[Translation for Reference and Convenience Purposes Only]

Matters Omitted in the Documents Accompanying
the Notice of Convocation of the 93rd Ordinary
General Meeting of Shareholders

May 30, 2024

(Start date of electronic provision measures: May 22, 2024)
The following items are posted on the Company website, etc. in accordance with legal requirements andprovisions of Article 15 of the Articles of Incorporation and are therefore not included in the documents
being sent to the shareholders.
- “Main Businesses”, “Major Places of Business, Etc.”, “Main Lenders”, “Employees”, “Basic Approach to
Corporate Governance”, “Summary of Company Organizational Bodies and Key Meetings”, “Policy andProcedures on Nomination of Candidates for Directors and Corporate Auditors”, “Outside Directors andCorporate Auditors”, “Summary of Contract for Limitation of Liability”, “Summary of Directors andOfficers Liability Insurance”, “Summary of Evaluation of the Effectiveness of the Board of Directors”,“Information on Shares Issued by the Company”, “Information on Shares Held by the Company”,“Company Framework and Policies” and “Accounting Auditors” of Business Report- “Consolidated Statements of Financial Position”, “Consolidated Statements of Income”, “Consolidated
Statement of Changes in Equity” and “Notes to Consolidated Financial Statements” of Consolidated
Financial Statements- “Non-consolidated Balance Sheet”, “Non-consolidated Statements of Income”, “Statement of Changes in
Net Assets” and “Notes to Non-consolidated Financial Statements” of Financial Statements- “Accounting Audit Report on Consolidated Financial Statements”, “Accounting Audit Report on Nonconsolidated Financial Statements” and “Board of Corporate Auditors’ Report” of Audit Report[Translation for Reference and Convenience Purposes Only]

Table of Contents
Business Report
Matters concerning the status of SUBARU GROUP ·····························

1

Directors and Corporate Auditors ···················································

4

Information on Shares Issued by the Company ····································

10

Information on Shares Held by the Company ·····································

11

Company Framework and Policies ··················································

12

Accounting Auditors ··································································

17

Consolidated Financial Statements
Consolidated Statement of Financial Position ·····································

18

Consolidated Statement of Income ··················································

20

Consolidated Statement of Changes in Equity ·····································

21

Notes to Consolidated Financial Statements ·······································

22

Non-consolidated Financial Statements
Non-consolidated Balance Sheet ····················································

41

Non-consolidated Statement of Income ············································

43

Non-consolidated Statements of Changes in Net Assets ·························

44

Notes to Non-consolidated Financial Statements··································

45

Audit Report
Accounting Audit Report on Consolidated Financial Statements ···············

52

Accounting Audit Report on Non-consolidated Financial Statements ··········

55

Board of Corporate Auditors’ Report ···············································

58

[Translation for Reference and Convenience Purposes Only]

Business Report
1. Matters concerning the status of SUBARU GROUP(1) Main Businesses (as of March 31, 2024)
By Business Segment

Main Products

Automobile Division

Legacy, Levorg, Layback, WRX, Forester, Solterra, ASCENT, Impreza, Crosstrek,
SUBARU BRZ, REX, Justy, Chiffon, Stella, Pleo Plus, Sambar

Aerospace Division

Airplane, aerospace related machinery and components

Other Businesses

Real estate leasing(2) Major Places of Business, Etc. (as of March 31, 2024)[1] Company
Name

Address

Head Office

Shibuya-ku, Tokyo

Tokyo Office

Mitaka-shi, Tokyo

Gunma Plant

Ota-shi, Gunma; Oizumi-machi, Oura-gun, Gunma; Kitamoto-shi, Saitama

Utsunomiya Plant

Utsunomiya-shi, Tochigi; Handa-shi, Aichi

SUBARU Test & Development Center

Sano-shi, Tochigi; Bifuka-cho, Nakagawa-gun, Hokkaido[2] Domestic Subsidiaries/Overseas Subsidiaries
Please refer to “(5) Status of Principal Subsidiaries, Etc.” (pp. 39-40) of Business Report in the Notice of Convocationof the 93rd Ordinary General Meeting of Shareholders.

(3) Main Lenders (as of March 31, 2024)
LenderAmount of Borrowings (Million yen)Mizuho Bank, Ltd.

70,500Sumitomo Mitsui Banking Corporation

33,000Shinkin Central Bank

20,000Sumitomo Mitsui Trust Bank, Limited

18,000MUFG Bank, Ltd.

15,000

The Gunma Bank, Ltd.

15,0001

[Translation for Reference and Convenience Purposes Only](4) Employees (as of March 31, 2024)[1] SUBARU GroupBy Business Segment

Number of employees (persons)

Change from end of previous fiscal year(persons)

Automobile Division

34,461(7,495)

214(40)

Aerospace Division

2,671

(459)

-45

(242)

Other Businesses

561

(410)

3

(-2)

Total

37,693(8,364)

172

(280)

Note:

Number of employees refers to number of workers. Average annual number of contingent workers (seasonal staffs, casual workers,
part-time workers, secondees from external parties, support staffs, guest engineers) is shown in brackets.

[2] Company
Number of employees(persons)

Change from end of
previous fiscal year
(persons)

Average age

Average years of service

Male

16,037

96

39.8

16.2

Female

1,310

23

37.2

14.8

Total

17,347

119

39.6

16.1

By Business Segment

Number of employees (persons)

Change from end of previous fiscal year(persons)

Automobile Division

15,279(5,331)

164(44)

Aerospace Division

2,068

(335)

-45

(174)

Total

17,347(5,666)

119

(218)

Note:

Number of employees refers to number of workers. Average annual number of contingent workers (seasonal staffs, casual workers,
part-time workers, secondees from external parties, support staffs, guest engineers) is shown in brackets.

(Reference) Concepts and initiatives regarding securing diversity of the core human resources
The Group believes that securing diversity of human resources is an important factor for continuously creating values
unique to SUBARU and the Group values all genders, nationalities, cultures, and lifestyles of employees and strives tocreate a comfortable workplace environment in order to encourage employees who possess different personalities andvalues to demonstrate their individual abilities to the full extent. Our subsidiaries and affiliates in Japan and abroad also
are working on reflecting their respective business contents and characteristics of their regions.
<Human resource development policy and policy for development of workplace environment>
In order for individual employees to become the driving force for both achievement of Subaru Group’s sustainablegrowth and realization of sustainable society, the Company aims to develop human resources who act autonomously andlead changes, while pursuing the development of a corporate culture that encourage employees to think over their own
career development and take on challenges and the development of an environment that allows diverse human resources
to take active part.
2

[Translation for Reference and Convenience Purposes Only]
In particular, the Company has introduced a new personnel system, education program, and open-call job rotation since
FYE2022 to offer opportunities for employees to independently learn and take on challenges. We are also strengthening
employees’ resonance with Subaru and engagement, which are a source of sense of satisfaction and pride.
We have been promoting employee-friendly workplace environment, human resource distribution enabling the right
person in the right place, and human resource development so as to facilitate active participation by all human resources
including female employees, mid-career hires, and foreign employees, and working on their promotion to managerial
positions.
To promote the development of an environment where all human resources can work enthusiastically, the Company
has been holding online training on themes such as L.G.B.T.Q.+ and employment of people with disabilities by external
lecturers on continuously and regular basis. In 2021, it also established an external consultation service.

<Promoting active roles for female employees>
At Subaru, we believe the empowerment of women is important to our sustainable growth. It is based on this belief that
we support female employees in their pursuit of career development and in their efforts to balance work and childcare as
two key issues. We also develop various systems and corporate culture for ensuring that female employees can continue
with their careers through various life events.
Further, in nurturing female employees in managerial posts, we aim to more than double the number of female
employees in managerial positions by 2025 compared with the level in 2021. As of the end of FYE2024, 31 (2.9%) out of
1,086 employees in managerial posts were female, and 43 (3.8%) out of 1,132 managerial employees were female as ofApril 2024. We will continue to provide support for career development of female employees in addition to raisingawareness and reforming the corporate culture through company-wide efforts including the top management for achieving
the target.
Specific measures include promotion of Women’s Leadership Program, which engages with each and every female
employee aspiring to become managers and offers guidance and education tailored to each individual, and conducting
various training programs for shaping their own career paths as well as those regarding unconscious bias. In addition, theCompany in November 2023 disseminated a message regarding further promotion of active roles for female employees
from top management to all employees. We also held management training for managerial staff with female subordinatesin efforts to further bolster the development of a corporate culture and workplace environment that enable female
participation.
From the aspect of workstyle also, the Company has traditionally positioned assistance for balancing work and childcare
as an important initiative, and has been operating at a level higher than that required by laws with respect to various systems
such as childcare leave and short working hours.

<Foreign national employees>
The Group has been hiring, regardless of their nationalities, human resources appropriate for each base with respect totheir policy and business. There were 105 foreign national employees in the Company as of the end of FYE 2024 There
are five foreign national employees in managerial posts at manufacturing and engineering departments.
<Mid-career hires>
We have been actively going ahead with mid-career recruitment in recent years to respond to environmental changes
and achieve sustainable growth. Of the full-time employees as of the end of March 2024, 4,344 were mid- career hires and
193 of them were in managerial positions. The number of mid-career hires reached 710 in total in the six years starting
April 2018.
Further, we established SUBARU Lab, an AI development base, in Shibuya, which has a cluster of IT companies, in
December 2020 as part of an initiative for enabling smooth and precise hiring of human resources required for AI
development. We will continue to promote mid-career hires and bring in new wisdom and values so as to improve thecorporate value.

