FYE2018 Consolidated Financial Results
For the Year Ended March 31, 2018
(Japan GAAP)May 11, 2018
Company Name
: SUBARU CORPORATION. (Tokyo Stock Exchange First Section, Code No.7270)
URL: https://www.subaru.co.jp/en/ir/
Representative: Yasuyuki Yoshinaga, President and CEO
Contact for Inquiries: Katsuo Saito, General Manager of Administration Department Phone +81-3-6447-8825
Scheduled date of annual meeting of stockholders: June 22, 2018 Scheduled date for dividend payment : June 25, 2018
Scheduled date of submitting Security Report: June 25, 2017
Annual earnings supplementary explanatory documents : Yes
Holding of annual 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. Performance in FYE2018 (April 1, 2017 to March 31, 2018)(1)Consolidated Results of Operations (for twelve-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 income
attributable toowners of parent
FYE2018
3,405,221
2.4%
379,447(7.6)%
379,934(3.7)%
220,354 (22.0)%
FYE2017
3,325,992
2.9%
410,810 (27.4)%
394,330 (31.7)%
282,354 (35.3)%
Note: Comprehensive income FYE2018: 206,042 million yen (26.2%) FYE2017: 279,352 million yen (31.1%)
Net sales

Operating income

Ordinary income

Ratio of ordinary
Ratio ofincome (loss) to operating income
total assets(loss) to sales－
FYE2018
287.40
14.6%
13.5%
11.1%
－
FYE2017365.77
20.2%
14.7%
12.4%
Reference: Equity income from affiliates FYE2018: 778 million yen FYE2017: 292 million yen
Net income per
Net income pershare, basic (Yen) share, diluted (Yen)

Return on
equity(Unit: Millions of yen, except for per share figures)
Shareholders’ equity to Net assets per share (Yen)
Total assets
Net assets
total assets (%)
FYE2018
2,884,313
1,561,023
53.8%
2,025.31
FYE2017
2,762,321
1,464,888
52.8%
1,902.56
Reference: Shareholders’ equity FYE2018: 1,552,844 million yen FYE2017: 1,458,664 million yen(2) Consolidated Financial Position(3) Consolidated Cash FlowsFYE2018
FYE2017

Net cash provided by Net cash provided by Net cash provided byoperating activities
investment activities
financing activities
366,298(150,711)(170,937)
345,442(254,252)(189,044)

2. Dividends
Cash dividends per share (yen)FYE 2017
FYE 2018
FYE 2019(Forecast)

1st
Quarter－－

2nd
QuarterYearendAnnual

72.00
72.00

3rd
Quarter
－
－

72.00
72.00

144.00144.00

－

72.00

－

72.00

144.00(Unit: Millions of yen)
Cash & cash equivalents
at end of period
765,591
728,616

Ratio ofAmount ofDividend
dividends
todividends
payout ratio
net assets
paid (Annual) (consolidated) (consolidated)
110,460
110,466

39.4%
50.1%

7.9%
7.3%

50.2%

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
1st half 1,463,100 (13.2)%
Full year 3,250,000 (4.6)%

Operating income
110,000 (48.1)%
300,000 (20.9)%

Net income attributable Net income per
to owners of parent
share,basic(Yen)
111,700 (47.5)%
79,100(6.9)%
103.17305,000 (19.7)%
220,000(0.2)%
286.94

Ordinary income

4. Others(1) Changes of significant subsidiaries in fiscal year 2018
(Transfer of subsidiaries resulting in changes in the scope of consolidation): No(2) Changes in accounting policies, procedures and methods of presentation for preparing the 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
: No
: Yes
: No

(3) Number of outstanding shares (Common Stock)[1] Number of outstanding shares(including treasury stock)[2] Number of treasury stock[3] Average number of shares(for twelve-month period)

As of March 31,2018:769,175,873 shares As of March 31,2017: 769,175,873 shares

As of March 31,2018:
FYE2018:

2,455,039 shares As of March 31,2017:766,707,785 shares FYE2017:

2,490,224 shares
771,952,313 shares(Reference) Non-consolidated Financial Results Highlights
Performance in FYE2018(April 1, 2017 to March 31, 2018)(1)Non-consolidated Results of Operations (for twelve-month period)(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)

FYE2018
FYE2017

Net sales
2,087,834
1.4%
2,059,285(1.2)%

Operating income
256,015(0.6)%
257,510 (37.9)%

FYE2018
FYE2017

Net income per share,
basic (Yen)
200.10269.63

Net income per share,
diluted (Yen)－－

Ordinary income
266,0251.7%
261,664 (40.3)%

Net income
153,496 (26.3)%
208,252 (42.5)%

Shareholders’ equity
to total assets (%)
59.5%
60.6%

Net assets per share(Yen)
1,507.02
1,453.88(2) Non-consolidated Financial Position
Total assets
FYE2018
FYE2017

1,943,951
1,839,983

Net assets
1,156,068
1,115,249

Reference: Shareholders’ equity FYE2018: 1,156,068 million yen FYE2017: 1,115,249 million yen*The status of the implementation of the annual audit
This earnings report is not subject to audit procedures 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.
Please refer to page 5 in the attachments for assumptions used for the performance projection and other notes.

Index of the attachments
1. Overview of Operating Results ....................................................................................................... 2(1) Overview of Operating Results for the Current Period under Review.................................................2(2) Overview of Financial Position in the Period under Review .................................................................3(3) Overview of Cash Flow in the Period under Review ..............................................................................4(4) Future forecast ...........................................................................................................................................4(5) Basic Policy Regarding the Distribution of Profits and dividend payments in the current period
under review and the next period ..................................................................................................................4

2. Management Policies ....................................................................................................................... 5(1) Basic Management Policies .......................................................................................................................5(2) Issues That Must Be Addressed ................................................................................................................5

3. Basic policy about the adoption of Accounting standards ........................................................... 6
4. Consolidated Financial Statements ................................................................................................ 7(1) Consolidated Balance Sheet ......................................................................................................................7(2) Consolidated Statements of (Comprehensive) Income ...........................................................................9
Consolidated Statements of Income (for twelve-month period) ..............................................................9
Consolidated Statements of Comprehensive Income (for twelve-month period) .................................10(3) Consolidated Statements of Changes in Net Assets .............................................................................. 11(4) Consolidated Statements of Cash Flows ................................................................................................13(5) Notes to Consolidated Financial Statements .........................................................................................14(Notes on Premise of Going Concern) ......................................................................................................14(Significant Accounting Policies in Preparing the Consolidated Financial Statement) .......................14(Changes in Accounting estimates) ...........................................................................................................14(Consolidated Statements of Income) .......................................................................................................14(Segment Information) ..............................................................................................................................15(Per Share Information) ............................................................................................................................17(Subsequent Event) ....................................................................................................................................17

