Consolidated Financial Results for the 1st Half of FYE 2018

SUBARU CORPORATION

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

Toshiaki Okada
Corporate Executive Vice President & CFO
November 6, 20170

0Summary
Consolidated Financial Results for the 1st Half of FYE 2018
 Consolidated global unit sales, overseas unit sales and North American unit sales posted 1st half record.*1
 Consolidated net sales increased year on year mainly due to foreign exchange rate fluctuations and higher automobile unit sales.
 Operating income increased year on year, as the effect primarily of foreign exchange rate fluctuations and improvement in theautomobile sales, despite higher SG&A and other expenses and higher R&D expenses. Net income attributable to owners ofparent decreased year on year, mainly due to the posting of an extraordinary loss as provision for loss related to airbags.

Actual results(YoY)

Net sales

OperatingincomeOrdinary
income¥1,686.3bil.

¥212.1bil.

¥212.7bil.

(+108.7bil.)(+3.6bil)(-15.0bil.)

Net income attributableto owners of parent¥85.0bil.
(-78.8bil.)

Consolidated
automobile sales

531.3k units(+19.3k units)*1: Since FYE 2001 - the year SUBARU started half-year consolidated financial reporting

Forecasts for FYE 2018
 Plans for the FYE 2018 was revised downward from the previous plans (announced on August 25, 2017), in consideration offactors such as an expected decrease in automobile unit sales, despite the effects of foreign exchange rate and other factors.
 Consolidated unit sales in North America are projected to reach a record high for the 9th consecutive year.*2
Consolidated global unit sales are projected to post record high for the 6th consecutive year.*2

Forecasts(YoY)

Net sales

OperatingincomeOrdinary
income¥3,380.0bil.

¥380.0bil.

¥382.0bil.

https://www.subaru.co.jp/en/ir/(+54.0bil.)(-30.8bil.)(-12.3bil.)

Net income attributableto owners of parent¥207.0bil.
(-75.4bil.)

Consolidated
automobile sales

1,067.9k units(+3.4k units)*2: Since FYE 1986 - the year SUBARU started full-year consolidated financial reporting

1

1

Consolidated Financial Results for the 1stst Half of FYE 2018https://www.subaru.co.jp/en/ir/

22

1st Half :Consolidated Unit Sales（Thousand Units）

Actual Results
1st Half FYE 2017

Actual Results
1st Half FYE 2018

Passenger cars

52.5

67.3

+14.8

Minicars

15.6

15.1

-0.5

68.0

82.3

+14.3

US

326.9

333.2

+6.3

Canada

28.4

30.7

+2.3

Russia

3.7

3.7

-0.1

Europe

18.4

17.8

-0.7

Australia

22.4

27.7

+5.3

China

21.8

13.8

-7.9

Others

22.3

22.0

-0.2

Overseas total

443.9

448.9

+5.0

Total

512.0

531.3

+19.3

Domestic total

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

Variance<China> FYE2017 :Figures are consolidated on the calendar year basis from Jan. to Jun.
FYE2018 :Figures are consolidated on the fiscal year basis from Apr. to Sep.

3

Consolidated automobile unit sales for the first half of the fiscal year ending March 2018 posted arecord for the 6th consecutive year, reaching 531,300 units.

In the domestic market, minicar sales fell by 500 units compared with the same period of theprevious fiscal year, but in passenger cars the Impreza and SUBARU XV posted strong sales, withunit volumes rising by 14,800, resulting in the total increasing by 14,300 to reach 82,300 units.

Overseas, the Chinese market struggled, but the Impreza and the Forester recorded robust sales,
primarily in the key markets of North America and Australia, with the result that sales rose 5,000
units over the same period of the previous fiscal year, to 448,900 units.

