reasonably estimatedannual effective tax rate. This annual tax rate was reasonably estimated after applying the deferred tax
accounting to the annual income before income taxes. "Income taxes-deferred" was included in "Total
income taxes".
(Changes in Accounting policies)(Changes in accounting method for sales)
FYE 2019 (April 1, 2018 to September 30, 2018)
The Group previously recorded sales incentives as selling, general and administrative expenses. From thefirst quarter of FYE 2019, the group has changed the method to deduct from sales.
In the business environment surrounding the Group, as sales incentives tend to increase constantly, we
reexamined the actual circumstances of the transactions. Sales incentives are taken into consideration when
the terms of the transactions are decided and are considered as a part of selling price practically. In addition,
the Group has improved business management system such as business process and system structure. It is so
judged that the method of deducting sales incentives from sales is more appropriate under the circumstances.
The Group applied the changes in the accounting policy retrospectively, and reclassified in the
consolidated financial statements of the previous fiscal year to reflect the changes. As a result, net sales andselling, general and administrative expenses in the consolidated statement of income for the second quarterof the previous fiscal year decreased by 78,296 million yen, respectively, compared to the amounts before
the retroactive application. There is no effect on operating income, ordinary income and income before
income taxes by the changes.
(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates)(Changes in depreciation method for tangible fixed assets)
FYE 2019 (April 1, 2018 to September 30, 2018)
The Company and its major domestic consolidated subsidiaries changed depreciation method of certain
tangible fixed assets from the declining-balance method to the straight-line method from the first quarter of
FYE 2019.
In recent years, with the expansion of the product lineup, shorter intervals of full model changes andacceleration of new products to the market, there is a tendency of less fluctuation in the number of units soldafter the launch. In addition, it is expected that sharing production facilities among different models makes―7―

utilization stable over the useful life in the future. It is so judged that the equalized allocation of depreciation
expenses of the tangible fixed assets over the useful life reflects the actual usage of tangible fixed assets.
As a result, compared with the previous method, operating income increased by 5,838 million yen, andordinary income and income before income taxes increased respectively by 5,913 million yen.
(Additional Information)
FYE 2019 (April 1, 2018 to September 30, 2018)“Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, revised on
February 16, 2018) has been applied from the first quarter of FYE 2019. Deferred tax assets are presented in
the “Investment and other assets”, and Deferred tax liabilities are presented in the “Non-current liabilities”
on the consolidated balance sheets.
(Notes on Quarterly Consolidated Statements of Income)
Detail of extraordinary losses is as follows:
FYE 2018 (April 1, 2017 to September 30, 2017)
Loss related to airbags
The loss was recognized due to the market measures concerning Takata airbag inflator not containing
desiccant (hereinafter referred to as "the airbag"). It is quality-assurance expenses which further market
measures relating to the airbags to be taken in the current fiscal year and beyond.

―8―

(Segment Information)
1. Information on sales and income (loss) by business segment reported
FYE 2018 (April 1, 2017 to September 30, 2017)(Unit: Millions of yen)

Business segment reported
SubTotal

Automobiles Aerospace
Net sales(1) Outside customers(2) Inter-segment
Total sales
Segment income

1,521,733
1,548
1,523,281
205,283

68,00968,0094,174

1,589,742
1,548
1,591,290
209,457

Other
*1

Total

18,271
9,839
28,1102,364

1,608,013
11,387
1,619,400
211,821

Consolidated
Adjustment
Statement of*2
income *3(11,387)(11,387)304

1,608,013
1,608,013
212,125

Note: *1. Other means the category which is not included into any business segment reported. It consists ofIndustrial products, real estate lease, etc.
*2. Adjustment of segment income refers to elimination of intersegment transaction.
*3. Segment income is adjusted on operating income of the quarterly consolidated statements of income.
(Unit: Millions of yen)

FYE 2019 (April 1, 2018 to September 30, 2018)
Business segment reported
Automobiles Aerospace
Net sales(1) Outside customers(2) Inter-segment
Total sales
Segment income

