Consolidated Financial Results
For the Third Quarter of the Fiscal Year Ending March 31, 2019
(Japan GAAP)
February 7, 2019
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: February 14, 2019
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 3rd Quarter of FYE 2019 (April 1, 2018 to December 31, 2018)(1) Consolidated Results of Operations (for nine-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
3rd Quarter of
FYE 2019
3rd Quarter of
FYE 2018

Operating income

Ordinary income

Net income attributableto owners of parent

2,377,413(2.5)%

153,669(49.8)%

157,042(48.2)%

118,220(22.7)%

2,437,749

0.4%

306,305(0.1)%

303,1162.0%

152,843(26.3)%

Note: Comprehensive income 3rd Quarter of FYE 2019: 129,340 million yen (Minus 21.9%) 3rd Quarter of FYE 2018: 165,653
million yen (Minus 23.9%)
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)
3rd Quarter of
FYE 2019
3rd Quarter of
FYE 2018

154.18-199.35-(Unit: Millions of yen, except for per share figures)
Shareholders’ equity to
Total assets
Net assets
total assets (%)(2) Consolidated Financial Position
3rd Quarter of
FYE 2019
FYE 2018

2,870,071

1,580,034

54.8%

2,866,474

1,561,023

54.2%

Reference: Shareholders’ equity As of December 31, 2018: 1,573,157 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)

Annual72.00

144.0072.00

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 3,120,000 (3.5)%

Operating income

Ordinary income

185,000 (51.2)%

193,000 (49.2)%

Net income attributable Net income per
to owners of the parent share, basic(Yen)
140,000 (36.5)%

182.59Note: Revision of the forecasts at the timing of announcement of the results of second quarter of the fiscal year ending March 31,
2019: YesRegarding the revision of the Projection of Consolidated Results, please refer to "Revision of Performance Projection for the
Fiscal Year Ending March 2019" announced today (February 7, 2019).

4. Others(1) Changes of significant subsidiaries in the third 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 December 31, 2018: 769,175,873 shares As of March 31, 2018: 769,175,873 shares(including treasury stock)[2] Number of treasury stock
As of December 31, 2018:
2,414,549 shares As of March 31, 2018:
2,455,039 shares[3] Average number of shares
3rd Quarter of FYE 2019: 766,744,930 shares 3rd Quarter of FYE 2018: 766,703,806 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) ................................................................................................................................. 8(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―

3rd Quarter of FYE 2019(as of December 31, 2018)765,397
155,247
17,120242,573
202,435
52,30742,448185,364
107,893(340)
1,770,444

766,327
136,512
14,236106,258
252,238
75,03960,957
194,868
131,804(346)
1,737,893

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

216,837
194,327
186,037
15,73727,02275,132715,092

28,29328,29330,71230,712

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

117,024
1,654
138,756
132,283(3,343)386,374
1,132,178
2,870,071

(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―

3rd Quarter of FYE 2019(as of December 31, 2018)

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

309,61675,515
4,686
13,943
3,319
338,862
12,231
40,578339
2,768
21,626
173,104
996,587

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

33,406
4,162
36,081
482
21,200
198,119
293,450
1,290,037

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

153,795
160,192
1,291,291(6,910)1,598,368

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

3,098(21,504)(8,535)

1,658

1,730

(37,633)
8,179
1,561,023
2,866,474(25,211)6,877
1,580,034
2,870,071

(2) Quarterly Consolidated Statements of (Comprehensive) Income
Quarterly Consolidated Statements of Income (for nine-month period)(Unit: Millions of yen)
FYE 2018(April 1, 2017 to
December 31, 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
Foreign exchange losses
Loss on valuation of derivatives
Loss on taxation of overseas subsidiary
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 to
December 31, 2018)

2,437,749
1,825,924
611,825
305,520
306,305

2,377,413
1,919,734
457,679
304,010
153,669

4,380
934
35
2,238
1,937
9,524

8,845
757
142
3,329
13,073

1,093
4,869
3,708
3,043
12,713
303,116

544
4,277
1,555
3,324
9,700
157,042

343
726
203
1,272

1,150
3,597
1,749
6,496

4,226
81,261
1,258
86,745
217,643
64,125
153,518
675
152,843

4,052
1,469
5,521
158,01740,826
117,191(1,029)118,220

Quarterly Consolidated Statements of Comprehensive Income (for nine-month period)(Unit: Millions of yen)
FYE 2018(April 1, 2017 to
December 31, 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 (loss) attributable to:
Owners of the parent
Non-controlling interests―5―

FYE 2019(April 1,2018 to
December 31, 2018)

153,518

117,191

2,988
7,284
1,877

(3,940)14,685
1,601

(15)

72

1

(269)

12,135
165,653

12,149129,340

164,641
1,012

130,642(1,302)