3

1st Half :Consolidated Income Statements（100 Million Yen）

Actual Results
1st Half FYE 2017

Actual Results
1st Half FYE 2018

Net sales

15,777

16,863+1,087

Domestic

2,860

3,286

+426

Overseas

12,916

13,577+661

Operating income

2,085

2,121

+36

Total non-operating
income & expenses

+192

+6

-186

Ordinary income

2,278

2,127

-150

Variance

Total extraordinary
income & loss
Income before taxes
and minority interests

+78

-842

-920

2,356

1,285

-1,071

Net income attributableto owners of parent

1,638

850

-788

¥107/US$¥111/US$+¥4/US$SUBARU exchange rate
https://www.subaru.co.jp/en/ir/

4

Moving on to consolidated income statements, due to such factors as a gain on currency exchange of
59.2 billion yen and a positive sales volume & mixture effect of 50.4 billion yen, net sales increasedby 108.7 billion yen year on year to 1,686.3 billion yen.
Operating income was negatively affected by rises in SG&A and other expenses, primarily as aresult of higher U.S. interest rates, as well as increases in R&D expenses. However, due to exchange
rate fluctuations and improvements in the sales volume & mixture, operating income rose by 3.6
billion yen to 212.1 billion yen.
Ordinary income declined by 15.0 billion yen to 212.7 billion yen, while net income attributable toowners of parent was hit by an extraordinary loss of 81.3 billion yen, as a provision for losses
related to airbags, and accordingly fell by 78.8 billion yen to 85.0 billion yen.
Also, the impact of inappropriate practices in relation to final inspection of our vehicles, which wasreported to the Ministry of Land, Infrastructure, Transport and Tourism on 30 October 2017, isreflected below operating income to the extent that it can be foreseen at this point in time.

4

1st Half :Analysis of Variance in Operating Income (Consolidated)

Gain oncurrency
exchange+214

Sales volume& mixtureand others

Fixed cost : -116 (SUBARU -41, SIA -75)
SG&A : -257 (SUBARU-44, SOA -238, others)
Warranty claims : +170（100 Million Yen）

SUBARU: -41(material cost -89)
SIA : -1(material cost -24)

+142

SG&A
expensesand others

-203

R&D
expenses-75

Cost
reduction-42

Domestic : +159 (volume increase, mixture improvement)
Overseas : -75 (volume decrease, mixture improvement)
Others : +58
US$ : +239
EURO : +8
CA$ : +9
CNY:±0Currency exchange adjustment: +94
Unrealized gain : -136

Actual Results
Operating Income
1st Half
FYE 2017-36

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

Actual Results
Operating Income
1st Half
FYE 2018
5

Now let’s look at the analysis of variance at the operating income level. Operating income in the period under review increased by 3.6
billion yen over the 208.5 billion yen recorded in the previous year.
The primary reasons pushing up operating income were
<1> Gain on currency exchange: 21.4 billion yen. The yen weakened by roughly 4 yen against the U.S. dollar, leading to a positive
impact of 23.9 billion yen.
The yen weakened roughly 5 yen against the euro, for a gain of 800 million yen, and the yen weakened around 2 yen against the
Canadian dollar, for a gain of 900 million yen. The Chinese yuan was had no net effect, while currency exchange adjustments ontransactions between SUBARU and its overseas subsidiaries led to a gain of 9.4 billion yen, and unrealized gains had a negative
impact of 13.6 billion yen.
<2> Sales volume & mixture and others: +14.2 billion yen. This is divided into 3 elements.
① New vehicles in Japan was +15.9 billion yen. ② New vehicles overseas was -7.5 billion yen.
③ Inventory adjustments and other factors +5.8 billion yen.
The main factors bringing operating income down were
<3> Increase in other expenses had an impact of -20.3 billion yen. This is divided into 3 elements.
① Increase in fixed manufacturing costs was -11.6 billion yen. Within that, SUBARU accounted for -4.1 billion yen and SIA for -7.5
billion yen. At SUBARU, the impact of increased costs for supplier dies was -2.8 billion yen, and increased fixed processing costs
came to -1.3 billion yen. At SIA, the increase in costs for supplier dies had the effect of -3.6 billion yen, and the rise in fixed
processing costs was -3.9 billion yen.
② The increase in SG&A expenses had an impact of -25.7 billion yen.
At SUBARU, higher advertising and other expenses had an impact of -4.4 billion yen.
Domestic dealers were -2.0 billion yen, SOA was -23.8 billion yen and the Canadian subsidiary was -200 million yen.
For SOA, the increase in advertising and other expenses came to -2.4 billion yen. The effect of incentives was -21.4 billion yen, due
to the value per vehicle rising by 600 dollars, from 1,200 dollars in the same period of the previous year to 1,800 dollars in the current
fiscal year, in addition to which the number of units also increased.
③ Declining warranty claims had an impact of +17.0 billion yen.
<4> The effect of R&D expenses increasing was -7.5 billion yen.
<5> The impact of cost reductions was -4.2 billion yen. Of this, SUBARU accounted for -4.1 billion yen and SIA for -100 million
yen.
Cost reductions at SUBARU were +4.8 billion yen, while the impact of higher material costs and other negative market factors cameto -8.9 billion yen. The impact of cost reductions at SIA was +2.3 billion yen, and that of material prices, etc. was -2.4 billion yen.
As a result of the above, operating income for the first half of the fiscal year ending March 2018 came to 212.1 billion yen.