5. Non-consolidated Financial Statements ....................................................................................... 18(1) Non-consolidated Balance Sheet.............................................................................................................18(2) Non-consolidated Statements of Income (for twelve-month period) ...................................................20(3) Non-consolidated Statements of Changes in Net Assets .......................................................................21―1―

1. Overview of Operating Results(1) Overview of Operating Results for the Current Period under Review
As the employment and income environment improved supported by various policies, the Japanese
economy continued on a gradual recovery path in the period under review. Global economy also recovered
gradually led by the United States, although attention must be paid to the economic development in China andother Asian emerging markets; the impact from political uncertainties; and trends in the financial and capital
markets. Given this backdrop, the exchange rate was mostly stable, with the yen against the US dollar getting
slightly stronger in the fourth quarter.
Through initiatives set out in the Prominence 2020 mid-term management vision drawn up in 2014, whichaims for SUBARU to have a prominent presence in the minds of its customers, the Subaru Group has madesustained effort for reliable automobile development and manufacturing and keep offering its customers“Enjoyment and Peace of Mind.”
The key North American market continued to drive global sales, and our initiatives brought steady resultsover the same period, including the achievement of record automobile unit sales.
Consequently, net sales increased by ¥79.2 billion (2.4%) from the previous fiscal year to a record ¥3,405.2
billion, owing to increased net sales from favorable foreign exchange rate and higher automobile unit sales.
Operating income decreased by ¥31.4 billion (7.6%) year-on-year to ¥379.4 billion, due to increases inselling expenses associated with rising interest rates in US, the effect of raw materials market, and higher
R&D expenses, despite positive effect from the foreign exchange rate. Ordinary income decreased by ¥14.4
billion (3.7%) from the previous fiscal year to ¥379.9 billion. Net income attributable to owners of the parent
decreased ¥62.0 billion (22.0%) year-on-year to ¥220.4 billion partly owing to airbag related extraordinary
loss of ¥81.3 billion.
(In Japanese yen in million except for profit ratio and percentage change from the previous period)
Net Sales
3,405,221

FYE2018

3,325,992

FYE2017
ChangePercentage Change

79,2292.4%

Operating Income Ordinary Income
379,447(11.1)
410,810(12.4)(31,363)(7.6) %Net Income
Attributable to Foreign Exchange
Rate
Owners of the
Parent379,934(11.2)
394,330(11.9)(14,396)(3.7) %

220,354(6.5)
282,354(8.5)(62,000)(22.0) %¥111/US$¥130/EUR¥108/US$¥119/EUR

Results for the period under review by business segment are as described below.
(In Japanese yen in million except for profit ratio and percentage change from the previous period)
Net Sales
Segment Income
Percentage
Percentage
FYE2017
FYE2018
ChangeFYE2017
FYE2018
ChangeChangeChangeAutomobile
3,151,961
3,234,866
82,905
2.6
397,657
361,454
Div.
Aerospace
138,759
142,163
3,404
2.5
9,102
12,259Div.
Other
35,272
28,192(7,080)(20.1)
3,512
5,066
Adjustment
539
668
－
－
－
－
s
Total
3,325,992
3,405,221
79,2292.4
410,810379,447
Notes: 1. Net sales are sales to outside customers.
2. Adjustment to segment income refers to the elimination of intersegment transactions.

(36,203)

(9.1)

3,157

34.7

1,554

44.2

129

23.9

(31,363)(7.6) %

(Automobile Division)
As to industry total automobile demand in Japan, compared with the previous fiscal year, passenger carsremained steady year-on-year while minicars increased to 5.197 million units (an increase of 2.3% from theprevious fiscal year). Also, total automobile demand in the United States, which is a priority market for us,
was 17.308 million units (decrease on 1.0% year-on-year), moving further from passenger vehicle to lighttrucks including SUVs.
―2―

Domestic sales of minicars decreased from the previous fiscal year, but passenger cars remained strong
amid led by all-new SUBARU XV, resulting in sales increasing by 5 thousand units (2.8%) from the previous
fiscal year to 163 thousand units.
Overseas, which is a priority market for us, unit sales stayed strong in the United States, reaching a record
high for the ninth consecutive fiscal year, although total unit sales decreased by 2 thousand units (0.2%) yearon-year to 903 thousand units, due to the decrease in unit sales in China owing to fierce competition.
Combined domestic and overseas unit sales thus increased by 2 thousand units (0.2%) from the previous
fiscal year to 1,067 thousand units, and net sales increased by ¥82.9 billion (2.6%) to ¥3,234.9 billion.
Segment income decreased by ¥36.2 billion (9.1%) from the previous fiscal year to ¥361.5 billion.
Consolidated unit sales in the period under review are shown in the table below.
(Units in thousands and percentage change from the previous period)
Percentage
FYE2017
FYE2018
ChangeChangeTotal in Japan
159
163
5
2.8
Passenger cars
126
133
6
4.9
Minicars
33
31
(2)
(5.1)
Total Overseas
906
903
(2)
(0.2)
North America
721
728
7
1.0
Europe/Russia
46
48
2
3.7
Australia
49
56
7
13.4
China
44
27
(17)
(38.9)
Other regions
46
45
(0)
(0.8)
Total
1,065
1.067
2
0.2

(Aerospace Division)
Deliveries to the Japan Ministry of Defense saw sales increase from the previous fiscal year mainly with
development under way in earnest based on a contract for the new multi-purpose helicopter UH-X.
Sales to the commercial sector also increased from the previous fiscal year with the growth in production of
Boeing 787 aircraft covering for the decline in production of Boeing 777 aircraft.
As a result, overall sales increased by ¥3.4 billion (2.5%) from the previous fiscal year to ¥142.2 billion.
Segment income increased by ¥3.2 billion (34.7%) from the previous fiscal year to ¥12.3 billion.
(Other Businesses)
Net sales decreased by ¥7.1 billion (20.1%) from the previous fiscal year to ¥28.2 billion. Segment income
also increased by ¥1.6 billion (44.2%) from the previous fiscal year to ¥5.1 billion.
(2) Overview of Financial Position in the Period under Review[1] Assets
Total assets increased by ¥122.0 billion from the end of the previous fiscal year to ¥2,884.3 billion. Main
factors included a ¥45.8 billion increase in property, plant, and equipment, a ¥28.6 billion increase incombined funds on hand comprised of cash, deposits, and short-term investment securities, and a ¥26.5 billion
increase in deferred tax assets.
[2] Liabilities
Liabilities increased by ¥25.9 billion from the previous fiscal year to ¥1,323.3 billion. Main factors includeda ¥64.7 billion increase in provision for loss related to airbags, a ¥34.6billion increase in accounts payable, anda ¥62.1 billion decrease in short-term loans payable and long-term loans payable including the current portion.
[3] Net Assets
Net assets increased by ¥96.1 billion from the previous fiscal year to ¥1,561.0 billion. Main factors includeda ¥110.3 billion increase in retained earnings.