(3) Quarterly Consolidated Statements of Cash Flows(Unit: Millions of yen)
FYE 2018(April 1, 2017 to
December 31,2017)
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 to
December 31,2018)

217,643
74,846(148)
68,600(5,314)
1,093
3,883
(260)
(6,465)
9,625(23,062)(68,079)
30,592
22,369325,323
5,583(1,203)(75,090)
254,613

158,01778,401(13)(43,085)(9,602)544
2,902(3,270)(4,734)18,306(85,981)(2,417)78,818
10,715
198,601
9,753(551)(95,496)
112,307(36,545)(96,698)
122,984(100,962)
2,521(43,823)
26,002(94,024)
90,536(1,974)(131,983)

4,067(87,241)
95,317(113,115)
5,728(40,142)
27,981(98,733)
95,573(2,318)(112,883)(13,847)
3,400(43,493)(110,140)(929)(165,009)
3,367(39,012)728,616(17,130)
17,100(33,877)(110,105)(1,395)(145,407)
16,827(129,156)
765,591

(534)

-

3,690

-

692,760

636,435

(4) Note to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
FYE 2019 (April 1, 2018 to December 31, 2018)
Not Applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
FYE 2019 (April 1, 2018 to December 31, 2018)
Not Applicable(Significant changes in the Scope of Consolidation or Equity Method)FYE 2019 (April 1, 2018 to December 31, 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 December 31, 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 December 31, 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 third quarter ofthe previous fiscal year decreased by 126,887 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.

―7―

(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 December 31, 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.
As a result, compared with the previous method, operating income increased by 9,252 million yen, andordinary income and income before income taxes increased respectively by 9,364 million yen.
(Additional Information)
FYE 2019 (April 1, 2018 to December 31, 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 December 31, 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 December 31, 2017)(Unit: Millions of yen)

Business segment reported
SubTotal

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

2,307,041
2,266
2,309,307
290,296

106,6885
106,693
11,5742,413,729
2,271
2,416,000
301,870

Other
*1

Total

24,020
16,23340,253
3,962

2,437,749
18,5042,456,253
305,832

Consolidated
Adjustment
Statement of*2
income *3(18,504)(18,504)473

2,437,749
2,437,749
306,305

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 ofincome.
(Unit: Millions of yen)

FYE 2019 (April 1, 2018 to December 31, 2018)
Business segment reported
Automobiles Aerospace
Net sales(1) Outside customers(2) Inter-segment
Total sales
Segment income

2,271,927
2,269
2,274,196
145,420

94,343800
95,143
4,865

SubTotal
2,366,270
3,069
2,369,339
150,285

Other
*1

Total

11,143
18,59129,7342,900

2,377,413
21,6602,399,073
153,185

Consolidated
Adjustment
Statement of*2
income *3(21,660)(21,660)484

2,377,413
2,377,413
153,669

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 ofincome.
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 126,887 million yen in the third
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 8,410 million yen, "Aerospace" increased by 758 million yen and "Other" increased by 84 million yen
respectively in the third quarter of FYE 2019.
(Significant Subsequent Event)Due to defective parts of the electric power steering devices used for Forester, Impreza, and SUBARU XV(called "Crosstrek" in the North American market), we had suspended production and shipment of vehicles at
our Gunma Manufacturing Plant (Main Plant/Yajima Plant) from January 16, 2019, and resumed fromJanuary 28, 2019. Although production and shipment of vehicles have been resumed, we expect decline inunit sales in the future due to reduction in the production. We are currently assessing the effect of it.
―9―February 7, 2019
Subaru Corporation< Reference for the First Nine Months of FYE2019 Consolidated Financial Results >(Yen in 100 Millions, Units in Thousands)

FYE2018 *First 9 Months(2017 4-12)

FYE2019First 9 Months(2018 4-12)

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

ChangeOriginallyreported%

Change%24,37725,646

23,774

(603)

(2.5)

32,327

34,052

31,200(1,127)

(3.5)

Japan

4,842

4,845

4,358

(484)

(10.0)

6,680

6,686

5,698

(982)

(14.7)

6,173

Overseas

19,53620,801

19,417

(119)

(0.6)

25,64727,36725,502

(145)

(0.6)

25,927

1,537(1,526)(49.8)

3,794

1,850

(1,944)(51.2)

2,200(1,869)(49.2)

2,290

(804)

(36.5)

1,670

Operating income

3,063
Profit margin (%)

Ordinary income

12.6

11.9

3,031
Profit margin (%)

12.4

Net income attributable toProfit margin (%)
owners of parent

1,528

6.5

1,570
11.8
6.0

(1,461)(48.2)

3,799

(346)

(22.7)

2,204

6.6

1,182

6.3

11.7
11.8

5.0

6.8

Decrease in R&D
exp
Increase in SG&A
exp, etc.

Factors contributing tochange in operating income

4.5

5.2

112

Decrease in R&D
exp

152

(813)

Deterioration in sales
volume/mix, etc.