5Consolidated Balance Sheets（100 Million Yen）

As of March2017

As of September
2017

Variance

Total assets

27,62328,207+584

Current assets

18,453

18,617+165

Noncurrent assets

9,171

9,590

+419

Total liabilities

12,974

13,155

+180

1,483

976

-507

14,64915,053+404

Retained earnings

11,733

12,035+302

Shareholders’ equity

14,587

14,980+394

Ratio of shareholders’equity to total assets

52.8％

53.1%

+0.3

0.10

0.07

-0.04

Interest bearing debts

Net assets

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

6

The balance sheet shows that total assets increased by 58.4 billion yen from the end of the previous
fiscal year to 2,820.7 billion yen. The major factors behind this rise were an increase of 26.1 billion
yen in combined funds on hand comprised of cash and deposits, and short-term investment
securities, and a 23.8 billion yen gain in property, plant and equipment.
Liabilities rose by 18.0 billion yen to 1,315.5 billion yen from the end of the previous fiscal year.
The main reasons for this increase included a 53.2 billion yen decrease in trade accounts payable
comprised of notes and accounts payable-trade and electronically recorded obligations-operating, a12.6 billion yen rise in income taxes payable, and an 81.3 billion yen increase in provision for losses
related to airbags.
In addition, interest-bearing debt contracted by 50.7 billion yen to 97.6 billion yen.
Net assets increased by 40.4 billion yen compared with the end of the previous fiscal year to 1,505.3
billion yen.
The primary reasons behind this included a 30.2 billion yen increase in retained earnings.
The ratio of shareholders’ equity to total assets was 53.1%.

6

1st Half :Consolidated Statement of Cash Flows（100 Million Yen）

Actual Results
1st Half FYE 2017

Actual Results
1st Half FYE 2018

Net cash provided by (used in)operating activities

1,984

2,078

+94

Net cash provided by (used in)investing activities-1,090-1,014

+75

894

1,064

+170

-1,167-1,033+133

Effect of exchange rate change
on cash and cash equivalents

-255

27

+282

Net increase (decrease) in cash
and cash equivalents

-528

58

+585

Increase (decrease) in cash and cash equivalents
resulting from change of scope of consolidation

-

-5

-5

Increase (decrease) in cash and cash equivalents
resulting from change in fiscal period of
consolidated subsidiaries

-

37

+37

7,767

7,375

-391

Free cash flows
Net cash provided by (used in)financing activities

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

Variance

7

Moving on to the consolidated statement of cash flows, we see that net cash provided by operating
activities was 207.8 billion yen.
The major components of this were 128.5 billion yen in income before income taxes and minority
interests, and an 81.3 billion yen increase in provision for losses related to airbags.
Net cash used in investing activities was 101.4 billion yen.
The main elements within this included a 14.0 billion yen increase in time deposits, 76.0 billion yen
in expenditures for the purchase of property, plant and equipment, and 11.8 billion yen in
expenditures for the purchase of investment securities.
Free cash flow came to 106.4 billion yen.
Net cash used in financing activities was 103.3 billion yen.
The bulk of this was accounted for by 55.2 billion yen in expenditures for cash dividends paid, and a
39.2 billion yen in repayment of long-term loans payable.
Cash and cash equivalents at the end of period were 737.5 billion yen.

7

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

Actual Results
1st Half FYE 2017

Actual Results
1st Half FYE 2018

8,733

9,115

+382

Operating income

441

278

-163

Net income

272

177

-95

315.3

334.7

+19.4

Actual Results
1st Half FYE 2017

Actual Results
1st Half FYE 2018

3,392

3,901

+509

Operating income

83

84

+1

Net income

52

54

+2

147.7

178.9

+31.3

SOA
Net sales

Retail sales(Thousand units)

SIA
Net sales

Production(Thousand units)

Variance

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

8

Now we will look at the results of the U.S. subsidiary.
SOA's retail sales rose by 19,400 units year on year to 334,700 units due to strong sales of the
Impreza and the Crosstrek.
Net sales also rose by 382 million dollars to 9,115 million dollars.
At the operating level, profits fell by 163 million dollars to 278 million dollars as a result of afavorable sales volume and sales mix of +63 million dollars, and an increase in SG&A expenses of 226 million dollars.

