Consolidated Financial Results for the 1st Quarter of FYE 2020

SUBARU CORPORATION
Toshiaki Okada
Corporate Executive Vice President & CFO
August 5th, 2019https://www.subaru.co.jp/en/ir/

1

NOTE)
This document is an English translation of an original Japanese document. If there are any discrepancies
between this document and the original Japanese document, the original Japanese document prevails.

1Consolidated Financial Results
for the 1st Quarter (3 months) of FYE 2020

SUBARU Corporation is voluntarily adopting the International Financial Reporting Standards (IFRS) from the firstquarter of the fiscal year ending March 2020. Therefore, the figures are based on IFRS.
Please refer to Appendix (2) for changes in the consolidated financial statements as a result of voluntary adoption of
IFRS .

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

2International Financial Reporting Standards (IFRS) have been adopted starting with the fiscal year underreview. The figures provided on the following pages are based on IFRS.

2

1st Quarter (3 months) :Consolidated Unit Sales （by market)（Thousand Units）
Reference : JGAAPResults
1st Quarter (3 months)
FYE 2019

Results
1st Quarter (3 months)
FYE 2020

Passenger cars (*)

25.9

27.5

+1.6

Minicars (*)

6.5

5.8

-0.7

6.0

Domestic total(*)

32.4

33.3

+0.9

28.9

US

149.8

179.3

+29.5

149.8

Canada

15.7

15.6

-0.1

15.7

Russia

2.5

2.2

-0.3

2.5

Europe

15.3

5.9

-9.4

15.3

Australia

Variance

Results
1st Quarter (3 months)
FYE 2019

22.9

10.9

11.7

+0.8

10.9

China

3.4

5.7

+2.4

3.4

Others

11.4

8.8

-2.6

11.4

Overseas total

209.0

229.3

+20.3

209.0

Total

241.3

262.6

+21.2

237.9

＊JGAAP : on vehicle registration basis, IFRS : on delivery-to-customer basis
https://www.subaru.co.jp/en/ir/

3

Let’s start with the consolidated financial results for the first quarter (3 months).

Consolidated unit sales grew 21.2 thousand units year on year to reach 262.6 thousand units.

Overseas, sales of the fully redesigned Forester and of the Ascent, which was launched in the North
American market last summer, were strong, resulting in a year-on-year increase of 20.3 thousand units, to229.3 thousand units.

In the domestic market, sales of the fully redesigned Forester and the SUBARU XV with
e-BOXER increased, resulting in a year-on-year increase of 0.9 thousand units, to 33.3 thousand units.

Retail sales in the United States market have remained favorable, outperforming the same period of theprevious year for 92 consecutive months up to July 2019.

3

1st Quarter (3 months) :Consolidated Unit Sales / Complete Cars Production（Thousand Units）

Results
1st Quarter (3 months)
FYE 2019

Consolidated Unit
Sales Total

241.3

Results
1st Quarter (3 months)
FYE 2020

Variance

262.6

+21.2

（Thousand Units）

Results
1st Quarter (3 months)
FYE 2019

Results
1st Quarter (3 months)
FYE 2020

Variance

Production in U.S.

86.7

101.9

+15.2

Production in Japan

154.8

160.0

+5.2

Total

241.5

261.9

+20.4

* Production figures include Toyota 86.
https://www.subaru.co.jp/en/ir/

4

Production increased 20.4 thousand units year on year to reach 261.9 thousand units.

Production in Japan increased year on year due to strong demand for the fully-redesigned Forester, which
offset an impact of changes in operation schedules at the Gunma plant continuing since the fall of 2018 toensure quality-first production and inspection work.

Production in the U.S. substantially exceeded that of the previous year, owing primarily to increased Ascentproduction.

4

1st Quarter (3 months) :Consolidated Profit Results(100 Million Yen)
Reference : JGAAPResults
Results
1st Quarter (3 months) 1st Quarter (3 months)
FYE 2019
FYE 2020

Variance

Results
1st Quarter (3 months)
FYE 2019

Revenue (*1)

7,184

8,334

+1,150

7,092

Domestic

1,397

1,423

+25

1,302

Overseas

5,786

6,912

+1,125

5,790

Operating profit (*2)

621

922

+301

576

Profit before tax (*3)

634

893

+260

616

Profit for the period attributableto owners of parent (*4)

