Consolidated Financial Results
For the First Quarter of the Fiscal Year Ending March 31, 2021
(IFRS basis)
August 4, 2020
Company Name
URL
Representative
Contact for Inquiries: SUBARU CORPORATION (Tokyo Stock Exchange First Section, Code No.7270): https://www.subaru.co.jp/en/ir/: Tomomi Nakamura, President and CEO: Yasushi Nagae, Vice President and General Manager of Investor Relations Department
Phone +81-3-6447-8825
Scheduled date of submitting Quarterly Report: August 7, 2020
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 1st Quarter of FYE 2021 (April 1, 2020 to June 30, 2020)(1) Consolidated Financial Results (for three-month period)(%: Changes from the previous fiscal year /period)

Operating
ProfitRevenue

1st Quarter of FYE 2021

456,998 (45.2)% (15,671)

1st Quarter of FYE 2020

833,423

16.0%

Profit beforetax－% (10,735)

92,212 48.4%

Profit for theperiod per share,
basic (yen)89,349－%41.0%

Profit for theperiodTotal
Profit for theattributable to comprehensive
periodowners ofincomeparent(7,554)－%－% (10,470)(7,700)66,573 42.5%

66,456 40.1%－%

53,461 (13.7)%

Profit for theperiod per share,
diluted (yen)

1st Quarter of FYE 2021

(10.04)－

1st Quarter of FYE 2020

86.67

－

(2) Consolidated Financial Position
Total assets

Ratio of equity
attributable to ownersof parent to total assets

Equity attributableto owners of parent

Total equity

1st Quarter of FYE 2021

3,251,558

1,688,170

1,680,805

51.7%

FYE 2020

3,293,908

1,720,123

1,712,881

52.0%

2. Dividends
Cash dividends per share (yen)
1st Quarter

2nd Quarter

3rd Quarter

Year-end

AnnualFYE 2020

－

72.00

－

28.00

100.00FYE 2021

－

－

－

－

－

FYE 2021 (Forecast)

－

28.00

－

28.00

56.00

Note: Revision of the forecasts in the fourth quarter of the fiscal year ended March 31, 2020: Yes

3. Projection of Consolidated Results for FYE 2021 (April 1, 2020 to March 31, 2021)(%: Changes from the previous fiscal year)

Revenue
Full Year

2,900,000(13.3)%

Operating profit
80,000(62.0)%

Profit for theProfit for theperiod attributable
Profit before tax
period per
to owners ofshare, basic(yen)parent87,000(58.1)%

Note: Revision of the forecasts in the fourth quarter of the fiscal year ended March 31, 2020: Yes

60,000(60.7)%

78.25

4. Others(1) Changes of significant subsidiaries in the 1st quarter of FYE 2021

: No

(2) Changes in accounting policy and changes in accounting estimates
1) Changes in accounting policy required by IFRS
2) Changes other than the above 1)
3) Changes in accounting estimates

: No
: No
: No

(3) Number of issued shares (common stock)1) Number of outstanding shares(including treasury stock)

As of June 30, 2020:

769,175,873 shares As of March 31, 2020:

769,175,873 shares

2) Number of treasury stock

As of June 30, 2020:

2,360,709 shares As of March 31, 2020:

2,360,368 shares

3) Average number of shares(for three-month period)

1st Quarter of FYE 2021: 766,815,274 shares 1st Quarter of FYE 2020: 766,760,733 shares*The status of the implementation of the quarterly review
This quarterly earnings report is not subject to quarterly review based upon the Financial Instruments and Exchange 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
Condensed Quarterly Consolidated Financial Statements.............................................................................. 2(1) Condensed Quarterly Consolidated Statement of Financial Position................................................... 2(2) Condensed Quarterly Consolidated Statement of Income and Condensed Quarterly Consolidated
4
Statements of Comprehensive Income.......................................................................................................
Condensed Quarterly Consolidated Statement of Income....................................................................... 4
Condensed Quarterly Consolidated Statement of Comprehensive Income........................................... 5(3) Condensed Quarterly Consolidated Statement of Changes in Equity..................................................... 6(4) Condensed Quarterly Consolidated Statement of Cash Flows................................................................ 7(5) Notes to Condensed Quarterly Consolidated Financial Statements....................................................... 8(Notes on Premise of Going Concern)....................................................................................................... 8(Segment Information)................................................................................................................................ 8(Significant Subsequent Event)................................................................................................................... 8―1―

