Consolidated Financial Results for the 1st Quarter of FYE 2024
SUBARU CORPORATION
Katsuyuki Mizuma, Director, Executive Vice President & CFO
August 2 nd , 2023

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

1

Key Points

 Results for 1st Quarter of FYE 2024•

Production: 243,000 units (up 18% y/y)
While production constraints due to the semiconductor shortage continued, global production increased year on
year.

•

Operating profit: 84.5 billion yen (up 128% y/y)
As sales volume growth and the positive effects of the weak yen more than offset the impact of increases in raw
material costs and SG&A expenses, operating profit increased significantly year on year.

 Forecast for FYE 2024•

Production: 1,010,000 units (up 16% y/y)
While production constraints due to the semiconductor shortage are expected to continue, the Company maintains its
production forecast unchanged as sales and production are generally progressing according to plan.

•

Operating profit: 300 billion yen (up 12% y/y)Although the yen is weakening, the Company maintains its operating profit forecast unchanged due to wide
fluctuationsin the yen exchange rate and uncertainties such as semiconductor supply and logistics constraints.
Notes on figures in the results: Vehicle volume figures are rounded to the nearest thousand. Yen figures are rounded to the nearest hundred million.

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

2

I will begin by explaining the key points of the financial results for the first threemonths of the fiscal year ending March 31, 2024.
First, we have performance for the first quarter.
Production and operating profit both exceeded previous-year levels.
While the effects of production constraints caused by semiconductor shortages
remain, we worked to minimize the impact and achieved growth in production of 18%
year on year.
There was some impact from higher material costs and increases in SG&A expenses,
but continued steady sales momentum, primarily in the North American market,
together with the positive impact of the weaker yen resulted in a very significant yearon-year growth of 128% in operating profit.
Next, we have the outlook for the full year.
With regard to production, we expect issues with semiconductor supply to continue,
but given that actual production and sales in the first quarter were in line with plans wehave left our initial production forecast of 1,010 thousand units unchanged.
We have left the initial operating profit forecast unchanged because although thecurrency is moving further in the direction of the weaker yen than we initially expected,
volatility is high and there are still elements of uncertainty,
such as semiconductor supply issues and logistics constraints.

2

Consolidated Financial Results for the 1st Quarter (3 months) of FYE 2024

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

33

1 st Q u a r t e r ( 3 m o n t h s ) ：Consolidated Unit Sales / Complete Cars Production(Thousand Units)FYE 2023

FYE 2024

1Q Results

1Q Results

Variance

Production in U.S.

70

84

+13

Production in Japan

135

159

+24

205

243

+38

Production* Total

Consolidated Unit Sales Total

FYE 2023

FYE 2024

1Q Results

1Q Results

196

236

Variance+40* Production figures include Toyota GR86.

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

4

I will now cover the results for the first quarter of FYE 2024.
I will begin with production.
The impact of production constraints caused by semiconductor shortages remains, but
production has progressed in accordance with plans, rising 38 thousand units year on
year to 243 thousand units.
Next we have consolidated unit sales.
Primarily in the main market of the U.S., sales were strong and rose 40 thousand units
year on year to 236 thousand units.

4

1 st Q u a r t e r ( 3 m o n t h s ) ：Consolidated Unit Sales (by market)(Thousand Units):FYE 2023

FYE 2024

1Q Results

1Q Results

Variance

Passenger cars

16

17

+1

Minicars

44-0

Domestic total

20

21

+1

U.S.

139

163

+24

Canada11

16+5Europe57+2Australia

9

15

+6

China

3

2

-1

Others

9

12

+3

175

215

+39

196

236

+40

Overseas total
Total
https://www.subaru.co.jp/en/ir/

5Consolidated unit sales by market are as you see on this slide.
As I mentioned to you at the time of the initial announcement, overall global demand isstrong, which of course includes our main market of the U.S., but we also achieved
growth in shipments to Canada and Australia.
The global order backlog still exceeds 90 thousand units.
We will strive to return this to normal levels and deliver vehicles to our customers as
quickly as we can.

5

1 st Q u a r t e r ( 3 m o n t h s ) ：Consolidated Profit Results(100 Million Yen)

Revenue

FYE 2023

FYE 2024

1Q Results

1Q Results

Variance

8,341

10,821+2,480

Domestic

1,271

1,410

+139

Overseas

7,070

9,412

+2,341

Operating profit

370

845

+475

Profit before tax

384

1,154

+770

Profit for the period attributable toowners of parent

272

732

+460

SUBARU
exchange rate

US$

¥125

¥135

+¥11

EURO

¥134

¥145

+¥11

CAN$

¥97

¥100

+¥2

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

6

Let’s move on to consolidated results.
Revenue was up 248.0 billion yen year on year to 1,082.1 billion yen, owing to an
improvement in sales volume & mixture, etc. of 197.8 billion yen from increased unit
sales and selling price revisions, among other factors, and a gain on currency
exchange of 46.7 billion yen.
Operating profit was up 47.5 billion yen year on year to 84.5 billion yen.
Profit before tax was up 77.0 billion yen to 115.4 billion yen, and profit for the period
attributable to owners of parent was up 46.0 billion yen to 73.2 billion yen.