474

665

+190

455

US$

¥108

¥111

+¥3

¥108

EURO

¥131

¥125

-¥6

¥131

CAN$

¥84

¥83

-¥1

¥84

SUBARU
exchangerate*1 : “Net sales” on JGAAP is shown as “Revenue”.
*2 : “Operating income” on JGAAP is shown as “Operating profit”.
*3 : “Income before income tax” on JGAAP is shown as “Profit before tax”.
*4 : “Net income attributable to owners of parent” on JGAAP is shown as “Profit for the period attributable to owners of parent”.
https://www.subaru.co.jp/en/ir/5

Due primarily to the positive effect of improved sales volume & mixture of 113.5 billion yen as a result of
increased automobile unit sales and other such factors, revenue increased by 115.0 billion yen year on year to833.4 billion yen.

Operating profit was up 30.1 billion yen year on year to 92.2 billion yen as a result of automobile unit sales
growth, sales incentive control, decreases in SG&A expenses and others, R&D expenses, and other factors.

Additionally, profit before tax was up 26.0 billion yen to 89.3 billion yen and profit for the period attributableto owners of parent was up 19.0 billion to 66.5 billion yen.

5

1st Quarter (3 months) :Analysis of Variance in Operating Profit (Consolidated)

Sales volume R&D& mixture expenses+113

and others

SG&A
expensesand others

+70
Cost
reduction+174

Accounting standard
difference(100 Million Yen)

-26

+45

Sales volume &mixture andothersDomestic-3

Fixed manufacturing cost

Overseas

196 SUBARU

Sales Incentive

64

Others-83-10

Results
Operating Profit
1Q (3 months)
FYE 2020(IFRS)+301

SG&A expenses and others

174

Other

-20

Results
Operating Profit
1Q (3 months)
FYE 2019(IFRS)

Results
Operating Income
1Q (3 months)
FYE 2019(JGAAP)

Loss oncurrency
exchange

-42

70
SG&A

Cost reduction-12

Warranty claims

124

SUBARU

4 SIA

Curerncy
exchange

-26
-30

US$

-20
85

-45 SIA

3 SUBARU

2

Cost reduction

23 Cost reduction

10

EURO

-3

Suppliers' dies cost

-22

Suppliers' dies cost

4

Domestic
dealers2

Material cost and others-19 Material cost and others

-40

CAN$

-3

Fixed processing
costs

-23

Fixed processing
costs

-1

SOA (*1)-13

SCI (*2)0

Others-3

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

CNY*1 SOA: Subaru of America Inc.
*2 SCI : Subaru Canada Inc.

0

Currency exchange
adjustment-53

Unrealized gain

-46

6

The main factors working to increase operating profit were improvement in the sales volume & mixture and adecrease in SG&A expenses and others, R&D, and other expenses.
In regard to the sales volume & mixture, new car sales improved substantially overseas owing to an increasein unit sales, primarily of the Ascent and the Forester, and sales incentive control.

The decrease in R&D was primarily a result of an increase in capitalized costs in conjunction with the
adoption of IFRS.
As for SG&A and other expenses, the decrease in warranty claims was primarily a result of there not having
been any major recalls and currency exchange valuation of provisions.
The main factors working to decrease operating profit were higher material costs, other negative market
factors and so on.
In the U.S., as full redesigns of the Legacy and Outback await, sales of current models continued favorably,
and costs were kept down. As a result, per unit incentives were down 750 dollars year on year to 1,750
dollars, leading to a 5 billion yen improvement in costs overall.

6

Consolidated Statement of Financial Position(100 Million Yen)

As of March2019

As of June
2019

Variance

31,806

31,678-128

Current assets

19,137

18,714-423

Non-current assets

12,66912,964+295

14,907

14,805

-102

1,037

1,070

+33

Total equity

16,89916,874-25

Retained earnings

13,506

13,610+104

Equity attributable to owners of parent

16,822

16,799-24

Ratio of equity attributable to ownersof parent to total assets

52.9%

53.0%

-

0.06

0.06

-

Total assets

Total liabilities
Interest bearing debts

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

7

Assets decreased by 12.8 billion yen from March 31, 2019, due primarily to a decrease in inventories.

Liabilities decreased by 10.2 billion yen, due primarily to a decrease in provisions.

Equity decreased by 2.5 billion yen due to a decrease in other components of equity despite an increase inretained earnings.