3

[Translation for Reference and Convenience Purposes Only]

2. Directors and Corporate Auditors(1) Basic Approach to Corporate Governance
The Company aims to become a company “Delivering happiness to all,” its vision, and is striving to strengthen
corporate governance as one of the most important challenges for management in order to obtain the satisfaction and trustof all stakeholders through achievement of sustainable growth and improvement of medium- and long-term corporate
value.
We aim to achieve efficient management by clearly separating management decision-making and oversight frombusiness execution and increasing the speed of decision-making. Furthermore, through monitoring of business operations
and advice provided by outside officers, we ensure appropriate management decision-making, oversight and businessexecution, and work to improve the systems for managing risks and ensuring compliance. To increase managementtransparency, we provide timely and appropriate disclosure of information.
(2) Summary of Company Organizational Bodies and Key Meetings
We have adopted a Board of Corporate Auditors system as a corporate governance system, in which Board of Directors
performs decision making and oversight of execution of important business operations while paying attention to separationof supervision and execution, and at the Board of Corporate Auditors, corporate auditors discuss and make decision
regarding key matters pertaining to audit. The Board of Directors was comprised of eight members at the end of March
2023, of whom three were highly independent outside directors. The Board of Corporate Auditors is composed of four
members, two of whom are highly independent outside corporate auditors. This system is designed to ensure soundness
and efficiency of operations by enhancing effectiveness of monitoring of business operation through the involvement ofhighly independent outside directors and outside corporate auditors.
Regarding the system for the execution of business operations, we employ an executive officer system to delegate thebusiness execution authorities of directors to corporate vice presidents so as to clearly separate management decisionmaking and oversight from business execution thus increase the speed of decision-making.
(3) Policy and Procedures on Nomination of Candidates for Directors and Corporate Auditors
The Company believes that the composition and scale of the Board of Directors should strike a right balance ofknowledge, experience, and ability as a whole necessary for the Company’s sustainable growth and improvement of
medium- to long-term corporate values. We also believe that the composition of the Board of Directors should ensure
substantial diversity by taking into consideration gender and internationalization.
As for the nomination policy for directors, internal directors are nominated based on comprehensive evaluation andjudgment of experience, knowledge, and expertise in light of requirements for officers derived from the Company’s
corporate philosophy and management strategy. Multiple outside directors are nominated from business executives andexperts taking into account their experience, knowledge, and expertise. The number of directors is no more than 15 persons
for internal and outside directors combined, as set forth by the Articles of Incorporation.
The Company has voluntarily set up an Executive Nomination Meeting in order to enhance the effective governancestructure based on the existing organizational design. To ensure fairness and transparency in decisions on executive
appointments, the Executive Nomination Meeting, in accordance with inquiries from Board of Directors, submits to theBoard of Directors proposals on the nomination of candidates for directors and corporate auditors sufficiently deliberated
on and approved by its members, more than half of them are independent outside directors. These personnel matters are
decided by a resolution of the Board of Directors. The Executive Nomination Meeting in the fiscal period under review
comprised of three outside directors and two internal directors, with its chairman being Director and Chairman Tomomi
Nakamura. It met eight times in the fiscal period under review and deliberated on matters such as the Company’s executive
structure and appointments, the division of duties of executives, and the appointment of representatives of major
consolidated subsidiaries as well as nurturing of human resources for CEO and other officers by effectively using the
successor plan for CEO and other officers, a 360-degree evaluation, and skill matrix of officers, revision of the skill matrix(addition of reasons for skill selection and definition of criteria for possession of skills), and acceleration of the process
for deciding the officer lineup.
Consent by the Board of Corporate Auditors is obtained for nomination of candidates for corporate auditors.
When nominating candidates for directors and corporate auditors, the Meeting briefs the Board of Directors on
biography, posts and main fields of responsibilities in the Company, significant positions concurrently held, and reasonsfor nominating the candidates for each nomination.

4

[Translation for Reference and Convenience Purposes Only](4) Outside Directors and Corporate Auditors
Title

OutsideDirector

OutsideDirector

Name

Key activities and summary of duties performed in their expected roles

Yasuyuki Abe

Attended all of 13 Board of Directors meetings (attendance rate: 100%). Fulfilled hisrole as sound adviser on the Company’s management, providing comments based on
extensive experience and knowledge in business management and an advanced
understanding of the field of IT, as well as abundant experience and insight he gained
through his tenure as officer of a general trader where he was involved in management
in both a supervisory and executional capacity.
He also served as a member of the Executive Nomination and Executive Compensation
Meetings.

Miwako Doi

Attended all of 13 Board of Directors meetings (attendance rate: 100%). Fulfilled herrole as a sound advisor on the Company’s management, providing comments based onher high expertise and knowledge, given her abundant experience and outstanding trackrecord mainly as a researcher and supervisor in the area of information technology.
She also served as a member of the Executive Nomination and Executive Compensation
Meetings.

OutsideDirector

Attended all of 10 Board of Directors meetings (attendance rate: 100%) since his
appointment on June 21, 2023. Fulfilled his role as sound adviser on the Company’s
management, providing comments based on extensive experience and knowledge inbusiness management as well as abundant experience and insight he gained through his
tenure as a president and representative director of a manufacturing and sales company
Fuminao Hachiuma
in the food industry where he was involved in corporate management in both asupervisory and executional capacity and engaged in strengthening of corporate
governance and promotion of management reform.
He also served as a member of the Executive Nomination and Executive Compensation
Meetings.

OutsideCorporate
Auditor

Attended all of 13 Board of Directors meetings (attendance rate: 100%) and all of 12
Board of Corporate Auditors meetings (attendance rate: 100%). Fully performed her
auditing function, providing comments based on broad perspective and a high level of
insight she gained through holding key positions in the Ministry of Land, Infrastructure,
Transport and Tourism, and having been involved in the promotion of workstyle reform,
active participation by women and diversity in the Cabinet Secretariat, as well as in theoverseas business development in the private sector.

OutsideCorporate
Auditor

Note:

Yuri Furusawa

Following his appointment on June 21, 2023, attended all of 10 Board of Directors
meetings (attendance rate: 100%) and all of 10 Board of Corporate Auditors meetings(attendance rate: 100%). Fully performed his auditing function, providing comments
Yasumasa Masuda
regarding financial and accounting in corporate activities based on the extensive
experience and broad insight as a corporate manager that he gained through holding key
positions such as CFO at listed companies

In addition to the number of Board of Directors meetings held in the above table, one resolution was adopted in writing that wasdeemed to be a resolution of the Board of Directors in accordance with Article 370 of the Companies Act and the Company’s Articles
of Incorporation.

5

[Translation for Reference and Convenience Purposes Only](5) Summary of Contract for Limitation of Liability
The Company has executed a contract for limitation of damages under Article 423, Paragraph 1 of the Companies Act
pursuant to the provisions of Article 427, Paragraph 1 of the act with its directors (excluding those who are executive
directors, managers or other employees of the Company or its subsidiaries) and corporate auditors. The maximum liability
for damages pursuant to such contract shall be the amount prescribed in Article 425, Paragraph 1 of the Act.
(6) Summary of Directors and Officers Liability Insurance
The Company has executed a directors and officers liability insurance policy under which directors, corporate auditors,
executive officers, officers dispatched to other companies, and major employees under the Companies Act of the Company
and its specified subsidiaries are the insured parties with an insurance company, as set forth in Article 430-3, Paragraph 1of the Companies Act. The insurance policy covers compensation for damages and legal expenses to be borne by the
insured in cases when they receive a claim for damages as a result of their wrongful acts conducted in their capacity as
directors and officers. However, to ensure appropriate execution of duties by directors and officers, there are certain
liabilities that are not covered under the policy, such as those arising from actions performed in knowing violation of law.
The premiums are fully paid by the Company and Hokuriku Subaru Inc. and there are no premiums actually paid by the
insured.

6

[Translation for Reference and Convenience Purposes Only]⑺ Effectiveness of the Board of Directors: Evaluation Results
In accordance with Article 23 of the Guidelines, the Board of Directors (“BoD”), on an annual basis, analyzes andevaluates the effectiveness of the Board, considers and implements measures to improve any issues identified, and thendiscloses an overview of the results in a timely, appropriate manner.
In the fiscal year ended March 31, 2024, aiming to apply the results of the evaluations toward enhancing the BoD’s
functions, the BoD confirmed efforts to address issues recognized in previous evaluations, reorganized the evaluation
items on the survey and expanded the scope of interviews with directors, and assessed and analyzed the reasons andunderlying factors behind differences in the recognition of issues.
[1]Methods of evaluation and analysis
1. Timing: December 2023–February 2024
2. Methods: Self-evaluation survey created by a third-party body;interviews● Survey respondents: Directors (8) and auditors (4) for a total of 12 respondents● Interviewees: Chair of the BoD, Representative Director and President, Representative Director and Executive
Vice President, and outside directors (3) for a total of 6 interviewees
3. Process● Third-party body conducts anonymous self-evaluation survey of directors and auditors● Third-party body conducts interviews with the chair of the BoD, Representative Director and President, andoutside directors● Third-party body aggregates and analyzes survey responses and interviews● BoD verifies and discusses reports received from third-party body
4. Evaluation items on the survey(a) BoD roles and functions(f) BoD risk management and internal control(b) BoD composition(g) Executive Nomination Meeting and Executive
Compensation Meeting operation(c) BoD operation(d) BoD support system(h) Shareholder dialogue(e) BoD culture and communication(i) Continued BoD improvements
Respondents evaluated themselves on a four-point scale in response to questions relating to the evaluation items.
They were also free to add their own thoughts on the characteristics of the BoD and points that they felt would benecessary in enhancing the effectiveness thereof. Upon completing their responses, they then submitted their surveys
directly to the third-party body.
[2] Evaluation results
Based on the third-party body's report detailing its aggregation and analysis, the BoD discussed and confirmed thefollowing points.
1. General evaluation