1. Condensed Quarterly Consolidated Financial Statements(1) Condensed Quarterly Consolidated Statement of Financial Position(Unit: Millions of yen)
FYE 2020(as of March 31, 2020)

1st Quarter of FYE 2021
(as of June 30, 2020)

858,966
364,839920,957
338,824

Inventories

459,940

424,084

Income taxes receivable

15,64816,145

Other financial assets

204,373

207,816

Other current assets

74,74855,359Subtotal

1,978,514

1,963,185

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables

Assets held for sale251－

Total current assets

1,978,765

1,963,185

Property, plant and equipment

820,491

802,344

Intangible assets and goodwill

209,775

204,295

Investment property

23,98624,438Investments accounted for using equity method

9,831

9,744

Non-current assets

Other financial assets

19,73015,518Other non-current assets

112,843

113,624Deferred tax assets

118,487

118,410

Total non-current assets

1,315,143

1,288,373

3,293,908

3,251,558

Total assets―2―

(Unit: Millions of yen)
FYE 2020(as of March 31, 2020)

1st Quarter of FYE 2021
(as of June 30, 2020)

Trade and other payables

336,223

182,448

Financing liabilities

12,173

175,018

Other financial liabilities

44,126

39,618

Income taxes payable

2,642

3,134

Provisions

261,162

248,411

Other current liabilities

328,081283,609

Total current liabilities

984,407932,238

Financing liabilities

227,037

273,331

Other financial liabilities

67,85566,584

Employee benefits

56,52558,557

Provisions

46,39844,854

Other non-current liabilities

179,849

180,878

Deferred tax liabilities

11,714

6,946

Total non-current liabilities

589,378

631,150

1,573,785

1,563,388

Capital stock

153,795

153,795

Capital surplus

160,178

160,178

Liabilities and equity
Liabilities
Current liabilities

Non-current liabilities

Total Liabilities
EquityEquity attributable to owners of parent

Treasury shares(6,722)(6,723)Retained earnings

1,397,239

1,368,057

8,391

5,498

1,712,881

1,680,805

7,242

7,365

Total equity

1,720,123

1,688,170

Total liabilities and equity

3,293,908

3,251,558

Other components of equity
Total equity attributable to owners of parent
Non-controlling interests―3―(2) Condensed Quarterly Consolidated Statement of Income and Condensed Quarterly Consolidated
Statement of Comprehensive Income
Condensed Quarterly Consolidated Statement of Income (for three-month period)(Unit: Millions of yen)
FYE 2020(April 1, 2019 toJune 30, 2019)

FYE 2021(April 1, 2020 toJune 30, 2020)

Revenue

833,423456,998

Cost of sales(649,084)(378,483)

Gross profit

184,339

78,515

Selling, general and administrative expenses(73,198)(60,440)

Research and development expenses(18,328)(32,189)

Other income

1,193

736

Other expenses(2,242)(2,190)

448

(103)

Operating profit (loss)

92,212(15,671)

Finance income

8,932

7,424

Finance costs(11,795)(2,488)

Profit (loss) before tax

89,349(10,735)

Income tax expense(22,776)

3,181

Profit (loss) for the period

66,573(7,554)66,456(7,700)Non-controlling interests

117

146

Profit (loss) for the period

66,573(7,554)86.67(10.04)

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

Profit (loss) for the period attributable to
Owners of parent

Profit (loss) for the period per share attributable to owners of parent
Basic (yen)―4―Condensed Quarterly Consolidated Statement of Comprehensive Income (for three-month period)(Unit: Millions of yen)
FYE 2020(April 1, 2019 toJune 30, 2019)
Profit (loss) for the period

FYE 2021(April 1, 2020 toJune 30, 2020)

66,573(7,554)

－

－

416

(10)

Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Net changes in revaluation of liability financial assets measured at fairvalue through other comprehensive income
Other comprehensive income (after deduction of tax) total(14,547)(4,414)

(22)

41

1,041

1,467

(13,112)(2,916)Comprehensive income

53,461(10,470)

53,629(10,593)

Other comprehensive income (after deduction of tax)
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans
Net changes in revaluation of capital financial assets measured at fairvalue through other comprehensive income
Items that may be reclassified to profit or loss