―3―(3) Overview of Cash Flow in the Period under Review
Cash and cash equivalents (hereinafter “cash”) at the end of the period under review totaled ¥765.6 billion.
[1] Net cash provided by operating activities
Net cash provided by operating activities increased by ¥366.3 billion (compared with ¥345.4 billion
increase in the previous fiscal year). Main factors included ¥297.3 billion in income before income taxes, a¥64.7 billion in provision for loss related to airbags.
[2] Net cash used in investment activities
Net cash used in investing activities decreased by ¥150.7 billion (compared with ¥254.3 billion decrease in
the previous fiscal year). Main factors included ¥146.5 billion in expenditures for the purchase of property,
plant and equipment (net basis against proceeds from sales of property, plant and equipment).
[3] Net cash used in financing activities
Net cash used in financing activities decreased by ¥170.9 billion (compared with ¥189.0 billion decrease in
the previous fiscal year). Main factors included ¥110.3 billion in expenditures for cash dividends paid, ¥40.9
billion in repayment of long-term loans payable (net basis against proceeds from long-term loans payable), and¥18.4 billion decrease in short-term loans payable.
(4) Future forecast
In the fiscal year ending March 31, 2019, the Company plans to achieve growth in automobile unit sales
mainly in North America. However, due to the decline in profits from the effect of foreign exchange rate
fluctuation and changes in accounting policies, the Company forecasts consolidated net sales of ¥3,250.0
billion.
In terms of income, despite the expected increase in automobile unit sales, the Company forecasts operating
income of ¥300.0 billion, ordinary income of ¥305.0 billion, and net income attributable to owners of parent of¥220.0 billion, due to the increase in selling expenses from higher interest rates in the U.S., and higher raw
material costs.
Currency rate assumptions: 105 yen/US$ (actual rate for previous fiscal period was 111 yen), 130 yen/euro(actual rate for previous fiscal period was 130 yen)
(In Japanese yen in million except for profit ratio and percentage change from the previous period)
Net Sales

FYE2019 (forecast)
FYE2018 (actual results)
ChangePercentage Change

3,250,000
3,405,221(155,221)(4.6) %

Operating Income Ordinary Income
300,000(9.2)
379,447(11.1)(79,447)(20.9) %305,000(9.4)
379,934(11.2)(74,934)(19.7) %Net Income
Attributable to Foreign Exchange
Owners of the
Rate
Parent220,000(6.8)
220,354(6.5)(354)(0.2) %

¥105/US$¥130/EUR¥111/US$¥130/EUR(5) Basic Policy Regarding the Distribution of Profits and dividend payments in the current period underreview and the next period
The Company considers the benefits of shareholders to be significant management issue and have adopted
performance linked approach based on continuous dividend payouts, taking into account the businessperformance, investment plans, and business environment for each fiscal period. Dividends for each fiscal
period is based on the consolidated dividend payout ratio of between 30% and 50%, determined byconsidering various circumstances.
Year-end dividend will be ¥72 per share, the same as the previous fiscal period. As a result, the per-share
dividend for the full fiscal year is ¥144 including the interim dividend of ¥72 per share already distributed,
which is the same as in the previous fiscal year.
The per-share dividend for the FYE March 2019, is projected to the same amount of ¥144 (interim dividend―4―¥72, year-end dividend ¥72).

2. Management Policies(1) Basic Management Policies
We adhere to the following corporate philosophy:
1. We will strive to create advanced technology on an ongoing basis and provide consumers with distinctive
products with the highest level of quality and customer satisfaction.
2. We will aim to continuously promote harmony between people, society, and the environment while
contributing to the prosperity of society.
3. We will look to the future with a global perspective and aim to foster a vibrant, progressive company.
The Company changed its name to SUBARU CORPORATION effective from April 1, 2017. By integrating
the company name and the brand name, we will further accelerate the enhancement of the SUBARU brandthat we are currently working on under the Prominence 2020 mid-term management vision, and grow
SUBARU into an attractive global brand in the automobile and aerospace businesses.
(2) Issues That Must Be Addressed(Enhancing our fundamental strength)
The Company achieved steady growth owing to multiple factors in these few years. On the other hand, wecame to acute realization that fundamental strength was lacking as a corporation. We believe it is necessary toenhance our fundamental strength by returning to the basics.
[1] Basic approach towards business/corporate culture reform
From nonconforming final vehicle inspections, we were given a fresh reminder that there was lack ofawareness of public interest in and importance of our business; and lack of normative consciousness stemmingfrom a culture that overemphasizes technology. Also, we reacknowledged that the platform for appropriate
operation of business such as education, internal rules, communication and systems were inadequate.
To thoroughly implement preventative measures against the incidents identified and to deal with the culturalissues recognized this time, we have established the “Tadashii-Kaisha” Promotion Department andCompliance Office. We intend to fundamentally enhance our efforts to become a high-quality company andpromote this with unwavering resolve. We are determined to transform ourselves into a “Tadashii-kaisha,” acompany doing the right things in the right way, never to let another incident like this happen again.
[2] Initiatives on quality
As the production and unit sales figure rapidly increased, issues related to product quality such as airbags
have continued to occur. Quality is the foundation of customers’ trust in SUBARU. We will treat quality as the
top priority in our company-wide initiative and implement fundamental reforms led by the CQO (Chief
Quality Officer). We will ensure the smooth supply of replacement parts, and increase work efficiency in the
dealerships, among other measures, to enhance the quality of our customer service.
We deeply regret causing concerns and inconveniences to our stakeholders including our customers, willaddress the issues sincerely, and endeavor to enhance our fundamental strength.
(Enhancing brand value)
Both our automotive and aerospace businesses are not large in size, it is important to create added-value thatis appreciated by our customers. We will engage in following efforts to expand the range of distinctive
SUBARU products and strengthen our brand value:[1] Corporate activities that enhance customer trust and sympathy, that makes our customers smile[2] Expand the range of distinctive SUBARU products and services focused on “Enjoyment and Peace ofMind Roll-out of new multi-passenger SUV “Ascent” in North America Global launch of the all-new model―5―

for our global mainstay product, Forester.
Enhancementof connection services utilizing technologies such as telematics*
*Technology for providing various information and services by mounting and utilizing communication
systems on mobile objects such as vehicles.
[3] Develop new safety/environmental technology that protects human life and global environment
 Continue to provide industry-leading safety functions by sustained development and refinement ofsafety technology
 Roll out electric vehicles to each market starting with plug-in hybrid vehicle in the U.S. market in2018
We are committed to further development of our organization and human resources, which is essential for
acceleration of these activities. In addition, we are aiming to expand and deepen collaboration with othercompanies.
Under the new management, the next mid-term management vision is scheduled for announcement during
the summer of 2018.

