Update on the New Management Policy
SUBARU CORPORATION
Atsushi Osaki, Representative Director, President & CEO
May 13 th , 2024

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

As we are in a time of significant change in the business environment and uncertainty
in making clear predictions about the future, I would like to share with you, as an
update on the New Management Policy, the initiatives we are taking for the period
from 2025 to 2026, which we position as the early phase of the BEV transition.

K e y P o i n t s o f To d a y ' s B r i e f i n gAdvancing initiatives based on the principle of“Flexibility” and “Expandability”

Development
・ BEV Development / Production

Product・ Monozukuri* Innovation
・ Value Creation

・ HEV Products / Production
・ Manufacturing Plants

Production* Monozukuri: Manufacturinghttps://www.subaru.co.jp/en/ir/

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As I explained in the August 2023 briefing on the New Management Policy, Subaru ismaking various efforts based on the principle of "flexibility and expansion," which weconsider to be of great importance in a phase where it is difficult to clearly predict thefuture. Under this principle, we are taking initiatives aimed at responding flexibly toregulatory and market trends while closely monitoring them, and at the same time
preparing for rapid expansion when the direction becomes clearer.
While we expect BEVs to play a central role in achieving carbon neutrality from a
medium- to long-term perspective, today I would like to discuss our initiatives in theareas of "development," "products," and "production" for the period from 2025 to 2026,
the early phase of the BEV transition, in terms of our "flexibility" in responding to thechanging business environment.

BEV Development / Production (BEV lineup by the end of 2026)

4 SUVs to be in BEV lineup by the end of 2026 (Joint development)• BEV SUV manufactured at Subaru's Yajima Plant will also be supplied toToyota Motor Corporation (TMC).
• BEV SUV manufactured at TMC's U.S. Plant will also be supplied to Subaru.

SOLTERRA

SUV

SUV

Manufactured at
TMC’s U.S. plant

Manufactured at
Subaru’s Yajima Plant

Images are for illustration purposes only.

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

3I'd like to start with our development and production initiatives for the early phase ofthe BEV transition.
First, development.
We have explored various options for the development of BEVs, including in-housedevelopment and alliance cooperation, but for the four BEV SUVs planned for ourlineup by the end of 2026, we are developing them jointly with Toyota Motor
Corporation (TMC), leveraging the knowledge and expertise of both companies.
Next, production.
The jointly developed BEV SUV, which will be manufactured at Subaru's Yajima Plant,
will also be supplied to TMC.
On the other hand, the BEV SUV to be manufactured at TMC's U.S. plant will also be
supplied to Subaru, meaning that Subaru will have a U.S.-manufactured BEV in ourlineup.
Through this approach of joint development, joint production and joint supply, we will
ensure flexibility in the areas of development and production while mitigating risks with
TMC at a time when it is difficult to clearly predict future trends.

HEV Products / Production

Forester (ICE / Next-gen.HEV)
to be produced both inJapan and U.S. (SIA)

In addition to the Forester,a next-gen. hybrid version
to be also introduced tothe Crosstrek
Images are for reference only.
https://www.subaru.co.jp/en/ir/

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Next, I’d like to talk about products and production of HEV models, which will play a
critical role in the early phase of the BEV transition.
As previously announced, we will introduce a next-generation hybrid version of theForester based on Toyota Hybrid System (THS), which will be a Subaru distinctive
HEV featuring the horizontally-opposed engine; in addition, the next-generation hybrid
will be extended to the Crosstrek.
By strengthening our hybrid lineup, we will ensure flexibility in our product offeringsand provide more choices for our customers.
The new Forester, both gasoline and hybrid models, will be produced not only inJapan but also later at SIA in the U.S., increasing production flexibility by having
capabilities in both countries.

Manufacturing Plants

2025

2024

Next-gen. HEV transaxles

Kitamoto
Plant
Main
Plant

2026

SOP: Fall 2024
ICE
Next-gen. HEV
ICE

Yajima
Plant

BEV

HEV

Starting BEV production(ICE/BEV mixed assembly line)

Next-gen. HEVICE

SIA

Next-gen. HEV

https://www.subaru.co.jp/en/ir/5This slide summarizes a timeline of product launches by plant for the period from 2025
to 2026.
In the fall of 2024, production of transaxles, a core component of our next-generation
HEV power unit, will begin at the renovated Kitamoto Plant.
Our next-generation HEVs will be produced not only in Japan, but also later at SIA in
the U.S., ensuring flexibility in HEV production with capabilities in both countries.
Also at the Yajima Plant, we will maintain production flexibility to respond to changes
in demand by launching a mixed assembly line for gasoline vehicles and BEVs, while
also supplying BEVs produced there to TMC.

Going ForwardProduction

Becoming “One Subaru”- Obeya activities*- Collaboration with partners

Chief Officers

Teams working in sync
for improved synergy/communication.

Development

SupplyChain

Five Key Priority Areas Monozukuri (Manufacturing) Innovation
 Digital Car Battery Business Cost Innovation  Connected Business*Obeya activities: Cross-functional alignment among project members to enableagile development through a holistic view/approach, aimed at value creation,
problem solving and accelerated development across organizational boundaries.

In-house-developed BEVs

Enhancing ICE* products

to be added in the lineup（Updates to be announced as appropriate)https://www.subaru.co.jp/en/ir/（By the end of 2028)* Gasoline cars, HEVs, PHEVs, etc.
6As I’ve explained, for the 2025-2026 period, the early phase of the BEV transition, we will
ensure “flexibility” to respond to changes in the business environment through various
initiatives in the areas of “development,” “products,” and “production.”
Looking ahead to the subsequent phase of widespread BEV adoption, the "expansion" phase,the achievements of the "Monozukuri Innovation" and "Value Creation" initiatives will becrucial.
At the Innovation Hub, which opened in January of this year, we are advancing efforts toachieve "Monozukuri Innovation" and "Value Creation" through "Obeya" activities, where ouremployees and business partners gather without boundaries to discuss development,
production, and other matters, while cultivating partnerships and collaborations with outsidecompanies.
In February of this year, Subaru appointed Chief Officers for five key priority areas:Monozukuri (Manufacturing) Innovation, Battery Business, Digital Car, Connected Business,and Cost Innovation. Under their leadership, we are accelerating Monozukuri Innovation andValue Creation initiatives by crossing boundaries, breaking down walls, and transformingorganizations.
Through these efforts, we will strive to achieve “Becoming One Subaru,” where development,manufacturing, and the supply chain work “in sync,” and as “One Subaru,” we aim to develop
the BEVs to be added to our lineup by the end of 2028 in-house, leveraging alliance expertise.
We will also apply the knowledge and expertise acquired from our Monozukuri Innovation andValue Creation initiatives to enhance our ICE products.
Moving forward, we will provide updates on our efforts to enhance ICE products, as well as
the specific progress of our Monozukuri Innovation and Value Creation initiatives.

Forward-looking statements including projections and future strategies mentioned in this presentation are based on currently
available information and assumptions and are subject to risks and uncertainties. Actual results may vary materially as a resultof various factors including, without limitation, economic conditions, market demand and fluctuations in foreign exchange rates.
Investors are asked not to rely solely on the information in this presentation when they make their final investment decisions.

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

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