The evaluation determined that the Subaru Corporation BoD is effective in providing strong executional support toactively propel strategies under the new management structure.
2. Characteristics of the Subaru Corporation BoD

item

Summary
BoD discussions take place on the premise that the Company occupies a uniqueposition within the industry, a point that outside directors also understand. The
A BoD with a focus on the
BoD currently functions effectively, providing a supportive foundation for clear
monitoring function
strategic direction-setting, enthusiastic business execution, and monitoring ofexecution.
An environment conducive to free The environment within the BoD makes it easy for members to voice their ideas
and opinions, thereby enabling free and open discussion.
and open discussion
A strong awareness of compliance and The BoD demonstrates a strong awareness of compliance and risk management
in many ways, including five reports from the Risk Management andrisk management
Compliance Committee each year.
Outside directors noted almost no concerns or complaints about the provision of
A secretariat that functions as an
information, prior explanations, materials for BoD meetings, or other items. The
effective support structure
secretariat functions effectively as a hub for supervision and execution.
7

[Translation for Reference and Convenience Purposes Only]
3. Status of responses to points to examine from last fiscal year’s evaluation

item
Discussing medium- to long-term
management strategy(improvements made)Summary
The BoD has flexibly utilized social gatherings of management personnel* andengaged in fruitful discussions. The BoD will continue to update information on
the status of progress on medium- to long-term management strategy and othertopics on a regular basis.

Further bolstering the support
system for outside directors(improvements made)By creating more opportunities for outside directors to obtain information,
including information-sharing outside BoD meetings and visits to factories andother sites, the BoD has bolstered its framework for helping outside directors
perform their functions effectively.

Further improving the effectivenessof the Executive Nomination
Meeting(improvements still in progress)

Given the recent change in CEO, discussions will need to address enhancementof the succession process for the CEO position. One important point for the
Executive Nomination Meeting to consider will be its involvement in the
succession processes for executive officers, including the formulation ofdevelopment schemes and systematic development through the effective use ofskill matrices.

* Events held by directors and corporate auditors where opinions are exchanged on topics that are important for Subaru Corporation
management, but do not require resolution

4. Future points to examine for further enhancing the effectiveness of the BoD

item
Establishing common ground on
key agenda items for medium- tolong-term management strategy
and on approaches to monitoring

Summary
The BoD will continue to energize its discussions on agenda-setting and Groupwide monitoring in line with progress on electrification and other componentsof the New Management Policy.

Further bolstering the support systemfor outside directors

To help outside directors perform their functions more effectively, the BoD will
provide more opportunities to communicate with top executives and auditors.

Further strengthening the functionsof the Executive Nomination
Meeting

The BoD will take steps to further enhance processes for developing andselecting candidates for CEO and other positions, such as revising the process
for appointing outside directors, organizing and utilizing skill matrices for all
executive officers, and enhancing discussions on succession.

(Reference) Survey results

8[Translation for Reference and Convenience Purposes Only](Reference) Survey question items
Evaluation item
Recognition of the roles and functions of the Board of Directors
ⅰ BoD roles and functions

Delegation of authority to execution
Reporting system
Supervision of corporate management
Size of the Board of Directors

ⅱ BoD composition

Composition of the Board of Directors (ratio of inside to outside directors)
Composition of the Board of Directors (diversity and expertise)
Frequency, length, and time allocation of meetings
Relevance of agenda items
Timing of proposals and discussions
Quality and quantity of documents

ⅲ BoD operation

Timing of document distribution
Prior explanation
Content of explanations and reports
Discussions by the Board of Directors
Leadership by the Chair
Environment and systems for the provision of information

ⅳ BoD support system

Provision of information to outside officers
Training of outside officers
Training of inside officers
Diverse values
Stakeholder perspectives

ⅴ BoD culture and communication Directors and business divisions
Inside and outside directors
Directors and corporate auditors
Risk managementⅵ

BoD risk management andinternal control

Group governanceInternal control and complianceⅶ Executive Nomination Meeting and Executive Compensation Meeting operation
Supervision of proper disclosure of information to shareholders and investorsⅷ Shareholder dialogue

Sharing the views of shareholders and investors
Enhancing dialogue with shareholders and investorsⅸ

Continued BoD improvements Status of improvements based on the previous fiscal year's effectiveness evaluation

For more information about the Company’s Corporate Governance Guidelines, visit our website.

https://www.subaru.co.jp/en/outline/pdf/governance_guideline_e.pdf

9[Translation for Reference and Convenience Purposes Only]

3. Information on Shares Issued by the Company (as of March 31, 2024)(1) Common Stock Authorized

1,500,000,000 shares
753,901,573 shares*1 (including 1,707,449 treasury shares)(2) Common Stock Issued(3) Number of Shareholders

121,965 persons(down 17,943, or -12.8%)(4) Major Shareholders (top 10)
Number of shares held (inthousands)*2

Percentage of total
shares held (%)*3

Toyota Motor Corporation

153,600

20.42

The Master Trust Bank of Japan, Ltd. (trust account)

106,400

14.15

Custody Bank of Japan, Ltd. (trust account)

39,734

5.28

STATE STREET BANK WEST CLIENT - TREATY 505234

11,748

1.56

Mizuho Bank, Ltd.

10,078

1.34

STATE STREET BANK AND TRUST COMPANY 505103

9,871

1.31

MIZUHO SECURITIES ASIA LIMITED - CLIENT A/C

8,408

1.12

SSBTC CLIENT OMNIBUS ACCOUNT

8,285

1.10

JP MORGAN CHASE BANK 385781

8,267

1.10

Sompo Japan Insurance Inc.

8,267

1.10

Name of shareholder(5) Status of the Company’s Shares Granted to Directors as Consideration for the Execution of Duties in the Fiscal
Period Under Review
The Company grants restricted stock units to Directors (excluding Outside Directors; hereinafter the same shall apply)
for the purpose of providing them an incentive for sustained improvement of the Company’s corporate value and further
value sharing with the shareholders, and provides monetary compensation for that (hereinafter, “Restricted Stock
Compensation Plan”). Based on the resolution of the Board of Directors, Directors shall wholly contribute the monetarycompensation claim paid as above in the form of properties contributed in kind, and shall, in return, receive shares of theCompany’s common stock through issuance or disposal. In addition, for the issuance or disposal of shares of theCompany’s common stock, the Company and eligible Directors shall enter into a restricted stock allotment agreement that
includes provisions such as the one to restrict the transfer of the shares for the period starting from the date of allotment
through the date the Director retires from the position (however, if the Director is consecutively appointed the Company’s
corporate vice president after retiring from the Director’s position, the period through the date of retirement as corporate
vice president).
Details of stock units that the Company has granted under the Restricted Stock Compensation Plan are as follows.
Category

Number of shares

Grantees*4

Directors (excluding Outside Directors)

39,408

7

Outside Director--

Corporate Auditors--

Notes:1．The common stock issued decreased by 15,274,300 shares (2.0%) compared to the end of the previous fiscal year due to thecancellation of treasury share stock on November 15, 2023.
2．Number of shares held is rounded off to the nearest thousand shares.
3．The percentage of total shares held is calculated based on the number of shares excluding treasury stock of 1,707,449 shares.
4．Figures in the above table include two internal directors who resigned before the last day of the fiscal period under review.

10[Translation for Reference and Convenience Purposes Only]

4. Information on Shares Held by the Company (as of March 31, 2024)(1) Basic Policy Regarding Cross-shareholdings
The Company holds discussions with the companies whose shares it holds as cross-shareholdings and the Board of
Directors every year measures the benefits of holding them quantitatively using dividend payout ratio and capital costusing WACC and compares and verifies them. Based on the result, it continues with the cross- shareholdings only when
it judges that they would qualitatively contribute to the medium- to long-term management and business strategies.
In accordance with the above policy, the Company has steadily reduced the number of listed stocks held as crossshareholding. As a result, 60 issues held at the end of March 2015 decreased to 2 issues at the end of March 2021. At thispoint, the Company judges that retaining cross-shareholdings in the two issues for the reason described in (2) below, andit will continue to hold discussions with these companies at least once a year and the Board of Directors will evaluate andexamine the cross-shareholdings every year and judge whether or not to retain them.
(2) All Stocks Held Primarily for Strategic Purposes
92ndIssues93rd (Current)

Number of shares
Amount reported on the balance
sheet (Millions of yen)

Purpose of holding, impact of holding and reason for increase in
number of shares

Does it own
Subaru shares?

The Gunma Bank, a local bank of the area where the Company’s
main factory resides, is supporting not only the Company but also
local supplier sites in Japan and abroad through its financial
The Gunma
Yes
services. As the bank has been the Company’s important partner, theBank, Ltd.
1,263
2,503 Company will continue to hold the bank’s shares to promote fair andsmooth financial transactions.
The Mizuho Financial Group firms have been supporting theCompany with financial transactions and other services. In
372,097
372,097
Mizuhoparticular, the Mizuho Bank has long been the Company’s mostYes
Financial
important financial partner, providing support in a broad area ofGroup, Inc.
699
1,133 management. The Company will continue to hold the group’s sharesto promote fair and smooth transactions.
Notes:1．The indication of whether the company has shareholdings in Subaru, in the case where the company is a holding company,
reflects holdings by subsidiaries that Subaru mainly has dealings with (effective shareholdings).
2．The Company does not have investment shareholdings purely for investment purposes.

