Consolidated Financial Results
For the First Quarter of the Fiscal Year Ending March 31, 2019
(Japan GAAP)
August 6, 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: August 10, 2018
Scheduled date for dividend payment: －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 First Quarter of FYE 2019 (April 1, 2018 to June 30, 2018)(1) Consolidated Results of Operations (for three-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
1st Quarter of
FYE 2019
1st Quarter of
FYE 2018

Operating income

Ordinary income

Net income
attributable toowners of parent

709,227(12.9)%

57,576(51.8)%

60,097(49.6)%

45,463(44.8)%

814,010

5.8%

119,34417.5%

119,273

0.4%

82,326

4.4%

Note: Comprehensive income 1st Quarter of FYE 2019: 58,838 million yen (Minus31.1%) 1st Quarter of FYE 2018: 85,354 million
yen (85.1%)

Net income
Net income per share,per share, basic (Yen)diluted (Yen)
1st Quarter of
FYE 2019
1st Quarter of
FYE 2018

59.30－

107.38－(Unit: Millions of yen, except for per share figures)
Shareholders’ equity to
Total assets
Net assets
total assets (%)(2) Consolidated Financial Position
1st Quarter of
FYE 2019

2,860,625

1,564,629

54.4%

FYE 2018

2,866,474

1,561,023

54.2%

Reference: Shareholders’ equity As of June 30, 2018: 1,557,251 million yen As of March 31, 2018: 1,552,844 million yen

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

FYE 2019－

FYE 2019 (Forecast)

Annual

72.00

－

72.00

144.00

72.00

－

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)

1,463,100(9.0)%

110,000 (48.1)%

Net income
Net income per
attributable to owners share, basic(Yen)of parent
111,700 (47.5)%
79,100 (6.9)%
103.17Full year 3,250,000

0.5%

300,000 (20.9)%

305,000 (19.7)%

Net sales
1st half

Operating income

Ordinary income

220,000(0.2)%

286.94

Note: Revision of the forecasts at the timing of announcement of the results of first quarter of the fiscal year ending March 31,
2019: No

4. Others(1) Changes of significant subsidiaries in the first 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
: No
: Yes
: Yes
: No

[1] Changes due to revisions of accounting standards[2] Changes due to other reasons[3] Changes of estimation due to accounting issues[4] Restatements

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 June 30, 2018:(including treasury stock)[2] Number of treasury stock
As of June 30, 2018:[3] Average number of shares
1st Quarter of FYE 2019:(for three-month period)

769,175,873 shares As of March 31, 2018:769,175,873 shares

2,456,556 shares As of March 31, 2018:

2,455,039 shares

766,719,718 shares 1st Quarter of FYE 2018: 766,685,489 shares*The status of the implementation of the first 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(Changes in Accounting policies).................................................................................................................. 7(Application of Specific Accounting for Preparing the Quarterly Consolidated Financial 7
Statements)....................................................................................................................................................
(Additional Information)............................................................................................................................... 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－

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

800,943
138,420
16,527140,810
216,91367,54053,264
186,287
109,210(343)
1,729,571

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

211,511
192,541
183,848
38,35026,67280,539733,461

28,29328,29327,44527,445

113,46582
139,171
115,273(3,362)364,629
1,096,030
2,866,474

115,690424
137,232
120,196(3,394)
370,148
1,131,054
2,860,625

(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－

1st Quarter of FYE 2019(as of June 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

312,401
66,494
12,196
17,313
13,849232,955
36,31838,31892
2,959
64,711
219,995
1,017,601

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

27,1552,605
36,994403
21,094
190,144278,395
1,295,996

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

153,795
160,197
1,273,770(7,054)
1,580,708

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

5,896(21,473)(9,604)

1,658

1,724

(37,633)
8,179
1,561,023
2,866,474(23,457)
7,378
1,564,629
2,860,625

(2) Quarterly Consolidated Statements of (Comprehensive) Income
Quarterly Consolidated Statements of Income (for three-month period)(Unit: Millions of yen)
FYE 2018(April 1, 2017 toJune 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
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 toJune 30, 2018)

814,010597,078
216,932
97,588
119,344709,227
549,676
159,551
101,975
57,576

1,161
365
174
5,685
190
7,575

2,310
277
－
9,961
1,847
14,395

392
－
6,483
771
7,646
119,273

224
59
10,674917
11,87460,097

115
92
14
221

755
2,115
368
3,238

1,219
57
1,276
118,218
35,72682,492
166
82,326

1,277
496
1,773
61,562
16,82144,741(722)
45,463

Quarterly Consolidated Statements of Comprehensive Income (for three-month period)(Unit: Millions of yen)
FYE 2018(April 1, 2017 toJune 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 toJune 30, 2018)82,492

44,741

941
1,263
625

(1,142)
14,751
532

3

66

30

(110)

2,862
85,354

14,097
58,83885,12559,639229(801)