SIA's net sales rose by 509 million dollars to 3,901 million dollars, supported by the contribution of
the production capacity expansion implemented in the previous fiscal year.
Operating income was affected by better sales mix variances of +73 million dollars, cost reduction
efforts of -1 million dollars, and fixed cost increases of -71 million dollars, leading to a year-on-yearincrease of 1 million dollars, to 84 million dollars.

8Forecasts for FYE 2018https://www.subaru.co.jp/en/ir/

99Revised Plan FYE 2018 :Consolidated Unit Sales（Thousand Units）

Actual Results
FYE 2017 (a)Previous PlanFYE 2018 (b)Revised PlanFYE 2018 (c)Variance(c)-(a)Variance(c)-(b)

Passenger cars

126.4

134.2

135.0

+8.6

+0.7

Minicars

32.5

37.8

31.6

-1.0

-6.3

158.9

172.1

166.5

+7.6

-5.5

US

667.6

687.7

668.0

+0.4

-19.7

Canada

53.1

54.6

55.6

+2.5

+1.0

Russia

5.3

6.6

7.3

+2.0

+0.7

Europe

40.9

39.2

39.5

-1.4

+0.4

Australia

49.1

52.6

55.9

+6.8

+3.4

China

44.0

42.3

29.8

-14.2

-12.4

Others

45.6

50.5

45.2

-0.4

-5.2

905.6

933.4

901.4

-4.2

-32.1

1,064.5

1,105.5

1,067.9

+3.4

-37.6

Domestic total

Overseas total

Total
https://www.subaru.co.jp/en/ir/<China> FYE2017 :Figures are consolidated on the calendar year basis from Jan. to Dec.
FYE2018 :Figures are consolidated on the fiscal year basis from Apr. to Mar.

10

Next, we will discuss the plan for the fiscal year ending March 2018.

In terms of consolidated unit sales, we plan for a total of 1.0679 million units in Japan and overseas.
This represents a 3,400-unit increase year on year.
Compared to our previous plan, this represents a downward revision of 37,600 units.

By market, Japan is expected to grow by 7,600 units to 166,500 units, a decrease of 5,500 units overthe previous plan.
Overseas is seen declining by 4,200 units. Compared with the previous plan this represents a
decrease of 32,100 units, for a total of 901,400 units, driven primarily by the impact of lower sales
in the U. S. and China.

10Revised Plan FYE 2018 :Consolidated Income Statements（100 Million Yen）

Actual Results Previous Plan Revised PlanFYE 2017 (a) FYE 2018 (b) FYE 2018 (c)Variance(c)-(a)Variance(c)-(b)Net sales

33,26034,20033,800+540-400

Domestic

6,503

6,680

6,717

+213

+37

Overseas

26,75627,52027,083+327-437

Operating income

4,108

4,100

3,800

-308

-300

Ordinary income

3,943

4,100

3,820

-123

-280

Income before taxes
and minority interests

3,947

3,217

2,950

-997

-267

Net income attributableto owners of parent

2,824

2,285

2,070

-754

-215

SUBARU exchange rate

¥108/US$¥110/US$¥111/US$+¥2/US$+¥1/US$https://www.subaru.co.jp/en/ir/

11

Next we will look at the consolidated income statements plan.
This constitutes a downward revision to the income statements compared with the previous plan.

Due to such factors as a gain on currency exchange of 56.1 billion yen and a positive sales volume& mixture effect of 4.4 billion yen, as well as an impact from lower sales from the companies etc. of-6.5 billion yen, we see net sales rising by 54.0 billion yen year on year to 3,380 billion yen.
With regard to operating income, we have revised our forecast to 380.0 billion yen, a decline of 30.8
billion yen year on year.
Ordinary income is projected to be 382.0 billion yen, a decline of 12.3 billion yen.
Income before taxes and minority interests is seen falling by 99.7 billion yen to 295.0 billion yen.
Net income attributable to owners of parent is planned to reach 207.0 billion yen, a decline of 75.4
billion yen.