2,850,468

2,850,468

11

[Translation for Reference and Convenience Purposes Only]

5. Company Framework and Policies
Framework for ensuring conformity of performance of duties by the directors to the laws and articles ofincorporation, and other frameworks for ensuring appropriateness of a joint-stock company’s business as well as
appropriateness of business of the corporate group comprising of the Company and its subsidiaries (as of March 31,
2024)
1. Framework to ensure that the performance of duties by the directors comply with the laws and articles ofincorporation
Following framework shall be established as a preventative measure against illegal acts by directors:(1) Directors shall establish a framework for effective supervision of performance of duties by other directors andeffective audits by the corporate auditors, through activities such as attendance of various meetings, review ofapproval forms, and receiving business reports from corporate vice presidents and employees by the directors andcorporate auditors.
(2) Establish rules regarding compliance and a framework for ensuring that Directors comply with laws, articles ofincorporation, and internal and other rules.
(3) Establish whistle blowing system (Compliance Hotline) as internal reporting framework where violation oflaws/articles of Incorporation by directors in performing their duties have been identified by executive
officers/employees.
(4) Conduct compliance related trainings by external experts for directors as necessary.
(5) A director who identifies violation of laws/articles of incorporation by another director shall immediately reportsuch violation to the Board of Corporate Auditors and Board of Directors, and implement corrective measures.
2. Establishment of other systems prescribed by the applicable Ordinance of the Ministry of Justice as systems
necessary to ensure the properness of operations of a Stock Company and the business of the corporate group
comprising of the stock company and its subsidiaries(1) Structure concerning storage and management of information related to performance of duties of directors
i. Establish internal rules on storage and management of minutes of the Board of Directors, approval forms, otherdocuments related to performance of duties by directors, and other information, and appropriately store andmanage such information in accordance with such rules and laws.
(2) Rules and other frameworks on management of risk of loss
i. The Company shall work out rules regarding risk management and establish rules, manuals and guidelines
corresponding to the business of each division to prevent risks from materializing or increasing.
ii. Business-related risks shall be scrutinized by the directors and corporate vice presidents in accordance with certain
approval rules, along with management by each division/company and company-wide management by involved
divisions led by the Corporate Planning Department.
iii. Establish a company-wide emergency communication network to ensure prompt response to emergencies andprevent spreading of losses.
iv. To promote risk management, establish a risk management and compliance committee to deliberate/discuss, decide,exchange/communicate information on significant matters pertaining to compliance.
(3) Framework to ensure efficient performance of duties by Directors
i. An executive officer system shall be implemented to delegate the business execution authorities of directors tocorporate vice presidents. Chief Operating Officer (COO), or CEO if there is no COO, shall supervise the businessexecution. Chief Executive Officer (CEO) shall supervise the overall management.
ii. Directors shall supervise the business execution of corporate vice presidents and employees by attending meetings
and receiving regular business reports.
iii. Discuss projects to be deliberated at the Board of Directors meeting in advance at Management Meetings (apreliminary consultation body for the Board of Directors to deliberate on company-wide business projects) and
Executive Meetings (decision making body for each executive unit) to clarify issues for efficient deliberation at
the Board of Directors meeting.
iv. Board of Directors shall establish the medium- to long-term management goals, promote sharing of such goals,
and periodically review the progress.
v. Board of Directors shall periodically conduct self-evaluation and analysis, to ensure effective performance of roles
and obligations of the directors both in terms of decision making and supervision over business execution.

12

[Translation for Reference and Convenience Purposes Only](4) System to ensure conformity of execution of operations of executive officers and employees with laws andarticles of incorporationi. Establish rules on compliance and a framework to ensure that executive directors and employees comply withlaws, articles of incorporation and internal rules.
ii. To promote compliance, establish a risk management and compliance committee to deliberate/discuss, decide,exchange/communicate information on significant compliance matters.
iii. Structured education shall be conducted for executive directors and employees such as compliance lectures, topromote compliance awareness.
iv. Establish a whistle blowing system (Compliance Hotline) as an internal reporting framework in case executive
officer or employees identify wrongdoing, etc. for early detection and correction of wrongdoing, etc.
v. Establish an independent audit department as an internal audit entity.
(5) Framework for securing appropriateness of business in corporate group
In order to enhance the Group’s brand value and its overall potential through sound operation of group subsidiaries,
establish rules on subsidiary management, and manage/support subsidiaries mainly through the Company’s department incharge of management of business or management of each subsidiary pursuant to such rules.
i. Framework for reporting matters regarding execution of duty by a director of a subsidiary to the said company
The Company shall receive regular reports from its subsidiaries on business performance, financial status, andother significant matters and as needed on required matters pursuant to the rules on subsidiary management.
ii. Framework regarding rules for risk management of loss incurred by subsidiaries and other matters
The Company shall encourage its subsidiaries to establish rules on risk management, other internal rules, manuals,
guidelines, etc. corresponding to the nature, scale, etc. of each subsidiary’s business and build risk management
systems to prevent risks from materializing or increasing.
iii. Framework to ensure efficient performance of duties by directors of subsidiaries
The Company shall ensure efficiency of performance of duties by directors of subsidiaries by receiving business
reports from subsidiaries pursuant to the rules on subsidiary management, and conducting preliminary discussions
on business for significant matters, etc.
iv. Framework to ensure conformity of execution of operations of directors and employees of subsidiaries with laws
and articles of incorporation- The Company shall seek subsidiaries to carry out periodic inspection regarding the establishment and status of the framework
for compliance with laws, articles of incorporation, and internal rules as well as reports on the results of such inspections,and shall verify the results at the Company’s risk management and compliance committee.
- The Company shall establish a whistle blowing system (Compliance Hotline) as an internal reporting framework for itself
or subsidiaries in case executive officers or employees identify illegal business acts, etc. and make efforts for early detection
and correction of wrongdoing, etc.

v.

Other frameworks for securing appropriateness of business in corporate group- The Company shall establish Audit Department as an organization that performs internal audits, and perform periodic businessaudits for subsidiaries and affiliated companies, and extraordinary audits for necessary matters as required.
- The Company shall periodically convene corporate auditors of domestic subsidiaries and affiliated companies and exchange
opinions with the Company’s corporate auditors to enhance their audit functions.
- The Company shall concurrently appoint executive officers and employees as Corporate Auditors of some of the domestic
subsidiaries and affiliated companies to enhance the audit function.
- Overseas subsidiaries are to comply with the local laws, and follow a framework pursuant to this policy to the extent possible
depending on the prevailing situations and conditions of the respective countries.

(6) Matters concerning an employee where Corporate Auditors request for an employee to support his/her duties
i. In response to request by Corporate Auditors, one or more staffs shall be allocated from the Company’s employees
to support the duties of the Corporate Auditors.
(7) Matters related to securing independence of the employee from directors and effectiveness of instruction to theemployee from Corporate Auditors
i. In case such supporting staff is to be concurrently appointed to a position involving business execution, directors
and executive units shall not intervene with the staff’s performance of tasks supporting the Corporate Auditors;
ensure the staff’s independence from directors; and notify the Company’s officers and employees that suchsupporting staff is to follow the instructions and orders of the Corporate Auditors.
ii. Appointment of such supporting staff shall require consent by the Board of Corporate Auditors.
(8) Framework for reporting by directors, executive officers, and employees of the Company and its subsidiaries
to the Company’s Corporate Auditors; frameworks for other reports to the Company’s Corporate Auditors;
and the framework for securing effective audit by the Company’s Corporate Auditors
i. A system shall be established to ensure that the Company’s Corporate Auditors can receive periodic reports on
performance of duties from the directors, executive officers and employees of the Company or its subsidiaries.
13

[Translation for Reference and Convenience Purposes Only]
A system shall be established to ensure that the Company’s Corporate Auditors can collect information on thestatus of performance of obligations relating to each business division, etc. by the directors, executive officers andemployees of the Company and its subsidiaries.
iii. Directors of the Company or its subsidiaries shall report to the Company’s Corporate Auditors where matters that
may cause significant damages to the Company, material violation of laws/articles of incorporation, or othermaterial compliance matters occur.
iv. Corporate Auditors of the Company may attend the Compliance Committee, which is an organizational body that
deliberates/discusses, determines, exchange/communicate information on, important matters regarding risk
management and compliance.
v. The Company and its subsidiary’s Representative Directors, Directors, or Accounting Auditors shall attend
meetings to exchange opinions held by the Company’s Corporate Auditor at the request of such Corporate Auditor.
vi. A framework shall be established to ensure that the person reporting to the Company’s Corporate Auditors shall notreceive disadvantageous treatment for the reason of making the report in the preceding Item.
vii. A framework shall be established with respect to procedures for advance payment or repayment of expenses
arising from performance of duties of Corporate Auditors and processing or repayment of other expenses arisingfrom performance of such duties, to enable smooth processing in accordance with the invoice, etc. from the
Corporate Auditors.
ii.

At the Company, Chief Risk Management Officer (CRMO) is leading the corporate group-wide efforts to enhance risk
management, working closely with Corporate Planning Department, which performs division-encompassing functions,and different divisions and companies, with professional support from company-wide shared corporate operations
departments such as Risk Management & Compliance Office and Legal Department. Audit Department audits executionof tasks by each division and subsidiary in a planned manner.