6

1 st Q u a r t e r ( 3 m o 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 )(100 Million Yen)

-262

+341

New car sales total： +489
by price & mixture +100

-93

+517
Gain on currency
exchange-25-3

R&D expenses

Other

Cost impacts
SG&A
expenses,
etc.

845
Sales volume &mixture, etc.

370
FYE 2023
1Q Results
Sales volume &mix , etc.

FYE 2024
1Q Results+475
Currency+517 exchange+341 Cost impacts-262 SG&A expenses, etc.

Domestic+26 US ＄+280 SUBARU-220 SIA*1-42 Fixed manufacturing cost

Overseas+463 EURO+10

Cost reduction+18

Cost reduction+6 SUBARU

Sales Incentive-21 CAN＄+8

Material cost,
etc.

-238

Material cost,
etc.

-48

Others+49 CNY-

Currency exchange
adjustment-55

Unrealized gain+98

+18 SIA*1-93+12 SG&A-85 Warranty claims-6 SUBARU-28 (including impact-4 trans lation)

Suppliers'
dies cost+10

Suppliers'
dies cost-10 Domestic dealers

Fixed
processing
cost

+8

Fixed
processing
cost

+4

SOA *2-20

of foreign currency-19

SCI *3-11

Others-23*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/

7

Next, I will look at the factors driving that increase in operating profit of 47.5 billion
yen.
The main drivers of higher profit were an improvement in sales volume & mixture, etc.,
and gain on currency exchange.
Sales volume & mixture, etc. rose 51.7 billion yen due mainly to an increase in unit
sales and revised selling prices.
The gain on currency exchange was 34.1 billion yen, caused mainly by theapproximately 11-yen depreciation of the yen against the U.S. dollar.
In terms of the main drivers of lower profits, the positive impacts of lower market
prices for rare metals and other materials were surpassed by the negative impact ofhigher raw material prices, including measures to mitigate the impact on suppliers,
leading to negative cost impacts of 26.2 billion yen.
The increase in SG&A expenses, etc. generated by the increase in unit sales had anegative impact of 9.3 billion yen.
U.S. sales incentives per unit were down 100 dollars from 900 dollars in the previous
year to 800 dollars, but the total amount of U.S. sales incentives rose by 0.8 billionyen.

7

1 st Q u a r t e r ( 3 m o n t h s ) ：Consolidated Statement of Cash Flows / Cash and cash equivalents(100 Million Yen)FYE 2023

FYE 2024

1Q Results

1Q Results

Net cash provided by (used in) operating activities

1,323

1,296

Net cash provided by (used in) investing activities-578-1,406

Free cash flows

746

-109

Net cash provided by (used in) financing activities

-351

-677

Effect of exchange rate change on cash
and cash equivalents

688

497

As of March 2023

As of June 2023

Variance

Cash and cash equivalents at end of period

9,795

9,506

-290

Interest bearing debts Balance at end of period *

3,126

3,102

-23

Net cash

6,669

6,403

-266

* Lease liabilities are not included in the results above.
https://www.subaru.co.jp/en/ir/

8This is the consolidated statement of cash flows and cash and cash equivalents.
Free cash flows were -10.9 billion yen.
Net cash used in investing activities has increased because it includes -76.2 billion
yen in payments to U.S. dollar-denominated deposits with maturities of over threemonths.
Cash and cash equivalents at the end of the period declined by 29.0 billion yen fromthe end of the previous year to 950.6 billion yen, and the balance of interest bearing
debt was down 2.3 billion yen from the end of the previous year to 310.2 billion yen.
As a result, net cash decreased by 26.6 billion yen from the end of the previous year
to 640.3 billion yen.

8Capex / Depreciation / R&D(100 Million Yen)FYE 2023

FYE 2024

1Q Results

1Q Results

Variance

Capex *1

280

321

+41

Depreciation *1

238

250

+12

R&D expenditures *2

231

280

+49

*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/

9Actual capex and related figures are as you see on this slide.