3. Basic policy about the adoption of Accounting standards
We are planning to voluntarily adopt International Financial Reporting Standards (IFRS) to the Group's
consolidated financial statements from the first quarter of the fiscal year ending March 31, 2020, instead of theJapanese Generally Accepted Accounting Principles currently adopted.

―6―4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Unit: Millions of yen)
FYE2017(as of March 31, 2017)
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
Deferred tax assets
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―7―

FYE2018(as of March 31, 2018)

658,822
158,454
18,538
320,579
205,991
51,754
43,586109,600
176,433
102,045(551)
1,845,251765,397
155,247
17,120242,573
202,435
52,30742,448
124,766
185,364
107,893(340)
1,895,210

178,464
172,977
183,477
11,60945,41665,322657,265

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

24,90524,90528,29328,293

105,510931
20,922
110,848(3,311)
234,900
917,070
2,762,321

113,46582
32,244
115,273(3,362)257,702
989,1032,884,313

(Unit: Millions of yen)
FYE2017(as of March 31, 2017)
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 benefitsof foreign consolidated subsidiaries
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets―8―

FYE2018(as of March 31, 2018)349,737
92,09843,20544,443
13,858221,328
23,67859,25965
3,317－
162,750
1,013,738

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

60,61229,802－536
18,615
174,130
283,695
1,297,433

21,13820,30535,801447
19,337
175,256
272,284
1,323,290

153,795
160,178
1,173,277(7,173)
1,480,077

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

8,099(16,631)(10,996)

7,038(36,193)(10,136)(1,885)

1,658(21,413)6,224
1,464,888
2,762,321(37,633)
8,179
1,561,023
2,884,313

(2) Consolidated Statements of (Comprehensive) Income
Consolidated Statements of Income (for twelve-month period)(Unit: Millions of yen)
FYE2017(April 1, 2016 to
March 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
Gain on valuation of derivatives
Other
Total non-operating income
Ⅴ Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on valuation of derivatives
Depreciation
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 on business liquidation
Loss related to airbags
Impairment loss
Other
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income (loss) attributable to non-controlling interests
Net income attributable to owners of parent―9―

FYE2018(April 1,2017 toMarch 31, 2018)

3,325,992
2,386,266
939,726
528,916
410,810

3,405,221
2,442,706
962,515583,068
379,447

3,131
1,485
292
－
1,992
6,900

6,812
1,374
778
2,266
3,071
14,301

1,846
4,800
4,248
956
11,53023,380394,330

1,379
7,395
－
1,025
4,015
13,814379,934

908
10,144
1,557
12,609

563
4,618
759
5,940

4,178
5,122
－
1,188
1,756
12,244
394,695
123,591(12,448)
111,143
283,552
1,198
282,354

5,400－
81,26131
1,842
88,534297,340
113,155(37,554)
75,601
221,7391,385
220,354

Consolidated Statements of Comprehensive Income (for twelve-month period)(Unit: Millions of yen)
FYE2017(April 1, 2016 to
March 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 of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests―10―

FYE2018(April 1,2017 toMarch 31, 2018)

283,552

221,739(3,245)(2,968)1,812(1,061)(18,985)
860

984

3,543

(783)

(54)

(4,200)279,352(15,697)
206,042

278,689663

204,449
1,593

(3) Consolidated Statements of Changes in Net Assets
FYE 2017 (April 1, 2016 to March 31, 2017)(Unit: Millions of yen)
Shareholders' equity
Capital stock
Balance at the beginning ofcurrent period
Changes of items during theperiodCapital surplus

Retained earnings

Treasury stock

Total shareholders' equity

153,795

160,071

1,049,016(1,402)

1,361,480

Dividends from surplus－－(111,446)－(111,446)

Net income attributable toowners of parent－－

282,354－282,354

Purchase of treasury stock

－

－

－

(52,744)(52,744)

Disposal of treasury stock

－

1

(1)

0

0

Retirement of treasury stock－(46,973)－

46,973

－

－

－

－

－

－

－

－

－

－

－

－

－

325

－

325

－

46,972(46,972)

－

－

－

107

1

－

108

－

－

－

－

－

－

107

124,261(5,771)

118,597

153,795

160,178

1,173,277(7,173)

1,480,077

Adjustments due to change infiscal year end of consolidated
subsidiaries
Change of the scope of
consolidation
Change of the scope of equity
methodTransfer to capital surplus fromretained earnings
Other
Net changes of items otherthan shareholders' equity
Total changes of items
during the period
Balance at the end of current
periodAccumulated other comprehensive income
Remeasurements
Totalof otheraccumulated
postretirement
other
benefits ofcomprehensive
foreign consolidated
incomesubsidiaries

Valuationdifference
on availablefor-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

11,344(13,415)(12,808)(2,869)(17,748)

5,679

1,349,411

Dividends from surplus

－

－

－

－

－

－

(111,446)

Net income attributable toowners of parent

－

－

－

－

－

－

282,354

Purchase of treasury stock

－

－

－

－

－

－

(52,744)

Disposal of treasury stock

－

－

－

－

－

－

0

Retirement of treasury stock

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

325

－

－

－

－

－

－

－

－

－

－

－

－

－

108

(3,245)(3,216)

1,812

984

(3,665)545(3,120)(3,245)(3,216)

1,812

984

(3,665)545

115,477

8,099(16,631)(10,996)(1,885)(21,413)6,224

1,464,888

Balance at the beginning ofcurrent period
Changes of items during
the period

Adjustments due to change infiscal year end of consolidated
subsidiaries
Change of the scope of
consolidation
Change of the scope of equity
methodTransfer to capital surplus fromretained earnings
Other
Net changes of items otherthan shareholders' equity
Total changes of items
during the period
Balance at the end of current
period―11―

Noncontrollinginterests

Total net
assetsFYE 2018 (April 1, 2017 to March 31, 2018)(Unit: Millions of yen)
Shareholders' equity
Capital stock
Balance at the beginning ofcurrent period
Changes of items during theperiodCapital surplus

Retained earnings

Treasury stock

Total shareholders' equity

153,795

160,178

1,173,277(7,173)

1,480,077

Dividends from surplus－－(110,463)－(110,463)