14

[Translation for Reference and Convenience Purposes Only]

Summary of operation of framework for securing appropriateness of business
1. Situation of efforts to enhance complianceTo ensure all executives and employees of the Group comply with laws and regulations, the articles of incorporation,and internal rules, and act in accord with social ethics and norms, the Company is working to maintain and enhance thegroup-wide compliance system by establishing the Corporate Code of Conduct, Conduct Guidelines, and other rules, whilesetting up and operating various committees.
As a concrete framework for promoting compliance, the Risk Management and Compliance Committee, headed by the
CRMO appointed by the Board of Directors, deliberates, discusses, decides, and exchanges/communicates information on
significant compliance matters such as formulation of various policies, status of company-wide compliance activities, andoperation status of the whistle blowing system. The Company and its subsidiaries appropriately and proactively operate
their respective whistle blowing systems to detect and solve problems that cannot be grasped with reporting lines of regular
operations and keep in check the occurrence of problems with the purpose of improving self-cleaning and effectiveness ofcompliance.
The Risk Management & Compliance Office manages these company-wide activities and works to promote complianceawareness throughout the Group including officers, by creating and providing Compliance Manual and other tools andconducting trainings in cooperation with relevant departments.
Key efforts to enhance the compliance management system- Clarifying laws and regulations with which all
SUBARU divisions comply: We clarify laws andregulations which each division should comply with,thereby improving transparency.
- Reinforcement of implementation of PDCA cycle ofglobal compliance system: We autonomously evaluate
the compliance system throughout the Group andcarry out initiatives for implementing effective PDCA
cycle.
- Improvement of literacy: With the increase in social awareness regarding harassment, we have been implementing
continued video-based and discussion-based trainings to develop a sense of ownership towards the issue.
- Multiple language service for the whistle blowing system and improvement in trustworthiness. We have developed anenvironment where employees feel at ease utilizing the whistle blowing system by making the service available also in
English, Chinese, Portuguese, and Spanish. This is also contributing to prevention and early detection of wrongdoings.
2. Risk management
The Company stipulates rules regarding risk management to appropriately manage the risks of the entire Group. As forbusiness risks, the directors and executive officers verify the contents in accordance with the rules for the Board of
Directors and various meetings, and for approvals. The Company has appointed risk management officers (job grade ofGeneral Managers) for each department for normal times, and sets up a taskforce suitable for the situation during
emergencies. It has also established the Risk Management & Compliance Committee, headed by the CRMO appointed by
the Board of Directors, to formulate the risk management policy and the risk map for the entire group, based on which it
promotes risk control activities. Moreover, it conducts a third-party evaluation of its risk management activities for
improving and revitalizing their effectiveness. The Company has developed the Safety Confirmation System and othermeans based on the Emergency Response Basic Manual as the company-wide emergency contact system in preparation
for information sharing in the event of a disaster.
Key efforts regarding enhancement of risk management system- The management is discussing and formulating the new Risk Map, in which priority issues have been updated basedon the SUBARU New Management Policy announced in August 2023.
- The Company is conducting trainings to improve literacy of risk management methods and reputation for employees
in charge.
- The Company continues to implement initiatives to reduce key risks faced by the Group such as cyberattacks, disruptionof supply chains, and restoration in the event of natural disaster and the Risk Management & Compliance Committee
follows it up on a regular basis.
- The directors and corporate auditors verify and confirm approved items.

15

[Translation for Reference and Convenience Purposes Only]
3. Securing efficient performance of duties
The Company decides the fields of responsibilities of directors, the scope of responsibility of business execution of
executive officers (scope of delegation of authority to execution), and CxOs including CEO at the Board of Directors
meetings. We position the president and other executive roles as executive officers, rather than as directors, to further
clarify the roles and responsibilities assigned to directors and executive officers.
Directors supervise the status of the businesses and accelerate their business execution by attending various meetings
and receiving business reports from executive officers on a regular basis. Significant matters that need to be submitted to
the Board of Directors are discussed in depth at the Management Meeting and Executive Meeting to sort out discussion
points and direction so as to clarify the points that should be discussed intensively at the Board of Directors meeting. Deeper
and efficient discussions at the Board of Directors meeting are being promoted by, for example, early distribution of meeting
materials and providing preliminary explanations when necessary.
The Company carries out the Evaluation of the Effectiveness of the Board of Directors targeting directors and corporate
auditors using a questionnaire prepared by a third party once a year and discloses the result. Based on the result of theeffectiveness evaluation, the Board of Directors incorporates items identified as future issues in the agenda of the Boardof Directors for the next fiscal year and the board members discuss them and work on solving them.
Documents regarding performance of duties by the directors and other information is being stored and managed
appropriately in accordance with the internal rules.
4. Securing appropriateness of business by the corporate group comprising of the Company and its subsidiaries
The Company appoints executive directors and employees of the Company to concurrently work as directors or
corporate auditors of subsidiaries to enhance the audit and supervisory functions. The Company receives periodic and ad
hoc reporting from subsidiaries and has discussions where necessary. Issues that have significant impact on the Company
are reported to the Management Meeting.
In accordance with the Company-wide Subsidiary Management Rules, the subsidiaries’ projects are divided into thoserequiring preliminary discussions with the Company and those to be determined at the discretion of subsidiaries, and theCompany confirms the information communication routes from subsidiaries to the Company. Further, the Company
constantly confirms the status of establishment of rules at subsidiaries.
To further reinforce these operations, departments responsible for business management, which support business
operation and establishment of management foundation at subsidiaries, voluntarily carry out administration of company
organization of the subsidiaries.
Furthermore, the Company’s internal audit division performs business audits for the Company and its subsidiaries inaccordance with the Company-wide Internal Audit Rules. Their results are reported at the Board of Directors meetingsemi-annually and at the Joint Meeting consisting of executive officers quarterly, and corrective measures are implemented
where necessary.
5. Securing effectiveness of Corporate Auditors’ Audit
The Company has formulated rules to ensure the effectiveness of Corporate Auditors’ audit (e.g., Standards for
Corporate Auditor’s Audit), developed a whistle blowing system, and established a framework where the Corporate
Auditors can gather information from directors and employees in a timely and appropriate manner in case of mattersthat may cause significant damages to the Company, significant violation of laws/articles of incorporation, or othersignificant compliance matters. In addition, the framework ensures smooth performance of Corporate Auditors’
duties by assigning employees independent from directors to support duties of Corporate Auditors and making themknown to all employees. Also, we have added one assisting employee from the fiscal period under review to further
enhance execution of duties by Corporate Auditors and increase support.
The Company’s Corporate Auditors attend important meetings including the Board of Directors, Management
Meeting, and Risk Management & Compliance Committee meetings, and state their opinions as necessary. In
addition, periodic interviews with directors and executive officers as well as on-site audits of key offices andsubsidiaries are performed to confirm the status of establishment and operation of the internal control system.
Moreover, the Corporate Auditors receive regular reports including the operational status of the whistle blowing
system from Internal Audit Division, Legal Division, and Risk Management & Compliance Office, and reports on
subsidiaries are received as necessary from departments in charge of managing the subsidiaries.
The Company also promotes close mutual collaboration under the three-pillar audit system by holding discussion
meetings with corporate auditors of core subsidiaries and having information and opinion exchange with Accounting
Auditors on a regular basis and whenever appropriate and with internal audit divisions as necessary.
The Company has also established a framework that can smoothly process invoices from the Corporate Auditors
for expenses arising from performance of their duties.
16

[Translation for Reference and Convenience Purposes Only]

6. Accounting Auditors(1) Accounting Auditors

KPMG AZSA LLC(2) Accounting Auditor Compensation
Category

Audit fees (million yen)

Non-audit fees (million yen)Company

234

2

The Company’s subsidiaries

18

2

Total

252

4

Notes: 1. As the Audit Agreement between the Company and accounting auditors makes no distinction between the amounts of fees
for audits under the Companies Act and audits under the Financial Instruments and Exchange Act, audit fees under the
Financial Instruments and Exchange Act are included in the amount of Audit fees of the Company in the above table.
2. Of the Company’s important subsidiaries, the foreign subsidiaries receive audits by a certified accounting or auditing
company other than the Company’s accounting auditors (including those who possess equivalent certifications overseas).

(3) Reason for Agreement on Accounting Auditors Compensation by Board of Corporate Auditors
The Board of Corporate Auditors scrutinized the Accounting Auditors’ explanation of the contents of the audit
including the planned number of days required for the accounting audit for the current fiscal period; review andassessment of the audit for the previous fiscal period; reasonableness of progress in audit by the Accounting Auditors,
and the grounds for calculation of quotes underlying the compensation, and agreed to the amount of compensation
for the Accounting Auditors.
(4) Non-Audit Services
Non-audit services provided by the Accounting Auditors to the Company during the current fiscal period werefor preparation of comfort letters. Non-audit services for the consolidated subsidiaries are agreed upon procedures.
(5) Policy on Dismissal or Refusal of Reappointment of Accounting Auditors
The Board of Corporate Auditors shall dismiss accounting auditors in case any of the events prescribed in theItems in Article 340, Paragraph 1 occur, and determine the agenda concerning dismissal or refusal of reappointmentof accounting auditors, and the Board of Directors will propose such agenda to the meeting of shareholders pursuant
to such decision.