(983)

130/EUR

852
674
780
520

1,414

1,300
930
1,060
1,000

1,300

780

Performance description *

6.5

7.1

129/EUR

128/EUR

919

6.2

1,400

130/EUR

JPY/EUR

889

11.2

6.9

130/EUR

112/US$

653

1,930

111/US$

JPY/US$

Loss on currency
exchange
Increase in raw
material costs, etc.
111/US$

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

5.9

Increase in SG&A
exp, etc.
Increase in raw
material costs, etc.
Loss on currency
exchange
110/US$

Deterioration in sales
volume/mix, etc.

Exchange rates

11.1

32,100

(664)
(115)
(46)

898
1,211
862

(949)
(91)
(73)
110/US$

930
1,080
500

- First decrease in net sales in 7
years

- First decrease in net sales in 7
years

- Decrease in operating income
and net income for 3 consecutive
years- Decrease in all profits for 3
consecutive years- First decrease in ordinary
income in 2 years

Consolidated unit sales
Passenger Cars
<Japan>
Minicars

Consolidated unit sales
North America<Overseas>(20)(17.1)

80(18)(18.2)

163
133

21

19

(3)

(12.0)

31

683

664

(19)

(2.8)

903

554

543

(10)

(1.9)

728

34

32

(2)

(5.1)

48

China

22

17

(5)

(22.6)

27

Other

74
802

71

(2)

(3.3)

762

(40)

(5.0)

101
1,067

762

(30)

(3.8)

491

(41)

(7.7)

271

11

4.1

22,719

(351)

(1.5)

943

(123)

(11.6)Japan
U.S.
Automobile

Operating income
by businesssegment

98

EuropeConsolidated unit sales total
Production units total

Net sales bybusiness segment

119
98

Aerospace

793
532
260
23,07024,339

1,067

Other

240

111

(129)

(53.6)

Automobile

2,903

1,454

(1,449)(49.9)

Aerospace

116

49

(67)

(58.0)

Other
Elimination &Corporate

40

29

(11)

(26.8)

5

5

0

2.3

1,050
701
349

996

(71)

(6.6)

1,041

993

(57)

(5.4)

1,036

616

(85)

(12.2)

656

377

29

8.2

380

* 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 anduncertainties that could cause actual results to vary materially. >Subaru Corporation Announces Consolidated Financial Results for the Nine Months of FYE2019
Tokyo, February 7, 2019 – Subaru Corporation today announced its consolidated financial results for the first nine monthsof fiscal year ending March 31, 2019.

< Results for April-December 2018: Consolidated Net Sales >Consolidated global unit sales of Subaru vehicles decreased 5.0% to 762,000 units.
Unit sales in Japan decreased 17.1% to 98,000 units, as sales of Impreza, Subaru XV and Levorg declined, offsettingstrong demand for the fully-redesigned Forester launched in July 2018.
In overseas markets, Subaru kept strong momentum on retail sales with growth in its largest North American market
driven by the newly-introduced Ascent and the Crosstrek (“Subaru XV” outside North America). On the other hand,consolidated overseas unit sales fell 2.8% to 664,000 units, as deliveries of the Forester decreased before the launch ofits fully-redesigned version and deliveries were adjusted to optimize local inventory levels mainly in the U.S. market.
Consolidated net sales declined 2.5% to 2,377.4 billion yen.*1< Results for April-December 2018: Consolidated Profit and Loss >Operating income declined 49.8% to 153.7 billion yen for factors such as an increase in quality-related expenses due torecall campaigns notified in November 2018 and a decrease in consolidated unit sales. Ordinary income decreased
48.2% to 157.0 billion yen. Net income attributable to owners of parent fell 22.7% to 118.2 billion yen.
< Forecasts for FYE2019 >Full-year forecasts for FYE2019 are revised from the previous announcement made on November 5, 2018, reflecting
factors such as higher raw material costs and decreases in production output and unit sales volume as a result of
production halt at the Gunma manufacturing plant due to a defect in the Electronic Power Steering control unit.
Revised forecasts: Consolidated unit sales of 996,000 vehicles, net sales of 3,120 billion yen, operating income of 185
billion yen, ordinary income of 193 billion yen, net income attributable to owners of parent of 140 billion yen.
Currency rate assumptions: 110 yen/US$, 129 yen/euroPrevious Forecasts for FYE2019 (Announced on November 5, 2018)
Consolidated unit sales: 1,041,000 vehicles
Net sales: 3,210 billion yen
Operating income: 220 billion yen
Ordinary income: 229 billion yen
Net income attributable to owners of parent: 167 billion yen
Currency rate assumptions: 110 yen/US$, 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 nine months of FYE2018
are 2,437.7 billion yen and 305.5 billion yen, respectively, a decrease of 126.9 billion yen each from the originally-reported
figures (announced on February 8, 2018). 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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