Figures for the fiscal year ended March 2019 have been adjusted to reflect IFRS. As such, they differ fromthe figures disclosed previously (May 10, 2019) that were based on JGAAP.

7

1st Quarter (3 months) :Consolidated Statement of Cash Flows(100 Million Yen)

Results
1st Quarter (3 months)
FYE 2019

Results
1st Quarter (3 months)
FYE 2020

Variance

Net cash provided by (used in)operating activities

423

1,367

+944

Net cash provided by (used in)investing activities

-361

-279

+81

62

1,088

+1,026

Net cash provided by (used in)financing activities

-940

-617

+322

Effect of exchange rate change
on cash and cash equivalents

166

-155

-321

Net increase (decrease)in cash and cash equivalents

-712

315

+1,027

6,944

7,339

+394

Free cash flows

Cash and cash equivalents
at end of period
https://www.subaru.co.jp/en/ir/

8Provisions decreased significantly, primarily as a result of recall-related expenditures, but operating cash flow
increased owing to an increase in profit before tax and a decrease in inventories and income taxes paid. As aresult, free cash flow increased.

In conjunction with the adoption of IFRS, lease payments for leases recorded as assets have been moved
from operating cash flow to financing cash flow.

8

1st Quarter (3 months) :Operating Results of Subsidiaries in U.S.
（Million US$）

Results
1st Quarter (3 months)
FYE 2019

Results
1st Quarter (3 months)
FYE 2020

4,205

5,261

+1,056

Operating income

-7

160

+167

Net income

3

126

+123

Retail sales(Thousand units)

172.6

182.2

+9.6

SIA

Results
1st Quarter (3 months)
FYE 2019

Results
1st Quarter (3 months)
FYE 2020

1,980

2,428

+448

SOA
Net sales

Net sales

Variance

Variance

Operating income

7

67

+60

Net income

7

54

+47

86.7

101.9

+15.2

Production(Thousand units)
https://www.subaru.co.jp/en/ir/

9

SOA retail sales rose 9.6 thousand units year on year to 182.2 thousand units, owing to favorable sales of the
Ascent and the Forester.

Net sales were up 1,056 million dollars year on year to 5,261 million dollars and operating income benefited
from a 134 million dollar improvement in sales volume & mixture as well as a 33 million dollar decrease in
SG&A expenses, bringing it up 167 million dollars year on year to 160 million dollars.

SIA net sales increased by 448 million dollars year on year to 2,428 million dollars.
At the operating level, the combination of a positive impact from sales mix variances of 85 million dollars, anegative impact from higher costs of 28 million dollars, and a positive impact from lower fixed costs of 3
million dollars, totaling an increase of 60 million dollars year on year, resulted in operating income of 67
million dollars.

9Capex / Depreciation / Interest Bearing Debt / R&D(100 Million Yen)
Reference : JGAAPResults
1st Quarter (3 months)
FYE 2019

Results
1st Quarter (3 months)
FYE 2020

Variance

Results
1st Quarter (3 months)
FYE 2019

Capex (*1)

284

357

+73

283

Depreciation (*1)

214

221

+7

213

Interest bearing debt (*1)

603

1,070

+467

567

R&D expenditures (*2)

281

245

-36

*1 : Leases, capex & amortization for intangible assets and lease liabilities are not included in the results 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/

10

The results for capital expenditures and so on are as shown in this slide.

10

Forecasts for FYE 2020

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

1111

FYE 2020 Plan:

Consolidated Unit Sales (by market)（Thousand Units）
Reference : JGAAPResults
FYE 2019

Plan
FYE 2020

Variance

Results
FYE 2019

Passenger cars (*)

110.2

112.3

+2.1

109.7

Minicars (*)

26.0

28.2

+2.1

25.6

Domestic total(*)

136.2

140.5

+4.3

135.3

US

659.7

693.2

+33.5

659.7

Canada

56.8

60.0

+3.2

56.8

Russia

8.1

8.6

+0.4

8.1

Europe

32.1

37.7

+5.6

32.1

Australia

41.7

45.9

+4.2

41.7

China

22.8

25.2

+2.4

22.8

Others

43.3

47.2

+3.9

43.3

Overseas total

864.6

917.8

+53.2

864.6

1,000.8

1,058.3

+57.5

999.9

Total

＊JGAAP : on vehicle registration basis, IFRS : on delivery-to-customer basis
https://www.subaru.co.jp/en/ir/

12

Next, let’s look at the plan for the fiscal year ending March 2020.