17

[Translation for Reference and Convenience Purposes Only]

Consolidated Financial Statements
Consolidated Statement of Financial Position(Unit: Millions of yen)
FYE 2023(as of March 31, 2023)

FYE 2024(as of March 31, 2024)

Cash and cash equivalents

979,529

1,048,000

Trade and other receivables

357,524

376,248

Inventories

592,999

588,503

AssetsCurrent assets

Income taxes receivable

11,04912,240

Other financial assets

388,634

874,651

Other current assets

99,378

118,791

2,429,113

3,018,433

652

740

2,429,765

3,019,173

Property, plant and equipment

861,846

969,096

Intangible assets and goodwill

243,926

291,463

Investment property

20,87821,766

Subtotal
Assets held for sale
Total current assets
Non-current assets

Investments accounted for using equity method

9,061

8,165

Other financial assets

116,507206,263

Other non-current assets

189,108

225,597

Deferred tax assets

73,05972,626

Total non-current assets

1,514,385

1,794,976

3,944,150

4,814,149

Total assets

18[Translation for Reference and Convenience Purposes Only](Unit: Millions of yen)
FYE 2023(as of March 31, 2023)

FYE 2024(as of March 31, 2024)

Trade and other payables

377,279

384,510

Financing liabilities

55,59669,000

Other financial liabilities

65,595

68,125

Income taxes payable

27,19893,085

Provisions

141,192

178,850

Liabilities and equity
Liabilities
Current liabilities

Other current liabilities

346,622437,372

1,013,482

1,230,942

Financing liabilities

257,000

330,500

Other financial liabilities

90,632

95,820Total current liabilities
Non-current liabilities

Employee benefits

55,55762,498Provisions

103,872

158,305

Other non-current liabilities

313,374

370,512286

178

820,7211,017,813

1,834,203

2,248,755

Capital stock

153,795

153,795

Capital surplus

160,178

160,031

Deferred tax liabilities
Total non-current liabilities
Total Liabilities
EquityEquity attributable to owners of parent

Treasury stocks(6,136)(4,616)

Retained earnings

1,623,699

1,906,933

169,437

347,061

2,100,973

2,563,204

8,974

2,190

Total equity

2,109,947

2,565,394

Total liabilities and equity

3,944,150

4,814,149

Other components of equity
Total equity attributable to owners of parent
Non-controlling interests

19[Translation for Reference and Convenience Purposes Only]

Consolidated Statement of Income(Unit: Millions of yen)
FYE 2023(April 1, 2022 toMarch 31, 2023)

FYE 2024(April 1, 2023 toMarch 31, 2024)

Revenue

3,774,468

4,702,947

Cost of sales(3,037,993)(3,710,521)

Gross profit

736,475

992,426

Selling, general and administrative expenses(342,015)(396,864)

Research and development expenses(114,400)(113,508)

Other income

6,358

4,835

Other expenses(19,076)(17,792)

141

(899)

Operating profit

267,483

468,198

Finance income

36,79680,406

Finance costs(25,913)(16,030)

Profit before tax

278,366

532,574

Income tax expense(79,282)(148,004)

Profit for the year

199,084

384,570

Owners of parent

200,431385,084

Non-controlling interests(1,347)(514)

Profit for the year

199,084

384,570

Basic (yen)261.33509.20

Diluted (yen)261.32509.18

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

Profit for the year attributable toProfit for the year per share attributable to owners of parent

20

[Translation for Reference and Convenience Purposes Only]

Consolidated Statement of Changes in Equity FYE 2024 (April 1, 2023 to March 31, 2024)(Unit: Millions of yen)
Equity attributable to owners of parent
Capitalstock
Balance at the beginning of theyear

CapitalsurplusTreasury
stock

Other
Retainedcomponents
earnings
of equity

Total

Noncontrolling Total capitalinterests

153,795

160,178(6,136)

1,623,699

169,437

2,100,973

8,974

2,109,947

Profit for the year

－

－

－

385,084－

385,084(514)

384,570

Other comprehensive income(after deduction of tax)

－

－

－

－

182,328

182,328180

182,508－－－

385,084

182,328

567,412(334)

567,078

－

－

－

4,704

(4,704)－－－

Dividends paid

－

－

－

(65,266)－(65,266)－(65,266)

Purchase of treasury stock－－(40,006)－－(40,006)－(40,006)

Disposal of treasury stock

－

4

234

－

－

238

－

238

－

(41,292)

41,292

－

－

－

－

－

－

41,288－(41,288)

－

－

－

－

－

－

－

－

－

－

－

－

－

(147)

－

－

－

(147)

(6,450)(6,597)

－

(147)

1,520

(106,554)－(105,181)(6,450)(111,631)

153,795

160,031(4,616)

1,906,933

347,061

2,563,204

2,190

2,565,394

Comprehensive income

Comprehensive income total
Transfer to retained earnings
Transactions with owners

Cancellation of treasury
stock
Transfer from retained
earnings to capital surplus
Change in scope of
consolidation
Changes in ownershipinterest in subsidiaries
Total transactions withownersBalance at the end of the year

21[Translation for Reference and Convenience Purposes Only]

Notes to Consolidated Financial Statements(Basis of Preparing Consolidated Financial Statements)
1. Accounting standards of consolidated financial statements
The Group prepares its consolidated financial statements in conformity with International Financial Reporting Standards(“IFRS”) in accordance with Article 120-1 of the Ordinance of Companies Accounting. The Group omits somedisclosure items and notes required by IFRS in accordance with the second sentence of Article 120-1 of the Ordinanceof Companies Accounting.
2. The scope of consolidation and application of the equity method(1) Consolidated subsidiaries: 73
Domestic

50 ……… Fuji Machinery Co., Ltd., Ichitan Co., Ltd., Tokyo Subaru Inc., and 47 others

Overseas

23 ……… Subaru USA Holdings Inc, Subaru of Indiana Automotive, Inc., Subaru of America, Inc., and 20 others(2) Companies accounted for using the equity method: 9
Domestic

6……… Nishino Machine Industries Ltd., and 5 others

Overseas3……… Subaru of Taiwan, Ltd., and 2 others

3. Changes in the scope of consolidation and application of equity method(1) Consolidated subsidiaries
Added
Excluded-(2) Companies accounted for using the equity method
Added
ExcludedSubaru Ryuutuu Service Co., Ltd.

4. Accounting policies(1) Financial instruments
1. Valuation standards and methods for financial assets(i) Initial recognition and measurement
The Group classifies financial assets as financial assets measured at fair value through profit or loss, financial assets
measured at fair value through other comprehensive income, or financial assets subsequently measured at amortizedcost.
The Group initially recognizes trade receivables on the date when they are originated. All other financial
instruments are initially recognized when the Group becomes a party to the contractual provision of the financial
instrument.
If financial assets are classified as financial assets measured at fair value through profit or loss, they are initiallymeasured at their fair value, unless they are initially measured at their fair value plus transaction costs that are
directly attributable to the transaction of the financial asset. Trade receivables that do not contain a significant
financing component are initially measured at the transaction price.
Financial assets are classified as financial assets measured at amortized cost if both of the following conditions aremet:
・A financial asset is held within a business model whose objective is to hold the asset in order to collect thecontractual cash flows; and・The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments ofprincipal and interest on the principal amount outstanding.
Investments in debt instruments are classified as financial assets measured at fair value through othercomprehensive income if both of the following conditions are met:22

[Translation for Reference and Convenience Purposes Only]
・The financial asset is held within the Group’s business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and・The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments ofprincipal and interest on the principal amount outstanding.
When any of the above-mentioned conditions is not met for financial assets except for equity instruments, thefinancial assets are classified as financial assets measured at fair value through profit or loss.
Equity instruments may be designated as financial assets measured at fair value through other comprehensive
income on an individual basis, except for equity instruments held for trading purposes. The designation has been
applied continuously. Equity instruments that are not designated as such are classified as financial assets measured
at fair value through profit or loss.
(ii) Subsequent measurement
Financial assets are subsequently measured based on the classification of the asset as follows.
Financial assets measured at amortized cost are using the effective interest method.
Changes in the fair value of financial assets measured at fair value through profit or loss are recognized in profit orloss.
Changes in the fair value of debt instruments measured at fair value through other comprehensive income arerecognized in other comprehensive income, except for interest income, exchange gain and loss, and impairment
loss recognized in profit and loss. Gains or losses on derecognition are recognized in profit or loss.
Meanwhile, changes in the fair value of equity instruments measured at fair value through other comprehensive
income are recognized in other comprehensive income. The dividend from relevant financial assets are recognizedin profit or loss as part of the financial income for the period. The cumulative amount recognized in othercomprehensive income is not reclassified to profit or loss but to retained earnings when the financial asset isderecognized, or the fair value of the asset declines significantly.
(iii) Impairment of financial assets
For impairment of financial assets measured at amortized cost, debt instruments measured at fair value throughother comprehensive income, lease receivables, and contract assets, expected credit losses are recognized as a loss
allowance.
The Group determines, at the end of each reporting period, whether the credit risk on the asset has increased
significantly since initial recognition. When the credit risk has not increased significantly since initial recognition,
an amount equal to 12-month expected credit losses is measured as the loss allowance. When the credit risk has
increased significantly since initial recognition, an amount equal to lifetime expected credit losses is recognized as
the loss allowance.
However, for trade receivables, lease receivables and contract assets, the loss allowance is always measured at an
amount equal to the lifetime expected credit losses.
Expected credit losses of financial instruments are estimated using the following methods:
・An unbiased and probability-weighted amount determined by evaluating a range of possible outcomes;
・The time value of money; and・Reasonable and supportable information about past events, current conditions and forecasts of future economic
conditions that is available without undue cost or effort at the reporting date.
The amounts of these measurements are recognized in profit or loss.
If the amount measured as expected credit losses decreases after recognition of impairment loss, the decreased
amount is reversed and recognized in profit or loss.
(iv) Derecognition of financial assets
The Group derecognizes its financial assets only if the contractual rights to receive the cash flows from the financial
assets expire, or if the entity transfers substantially all the risks and rewards of ownership of the financial assets.
23