11

Revised Plan FYE 2018:
Analysis of Variance in Operating Income (Consolidated)（100 Million Yen）

Fixed cost : -181 (SUBARU-58, SIA -123)
SG&A : -405 (SUBARU-135, SOA -279, others)
Warranty claims : +335
SUBARU: -108 (material cost -201)
SIA : -16 (material cost -58)

Gain oncurrency
exchange

Domestic : +124
(volume increase, mixture improvement)
Overseas : -278
(volume decrease, mixture improvement)
Others : +63

+317

SG&A
expensesand others

-252

R&D
expenses

-158

Cost
reduction-124

Sales volume& mixtureand others

US$ : +269
EURO : +25
CA$ : +32
CNY: +1
Currency exchange adjustment : -22
Unrealized gain : +11

Actual Results
Operating Income
FYE 2017

-308

-91

Revised Plan
Operating Income
FYE 2018

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

12

Now let’s look at the analysis of variance at the operating income level. Operating income this fiscal year is expected to decline by
30.8 billion yen compared with the 410.8 billion yen posted in the previous fiscal year.
The primary reasons pushing up operating income are<1> Gain on currency exchange: 31.7 billion yen. The yen is expected to weaken by roughly 2 yen against the U. S. dollar, leading toa positive impact of 26.9 billion yen. The yen is expected to weaken roughly 9 yen against the euro, for a gain of 2.5 billion yen, witha weakening against the Canadian dollar of about 5 yen, resulting in a gain of 3.2 billion yen. Others/the Chinese yuan is expected tocontribute +100 million yen, while currency exchange adjustments on transactions between SUBARU and its overseas subsidiaries
are seen having a negative effect of 2.2 billion yen, with unrealized gains on inventory projected to have a positive impact of 1.1
billion yen.
The main factors bringing operating income down are<2> Increase in other expenses having an impact of -25.2 billion yen. This is divided into 3 elements.
① Impact of increase in fixed manufacturing costs of -18.1 billion yen. Of this, SUBARU is expected to account for -5.8 billion yen
and SIA for -12.3 billion yen. At SUBARU, the impact of increased costs for supplier dies is forecast to be -4.4 billion yen, andincreased fixed processing costs are seen at -1.4 billion yen. At SIA, the increase in costs for supplier dies is expected to have aneffect of -6.3 billion yen, and the rise in fixed processing costs is slated to be -6.0 billion yen.
② The increase in SG&A expenses is expected to have an impact of -40.5 billion yen.
SUBARU is projected to be -13.5 billion yen, domestic dealers are forecast to be -2.6 billion yen, SOA is seen at -27.9 billion yen and
the Canadian subsidiary at -1.2 billion yen, with Others projected to be +4.7 billion yen.
For SOA, advertising and other expenses is planned to be +800 million yen, and incentives per vehicle for the current fiscal year are
expected to be 1,850 dollars. The plan is for incentives to increase by 400 dollars from the 1,450 dollars of the same period of theprevious fiscal year, which is projected to have an impact of -28.7 billion yen.
③ Declining warranty claims are forecast to have an impact of +33.5 billion yen.
<3> The effect of R&D expenses increasing is projected to be -15.8 billion yen.
<4> The impact of cost reductions is expected to be -12.4 billion yen. Of this, SUBARU is expected to account for -10.8 billion yen
and SIA for -1.6 billion yen. Cost reductions at SUBARU are projected to be +9.3 billion yen, while the impact higher material costs
and other negative market factors is expected to be -20.1 billion yen. The impact of cost reductions at SIA is slated to be +4.2 billion
yen, and that of material prices, etc. expected to be -5.8 billion yen.
<5> Sales volume & mixture and others: -9.1 billion yen. This is divided into 3 elements.
① New vehicles in Japan is +12.4 billion yen. ② New vehicles overseas is -27.8 billion yen. ③ Inventory corrections etc. is +6.3
billion yen.
As a result of the above, operating income for the fiscal year ending March 2018 is planned to be 380.0 billion yen.
For details of the changes from the previous forecast, please refer to the reference materials.

12Revised Plan FYE 2018:

Operating Plan of Subsidiaries in U.S.
（Million US$）SOA

Actual Results
FYE 2017

Net sales

Revised PlanFYE 2018

Variance

17,947

18,271+324

Operating income

671

462

-209

Net income

421

298

-123

625.0

657.1

+32.1

Retail sales(Thousand units)

SIA

Actual Results
FYE 2017

Net sales

Revised PlanFYE 2018

Variance

7,525

7,654

+129

Operating income

236

134

-102

Net income

148

85

-63

335.2

350.9

+15.7

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

13

Now we will look at the forecasts for the U.S. subsidiary.
Based on strong sales of the Impreza and the Crosstrek, we aim to increase SOA's retail sales by
32,100 units year on year to 657,100 units.
We forecast that net sales will rise by 324 million dollars to 18,271 million dollars. Operating
income is seen benefiting from sales volume and sales mix of +54 million dollars, but also being hit
by higher SG&A expenses of -263 million dollars, leaving operating income forecast to be 462
million dollars, a decline of 209 million dollars year on year.