Because sales were strong, especially in our main market of the U.S., expenses related to R&D and warranty
claims were lower, and incentives were kept down, first quarter results were better than anticipated.

On the other hand, only one quarter of the fiscal year has passed, and many uncertainties remain with respect
to the second half, so the FYE 2020 Plan will be left as-is.

As mentioned at the beginning, the full-year results for the fiscal year ended March 2019, which is thecomparative year, are presented in conformity to IFRS.

The plan for consolidated unit sales remains unchanged since the previous announcement, up 57.5 thousand
units year on year to 1,058.3 thousand units.

12

FYE 2020 Plan :Consolidated Unit Sales / Complete Cars Production（Thousand Units）

Results
FYE 2019

Consolidated Unit
Sales Total

Plan
FYE 2020

1,000.8

Variance

1,058.3+57.5（Thousand Units）

Results
FYE 2019

Plan
FYE 2020

Variance

Production in U.S.

372.2

388.7

+16.6

Production in Japan

617.0

667.5

+50.5

Total

989.1

1,056.2+67.1* Production figures include Toyota 86.
https://www.subaru.co.jp/en/ir/

13

Production figures have also not been revised since the previous announcement.

The plan calls for an increase of 67.1 thousand units year on year, for a total of 1,056.2 thousand units.

13

FYE 2020 Plan :Consolidated Profit Plan
(100 Million Yen)
Reference : JGAAPResults
FYE 2019

Plan
FYE 2020

Variance

Results
FYE 2019

Revenue (*1)

31,562

33,100+1,53931,605

Domestic

5,941

5,841

-101

5,966

Overseas

25,62027,260+1,63925,639Operating profit (*2)

1,817

2,600

+783

1,955

Profit before tax (*3)

1,860

2,700

+840

1,958

Profit for the period attributableto owners of parent (*4)

1,414

2,100

+686

1,478

US$

¥111

¥110

-¥1

¥111

EURO

¥129

¥120

-¥9

¥129

CAN$

¥85

¥80

-¥5

¥85

SUBARU
exchange rate

*1 : “Net sales” on JGAAP is shown as “Revenue”.
*2 : “Operating income” on JGAAP is shown as “Operating profit”.
*3 : “Income before income tax” on JGAAP is shown as “Profit before tax”.
*4 : “Net income attributable to owners of parent” on JGAAP is shown as “Profit for the period attributable to owners of parent”.
https://www.subaru.co.jp/en/ir/

14

The consolidated profit plan also remain unchanged.

We expect revenue to be up by 153.9 billion yen year on year to 3,310 billion yen, operating profit by 78.3
billion yen to 260.0 billion yen, and profit for the period attributable to owners of parent to be 210.0 billion
yen.

14

Plan FYE 2020 :Analysis of Variance in Operating Profit (Consolidated)(100 Million Yen)

R&D
expenses

SG&A
expensesand others

Other

+36

+24

+706

Accounting standard
difference

Loss oncurrency
exchange

-138

-148

Results
Operating Income
FYE 2019(JGAAP)

Results
Operating Profit
FYE 2019(IFRS)

SG&A expenses and others
Fixed manufacturing cost
SUBARU-28 SIA-77

Plan
Operating Profit
FYE 2020(IFRS)-170 Warranty claims 953

Sales volume &mixture andothers257

Domestic-38

US$-64 SUBARU

29 SIA

Curerncy
exchange-148

Cost reduction

-92
-121

-49 SUBARU-37

Overseas

367

EURO

-31

Cost reduction

120 Cost reduction

CAN$

-38

Material cost and others-91 Material cost and others

Suppliers' dies cost0

Suppliers' dies cost

-26

Domestic
dealers-4

Sales Incentive-65

Fixed processing
costs

-28

Fixed processing
costs

-23

SOA (*1)-54

Others-7

SCI (*2)-45

Others-30

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

-92

+783

706
SG&A

Cost
reduction*1 SOA: Subaru of America Inc.
*2 SCI : Subaru Canada Inc.

CNY

22
-143

0

Currency exchange
adjustment-25

Unrealized gain

10

15

In the previous announcement, we explained the analysis of variance in operating profit with respect to lastyear’s results under the JGAAP, but this time, last year’s results have been calculated based on IFRS.