[Translation for Reference and Convenience Purposes Only]
2. Financial liabilities(i) Initial recognition and measurement
The Group classifies financial liabilities as either financial liabilities measured at fair value through profit or loss,
or financial liabilities measured at amortized costs. The Group determines the classification at initial recognition.
The Group recognizes financial liabilities when the Group becomes a party to the contractual provisions of the
instruments. All the financial liabilities are initially measured at fair value. However, financial liabilities measured
at amortized cost are measured at their fair value less transaction costs that are directly attributable to the transaction.
(ii) Subsequent measurement
Financial liabilities are subsequently measured according to the classification as follows.
Financial liabilities held for trading and derivatives are included in financial liabilities measured at fair value
through profit or loss. They are subsequently measured at fair value, and changes in the fair value are recognizedin profit or loss for the period.
Financial liabilities measured at amortized cost are subsequently measured at amortized cost using the effective
interest method.
Amortization using the effective interest method and gains and losses on derecognition are recognized in profit orloss as part of financial income for the period.
(iii) Derecognition of financial liabilities
The Group derecognizes financial liabilities when they are extinguished, i.e. when the obligation specified in thecontract is discharged or cancelled or expires.
3. Derivatives and hedge accounting
The Group enters into forward exchange contracts in order to fix cash flows related to the recognized financial assets
and liabilities and future transaction. Interest rate swaps are used in order to fix cash flows of interest payable related
to the borrowings. There are no derivatives stated above to which hedge accounting is applied.
(2) Valuation standards and methods for inventories
Inventories are measured at the lower of acquisition cost and net realizable value. Net realizable value is the estimatedselling price in the ordinary course of business, less estimated cost of completion and estimated selling expenses.
The acquisition cost is generally calculated using the cost method based on the moving average method and comprises
all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present locationand condition.
(3) Valuation standards, valuation methods and depreciation methods for property, plant and equipment
Property, plant, and equipment is measured based on the cost model and stated at acquisition cost less accumulated
depreciation and impairment losses. The acquisition cost includes costs directly attributable to the acquisition of theasset, costs related to disassembly, retirement and site restoration, as well as borrowing costs to be capitalized.
Depreciation of assets other than land and construction in progress is calculated on the straight-line method over theestimated useful lives of the assets. The estimated useful lives of major assets are as follows;
・Buildings and structures: 2 to 60 years
・Machinery and vehicles: 2 to 20 years
・Tools, furniture and fixtures: 2 to 20 years
The estimated useful lives, residual value, and amortization methods are reviewed at the end of each fiscal year, andif there are any changes made, those changes are applied prospectively as a change in an accounting estimate.

24

[Translation for Reference and Convenience Purposes Only](4) Valuation standards, valuation methods and amortization methods for intangible assets and goodwill
1. Goodwill
The Group measures goodwill as the fair value of consideration transferred including the recognized amount of any
non-controlling interests in the acquiree at the acquisition date, less the net recognized amount (usually fair value) of
the identifiable assets acquired and liabilities assumed at the acquisition date.
Goodwill is not amortized. Instead, it is tested for impairment annually and if any indication of potential impairment
exists.
Any impairment loss for goodwill is recognized in profit or loss and is not reversed in subsequent periods.
Goodwill is recorded at acquisition cost less any accumulated impairment losses.
2. Capitalized development cost
Expenditures related to research activities in order to gain new scientific and technical knowledge are recognized as
expenses as incurred. Development expenditure is capitalized as intangible assets only when the cost can be measured
reliably, there is a technical and commercial feasibility of completing the development, it is probable that the outcome
will generate a future economic benefit, and the Group has intention, ability and sufficient resources to use or sell
the outcome of the development and to complete the development.
The estimated useful lives of capitalized development cost that is amortized using the straight-line method are as
follows.
・Capitalized development cost: 2 to 5 years
3. Other intangible assets
The Group applies the cost method in measuring separately acquired intangible assets, which are recorded atacquisition cost at initial recognition.
After initial recognition, intangible assets excluding goodwill are amortized using the straight-line method over theirestimated useful lives, and are recorded at acquisition cost less accumulated amortization and impairment losses.
Estimated useful lives of major intangible assets are as follows. The Group has no intangible assets with indefinite
useful lives.
・Software: 2 to 10 years(5) Valuation standards, valuation methods and depreciation methods for lease assets
At the inception of the lease contract, the Group assesses whether an arrangement is a lease or contains a lease.
Lease as a lessee
The Group recognizes a right-of-use asset and a lease liability at the inception of the lease.
A right-of-use asset is measured at acquisition cost at the inception of the lease. After the commencement date, aright-of-use asset is measured by using the cost model at acquisition cost less accumulated depreciation andimpairment losses. A right-of-use asset is amortized from the date of inception to the end of estimated useful life of
the underlying leased asset if the ownership of the underlying assets is transferred to lessee until the end of the leaseterm or if acquisition cost of right-of-use asset reflects the exercise of a purchase option. Otherwise a right-of-use
asset is amortized from the date of inception to the earlier of the end of the estimated useful life of the right-of-use
asset or the end of the lease term.
A lease liability is measured at the present value of the lease payments that are not paid at the date of inception. Afterthe commencement date, the carrying amount of the lease liability is increased to reflect interest on the lease liability
and decreased the lease payments made. Lease liabilities are re-measured and carrying amounts of right-of-use assets
are revised or the change is recognized in profit or loss if the Group reviews lease liabilities or if the modification is
not accounted for as a separate lease.
As for short-term leases or leases for which the underlying asset is of low value, the Group applies IFRS 16.5, 6, andrecognizes lease payments as an expense using the straight-line method over the lease term.
25

[Translation for Reference and Convenience Purposes Only]
Lease as a lessor
Lease transactions are classified as finance leases if all the risks and rewards incidental to ownership of underlying
assets are substantially transferred, and all other leases are classified as operating leases.
A receivable from customer held under a finance lease is initially recognized at the amount of the gross investmentin the lease discounted at the interest rate implicit in the lease, and included in Trade and other receivables in the
consolidated statements of financial position.
An underlying asset subject to an operating lease is recognized in the consolidated statements of financial position,and lease payments from operating leases are recognized as revenue over the lease term.
(6) Investment property
Investment property is held to earn rentals or for benefit from increase in value of the property or both. Investment
property is measured by using the cost model and is recorded at acquisition cost less accumulated depreciation andimpairment losses. Depreciation of an investment property other than land and construction in progress is recognizedon a straight-line basis over the estimated useful lives of the asset. The estimated useful lives of major assets are as
follows;
・Buildings and structures: 2 to 50 years(7) Impairment
At the end of each fiscal year, the Group assesses the carrying amounts of non-financial assets other than inventory
and deferred tax assets to determine whether there is any indication of impairment. If any such indication exists, therecoverable amount of the asset is estimated. Recoverable amounts of goodwill and intangible assets that are not yet
ready for use are estimated at the same time every year.
The recoverable amount of an individual asset or cash-generating units is the higher of value in use or fair value lesscosts of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using
a pretax discount rate that reflects the time value of money and the risks specific to the asset. Assets not assessedindividually in test of impairment are integrated into the smallest cash-generating unit that generates cash inflows
which are largely independent of cash inflows from other assets or a group of assets. Cash generating units ofgoodwill are determined on the basis of the units managed for the purpose of internal reporting and are within thescope of business segments before aggregation. The goodwill acquired in a business combination is allocated to eachof the cash generating units that is expected to benefit from the synergies of the combination.
Corporate assets in the Group do not generate cash inflows independently. If there is any indication that corporate
assets may be impaired, the Group performs an impairment test based on the recoverable amount of the cash
generating unit to which corporate asset belongs. When the carrying amount of an asset or a cash-generating unit
exceeds the recoverable amount, an impairment loss is recognized in profit or loss. An impairment loss for a cashgenerating unit is recognized by first reducing the carrying amount of any goodwill allocated to the cash-generating
unit, and then reducing proportionally the carrying amount of other assets in the unit.
An impairment loss for goodwill is not reversed. The Group assesses whether there is any indication that an
impairment loss recognized in prior years for an asset other than goodwill may no longer exist or may have decreased
at the end of each fiscal year. An impairment loss is reversed when there has been a change in the estimates used todetermine an asset’s recoverable amount. Impairment losses are reversed up to the amount not exceeding the carrying
amount (net of depreciation) that would have been determined if no impairment losses had been recognized in prioryears.
(8) Employee benefits
1. Short-term employee benefits
For short-term employee benefits including salaries, bonuses and paid annual leave, when the employees render
related services, the amounts expected to be paid in exchange for those services are recognized as expenses.