SIA's net sales are expected to rise 129 million dollars year on year to 7,654 million dollars.
Operating income is forecast to be affected by sales mix variances of +31 million dollars, with cost
reduction efforts of -15 million dollars, and fixed cost increases of -118 million dollars, leading to a
decline of 102 million dollars year on year, to 134 million dollars.

13Capex / Depreciation / R&D / Interest bearing debt

（100 Million Yen）

Actual Results Actual Results Actual Results Revised Plan
1st Half
FYE 2017
FYE 2018
1st Half(a)(b)
FYE 2018
FYE 2017

Variance(b) - (a)

Capex

637

1,585

545

1,500

-85

Depreciation

335

770

421

920

+150

R&D

534

1,142

609

1,300

+158

1,614

1,483

976

1,000

-483

Interest
bearing debt

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

14

Finally, let’s look at capital expenditures, depreciation costs, R&D expenses, and interest bearing
debt.
With regard to capex and depreciation costs,
there has been no change to our previous plan, which is for 150.0 billion yen and 92.0 billion yen
respectively.
R&D expenses have been reduced by 4.0 billion yen compared with the previous plan, to 130.0
billion yen.
Interest-bearing debt has not changed from the previous plan, and is still scheduled to be 100.0
billion yen.
The following pages provide various reference materials, such as segment information, various
indicators and the changes between the previous plan and the current plan.
This concludes the briefing on our financial results for the first half of the fiscal year ending March2018.
Thank you very much.

14

Appendix(1)・Non-operating income & expenses and extraordinary income & loss (1H)・Segment information by business & geographic (1H)・Overseas net sales (1H)・Non-consolidated unit sales (1H)

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

15

15

1st Half : Non-operating Income & Expenses andExtraordinary Income & Loss (Consolidated)（100 Million Yen）

Actual Results
1st Half
FYE 2017

Actual Results
1st Half
FYE 2018

Variance

Financial revenue and expenditure

10

24

+15

FOREX effects

205

-20

-225

Other

-22

2

+23

Total non-operating income & expenses

192

6

-186

Gain on sales of noncurrent assets

3

2

-1

Gain on sales of investment securities

99

6

-93

Loss on sales and retirement of
noncurrent assets

-21

-29

-8

Loss related to airbags

-

-813

-813

Others-3-9-5

Total extraordinary income & loss

78

-842

-920

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

16

16

1st Half : Net Sales and Operating Income
by Business Segment (Consolidated)（100 Million Yen）

Net Sales
ActualResults
1st Half
FYE 2017

ActualResults
1st Half
FYE 2018

Automobile

14,924

Aerospace
OthersOperating Income
Variance

ActualResults
1st Half
FYE 2017

ActualResults
1st Half
FYE 2018

Variance

16,000+1,076

2,033

2,053

+20

668

680

+12

36

42

+6

185

183

-2

12

24

+12

4

3

-1

2,085

2,121

+36

Elimination& Corporate
Total

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

15,777

16,863+1,08717

17

1st Half : Net Sales and Operating Income
by Geographic Area (Consolidated)（100 Million Yen）

Net Sales
ActualResults
1st Half
FYE 2017

ActualResults
1st Half
FYE 2018

Japan

4,481

North America
OthersOperating Income
Variance

ActualResults
1st Half
FYE 2017

ActualResults
1st Half
FYE 2018

Variance

4,979

+498

1,327

1,586

+259

9,998

10,927

+928

506

439

-67

1,297

957

-340

39

24

-16

213

72

-141

2,085

2,121

+36

Elimination&
Corporate
Total

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

15,777

16,863+1,08718

18

1st Half :Overseas Net Sales (Consolidated)（100 Million Yen）

Actual Results
1st Half FYE 2017

Actual Results
1st Half FYE 2018

10,48911,492+1,003

549

541

-7

Asia

1,098

698

-400

Others

781

846

+65

12,916

13,577+661

North America
EuropeTotal

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

Variance

19

19

1st Half :Non-consolidated Unit Sales（Thousand Units）

Actual Results
1st Half FYE 2017

Actual Results
1st Half FYE 2018

354.6

346.2

-8.5

Domestic sales

69.9

85.6

+15.8

Passenger cars

53.5

70.0

+16.4

Minicars

16.3

15.7

-0.7

287.7

271.3

-16.4

163.3

178.4

+15.1

520.9

535.3

+14.4

Domestic production

Number of exported
vehiclesComponents for overseas
production

Total

Variance* Domestic production figures include Toyota 86.