15

Capex / Depreciation / Interest Bearing Debt / R&D(100 Million Yen)
Reference : JGAAPResults
FYE 2019

Capex (*1)

Plan
FYE 2020

Variance

Results
FYE 2019

1,140

1,400

+260

1,135

891

1,000

+110

888

Interest bearing debt (*1)

1,037

1,450

+413

1,004

R&D expenditures (*2)

1,027

1,200

+173

Depreciation (*1)

*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/

16

The full-year forecasts remain unchanged for these items as well.

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 2020.
Thank you very much.

16

Appendix (1)• Segment information by Business & Geographic (1st Quarter)• Overseas Revenue (1st Quarter)• Non-consolidated Unit Sales (1st Quarter)• Complete Cars Production / Retail Sales Units

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

17

17

1st Quarter (3 months) :Revenue and Operating profit by Business Segment (Consolidated)(100 Million Yen)

Revenue
Results
1st Quarter(3 months)
FYE 2019

Operating profit

Results
1st Quarter(3 months)
FYE 2020

Variance

Results
1st Quarter(3 months)
FYE 2019

Results
1st Quarter(3 months)
FYE 2020

Variance

Automobile(6,729)

6,813

7,960

+1,148

(552)

593

878

+285

Aerospace

(330)

338

355

+16

(16)

17

29

+12

Other

(33)

33

20

-13

(7)

11

15

+4

(1)

1

0

-0

(576)

621

922

+301

Elimination& Corporate
Total(7,092)

7,184

8,334

+1,150* Figure in ( ) ：JGAAP

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

18

18

1st Quarter (3 months) :Revenue and Operating Profit by Geographic Area (Consolidated)(100 Million Yen)

Revenue
Results
1st Quarter(3 months)
FYE 2019

Results
1st Quarter(3 months)
FYE 2020

Operating profit
Variance

Results
1st Quarter(3 months)
FYE 2019

Results
1st Quarter(3 months)
FYE 2020

VarianceJapan(2,070)

2,164

2,193

+28

(454)

503

701

+198

North America(4,542)

4,539

5,789

+1,249

(24)

22

234

+212

(480)

480

353

-128

(-2)

-1

8

+9

(99)

98

-20

-118

(576)

621

922

+301

Other
Elimination&
Corporate
Total(7,092)

7,184

8,334

+1,150* Figure in ( ) ：JGAAP

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

19

19

1st Quarter (3 months) :Overseas Revenue (Consolidated)(100 Million Yen)

Results
1st Quarter (3 months)
FYE 2019

Results
1st Quarter (3 months)
FYE 2020(4,776)

4,773

6,060

+1,288Europe

(420)

420

205

-215

Asia

(224)

224

291

+67

Other

(371)

370

356

-15

Total

(5,790)

5,786

6,912

+1,125

North America

Variance* Figure in ( ) ：JGAAP

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

20

20

1st Quarter (3 months) :Non-consolidated Unit Sales（Thousand Units）

Results
1st Quarter (3 months)
FYE 2019

Results
1st Quarter (3 months)
FYE 2020

Variance

Domestic production

154.8

160.0

+5.2

Domestic sales

30.5

31.2

+0.7

Passenger cars

24.6

25.3

+0.7

Minicars

5.9

5.9

-0.0

Number of exported vehicles

122.9

132.3

+9.5

Components for overseas
production

90.1

88.0

-2.1

Total

243.4

251.5

+8.1

* Domestic production figures include Toyota 86.
https://www.subaru.co.jp/en/ir/

21

21

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

Retail Sales

300

250

244
237

253
229233231

AprJunJulSep248 249
242
237

264
258

273269280253245242

276

276
261

268270

249

278
257
252

264

271 269

250

241

269
262
242
227

200

150

100

50

0
JanMar

OctDecJanMar2015

AprJunJulSep2016

OctDecJanMar

AprJunJulSep2017

OctDecJanMar

AprJunJulSep2018

OctDecJanMar

AprJun2019* Production figures include Toyota 86.
https://www.subaru.co.jp/en/ir/

2222

Appendix (2)Changes in Consolidated Financial Statements Due to Voluntary Adoption ofInternational Financial Reporting Standards (IFRS)

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

23

23

Key differences of JGAAP and IFRSJapanese generally accepted accounting principles

International Financial Reporting Standards(JGAAP)(IFRS)

Item

Recorded as expenses when it incurred.
R&D expenses
Included in Net cash provided by (used in) operating
activities.