Net income attributable toowners of parent－－

220,354－

220,354

Purchase of treasury stock

－

－

－

(11)

(11)

Disposal of treasury stock

－

19

－

130

149

Retirement of treasury stock

－

－

－

－

－

－

－

828

－

828

－

－

(355)

－

(355)

－

－

922

－

922

－

－

－

－

－

－

－

(1,024)－(1,024)

－

－

－

－

－

－

19

110,262

119110,400

153,795

160,197

1,283,539(7,054)

1,590,477

Adjustments due to change infiscal year end of consolidated
subsidiaries
Change of the scope of
consolidation
Change of the scope of equity
methodTransfer to capital surplus fromretained earnings
Other
Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
periodAccumulated other comprehensive income
Remeasurements of
Totalother postretirement accumulated
benefits of foreign
otherconsolidated
comprehensive
subsidiaries
incomeNoncontrollinginterests

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

8,099

(16,631)(10,996)(1,885)(21,413)6,224

1,464,888

Dividends from surplus

－

－

－

－

－

－

(110,463)

Net income attributable toowners of parent

－

－

－

－

－

－

220,354

Purchase of treasury stock

－

－

－

－

－

－

(11)

Disposal of treasury stock

－

－

－

－

－

－

149

Retirement of treasury stock

－

－

－

－

－

－

－

－

－

－

－

－

－

828

－

－

－

－

－

－

(355)

－

－

－

－

－

－

922

－

－

－

－

－

－

－

－

－

－

－

－

－

(1,024)(1,061)(19,562)

860

3,543

(16,220)

1,955(14,265)(1,061)(19,562)

860

3,543

(16,220)

1,955

96,135

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

1,658(37,633)

8,179

1,561,023

Balance at the beginning ofcurrent period
Changes of items during
the period

Adjustments due to change infiscal year end of consolidated
subsidiaries
Change of the scope of
consolidation
Change of the scope of equity
methodTransfer to capital surplus fromretained earnings
Other
Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period―12―

Total net
assets(4) Consolidated Statements of Cash Flows(Unit: Millions of yen)
FYE2018(April 1,2017 toMarch 31, 2018)

FYE2017(April 1, 2016 to
March 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 noncurrent 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 of investment securities
Payments of loans receivableCollection of loans receivable
Other, net

394,695
85,653(189)－(4,616)
1,846
3,270(9,322)(3,898)(19,684)(32,444)
24,45888,15922,320550,248
5,236(1,852)(208,190)
345,442

297,340
102,102(149)
64,711(8,186)
1,379
4,837(4,096)(7,799)40(15,922)(54,159)
40,15820,336440,592
8,397(1,446)(81,245)366,298(25,809)(135,061)
98,133(163,774)
1,327(48,705)
46,585(137,006)
117,687(7,629)(7,219)(143,418)
168,525(149,897)
3,413(52,645)
34,272(123,552)
120,383(573)

Net cash provided by (used in) investing activities(254,252)(150,711)

9,939
12,930(34,605)(10,000)(52,744)(111,435)(3,129)(189,044)(2,991)(100,845)
829,461(18,393)3,500(44,443)－(11)(110,326)(1,264)(170,937)(10,831)
33,819728,616

－

(534)

－

3,690

728,616

765,591

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
Redemption of bonds
Purchase of treasury shares
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 Increase (decrease) in cash and cash equivalents resulting fromchange of the 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―13―(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not Applicable(Significant Accounting Policies in Preparing the Consolidated Financial Statement)
FYE2018(April 1, 2017 to March 31, 2018)
1. Significant changes in the scope of consolidation
Robin America Inc. was excluded from the scope of consolidation from the fiscal year ended March 31,2018 due to sale of the shares in it. In addition, Robin Europe GmbH Industrial Engine and Equipment was
excluded from the scope of consolidation due to its decreased materiality.
2. Significant changes in the scope of equity method
Nishino Machine Industries.Ltd and 5 other companies were included in the scope of the equity methodfrom the fiscal year ended March 31, 2018 due to its increased materiality.
3. Change in the reporting period of a consolidated subsidiary for consolidation purposes
The consolidated financial statements as of and for the fiscal year ended March 31, 2017 included thefinancial information of Subaru of China Ltd. as of and for the fiscal year ended December 31, 2016, withnecessary adjustments to reflect any significant transactions from January 1, 2017 to March 31, 2017,
because the difference between the reporting period end of the consolidated financial statements and Subaru
of China Ltd. is within three months.
To synchronize the reporting period, Subaru of China Ltd. changed its reporting period for consolidation
purposes by conducting a provisional book-closing from the consolidated fiscal year ended March 31, 2018.
This change allows the consolidated financial statements as of and for the 12 months period ended March
31, 2018 to include the financial information of Subaru of China Ltd. in the same period. Net operating
results of Subaru of China Ltd. from January 1, 2017 to March 31, 2017 have been reflected as a change inretained earnings in the consolidated balance sheet.
(Changes in Accounting estimates)(Provision for product warranties)
In the current consolidated fiscal year, there was a change in accounting estimate due to the fact that theexpenses for after-sales services in the future can be estimated more precisely.
The effect of this change on profit and loss for current consolidated fiscal year is immaterial.
(Consolidated Statements of Income)1 Extraordinary loss
FYE2017 (April 1, 2016 to March 31, 2017)
Loss on business liquidation
The loss was recognized due to the decision to liquidate the Industrial Products business on November
2,2016.
The loss consists of 2,524 million yen of loss on fixed assets, 2,127 million yen on inventory valuation,and
471 million yen on others.
The loss on fixed assets above includes impairment losses on the following assets.
Use

Location

Category

Impairment loss
(millions of yen)

Production
facilities

Kitamoto City Saitama
Prefecture and otherlocations

Machinery, equipment
and vehicles

1,201

Production facilities that impairment losses are recognized are grouped together with assets owned mainly by
the Industrial Products business for impairment recognition and measurement purposes.
―14―Due to the decision to liquidate the Industrial Products business, it is expected that future cash flows would
fall below book values of related facilities, the book values of those assets were written down to therecoverable amounts accordingly.
As a result, ¥ 1,201 million of impairment losses were recognized and presented in Loss on businessliquidation in the quarterly consolidated statements of income.
The recoverable amounts are measured at value in use, calculated based on future cash flows discounted
principally at 10.30%.
Impairment loss
In addition to the impairment loss on production facilities referred to above, impairment losses on rental
properties were recognized as follows.
Use

Location

Rental properties

Konan City Shiga Prefecture

Category

Impairment loss
(millions of yen)

Land

1,175

Other

10

Grouping unit for recognition and measurement of impairment loss is each rental property.
Due to the declining profitability and significant decline in market value, it is expected that future cash flows
would fall below book values of those properties, the book values of those properties were written down to
the recoverable amounts accordingly.
As a result, ¥ 1,185 million of impairment losses were recognized.
The recoverable amounts are measured at net realizable value, calculated based on real estate appraisal value.