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

2020

Appendix (2)nd quarter (3months) consolidated income statements
・2nd
・ 1stst half consolidated income statement (Plan vs. Actual results)
・Full year consolidated income statements(Previous plan vs. Revised plan)

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

2121

2Q (3 months) :Consolidated Unit Sales（Thousand Units）

Actual Results
2Q (3 months)
FYE 2017

Actual Results
2Q (3 months)
FYE 2018

Variance

Passenger cars

27.9

34.0

+6.1

Minicars

8.9

7.9

-1.1

36.9

41.9

+5.0

US

171.9

159.3

-12.6

Canada

13.0

15.3

+2.3

Russia

1.8

1.8

+0.0

Europe

9.8

9.4

-0.3

Australia

10.4

13.6

+3.2

China

12.2

5.8

-6.4

Others

10.8

12.8

+2.0

Overseas total

230.0

218.1

-11.9

Total

266.8

259.9

-6.9

Domestic total

https://www.subaru.co.jp/en/ir/<China> FYE2017 :Figures are consolidated on the calendar year basis from Apr. to Jun.
FYE2018 :Figures are consolidated on the fiscal year basis from Jul. to Sep.

2222

2Q (3 months) :Consolidated Income Statements（100 Million Yen）

Actual Results
2Q (3 months)
FYE 2017

Actual Results
2Q (3 months)
FYE 2018

Variance

Net sales

8,083

8,315

+233

Domestic

1,557

1,681

+124

Overseas

6,526

6,634

+109

Operating income

1,070

928

-142

Ordinary income

1,090

935

-155

Income before taxes
and minority interests

1,178

103

-1,075

Net income attributableto owners of parent

850

27

-823

SUBARU exchange rate

¥104/US$¥111/US$+¥7/US$https://www.subaru.co.jp/en/ir/2323

2Q (3 months) :Analysis of Variance in Operating Income (Consolidated)

Gain oncurrency
exchange（100 Million Yen）

Fixed cost : -52 (SUBARU-21, SIA-31)
SG&A : -37 (SUBARU-19, SOA -55, others)
Warranty claims : -76
Domestic : +73 (volume increase,mixture improvement）
Overseas : -187 (volume decrease,mixture improvement)
Others : +33

+198

SG&A
expensesand others-165

Sales volume& mixtureand others

-81

R&D
expenses-49

SUBARU: -43(material cost -64)
SIA : -2(material cost -18)

Cost
reduction-45

US$ : +203
EURO : +10
CA$ : +12
CNY : ±0
Currency exchange adjustment: +53
Unrealized gain: -80

Actual Results
Operating Income
2Q (3 months)
FYE 2017
https://www.subaru.co.jp/en/ir/-142

Actual Results
Operating Income
2Q (3 months)
FYE 2018
24

24

（Plan vs. Actual Results）1st Half :Consolidated Unit Sales（Thousand Units）

Plan
1st Half FYE 2018

Actual Results
1st Half FYE 2018

Passenger cars

65.2

67.3

+2.1

Minicars

17.4

15.1

-2.3

82.6

82.3

-0.2

US

335.0

333.2

-1.7

Canada

30.1

30.7

+0.6

Russia

3.7

3.7

-0.0

Europe

19.6

17.8

-1.8

Australia

27.3

27.7

+0.4

China

21.9

13.8

-8.0

Others

22.2

22.0

-0.1

Overseas total

459.7

448.9

-10.8

Total

542.3

531.3

-11.0

Domestic total

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

Variance25

25

（Plan vs. Actual Results）1st Half :Consolidated Income Statements（100 Million Yen）

Plan
1st Half FYE 2018

Actual Results
1st Half FYE 2018

Net sales

16,89016,863-27

Domestic

3,286

3,286

+0

Overseas

13,604

13,577-27

Operating income

2,100

2,121

+21

Ordinary income

2,100

2,127

+27

Income before taxes
and minority interests

1,257

1,285

+28

Net income attributableto owners of parent

885

850

-35

SUBARU exchange rate

¥110/US$¥111/US$+¥1/US$https://www.subaru.co.jp/en/ir/

Variance26

26

（Plan vs. Actual Results）1st Half :Analysis of Variance in Operating Income (Consolidated)（100 Million Yen）