1,416,406
1,504
1,417,910
49,991

63,046798
63,844
2,982

SubTotal
1,479,452
2,302
1,481,754
52,973

Other
*1

Total

7,358
11,616
18,974
1,752

1,486,810
13,9181,500,728
54,725

Consolidated
Adjustment
Statement of*2
income *3(13,918)(13,918)315

1,486,810
1,486,810
55,040Note: *1. Other means the category which is not included into any business segment reported. It consists ofIndustrial products, real estate lease, etc.
*2. Adjustment of segment income refers to elimination of intersegment transaction.
*3. Segment income is adjusted on operating income of the quarterly consolidated statements of income.
2. Changes in Segment reported(Changes in accounting method for sales)
As described in "(Changes in Accounting policies)", changes in accounting method for sales are
retrospectively applied. As a result, sales of "Automobiles" decreased by 78,296 million yen in the second
quarter of FYE 2018.
(Changes in depreciation method for tangible fixed assets)
As described in "(Changes in Accounting policies)", the Company and its major consolidated subsidiaries
changed the depreciation method for tangible fixed assets. Segment income of "Automobiles" increased
by 5,301 million yen, "Aerospace" increased by 482 million yen and "Other" increased by 55 million yen
respectively in the second quarter of FYE 2019.
(Significant Subsequent Event)Not Applicable―9―November 5, 2018
Subaru Corporation< Reference for the First Half of FYE2019 Consolidated Financial Results >(Yen in 100 Millions, Units in Thousands)

FYE2018 *1st Half(2017 4-9)

FYE2019
1st Half(2018 4-9)

FYE2018 *Full Year('17.4 - '18.3)

FYE2019
Full Year('18.4 - '19.3)

FYE2019
Full Year('18.4 - '19.3)

RESULTSRESULTSRESULTSFORECASTS

PREVIOUSFORECASTS

Originallyreported

Net sales

Change%16,08016,863

14,868(1,212)(7.5)

32,327

34,052

32,100

(227)

(0.7)

3,283

3,286

2,874

(408)

(12.4)

6,680

6,686

6,173

(507)

(7.6)

6,086

Overseas

12,797

13,577

11,994

(804)

(6.3)

25,64727,36725,927280

1.1

26,415550(1,571)(74.1)

3,794

2,200

(1,594)(42.0)

3,000(1,509)(39.7)

3,050

(534)

(24.2)

2,200

2,121
Profit margin (%)

Ordinary income

13.2

12.6

2,127
Profit margin (%)

13.2

Net income attributable toProfit margin (%)
owners of parent

850

Exchange rates

3.7

600
12.6

5.3

5.0

11.7

(1,527)(71.8)

3,799

(407)

(47.9)

2,204

4.0

443

11.1

3.0

6.9

2,290

11.8

11.2
6.5

9.2

7.1

1,670

6.8

32,500

9.4

5.2

6.8

JPY/US$

111/US$

Decrease in R&D
exp
Increase in SG&A
exp, etc.
Deterioration inmodel mix, etc.
Loss on currency
exchange
Increase in raw
material costs, etc.
109/US$

111/US$

Decrease in R&D
exp
Cost reduction
effort, etc.
Increase in SG&A
exp, etc.
Deterioration inmodel mix, etc.
Loss on currency
exchange
110/US$

JPY/EUR

125/EUR

131/EUR

130/EUR

130/EUR

130/EUR

545

591
473
545
498

1,414

1,300
930
1,080
500

1,300

Factors contributing tochange in operating income

Capital expenditures
Depreciation and amortization
R&D expenses
Interest bearing debts

421
609
976

Performance description *Consolidated unit sales
Passenger Cars
<Japan>
Minicars

Consolidated unit sales
North America<Overseas>

65
(913)
(629)
(76)
(18)

898
1,211
862

132
16
(907)
(689)
(146)
105/US$

930
1,200
800

- First decrease in net sales andoperating income in 2 years- First decrease in net sales in 7
years

- Decrease in ordinary income
and net income for 3 consecutive
years- Decrease in all profits for 3
consecutive years

82
67

65

(17)

(21.1)

52(15)(22.1)

163
133

151

15

13

(2)

(16.4)

31

28

449

417

(32)

(7.1)

903

950

123

364

334

(30)

(8.2)

728

768

Europe

21

26

4

20.1

48

44

China

14

9

(5)

(33.5)

27

30

Other

50
531

48

(2)

(3.2)

107

482

(49)

(9.3)

101
1,067

492

(34)

(6.4)

319

(27)

(7.9)

173

(6)

(3.6)

14,164(1,053)

(6.9)

630

(50)

(7.3)

Consolidated unit sales total
Production units total
Japan
U.S.
Automobile

Operating income
by businesssegment

Originallyreported

%

Japan

Operating income

Net sales bybusiness segment

ChangeAerospace

525
346
179
15,217

16,000

680

1,050
701
349
30,623

1,041

(26)

(2.4)