FYE2018 (April 1, 2017 to March 31, 2018)
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.
(Segment Information)
1. Outline of business segment
The business segments the Company reports are the business units for which the Company is able to obtainrespective financial information separately in order for the Board of Directors to conduct periodic investigation todetermine distribution of management resources and evaluate their business result.
The Company recognizes Automobile at its main business, and introduces an internal company system andrecognizes Aerospace, and Other divisions. This framework makes clearer the responsibility of each division andaccelerates business execution. The Company manages the subsidiaries on the basis of this classification. Therefore,
the business segments consist of Automobile, Aerospace, and Other which does not belong to Automobile nor
Aerospace.
Automobile segment manufactures and sells vehicles and related products. Aerospace segment manufacturesand sells aircrafts, parts of space-related devices.
2. Method of calculating sales and income(loss), identifiable assets, and other items by business segment reported
Accounting method for business segment reported is almost the same as the accounting method to prepare forconsolidated financial statements.
Segment income by business segment reported is calculated based on operating income.
Net sales - Inter-segment are calculated based on current market prices.

―15―

3. Information on sales and income(loss) by business segment reported
FYE 2017 (April 1, 2016 to March 31, 2017)(Unit: Millions of yen)

Business segment reported
Automobiles Aerospace
Net sales
Outside customers
Inter-segment
Total sales
Segment income
Identifiable assets bybusiness segment
Other items
Depreciation
Investment to equitymethod affiliates
Increase of property,
plant and equipment
and intangible assets

SubTotal

Other
*1

Total

Consolidated
Adjustment
Statement of*2
income *33,151,961
4,720
3,156,681
397,657

138,759 3,290,720－
4,720
138,759 3,295,440
9,102
406,759

35,272
23,78559,0573,512

3,325,992
28,5053,354,497
410,271－(28,505)(28,505)539

3,325,992－
3,325,992
410,8102,477,309

223,1482,700,457

87,484

2,787,941(25,620)

2,762,321

80,058

3,663

83,721

1,932

85,653－85,653

1,467

－

1,467

－

1,467

－

1,467

180,469

14,699195,168

1,448

196,616－

196,616

Notes: *1. Other means the category which is not included into any business segment reported. It consists ofIndustrial product, real estate lease, etc.
*2. Adjustment of segment income refers to elimination of intersegment transaction.
*3. Segment income is adjusted on the operating income of the consolidated statements of income.
FYE 2018 (April 1, 2017 to March 31, 2018)(Unit: Millions of yen)

Business segment reported
Automobiles Aerospace
Net sales
Outside customers
Inter-segment
Total sales
Segment income
Identifiable assets bybusiness segment
Other items
Depreciation
Investment to equitymethod affiliates
Increase of property,
plant and equipment
and intangible assets

SubTotal

Other
*1

Total

Consolidated
Adjustment
Statement of*2
income *3

3,234,866
2,918
3,237,784
361,454

142,1635
142,168
12,2593,377,029
2,923
3,379,952
373,713

28,192
23,852
52,044
5,066

3,405,221
26,7753,431,996
378,779－(26,775)(26,775)
668

3,405,221－
3,405,221
379,447

2,598,192

234,619

2,832,811

77,5832,910,394(26,081)2,884,313

95,193

5,298

100,491

1,611

102,102－102,102

3,461

－

3,461

54

3,515

－

3,515

185,056

8,316

193,372417

193,789－

193,789

Notes: *1. Other means the category which is not included into any business segment reported. It consists ofIndustrial product, real estate lease, etc.
*2. Adjustment of segment income refers to elimination of intersegment transaction.
*3. Segment income is adjusted on the operating income of the consolidated statements of income.

―16―

Information on Impairment Loss of Fixed Assets by Reporting Segment
FYE 2017 (April 1, 2016 to March 31, 2017)(Unit: Millions of yen)

Business segment reported
Automobile
Impairment
Loss

3

Other
*

SubTotal

Aerpospace-

3

Adjustment

2,386

Total
-

2,389

Notes: * Other consists of Industrial product, real estate lease, etc.

FYE 2018 (April 1, 2017 to March 31, 2018)(Unit: Millions of yen)

Business segment reported
Automobile
Impairment
Loss

31

Other

SubTotal

Aerospace-

31

Adjustment
-

Total
-

31

(Per Share Information)
FYE2017(April 1, 2016 to
March 31, 2017)

FYE2018(April 1, 2017 toMarch 31, 2018)

1,902.56

2,025.31

365.77287.40Net assets per share (yen)Net income per share, basic (yen)Notes: 1. Since there are no dilutive potential securities, diluted information is not presented.
2. The following shows the basis of calculating net income per share.
FYE2017(April 1, 2016 to
March 31, 2017)

FYE2018(April 1, 2017 toMarch 31, 2018)282,354

220,354－－282,354

220,354771,952

766,708

FYE2017(as of March 31, 2017)

FYE2018(as of March 31, 2018)

1,464,888

1,561,023

The amount deducted from total amount of net assets(millions of yen)

6,224

8,179

(Held by Non-controlling interests)(millions of yen)

(6,224)(8,179)Net assets related to common stock (millions of yen)

1,458,664

1,552,844

766,686

766,721

Net income per share
Net income attributable to owners of parent (millions of yen)
Monetary value not related to common shareholders(millions of yen)
Net income attributable to owners of parent
related to common stock (millions of yen)
Number of weighted average common shares outstanding
during the fiscal year (Thousands of shares)

3. The following shows the basis of calculating net assets per share.

Total amount of net assets (millions of yen)

Number of common stock used in the calculation of net assets
per share (Thousands of shares)(Subsequent Event)Not Applicable―17―5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheet(Unit: Millions of yen)
FYE2017(as of March 31, 2017)
ASSETSⅠ Current assets
Cash and deposits
Accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Short-term loans receivable to subsidiaries and affiliates
Current portion of long-term loans receivable fromsubsidiaries and affiliates
Deposits paid
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Ⅱ Noncurrent assets
1. Property, plant and equipment
Buildings, net
Structures, net
Machinery and equipment, net
Vehicles, net
Tools, furniture and fixtures, net
LandConstruction in progress
Other
Total property, plant and equipment
2. Intangible assets
Software
Other
Total intangible assets
3. Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in capital of subsidiaries and affiliates
Long-term loans receivable
Long-term loans receivable from subsidiaries and affiliates
Claims provable in bankruptcy, claims provablerehabilitation and otherPrepaid pension cost
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

in

―18―

FYE2018(as of March 31, 2018)