In case that it is satisfied with criterion of assets,
it will be amortized.
R&D expenses which is recoded as assets areincluded in Net cash provided by (used in) investing
activities.

Revenuerecognition timing

On vehicle registration basis.

On delivery-to-customer basis.

Financing lease is recorded as assets.

Operating lease is also recorded as assets.

Operating lease is included in Net cash provided by

Repayments of lease liabilities are included in Net(used in) operating activities.

cash provided by (used in) financing activities.

（Only in Japan）

Lease

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

2424

Consolidated Statements of Income

JGAAP

IFRS

Net sales

Revenue

Cost of sales

Cost of sales

Gross profit

Gross profit

Selling, general and administrative expenses

Selling, general and administrative expenses

Operating income

Research and development expenses

Non-operating income

Other income

Equity in earnings of affiliates

Other expenses

Depreciation

Share of profit (loss) of investments accounted for using equity method

Other

Operating profit

Interest income2) "Operating profit"on IFRS will be presented, but
components are different compared with JGAAP, apart of "Non-operating income and expense" and"Extraordinary income or loss" will be included.

Finance income

Dividends income

Finance costs

Interest expenses

Profit before tax

Foreign exchange gains or losses

Income tax expense

Gain or loss on valuation of derivatives

1) "Selling, general and administrative expenses" on"Japanese Generally Accepted Accounting Principles"(hereafter "JGAAP") will be presented as "Selling,
general and administrative expenses" and "Researchand development expenses".

Profit for the period

3) "Interest income", "Dividends income", "Interest
expenses", "Foreign exchange gains or losses" and"Gain or loss on valuation of derivatives" of JGAAP
will be presented as "Finace income" and "Financecosts"

Ordinary income
Extraordinary income or loss

Profit for the period attributable toGain on sales of noncurrent assets

Owners of parent

Loss on sales and retirement of noncurrent assets

Non-controlling interests

Other4）There is no concept of “Ordinary income” on IFRS.
We calculate "Profit before tax" by adding andsubtracting "Finance income" and "Finance costs"
from "Operating profit" of IFRS.

Gain or loss on sales of investment securities
Income before income taxes
Income taxes-current
Income taxes-deferred
Net income

5） "Gain and loss on sales of investment securities"
on JGAAP will be recorded in the statement ofcomprehensive income.

Net income (loss) attributable to non-controlling interests

Net income attributable to owners of parent

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Consolidated Statement of Financial Position （Assets）
JGAAP
Consolidated Balance Sheet (Assets)
AssetsCurrent 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
Noncurrent assets
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
Intangible assets
Other
Total intangible assets
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

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

IFRS
Consolidated statement offinancial position (Assets)
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Income taxes receivable
Other financial assets
Other current assets
Subtotal
Assets held for sale
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets and goodwill
Investment property
Investments accounted for using equity method

Other financial assets
Other non-current assets
Deferred tax assets
Total non-current assets
Total assets

1) Of "Cash and deposits" and "Short-term
investment securities" on JGAAP, Cash andsecurities that mature within three months will
be displayed as "Cash and cash equivalents."

2) "Notes and accounts receivabletrade","Lease investment assets","Short-termloans receivable" on JGAAP will be preseted as"Trade and other receivables".

3) "Merchandise and finished goods", "Work inprocess" and "Raw materials and supplies" on
JGAAP will be presented as "Inventories".
4) Operating lease transactions that wererecorded as expense on JGAAP will becapitalized as "lease assets" and are included
in "Property, plant and equipment".
5) In addition to "Intangible assets" on JGAAP,
Research and development expenses that arerecognized as assets on IFRS will becapitalized and presented as “Intangible assets
and goodwill”.
6) Of the "Property, plant and equipment"on
JGAAP, the assets provided for leasing will bepresented as "Investment property".