9

Forecast for FYE 2024

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

1010FYE 2024 Plan ：Consolidated Unit Sales / Complete Cars Production(Thousand Units)FYE 2023

FYE 2024

Results

Plan

Variance

Production in U.S.

299

-

-

Production in Japan

575

-

-

874

1,010

Production*1 Total

Consolidated Unit Sales Total

FYE 2023

FYE 2024

Results

Plan

852

1,010

+136

Variance+158*1:Production figures include Toyota GR86.

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

11

Next, we have the full-year plans for FYE 2024.
The issues with semiconductor supply have not been completely resolved, but aretrending towards improvement. Given that demand for Subaru vehicles is still strong
and that progress in volume terms is in line with initial plans, we have made nochanges to the production and consolidated unit sales targets of 1,010 thousand units
each.

11

FYE 2024 Plan ：Consolidated Unit Sales / Complete Cars Production(Thousand Units):

Passenger cars

FYE 2023

FYE 2024

Results

Plan

81

Variance

107+26

Minicars

19

19

+1

Domestic total

100

126

+27

U.S.

592

664

+73

Canada

43

65

+22

China

10

14

+4

108

141

+33

Overseas total

753

884

+131

Total

852

1,010

+158

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

12Consolidated unit sales plans by market are unchanged from those announced at the
beginning of the fiscal year.
In the U.S. market, demand for Subaru products remains robust.

12

FYE 2024 Plan ：Consolidated Profit Plan
(Yen in 100 millions)

FYE 2023

FYE 2024

Results

Plan

Variance

Revenue

37,74542,000+4,255

Operating profit

2,675

3,000

+325

Profit before tax

2,784

3,000

+216

Profit for the period attributable toowners of parent

2,004

2,100

+96

SUBARU
exchange rate

US$

¥135

¥128

-¥7

EURO

¥141

¥138

-¥3

CAN$

¥102

¥94

-¥8

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

13

Let’s move on to consolidated profit plans.
Revenue and profit plans are also unchanged from those announced at the beginningof the fiscal year.
Recently there has been further weakness in the yen, but currencies are extremely
volatile, so at this point in time we have not revised exchange rates used.

13

FYE 2024 :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)

+60

+1,520-655-310

R&D expenses
Loss on currency
exchange
Sales volume &mixture, etc.

-267

SG&A expenses,
etc.

-23

Cost impacts

Other

3,000

2,675
FYE 2023
Results

FYE 2024
Plan

+325

Curerncy
Sales volume &+1,520 exchange
mix , etc.

-655 SG&A expenses, etc.

Domestic+155 US＄-768 Fixed manufacturing cost

Overseas+1,368 EURO

Sales Incentive-345 CAN＄

Others+342 CNY-4 SUBARU+8 SIA*1-310 Cost reduction, etc.
-283 Warranty claims-31 SUBARU-109

Cost reduction+28

Cost reduction+18

Material cost,
etc.

-413

Material cost,
etc.

+100

-96

Suppliers'
dies cost+56

Suppliers'
dies cost+37 Domestic dealers

-30

+1

Fixed
processing
cost

-48

Fixed
processing
cost

-68

Currency exchange
adjustment-125

Unrealized gain

+337

SOA *2-76

SCI *3-18

Others-50-4 SUBARU-267-23 SG&A-385 SIA*1+118*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.
There has been no change here either.
There are elements of uncertainty such as semiconductor supply issues and logistics
constraints, but we will strive to achieve operating profit of 300.0 billion yen.

Capex / Depreciation / R&D(100 Million Yen)FYE 2023

FYE 2024

Results

Plan

Variance

Capex *1

1,228

1,800

+572

Depreciation *1

1,030

1,000

-30

R&D expenditures *2

1,078

1,200

+122

*1 : Leases, capex & amortization for intangible assets 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/

15

Finally, capex, depreciation, and R&D expenditures are as you see here.
All three are unchanged from the figures in the previous announcement.
The remaining pages contain segment information, etc. for your reference.
This concludes the briefing on our financial results for the first quarter of the fiscal year
ending March 31, 2024. Thank you.

15

Appendix• Segment information by Business & Geographic• Operating Results of Subsidiaries in U.S.