453,026
244,342
197,499
42,144
47,124
15,9972,309
7,732
45,37484,934

601,440
244,157
102,499
39,30747,567
15,663
6,644
6,957
76,921
56,195

10,00022,50028,11532,82827,537(8)
1,238,953

30,75936,84525,683(32)
1,313,105

68,9107,591
99,051
1,904
9,046
80,003
26,1191,795
294,419

86,423
12,46999,2481,771
7,608
80,00233,493
1,737
322,751

16,285
5,563
21,84820,008
5,668
25,676

13,339144,4422,436
704
81,838

9,371
147,657
2,436
604
71,885

2,662

2,690

14,7397,243
22,000(4,640)284,763
601,030
1,839,983

12,506
17,20822,099(4,037)
282,419
630,846
1,943,951

(Unit: Millions of yen)
FYE2017(as of March 31, 2017)
LIABILITIESⅠ Current liabilities
Notes payable-trade
Accounts payable-trade
Electronically recorded obligations-operating
Current portion of long-term loans payable
Lease obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Advances received
Deposits received
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
Asset retirement obligations
Other
Total current liabilities
Ⅱ Noncurrent liabilities
Long-term loans payable
Lease obligations
Provision for product warranties
Provision for retirement benefits
Deferred tax liabilities
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Ⅰ Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for reduction entry of land
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders' equity
Ⅱ Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets―19―

FYE2018(as of March 31, 2018)

3,370
276,052
91,32041,100931
28,383
121,840
9,932
31,9681,183
15,763
28,239
65
3,571
－
228
11,169665,1141,270
263,317
63,841
40,100909
29,374
144,60742,29433,937
1,468
15,686
21,235160
3,098
64,711
0
9,594
735,60152,700
1,330
－
433
32
5,125
59,620724,734

16,0001,345
30,380381
16
4,160
52,282787,883

153,795

153,795

160,071－160,071160,07119
160,090

7,901

7,901

990
35,335759,170
803,396(7,173)
1,110,089

990
35,335802,203
846,429(7,054)
1,153,260

5,160
5,160
1,115,249
1,839,983

2,808
2,808
1,156,068
1,943,951

(2) Non-consolidated Statements of Income (for twelve-month period)(Unit: Millions of yen)
FYE2017(April 1, 2016 to
March 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
Interest on securities
Dividends income
Real estate rent
Gain on valuation of derivatives
Other
Total non-operating income
Ⅴ Non-operating expenses
Interest expenses
Depreciation
Foreign exchange losses
Loss on valuation of derivatives
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 on business liquidation
Loss related to airbags
Other
Total extraordinary losses
Income before income taxes
Income tax-current
Income taxes-deferred
Total income taxes
Net income―20―

FYE2018(April 1, 2017 toMarch 31, 2018)

2,059,285
1,583,271
476,014
218,504
257,5102,087,834
1,604,246
483,588
227,573
256,015691
84
16,660
2,813
－
2,599
22,8471,362
38
19,523
2,835
2,266
3,258
29,282

536
916
1,709
4,248
11,284
18,693
261,664311
966
14,242－
3,753
19,272
266,025

244
9,500
1,981
11,725

46
4,256
1,375
5,677

2,664
4,864
－
935
8,463
264,926
71,752(15,078)
56,674208,252

3,092－
81,261
1,419
85,772
185,930
72,913(40,479)
32,434
153,496(3) Non-consolidated Statements of Changes in Net Assets
FYE 2017 (April 1, 2016 to March 31, 2017)(Unit: Millions of yen)
Shareholders' equity
Capital surplus

Other retained earnings

Capitalstock

Balance at the beginningof current period
Changes of items during
the period

Retained earnings

Other
capitalsurplus

Legal capitalsurplus

Total capitalsurplusLegalretainedearnings

Reserve for
reduction entryof land

Total
Retainedearnings retainedbrought earnings
forwardGeneralreserve

153,795

160,0710

160,071

7,901

990

Dividends from surplus

－

－

－

－

－

－

－ (111,446) (111,446)

Net income

－

－

－

－

－

－

－ 208,252

Purchase of treasury stock

－

－

－

－

－

－

－

－

－

Disposal of treasury stock

－

－

1

1

－

－

－

(1)

(1)

Retirement of treasury shares－－(46,973)(46,973)

－

－

－

－

－

－

－

46,972

46,972－－－ (46,972) (46,972)

－

－

－

－

－

－

－

－

－

－

－

(0)

(0)

－

－

－

49,83349,833

153,795

160,071－160,071

7,901

990

35,335759,170

803,396

Transfer to capital surplus fromretained earnings
Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
periodShareholders' equity

Balance at the beginningof current period
Changes of items during
the period

709,337

Valuation and translation adjustments
Valuationdifference
on available-forsale securities

Total
shareholders'equityTreasury stock

35,335

Total valuationand translation
adjustments

Total net assets(1,402)

1,066,027

9,598

9,598

1,075,625

Dividends from surplus－(111,446)－－(111,446)

Net income－

208,252－－

208,252

Purchase of treasury stock(52,744)(52,744)－－(52,744)

Disposal of treasury stock

0

0

－

－

0

46,973

－

－

－

－

－

－

－

－

－

－

－

(4,438)(4,438)(4,438)(5,771)44,062(4,438)(4,438)39,624(7,173)

1,110,089

5,160

5,160

1,115,249

Retirement of treasury shares
Transfer to capital surplus fromretained earnings
Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period―21―

753,563

208,252

FYE 2018 (April 1, 2017 to March 31, 2018)(Unit: Millions of yen)
Shareholders' equity
Capital surplus

Other retained earnings

Capitalstock

Balance at the beginningof current period
Changes of items during
the period

Retained earnings

Other
capitalsurplus

Legal capitalsurplus

Total capitalsurplusLegalretainedearnings

Reserve for
reduction entryof land

Total
Retainedearnings retainedbrought earnings
forwardGeneralreserve

153,795

160,071－160,071

7,901

990

Dividends from surplus

－

－

－

－

－

－

－ (110,463) (110,463)

Net income

－

－

－

－

－

－

－ 153,496

Purchase of treasury stock

－

－

－

－

－

－

－

－

－

Disposal of treasury stock

－

－

19

19

－

－

－

－

－

Retirement of treasury shares

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

19

19

－

－

－

43,03343,033

153,795

160,07119

160,090

7,901

990

35,335802,203

846,429

Transfer to capital surplus fromretained earnings
Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
periodShareholders' equity