(3) Quarterly Consolidated Statements of Cash Flows(Unit: Millions of yen)
FYE 2018(April 1, 2017 toJune 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
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 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 toJune 30,2018)

118,218
23,075(2)(1,526)
392
1,104
(51)
(2,338)15,933(2,424)(24,286)(9,885)37,041
155,2511,509(479)(15,221)141,060

61,562
24,76636(2,587)224
522(1,961)(247)
16,829(35,634)(8,568)(26,724)
42,78371,001
2,386(296)(47,076)
26,015

152(52,676)
54,254(34,006)502(13,337)
8,867(32,664)
30,431
106(38,371)

4,056(27,782)
21,754(31,077)
2,629(14,553)
14,513(29,496)
29,89314(30,049)

4,358
3,400
(41,780)(54,011)(381)(88,414)637
14,912
728,616(9,916)
7,900(27,553)(53,695)(478)(83,742)
16,619(71,157)
765,591

(534)

－

3,690

－

746,684

694,434

(4) Note to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
FYE 2019 (April 1, 2018 to June 30, 2018)
Not Applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
FYE 2019 (April 1, 2018 to June 30, 2018)
Not Applicable(Changes in Accounting policies)(Changes in accounting method for sales)
FYE 2019 (April 1, 2018 to June 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 first quarter ofthe previous fiscal year decreased by 40,760 million yen, respectively, compared to the amounts before theretroactive 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 June 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
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.
The effect of these changes on profit and loss for the first quarter of FYE 2019 is immaterial.
(Application of Specific Accounting for Preparing the Quarterly Consolidated Financial Statements)
FYE 2019 (April 1, 2018 to June 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".

－7－

(Additional Information)
FYE 2019 (April 1, 2018 to June 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.

－8－

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

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

771,442763
772,205
116,790

33,942－33,942
1,815

SubTotal
805,384763
806,147
118,605

Other
*1

Total

8,626
5,025
13,651
1,227

814,010
5,788
819,798
119,832

Consolidated
Adjustment
Statement of*2
income *3－(5,788)(5,788)(488)

814,010－814,010
119,344

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 June 30, 2018)
Business segment reported
Automobiles Aerospace
Net sales(1) Outside customers(2) Inter-segment
Total sales
Segment income

672,949698
673,647
55,23632,984798
33,782
1,550

Other
*1

SubTotal
705,933
1,496
707,42956,786

3,294
5,563
8,857
702

Total

709,227
7,059
716,286
57,488

Consolidated
Adjustment
Statement of*2
income *3－(7,059)(7,059)88709,227－
709,227
57,576

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.
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 40,760 million yen in the firstquarter 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. The effect of the change on the segment
income is immaterial.
(Significant Subsequent Event)Not Applicable－9－August 6, 2018
Subaru Corporation< Reference for the First Quarter of FYE2019 Consolidated Financial Results >FYE2018 *1st Quarter(2017 4-6)
RESULTSFYE2019
1st Quarter(2018 4-6)
RESULTS

Originallyreported

Net sales
Japan
Overseas

Operating income
Profit margin (%)

Ordinary income(1,450)(9.0) 32,327 34,052

32,500

173

1,603
6,537
1,193

1,605
6,943

1,302
5,790
576

(301) (18.8) 3,283 3,286(746) (11.4) 12,797 13,577(618) (51.8) 2,121

2,670
11,961
1,100(613) (18.7) 6,680 6,686(837) (6.5) 25,647 27,367(1,021) (48.1) 3,794

6,086
26,4153,000(594) (8.9)767
3.0(794) (20.9)

14.7

14.0

8.1

601

14.7

14.0

112/US$
122/EUR
220
0
202
262
1,107

13.2

(592) (49.6)

8.5

455
9.6

Factors contributing tochange in operating income

Cap ta e
Capitalexpenditurespe d tu es
Depreciation and amortization
R&D expenses
Interest bearing debts

12.6

2,127
13.2

(369) (44.8)

6.4

12.6

850
5.0

(438)
(116)
(34)
(19)
(11)
111/US$
125/EUR
545
5
5
421
609
976

283
213
281
567

Minicars

Consolidated unit sales<Overseas>

North America
EuropeChina
Other

Consolidated unit sales total
Production units total
Japan
U.S.
Automobile
Net sales bybusiness segment

Operating income
by businesssegment

Aerospace

7,714

29
23
6
209
166
18
3
22
238
241
155
87
8,122

6,729

(12)
(10)
(1)
(22)
(24)
8
(5)
(1)
(33)
(34)
(22)
(13)

(28.5)(31.2)(16.4)(9.5)(12.6)
75.6(57.8)(4.6)(12.3)(12.4)(12.2)(12.6)

7.6

11.1

3,799
11.8

(59)

(6.9)