Comprehensive income attributable to
Owners of parent
Non-controlling interests

(168)

123

Comprehensive income

53,461(10,470)―5―

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
FYE 2020 (April 1, 2019 to June 30, 2019)(Unit: Millions of yen)
Equity attributable to owners of parent
Other
CapitalTreasury
Retainedcomponents
surplussharesearnings
of equity

Capitalstock
Balance at the beginning of
the yearComprehensive income
Profit (loss) for theperiodOther comprehensive
income(after deduction of tax)
Comprehensive
income total
Transactions with owners
Dividends paid
Purchase of treasury
shares
Disposal of treasury
sharesTransfer from retained
earnings to capitalsurplusCapital transaction
and others
Total transactions withownersBalance at the end of theyear

Noncontrollinginterests

Total

Total
capital153,795

160,192(6,910)1,350,639

24,532

1,682,248

7,651

1,689,899－－－

66,456－66,456

117

66,573－－－－(12,827)(12,827)(285)(13,112)－－－66,456(12,827)

53,629(168)

53,461－－－(55,236)－(55,236)－(55,236)

－

－

(2)

－

－

(2)

－

(2)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(756)

－

(756)

－

(756)

－

－

(2)

(55,992)－(55,994)－(55,994)

153,795

160,192(6,912)

1,361,103

11,705

1,679,883

7,483

1,687,366

FYE 2021 (April 1, 2020 to June 30, 2020)(Unit: Millions of yen)
Equity attributable to owners of parent
Other
CapitalTreasury
Retainedcomponents
surplussharesearnings
of equity

Capitalstock
Balance at the beginning of
the yearComprehensive income
Profit (loss) for theperiodOther comprehensive
income(after deduction of tax)
Comprehensive
income total
Transactions with owners
Dividends paid
Purchase of treasury
shares
Disposal of treasury
sharesTransfer from retained
earnings to capitalsurplusCapital transaction
and others
Total transactions withownersBalance at the end of theyear

Noncontrollinginterests

Total

Total
capital153,795

160,178(6,722)

1,397,239

8,391

1,712,881

7,242

1,720,123－－－(7,700)－(7,700)146(7,554)

－

－

－

－

(2,893)(2,893)(23)(2,916)－－－(7,700)(2,893)(10,593)

123(10,470)－－－(21,482)－(21,482)－(21,482)

－

－

(1)

－

－

(1)

－

(1)

－

(0)

－

－

－

(0)

－

(0)

－

0

－

(0)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(1)

(21,482)－(21,483)－(21,483)

153,795

160,178(6,723)

1,368,057

5,498

1,680,805

7,365

1,688,170―6―

(4) Condensed Quarterly Consolidated Statement of Cash Flows(Unit: Millions of yen)
FYE 2020(April 1, 2019 toJune 30, 2019)
Net cash provided by (used in) operating activities
Profit (loss) before tax
Depreciation and amortization
Share of loss (profit) of investments accounted for using
equity method
Finance income
Finance costs
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Increase (decrease) in provisions and employee benefits
OthersSubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets and expenditure on internallygenerated intangible assets
Purchase of other financial assets
Proceeds from sale and collection of other financial assets
OthersNet cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Proceeds from long-term borrowings
Repayments of lease liabilities
Dividends paid to owners of parent
OthersNet 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 and cash equivalents at beginning of period
Cash and cash equivalents at end of period―7―

FYE 2021(April 1, 2020 toJune 30, 2020)

89,34946,741(10,735)
48,775(448)

103(8,932)
11,795
15,56630,732(7,858)(37,805)(922)
138,218
3,105
263
(492)
(4,395)
136,699(7,424)
2,488
25,78432,662(141,382)(13,425)(15,003)(78,157)
1,384
225
(444)
(2,563)(79,555)

17,461(29,735)805

6,488(40,386)665(18,099)(6,912)(72,450)
74,860(787)(27,945)(47,988)
51,806(106)(36,433)(868)(1,545)5,900(11,504)(53,695)(25)(61,737)(15,492)
31,525702,328
733,853

151,365(379)
60,000(8,406)(20,847)(2)
181,731(3,752)
61,991
858,966
920,957

(5) Notes to Condensed Quarterly Consolidated Financial Statements(Note on Premise of Going Concern)
Not Applicable(Segment information)
Information on revenue, profit or loss, and other significant items by segment
Segment information by business type of the Company and its consolidated subsidiaries during the first quarter of FYE2020 and the first quarter of FYE 2021 is as follows.