1,100

1,036

(14)

(1.3)

1,056

656

(45)

(6.4)

672

380

31

8.9

384

32,349

1,422

Other

183

74

(109)

(59.7)

282

Automobile

2,053

500

(1,553)(75.6)

3,615

Aerospace

42

30

(12)

(28.6)

123

Other
Elimination &Corporate

24

18

(6)

(25.9)

51

3

3

0

3.6

7

* With effect from FYE2019, the Company has changed its accounting policies. In the new method, sales incentives are deducted from net sales, whereas they werepreviously recognized as SG&A expenses. For comparison purposes, net sales and SG&A expenses of the previous year have been recalculated. The recalculated
figures are stated along with the originally-announced figures. There is no impact of the recalculation on the previous-year profit figures. Performance description
notes for the current year are stated in comparison with the recalculated figures of the previous year results.
- "Exchange Rates" are the rates used for Subaru Corporation's non-consolidated sales recording.
- "Consolidated Unit Sales" include retail sales of Japanese consolidated dealers, wholesale sales of overseas consolidated distributors, and deliveries from Sub
Corporation to non-consolidated distributors/dealers- Production in Japan includes production of the 86 models for Toyota.
< Forward-looking statements in this document are based on the information available at the time of the announcement and are subject to various risks auncertainties that could cause actual results to vary materially. >Subaru Corporation Announces Consolidated Financial Results for the First Half of FYE2019
Tokyo, November 5, 2018 – Subaru Corporation today announced its consolidated financial results for the first half offiscal year ending March 31, 2019.

< Results for April-September 2018: Consolidated Net Sales >Consolidated global sales of Subaru vehicles decreased 9.3% to 482,000 units. Despite strong sales of the
fully-redesigned Forester launched in July 2018, unit sales in Japan decreased 21.1% to 65,000 units, as sales of
Impreza and Subaru XV models declined compared to their prior year sales which were driven by the launch of theirfully-redesigned versions. Despite strong demand for the all-new Ascent launched in North America, overseas unit sales
fell 7.1% to 417,000 units, as deliveries of the Forester decreased before the launch of its fully-redesigned version anddeliveries to the U.S. and other markets were adjusted to optimize local inventory levels. Net sales declined 7.5% to
1,486.8 billion yen.*1
On retail sales, Subaru sales in its largest North American market kept strong momentum led by the all-new Ascent andthe Crosstrek (Subaru XV), marking the 7th consecutive year of record sales for the April-September period.
< Results for April-September 2018: Consolidated Profit and Loss >Operating income declined 74.1% to 55 billion yen because of factors including an increase in quality-related expenses
due to a large-scale recall and decreased deliveries of the Forester before the launch of its fully-redesigned version.
Ordinary income decreased 71.8% to 60.0 billion yen. Net income attributable to owners of parent fell 47.9% to 44.3
billion yen.
< Forecasts for FYE2019 >Full-year forecasts for FYE2019 are revised from the previous announcement made on August 6, 2018, to reflect factors
including a decrease in consolidated unit sales and an increase in quality-related expenses.
Revised forecasts: Consolidated unit sales of 1,041,000 vehicles, net sales of 3,210 billion yen, operating income of 220
billion yen, ordinary income of 229 billion yen, net income attributable to owners of parent of 167 billion yen.
Currency rate assumptions: 110 yen/US$, 130 yen/euroPrevious Forecasts for FYE2019 (Announced on August 6, 2018)
Consolidated unit sales: 1,100,000 vehicles
Net sales: 3,250 billion yen
Operating income: 300 billion yen
Ordinary income: 305 billion yen
Net income attributable to owners of parent: 220 billion yen
Currency rate assumptions: 105 yen/US$, 130 yen/euro*1: With effect from this fiscal year (FYE2019), the Company has changed its accounting policies. In the new method, sales
incentives are deducted from net sales, whereas they were previously recognized as SG&A expenses.
For comparison purposes, net sales and SG&A expenses of the previous fiscal year (FYE2018) have been recalculated
according to the new policies. The recalculated figures of net sales and SG&A expenses for the first half of FYE2018 are 1,608
billion yen and 203.8 billion yen, respectively, a decrease of 78.3 billion yen each from the originally-reported figures(announced on November 6, 2017). There is no impact of the recalculation on profit figures of the previous fiscal year.
Forward-looking statements in this document including financial and other forecasts are based on the information available atthe time of announcement and are subject to various risks and uncertainties that could cause actual results to vary materially.
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