R&D
expenses+72

Gain oncurrency
exchange

SG&A
expensesand others

+38

+67

US$ : +86
EURO : +8
CA$ : -1
CNY : +1
Currency exchange adjustment: -13
Unrealized gain: -15

Cost
reduction

Domestic : +12 (volume
increase,
mixture deterioration）
Overseas : -100 (volume
decrease, mixture improvement)
Others : -74+7

SUBARU: +9(material cost +3)
SIA : -2(material cost -4)

Sales volume& mixtureand others-163

Fixed cost : +11 (SUBARU+5, SIA +6)
SG&A : +96 (SUBARU+28, SOA +4, others)
Warranty claims : -69

Plan
Operating Income
1st Half
FYE 2018
https://www.subaru.co.jp/en/ir/+21

Actual Results
Operating Income
1st Half
FYE 201827

27

（Previous Plan vs. Revised Plan）FYE 2018 :Consolidated Unit Sales（Thousand Units）

Previous PlanFYE 2018

Revised PlanFYE 2018

Variance

Passenger cars

134.2

135.0

+0.7

Minicars

37.8

31.6

-6.3

172.1

166.5

-5.5

US

687.7

668.0

-19.7

Canada

54.6

55.6

+1.0

Russia

6.6

7.3

+0.7

Europe

39.2

39.5

+0.4

Australia

52.6

55.9

+3.4

China

42.3

29.8

-12.4

Others

50.5

45.2

-5.2

933.4

901.4

-32.1

1,105.5

1,067.9-37.6

Domestic total

Overseas total

Total
https://www.subaru.co.jp/en/ir/28

28

（Previous Plan vs. Revised Plan）FYE 2018 :Consolidated Income Statements（100 Million Yen）

Previous PlanFYE 2018

Revised PlanFYE 2018

Variance

Net sales

34,20033,800-400

Domestic

6,680

6,717

+37

Overseas

27,52027,083-437

Operating income

4,100

3,800

-300

Ordinary income

4,100

3,820

-280

Income before taxes
and minority interests

3,217

2,950

-267

Net income attributableto owners of parent

2,285

2,070

-215

SUBARU exchange rate

¥110/US$¥111/US$+¥1/US$https://www.subaru.co.jp/en/ir/29

29

（Previous Plan vs. Revised Plan）FYE 2018 :Analysis of Variance in Operating Income (Consolidated)（100 Million Yen）

Gain oncurrency
exchange+106

R&D
expenses+40

SG&A
expensesand others

Domestic : +20(volume increase, mixture deterioration)
Overseas : -409
(volume decrease, mixture improvement)
Others : -31
SUBARU: -32 (material cost -41)
SIA : -21 (material cost -24)

+27

US$ : +87
EURO : +23
CA$ : +17
CNY : +1
Currency exchange adjustment: -13
Unrealized gain: -9

Sales volume& mixtureand others

Cost
reduction

-420

-53

Fixed cost : +64 (SUBARU +41, SIA +23)
SG&A: +31 (SUBARU -45, SOA +21, others)
Warranty claims : -68

Previous Plan
Operating Income
FYE 2018
https://www.subaru.co.jp/en/ir/-300

Revised Plan
Operating Income
FYE 201830

30

Appendix (3)・ Net sales / Operating income
・ Consolidated unit sales / OPM
・Complete cars production / Retail sales units
・FCF / Shareholders’ equity to total assets
・Interest-bearing debt / D/E ratio

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

31

31

Net Sales / Operating Income
¥102/
$

¥102/
$

¥110/
$

Net Sales(100M yen)https://www.subaru.co.jp/en/ir/

¥118/
$

¥120/
$

¥123/
$

¥121/
$

¥118/
$

¥111/
$

¥104/
$

¥105/
$

¥114/
$

¥112/
$

¥111/
$

Operating
Income(100M yen)32

32

Complete Unit Sales / Operating Income Margin
Unit Sales(1,000 units)

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

OPM

33

33

Complete Cars Production / Retail Sales Units

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

34

34

Free Cash Flows /Ratio of Shareholders’ Equity to Total Assets

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

3535

Interest Bearing Debt / D/E Ratio

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

36

36

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 varymaterially 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 maketheir final investment decisions.
https://www.subaru.co.jp/en/ir/3737

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

3838