• Overseas Revenue• FYE 2023 and FYE 2024 Results (by Quarter)• Consolidated Statement of Financial Position• Complete Cars Production / Retail Sales Units• Non-consolidated Unit Sales

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

16

16

1 st Q u a r t e r ( 3 m o n t h s ) ：Revenue and Operating Profit by Business Segment (Consolidated)(100 Million Yen)

Revenue

Operating profit

FYE 2023

FYE 2024

1Q Results

1Q Results

Automobile

8,181

10,620+2,439Aerospace

148

189

Other

12

Elimination & Corporate

Total

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

FYE 2024

FYE 2023

FYE 2024

Plan

1Q Results

1Q Results

40,907

364

841

+477

2,962

+41

1,045

-21

-11

+10

17

12

+0

48

26

13

-13

21

-

-

-

-

0

1

+1

-

8,341

10,821+2,48042,000

370

845

+475

3,000

Variance

Variance

FYE 2024
Plan

17

17

1 st Q u a r t e r ( 3 m o n t h s ) ：Revenue and Operating Profit by Geographic Area (Consolidated)(100 Million Yen)

Revenue
FYE 2023

FYE 2024

1Q Results

1Q Results

Operating profit
Variance

FYE 2023

FYE 2024

1Q Results

1Q Results

Variance

Japan

1,799

2,239

+440

149

419

+269

North America

6,230

8,236

+2,006

451

538

+87

312

346

+34

21

-5

-26

-

-

-

-251

-107

+145

8,341

10,821+2,480

370

845

+475

Other

Elimination & Corporate

Total

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

18

18

1 st Q u a r t e r ( 3 m o n t h s ) ：Overseas Revenue (C onsolida ted)(100 Million Yen)

North America

FYE 2023

FYE 2024

1Q Results

1Q Results

Variance

6,301

8,344

+2,043

Europe

188

272

+84

Asia

239

197

-42

Other

343

598

+255

Total

7,070

9,412

+2,341

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

1919

Consolidated Statement of Financial Position(100 Million Yen)

As of March2023
Total assets

As of June
2023

Variance

39,442

41,084+1,642Current assets

24,29825,524+1,227

Non-current assets

15,144

15,559+416

18,342

18,987

+645

3,126

3,102

-23

21,09922,097+997

Retained earnings

16,237

16,677+440

Equity attributable to owners of parent

21,01022,075+1,066

Ratio of equity attributable to ownersof parent to total assets

53.3%

53.7%

+0.5%

0.15

0.14

-0.01

Total liabilities
Interest bearing debts
Total equity

D/E ratio
https://www.subaru.co.jp/en/ir/

20

20

1 st Q u a r t e r ( 3 m o n t h s ) ：Non-consolidated Unit Sales:(Thousand Units)FYE 2023

FYE 2024

1Q Results

1Q Results

Variance

Domestic production*

135

159

+24

Domestic sales

20

20

-1

Passenger cars

16

16

-0

Minicars

4

3-1

Export total

107

131

+24

Components for overseas
production

70

77

+8

Total

197

227

+30

* Production figures include Toyota GR86.

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

21

21

1 st Q u a r t e r ( 3 m o n t h s ) ：Operating Results of Subsidiaries in U.S.
（Million US$）SOA *1FYE 2023

FYE 2024

1Q Results

1Q Results

Net sales

Variance

4,484

5,531

+1,047

Operating income

280

286

+6

Net income

174

249

+75

Retail sales (Thousand units)

131

160

+29

SIA *2

Net sales

FYE 2023

FYE 2024

1Q Results

1Q Results

Variance

1,916

2,450

+534

Operating income

-45

28

+73

Net income

-33

30

+63

Production (Thousand units)

70

84

+13

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

2222FYE 2023 and FYE 2024 Results(by Quarter)(Yen in 100 millions, Units in thousands)

1Q

FYE 2023

FYE 2024

Results

Results

2Q

3Q

4Q

1Q

Consolidated Unit Sales

196

203

237

217

236

Production *

205

220

246

202

243

8,341

9,168

10,571

9,665

10,821

Operating profit

370

735

1,032

538

845

Profit for the period
attributable to owners of parent

272

506

766

460

732

SUBARU exchange rate
US$

¥125

¥135

¥144

¥133

¥135

Revenue* Production figures include Toyota GR86.

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

23

23

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

Production

Retail Sales

300

228

187

212
202

220

193
177

AprJun202

182

JanMar158
OctDec

243

246

205

207

209

184

196

182

150

220

229

240

240

254
260

262

204

200

271

236

254
262

277

242
227

241

250

269
262

269
271

278

264

252
257

249

253

261

270
268

276

276

280

269
273

237

242
245

249

264
258

250

100

92

50

0
JanMar

AprJunJulSep

OctDec2016

JanMar

AprJunJulSep

OctDec2017

JanMar

AprJunJulSep2018

OctDecJanMar

AprJunJulSep2019

OctDecJanMar

AprJunJulSep2020

OctDecJanMar

AprJunJulSep2021

JulSep2022

OctDecJanMar

AprJun2023* Production figures include Toyota GR86.
https://www.subaru.co.jp/en/ir/

24

24

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.

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

2525