Balance at the beginningof current period
Changes of items during
the period

Valuation and translation adjustments
Valuationdifference on
available-for-salesecurities

Total
shareholders'equityTreasury stock

35,335

Total valuationand translation
adjustments

Total net assets(7,173)

1,110,089

5,160

5,160

1,115,249

Dividends from surplus－(110,463)－－(110,463)

Net income－

153,496－－

153,496

Purchase of treasury stock

(11)

(11)

－

－

(11)

Disposal of treasury stock

130

149

－

－

149

Retirement of treasury shares

－

－

－

－

－

－

－

－

－

－

－

－

(2,352)(2,352)(2,352)

11943,171(2,352)(2,352)40,819(7,054)

1,153,260

2,808

2,808

1,156,068

Transfer to capital surplus fromretained earnings
Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period―22―759,170

803,396

153,496

May 11, 2018
Subaru Corporation< Reference for FYE2018 Consolidated Financial Results >(Yen in 100 Millions, Units in Thousands)
RESULTSRESULTSFYE2017

FYE2018

FYE20192016.4 - 2017.3

2017. 4 - 2018. 3

2018. 4 - 2019. 3

ChangeNet sales
Japan
Overseas

Operating income
Profit margin (%)

Ordinary income

2.4

32,500(1,552)

(4.6)

6,503
26,7564,108

6,686
27,367
3,794

182

2.8

(9.0)

2.3

(314)

(7.6)

6,086
26,415
3,000

(600)

610

12.4

11.1

3,799
11.2

Net income attributable toProfit margin (%)
owners of parent

2,824

2,204

8.5

6.5

Factors contributing tochange in operating income

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

108/US$
119/EUR
1,585
770
1,142
1,483

Performance description

Consolidated unit sales (Japan)

(3.5)

(794)

(20.9)(749)(19.7)

(4)

(0.2)

9.2

(144)

(3.7)

3,050
9.4

(620)

(22.0)

2,200
6.8

Gain on currency
exchange327

Increase in SG&A exp, etc.

(442)

Increase in raw material
costs, etc.

(77)

Increase in R&D exp(69)

Deterioration in model mix,
etc.
111/US$
130/EUR(53)

Improvements on modelmix, etc.
Decrease in SG&A exp,
etc.
Loss on currency
exchange
Increase in SG&A exp, etc.
Increase in raw material
costs, etc.
105/US$
130/EUR

1,414
898
1,211
862

120
11
(584)
(194)
(147)

1,300
930
1,200
800

- Net sales increase for 6th consecutive
year.

- Net sales decrease for first time in 7 years.

- Profits decline for 2nd consecutive year.

- Profits decline for 3rd consecutive year.

- Record unit sales and net sales.

- Record unit sales.

163
133

5
6

2.8
4.9

151
123

(13)
(10)

(7.8)
(7.4)

U.S.

33
906
721
46
44
95
1,065
1,056
721
335

31
903
728
48
27
101
1,067
1,050
701
349

(2)
(2)
7
2
0
6
2
(6)
(19)
13

(5.1)
(0.2)
1.0
3.7
(38.9)
6.6
0.2
(0.6)
(2.7)
4.0

28
950
768
44
30
107
1,100
1,056
672
384

(3)
46
41
0
3
6
33
6
(29)
35

(9.1)
5.1
5.6
(8.2)
11.3
6.4
3.1
0.6
(4.2)
10.1

Automobile

31,52032,349829

2.6

Aerospace

1,388

1,422

34

2.5

Other

353

282

(71)

(20.1)

Automobile

3,977

3,615

(362)

(9.1)

Aerospace

91

123

32

34.7

Other

35

51

16

44.2

Minicars

Consolidated unit sales (Overseas)
North America
EuropeChina
Other

Consolidated unit sales total
Production units total
Japan

Operating income bybusiness segment

(952)

159
126

Passenger Cars

Net sales bybusiness segment

%

792

11.9

JPY/US$

Change34,052

3,943

JPY/EUR%

33,260

Profit margin (%)

Exchange rates

FORECASTS

Elimination &
5
7
1
23.9
Corporate* "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 Subaru
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 and uncertainties
that could cause actual results to vary materially. >Subaru Corporation Announces Consolidated Financial Results for FYE2018

Tokyo, May 11, 2018 – Subaru Corporation today announced its consolidated financial results for the fiscal
year ended March 31, 2018.

< FYE2018 Results: Consolidated Net Sales >Global sales of Subaru vehicles increased 0.2% to 1,067,000 units.
Unit sales in Japan rose 2.8% to 163,000 units, as passenger car sales driven by the Impreza and theSubaru XV offset a decline in mini vehicle sales. Overseas unit sales decreased 0.2% to 903,000 units, as adecline in the competitive Chinese market offset growth led by the Impreza and the Subaru XV*1 in North
America and other markets.
Consolidated net sales increased 2.4% to 3,405.2 billion yen due mainly to foreign exchange gains and unit
sales growth.
Unit sales in North America marked an all-time record*2 for the 9th consecutive year.
Net sales and global unit sales posted all-time records*2 for the 6th consecutive year.

< FYE2018 Results: Consolidated Profit and Loss >Operating income decreased 7.6% to 379.4 billion yen, as foreign exchange gains were offset by a rise insales expenses due to higher interest rates in the U.S., higher costs of raw materials, an increase in R&D
expenses, and other factors. Ordinary income decreased 3.7% to 379.9 billion yen. Net income attributableto owners of parent declined 22.0% to 220.4 billion yen, reflecting an extraordinary loss of 81.3 billion yen toaccount for airbag-related losses.

< FYE2019 Forecasts >In prospect of further growth in North America and other regions, global unit sales are projected to increase
3.1% to 1,100,000 units.
Net sales are projected to decrease 4.6% to 3,250 billion yen, as unit sales growth is expected to be offset
by factors including foreign exchange losses and accounting policy change.
The company projects operating income of 300 billion yen (down 20.9%), ordinary income of 305 billion yen(down 19.7%), and net income attributable to owners of parent of 220 billion yen (down 0.2%), as unit sales
growth is expected to be offset by factors including foreign exchange losses, a rise in sales expenses due
to higher interest rates in the U.S., and raw material cost increases.
Global unit sales, overseas unit sales, and North American unit sales are projected to post all-time
records*2.
Currency rate assumptions: 105 yen/US$, 130 yen/euro*1: Called “Crosstrek” in the North American market.
*2: Since fiscal year ended March 1986, when the company started full-year consolidated financial reporting.

Forward-looking statements in this document including financial and other forecasts are based on theinformation available at the time of the announcement and are subject to various risks and uncertainties
that could cause actual results to vary materially.

###