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Consolidated Statement of Financial Position （Liabilities and Equity）
IFRS

JGAAP
Consolidated Balance Sheet(Liabilities and Equity)
Liabilities
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
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Provision for product warranties
Provision for directors' retirement benefits
Net defined benefit liability
Long-term unearned revenue
Other
Total noncurrent liabilities
Total liabilities
Net Assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

Consolidated statement offinancial position（ Liabilities and Equity）
Liabilities and equity
Liabilities
Current liabilities
Borrowings
Trade and other payables
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Other financial liabilities
Employee benefits
Provisions
Other non-current liabilities
Deferred tax liabilities
Total non-current liabilities
Total Liabilities
EquityEquity attributable to owners of parent
Capital stock
Capital surplus
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

1) "Notes and accounts payabletrade","Electronically recorded
obligations-operating" etc. on JGAAP will
be presented as "Trade and otherpayables".
2) "Provision for bonuses", "Provision for
product warranties", "Provision for loss on
construction contracts", "Provision forloss on business liquidation" and will bepresented as "Provisions".
3) "Provision for directors' retirement
benefits" and "Net defined benefit
liability"etc. will be presented as"Employee benefits".
4) "Provision for product warranties"etc.
on JGAAP will be presented as"Provisions".
5) "Remeasurements of defined benefit
plans" and "Remeasurements of otherpostretirement benefitsof foreign consolidated subsidiaries" on
JGAAP will be included in "Retained
earnings".
6) "Valuation difference on available-forsale securities" and "Foreign currencytranslation adjustment" on JGAAP will bepresented as "Other components ofequity".

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

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Consolidated Statements of Cash Flows
IFRS

JGAAP
Net cash provided by (used in) operating activities
Income (loss) before income taxes
Depreciation and amortization

Net cash provided by (used in) operating activities
Profit before tax
Depreciation and amortization

Increase (decrease) in allowance for doubtful accounts

Finance income

Increase (decrease) in provision for product warranties

Finance costs

Interest and dividends income

Share of loss (profit) of investments accounted for using equity method

Interest expenses

Decrease (increase) in trade and other receivables

Loss (gain) on sales and retirement of noncurrent assets

Decrease (increase) in inventories

Loss (gain) on sales and valuation of investment securities

Increase (decrease) in trade and other payables

Decrease (increase) in operating loans receivable

Increase (decrease) in provisions and employee benefits

Decrease (increase) in notes and accounts receivable-trade

Other

Decrease (increase) in inventories

Interest received

Increase (decrease) in accrued expenses

Dividends received

SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities

Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities

Proceeds from sale of property, plant and equipment

Purchase of other financial assets

Purchase of short-term investment securities

Proceeds from sale and collection of other financial assets

Purchase of non-current assets
Proceeds from sales of non-current assets
Purchase of investment securities

Other

Proceeds from long-term borrowings

Payments of loans receivable

Repayments of long-term borrowings

Collection of loans receivable

Proceeds from sale of treasury shares

Other, net

Purchase of treasury shares

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
Purchase of treasury shares

Dividends paid to owners of parent

5) Proceeds from sales of short-term investment securities","Proceeds from sales of investment securities" and "Collection ofloans receivable" will be presented as "Proceeds from sale andcollection of other financial assets".

6) Operating lease transactions that were recorded as expense on
JGAAP will be capitalized and recorded on liabilities. Payments of theliabilities will be presented as "Repayments of lease liabilities".

Repayments of lease liabilities
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

Cash dividends paid

Cash and cash equivalents at beginning of period

Other, net

Decrease in cash and cash equivalents resulting from change of scope of consolidation

Net cash provided by (used in) financing activities

4) "Purchase of short-term investment securities", "Purchase ofinvestment securities" and "Payments of loans receivable" on JGAAP
will be presented as "Purchase of other financial assets".

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term borrowings

Proceeds from sales of investment securities

Net cash provided by (used in) investing activities

3) "Purchase of non-current assets" on JGAAP will be seperately
presented as "Purchase of property, plant and equipment" and"Purchases of intangible assets and expenditure on internallygenerated intangible assets".

Purchase of property, plant and equipment

Purchases of intangible assets and expenditure on internally generated intangible assets

Net decrease (increase) in time deposits

Proceeds from sales of short-term investment securities

2) "Increase (decrease) in provision for product warranties" andother provision included in "Other" in "Net cash provided by (used in)operating activities" etc. will be presented as "Increase (decrease) in
provisions and employee benefits".

Subtotal

Increase (decrease) in notes and accounts payable-trade

Other, net

1) Operating lease transactions that were recorded as expense on
JGAAP will be capitalized, and their depreciation cost will be
included in "Depreciation and amortization".
And amortization cost of research and development cost will be also
included in "Depreciation and amortization".

Cash and cash equivalents at end of period

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting from change of scope of consolidation

Cash and cash equivalents at end of period

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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 result of 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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