5.4

11.2

2,204

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

6.5

(580)
(248)
(138)
(54)
(1)
111/US$
130/EUR
1,414
,
898
1,211
862

650
465
610
600

(985) (12.8) 15,217 16,000

(13)
(11)
(2)
(12)
(19)
6
(1)
3
(25)
(24)
(25)
1

(16.3)(16.8)(14.0)
(2.6)
(5.3)
30.2
(10.4)
5.8
(4.7)
(4.5)
(7.1)
0.5

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

49
11
(584)
(147)
(123)

1,300
930
1,200
800

- Record global unit sales

163
133
31
903
728
48
27
101
1,067
1,050
701
349

151
123
28
950
768
44
30
107
1,100
1,056
672
384

(13) (7.8)(10) (7.4)(3) (9.1)
46
5.1
41
5.6
(4) (8.2)
3 11.3
6
6.4
33
3.1
6
0.6
(29) (4.2)
35 10.1

30,623 32,349

330

(10)

1,422

33

(53) (61.8)

183

282
3,615

Other

86

Automobile

1,168

552

(616) (52.7)

2,053

Aerospace1816(3) (14.6)

42

123

Other

12

7

(5) (42.8)

24

51

Elimination &Corporate

(5)

1

6

3

7

(118.0)(0.2)- Decrease in all profits for 3
consecutive years

339

(2.8)

680

69
56
13
437
345
28
12
53
506
501
322
180

(4)

6.8

- Increase in net sales for 7
consecutive years- Decrease in ordinary
income and net income for 3
consecutive years

82
67
15
449
364
21
14
50
531
525
346
179

(749) (19.7)

9.4

2,200

6.8

0.5

9.2

3,050

- First decrease in net sales
and operating income in 2
years

- First decrease in all profits in
2 years

40
33
7
231
189
10
8
23
271
276
176
99

11.7

(1,010) (47.5)

791

5.3

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

7.5

1,117

- First decrease in net sales in
7 years

Performance description *Consolidated unit sales
Passenger Cars
<Japan>%Change14,630823

JPY/US$

Originallyreported(1,048) (12.9) 16,080 16,863

10.1

JPY/EUR%

7,092

Net income attributable to

Exchange rates

Change8,548

owners of parent

Profit margin (%)

Originallyreported%(Yen in 100 Millions, Units in Thousands)
FYE2018 *FYE2019
Full Year
Full Year('17.4 - '18.3)(2018.4 - 2019.3)
RESULTSFORECASTS

FYE2019
1st Half(2018 4-9)
FORECASTS

8,140

1,193
Profit margin (%)

ChangeFYE2018 *1st Half(2017 4-9)
RESULTS* With effect from 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 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 Subaru
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 and uncertainties that
could cause actual results to vary materially. >Subaru Corporation Announces Consolidated Financial Results for the First Quarter of FYE2019

Tokyo, August 6, 2018 – Subaru Corporation today announced its consolidated financial results for the first quarter offiscal year ending March 31, 2019.

< Results for April-June 2018: Consolidated Net Sales >Global sales of Subaru vehicles decreased 12.3% to 238,000 units. Unit sales in Japan decreased 28.5% to 29,000
units, as sales of the Forester declined before the launch of its fully-redesigned version and sales of the Impreza and
SUBARU XV declined compared to prior-year sales that were driven by the launch of their fully-redesigned versions.
Overseas unit sales fell 9.5% to 209,000 units due to decreased deliveries of the Forester before the launch of its
fully-redesigned version, which offset strong sales of the SUBARU XV*1 especially in North America.
Net sales declined 12.9% to 709.2 billion yen*2 due to decreased unit sales and other factors.
With effect from this fiscal year (FYE2019), the Company has changed its accounting policies.*2 In the new method,sales incentives are deducted from net sales, whereas they were previously recognized as SG&A expenses.
< Results for April-June 2018: Consolidated Profit and Loss >While retail sales in North America, Subaru’s largest market, kept strong momentum, operating income declined
51.8% to 57.6 billion yen due to factors such as decreased deliveries of the Forester before the launch of its
fully-redesigned version and increased SG&A expenses. Ordinary income decreased 49.6% to 60.1 billion yen. Net
income attributable to owners of parent fell 44.8% to 45.5 billion yen.
< Forecasts for FYE2019 >Full-year forecasts for FYE2019 remain unchanged from the previous announcement made on May 11, 2018.
Forecasts for FYE2019 (Announced on May 11, 2018)
Global sales of Subaru vehicles: 1,100,000 units
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: “Crosstrek” in North America*2: For comparison purposes, net sales and SG&A expenses of the previous fiscal year (FYE2018) have beenrecalculated according to the new policies. The recalculated figures of net sales and SG&A expenses for the first quarter of
FYE2018 are 814 billion yen and 97.6 billion yen, respectively, a decrease of 40.8 billion yen each from theoriginally-reported figures (announced on August 3, 2017). There is no impact of the recalculation on profit figures ofthe previous fiscal year.
Forward-looking statements in this document including financial and other forecasts are based on the information
available at the time of the announcement and are subject to various risks and uncertainties that could cause actual
results to vary materially.
###