FYE 2020 (April 1, 2019 to June 30, 2019)

Revenue(1) Outside customers(2) Inter-segment
Total revenue

Automobiles

Aerospace

796,008
701
796,70935,456－35,456

831,464701
832,165519－

87,833

2,859

Share of profit (loss) ofinvestments accounted forusing equity method
Operating profit (loss)
Finance income
Finance costs
Profit (loss) before tax(Unit: Millions of yen)
Subtotal

OthersAdjustment

Consolidated

1,959
6,172
8,131

－
(6,873)(6,873)

833,423－
833,423

519

(71)

－

448

90,692

1,474

46

92,212
8,932(11,795)
89,349FYE 2021 (April 1, 2020 to June 30, 2020)

Revenue(1) Outside customers(2) Inter-segment
Total revenue

Automobiles

Aerospace

437,134542
437,676

18,695－
18,695455,829542
456,371(18)－(14,091)(2,829)

Share of profit (loss) ofinvestments accounted forusing equity method
Operating profit (loss)
Finance income
Finance costs
Profit (loss) before tax(Unit: Millions of yen)
Subtotal

OthersAdjustment

Consolidated

1,169
6,952
8,121

－
(7,494)(7,494)456,998－
456,998

(18)

(85)

－

(103)

(16,920)

1,255

(6)

(15,671)
7,424(2,488)(10,735)

Note: The method of calculating operating profit (loss) for each segment is consistent with the method of calculating
operating profit (loss) in the condensed quarterly consolidated statements of income, and does not include
financial income, financial costs, and income tax expense. In addition, operating expenses that can not becharged directly to each segment are allocated to each segment based on the most reasonable allocation criteria.

(Significant Subsequent Event)Not applicable.

―8―Subaru Corporation Announces Consolidated Financial Results for the First Quarter of FYE 2021
Tokyo, August 4, 2020 – Subaru Corporation today announced its consolidated financial results for the first quarter ofthe fiscal year ending March 31, 2021.
Results for April–June 2020: Consolidated Revenue
Due to the significant impact of the Covid-19 global pandemic on the Subaru Group’s production and sales activities,
consolidated global vehicle sales decreased 49.3% to 133,000 units.
Overseas vehicle sales fell 50.1% to 115,000 units, while vehicle sales in Japan dropped 44.3% to 19,000 units.
Consolidated revenue fell 45.2% to 457 billion yen due to the significant decline in vehicle sales.
Global production fell 64.8% to 92,000 units, as a result of production adjustments which included temporary
suspension of plant operations in Japan and the U.S. during the period from March to June in response to the spreadof Covid-19.*1
Overseas production fell 64.3% to 36,000 units, while production in Japan declined 65.0% to 56,000 units.
Results for April–June 2020: Consolidated Profit and Loss
Due to the significant decline in vehicle sales, the Company posted operating profit of −15.7 billion yen (a decrease of
107.9 billion yen), profit before tax of −10.7 billion yen (a decrease of 100.1 billion yen), and profit for the period
attributable to owners of parent of −7.7 billion yen (a decrease of 74.2 billion yen).
Forecasts for FYE 2021
At the time of its previous earnings report (for the fiscal year ended March 2020) on May 18, 2020, the Company
announced that forecasts for the fiscal year ending March 2021 were yet to be determined due to the difficulty ofreasonably assessing the impact of the Covid-19 pandemic.
Based on the information available at present, Subaru has formulated projections for FYE 2021 as follows.
While it remains uncertain when the pandemic will end, Subaru projects consolidated vehicle sales of 900,000 units on
the assumption that automobile demand will recover to a certain level toward the second half of the fiscal year,
especially in the U.S., its largest market.
The Company projects consolidated revenue of 2,900 billion yen, operating profit of 80 billion yen, profit before tax of
87 billion yen, and profit for the period attributable to owners of parent of 60 billion yen.
The projections are based on exchange rate assumptions of 105 yen to the U.S. dollar and 120 yen to the euro.
*1 Production suspension and adjustments during the March–June period:- Japan (Gunma Manufacturing Plants)
Plant suspension: April 9 – May 1, Production volume adjustments: May 11 – June 19- U.S. (Subaru of Indiana Automotive, Inc.)
Plant suspension: March 23 – May 8 / Production volume adjustments: May 11 – May end
Notes on results:
Vehicle volume figures are rounded off to the nearest thousand. Yen figures are rounded off to the nearest hundred-million.
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.
###August 4, 2020
Subaru Corporation< Reference for the First Quarter of FYE 2021 Consolidated Financial Results >(Yen in 100 millions, Units in thousands)
FYE 2020
1st Quarter[ 2019. 4–6 ]FYE 2021
1st Qarter[ 2020. 4–6 ]RESULTSRESULTS
ChangeRevenueJapan
Overseas

Operating profit (loss)
Profit margin (%)

8,334
1,423
6,912
922

4,570
947
3,623
(157)

11.1

‒

893

(107)

Profit margin (%)

10.7

‒

Profit (loss) for the period attributable
Profit margin (%)
to owners of parent

665

(77)

8.0

‒

Profit (loss) before tax

JPY/US$

Exchange rates

JPY/EUR

Capital expenditures
Depreciation
R&D expenditures *Interest bearing debts

‒

6.3

2.8

(1,001)

‒

2,077

870

6.2

3.0

1,526

600

4.6

2.1

(742)

‒

‒

‒

‒

800

(1,303)(62.0)(1,207)(58.1)(926)(60.7)(1,300)Effects of foreignexchange rates

(350)

(139)

Increase in R&D exp.

(150)

Cost reduction efforts,
etc.

(27)

Other

Other

(10)

(1,015)

Increase in R&D exp.

107/US$
118/EUR
154
230
254
4,483

47

105/US$
120/EUR
1,000
1,000
1,000
‒‒

109/US$
121/EUR
1,260
961
1,187
2,392

- First decrease in revenue in 2 yrs.

- First decrease in revenue in 2 yrs.

- First decrease in all profits in 2
yrs.

- First decrease in all profits in 2
yrs.

- First decrease in consolidated unit
sales in 2 yrs.

- First decrease in consolidated unit
sales in 2 yrs.

7,960

4,371

(3,589)(45.1)

31,939

355

187

(168)

(47.3)

1,421

Other

20

12

(8)

(40.3)

80

Automobile

878

(141)

(1,019)‒2,003

Aerospace

29

(28)

(57)

‒

51

Other

15

13

(2)

(14.9)

36

Elimination &Corporate

0

(0)

(1)

‒

14

Japan

‒

‒

Sales volume, mix, etc.

Aerospace

Consolidated unit sales total
Production units total‒

23

Automobile

Other(13.3)

450

U.S.

China

(4,441)

Decrease in warranty
exp.

126
102
24
908
762
46
21
80
1,034
1,031
664
367

North America%

29,00089(44.3)(48.1)(26.3)(50.1)(50.1)(57.8)
4.1(62.2)(49.3)(64.8)(65.0)(64.3)

EuropeOperating profit (loss)
by businesssegment

Change33,441
5,727
27,714
2,103

(15)
(13)
(2)
(115)
(98)
(5)
0
(13)
(130)
(170)
(104)
(65)

Consolidated unit sales

Revenue bybusiness segment

%

19
14
4
115
97
3
6
8
133
92
56
36

Passenger Cars
Minicars< Overseas >[ 2020.4 – 2021.3 ]FORECASTS

33
27
6
229
195
8
6
21
263
262
160
102

Consolidated unit sales< Japan >[ '19.4 – '20.3 ]RESULTS(45.2)(33.5)(47.6)

Sales volume, mix, etc.

111/US$
125/EUR
357
221
245
1,070

Performance description

FYE 2021
Full Year

(3,764)(476)(3,288)(1,079)Decrease in SG&A
exp., etc.
Effects of foreignexchange rates

Factors contributing tochange in operating profit

FYE 2020
Full Year

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

‒

900
880

(134)
(151)

(12.9)(14.6)

‒

‒

‒

‒

‒

‒

* "R&D expenditures" indicate R&D activity related costs incurred during the reporting period. Under IFRS, a part of these costs that meets capitalization
criteria is recognized as an intangible asset and amortized over its estimated useful life; thus, the amount of "R&D expenditures" stated here does not matchthat of "R&D expenses" stated on the Consolidated Statement of Income.
< 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. >