26

[Translation for Reference and Convenience Purposes Only]
2. Retirement benefit plans
The Group sponsors a defined benefit plan and a defined contribution plan as retirement benefit plans for employees.
(a) Defined contribution plans
For defined contribution plans, when the employees render related services, the contribution payables to thedefined contribution plan are recognized as expenses.
(b) Defined benefit plans
The Group has adopted lump-sum payment on retirement and defined benefit pension plans as defined benefit
plans. The present value of defined benefit obligations related current service costs and past service costs are
determined using the projected unit credit method.
The discount rates are determined by reference to market yields at the end of the reporting period on high quality
corporate bonds which have maturities corresponding to the future settlements of benefits in each year.
The net defined benefit liability (asset) is determined as the present value of the defined benefit obligation lessthe fair value of the plan assets. Net interest on the net defined benefit liability (asset) is recognized in profit orloss as financial expenses. The Group recognizes the difference arising from remeasurement of present value ofthe defined benefit obligation and the fair value of the plan asset in other comprehensive income when it isincurred, and reclassifies it immediately to retained earnings from other components of equity.
The Group recognizes any past service cost as an expense at the earlier of the following dates.
(i) when the plan amendment or curtailment occurs; and(ii) when related restructuring costs are recognized(9) Revenue
1. Revenue from contracts with customer
The Group identifies a performance obligation in a contract with a customer, and recognizes as revenue the amountof consideration to which the Group expects to be entitled in exchange for transferring promised goods or services
to the customer. If variable consideration is included in the consideration promised in a contract with a customer,some or all of an amount of variable consideration is included in the transaction price only to the extent that it ishighly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when theuncertainty associated with the variable consideration is subsequently resolved.
Revenue is recognized at a point in time or over a certain period of time in accordance with satisfaction of aperformance obligation in a contract with a customer.
With regard to revenue from the sale of cars, performance obligations are principally considered to be fulfilled at
the time of delivery of the cars, at which point customers obtain control of the cars and revenue is recognized.
In automobile business, fare-paying extended warranty service is provided for the products as an option in addition
to normal warranty. The revenue from the extended warranty service is recognized over a certain period of time inaccordance with the progress of the performance obligation.
2. Revenue from financial lease
When the Group is the manufacturer or dealer lessor, sales revenue, cost of sales and selling profit or loss for a
portion identified as sale of products are recognized in profit or loss at the inception of the leases. Finance income
from financial leases is recognized based on a pattern reflecting a constant rate of return on the net investment in
the lease of the Group.
3. Revenue from operating leases
Revenue from operating leases is recognized on a straight-line basis over the lease term.
4. Interest income
Interest income is recognized using the effective interest method27

[Translation for Reference and Convenience Purposes Only]
5. Dividend income
Dividend income is recognized when the right to receive the payment is established.
(10) Provisions
Provisions are recognized when the Group has present legal or constructive obligations as a result of past events, it
is probable that outflows of resources embodying economic benefits will be required to settle the obligations, andreliable estimates can be made of the amount of the obligations. Where the effect of the time value of money ismaterial, the amount of a provision is measured at the discounted present value of the estimated future cash flowusing a pre-tax rate that reflects the time value of money and the risks specific to the liability. The unwinding of
the discount due to the passage of time is recognized as finance costs.
1. Asset retirement obligation
A provision for asset retirement obligation is recognized mainly for the estimated cost of restoring the leased siteat the end of the lease term.
2. Provision for product warranties
The Group provides product warranties based on the terms and conditions of warranties granted at the time of
product sales, as well as free repair services on an individual basis in accordance with the notification to thecompetent authority.
The coverage of product warranties based on the terms and conditions of warranties is determined by the duration,
mileage, cause of defects, and other factors in accordance with the terms and conditions of warranties in eachcountry.
The Group recognize estimated warranty costs for the product warranties when products are sold to customers basedon the terms and conditions of warranties. The estimated warranty costs are recorded based on the best estimates of
future occurrences, which are based on the past repair experience and past sales volume for the total cost of repairing
or replacing parts due to defects occurring within the warranty period.
The estimated expenses related to the warranty items in accordance with notifications to the competent authority
are recognized as provision for product warranties when it is probable that outflows of resources embodying
economic benefits will be required, and reliable estimates can be made of the amount of the obligations. The
estimated expenses are recorded based on the best estimate of the repair cost per unit, which is calculated based on
past experience with product defects, and the number of units subject to repair, which is calculated based on pastexperience with product defects.
3. Provision for losses on construction contracts
The provision for losses on uncompleted construction contracts in the Aerospace segment is recorded whensubstantial losses on the contracts are anticipated at the fiscal year end and such losses can be reasonably estimated.
4. Provision for environmental measures
The provision for environmental measures is recorded for the amount of the estimated expenses for complying withenvironmental regulations at the end of the fiscal year.
(11) Other principle matters for preparation of the consolidated financial statements
1. Unit of amount
Unit of amount is displayed by rounded off.
2. Application of Group Tax Sharing system
Group Tax Sharing system is applied.

28

[Translation for Reference and Convenience Purposes Only](Change in accounting policies)
From the fiscal year ended March 31, 2024, an amendment to IAS 12, “Deferred Tax related to Assets and Liabilities
arising from a Single Transaction (Amendments to IAS 12)”, has been applied. This could not cause a significant impact
on the consolidated financial statements.
(Revenue recognition)(1) Disaggregation of revenue

The Group has adopted “IFRS 15 Revenue from Contracts with Customers” and recognizes revenue based on thefollowing five step approach.
Step 1: Identify the contracts with a customer
Step 2: Identify the performance obligations in the contracts
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to performance obligations
Step 5: Recognize revenue when performance obligations are satisfied
The automotive segment is mainly engaged in manufacturing and sales of automobiles as well as providing services suchas maintenance.
For sale of vehicles, revenue is recognized primarily at the time of delivery of the product as we consider that upondelivery the customer obtains control of the product and the performance obligation is satisfied. Maintenance and otherservice revenue are recognized over a certain period of time. Payment for the sale of a product is generally made within
30 days of the transfer of control of the product to the customer.
The contract with the customer for the sale of the product includes a clause that guarantees that the product complies
with the agreed specifications and the Group recognizes the provision for product warranty for the costs related to thatwarranty. For details of the provision for product warranty, please refer to "(Basis of Preparing Consolidated Financial
Statements) 4. Accounting policies (10) Provisions 2. Provision for product warranties".
The aerospace segment has contracts with customers. Revenue from contract construction is recognized based on the
progress of performance obligations. The progress is measured by an input method based on the costs incurred. Payments
for contracts are generally made in stages based on the contracts with customers.
The Group's business segment is classified into three categories: automotive, aerospace, and others. Revenue is broken
down by region based on the location of the customer. The relationship between these disaggregated revenues and therevenue of each reportable segment is as follows:
FYE 2024 (April 1, 2023 to March 31, 2024)(Unit: Millions of yen)
Automotive

Aerospace

Others *3

Total

Revenue from contracts with customers
Japan

565,678

51,571

1,642

618,891

3,653,862

52,740141

3,706,743

Europe115,6456

4

115,655

Asia

57,617－

3

57,620

Others

195,315－

10

195,325

4,588,117

104,3171,800

4,694,234

5,522

－

3,191

8,713

4,593,639

104,317

4,991

4,702,947

North America

Total
Revenue arising from other sources *2
Total(Note)
1)
The amounts mentioned above reflect elimination of internal transactions.
2)
Revenue recognized from other sources includes lease revenue of products that are accounted for in accordance with "IFRS 16 Leases",etc.
3)
Other segment includes real estate leasing business, etc.
29

[Translation for Reference and Convenience Purposes Only](2) Contract balances

The balances of receivables, contract assets and contract liabilities arising from contracts with customers as of March
31, 2024 is as follows:(Unit: Millions of yen)
FYE 2024(as of March 31, 2024)
Receivables included in Trade and other receivables

118,175

Contract assets included in Trade and other receivables

24,374Contract liabilities included in other current liabilities

182,615

Contract liabilities included in other non-current liabilities

327,728

The contract assets mainly relate to the Group's right to the consideration for the work of contracts for aircraft production
and periodic repairs in the aerospace business that have been recognized based on measurement of progress. Contract
assets are transferred to receivables when all deliveries of such construction are completed.
The contract liability mainly relates to advance consideration for extended warranty services and other items in the
Automotive business, and to contracts with defense industries in the aerospace business for which revenue is recognized
upon completion of aircraft production and periodic repairs.
Of the revenues recognized in the consolidated fiscal year ended March 31, 2024, the amount included in the contract
liability balance at the beginning of the consolidated fiscal year was 110,836 million yen.
The amount of revenue recognized from performance obligations satisfied (or partially satisfied) in past periods is
immaterial.
(3) Transaction price allocated to the remaining performance obligations

Breakdown of the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied(or partially unsatisfied) and revenue expected to be recognized for each period are as follows:
There are no significant amounts that are not included in the transaction price among the consideration arising fromcontracts with customers. In addition, as a practical expedient, transactions whose expected contract periods are equal toor less than one year on an individual basis are not included in the following breakdown calculation.
(Unit: Millions of yen)
FYE 2024(as of March 31, 2024)
Within 1 year
289,393
Over 1 year
737,226
Total
1,026,619(4) Assets recognized from the costs to obtain or fulfil a contract with a customer

The Group has no material incremental costs incurred to obtain or fulfil a contract with a customer that should berecognized as assets.
(Accounting estimates)
Items for which the amount was recorded in the consolidated financial statements for the current fiscal year based on
accounting estimates, and which may have a significant impact on the consolidated financial statements for the following
fiscal year, are as follows.
Deferred tax assets

72,626 million yen

30[Translation for Reference and Convenience Purposes Only]
Deferred tax assets are recognized to the extent that it is probable that taxable income will be earned against which the
future deductible temporary differences can be utilized. Deferred tax liabilities are recognized in principle for all taxable
temporary differences.
The calculation of deferred tax assets may be affected by changes in uncertain economic conditions and other factors, andthe timing and amount of actual taxable income may differ from the estimates. This could cause a significant impact on
the amount of deferred tax assets in the consolidated financial statements for the following fiscal year.
Provision for product warranties

237,748 million yen

The method of calculating the provision for product warranties and the major assumptions used in the calculation are described in (Basis ofPreparing Consolidated Financial Statements), 4. Accounting policies, (10) Provisions, 2. Provision for product warranties.
We believe that we have made sufficient provisions for the warranty costs that we expect to be incurred based on currently available information.
However, since the calculation of the provision for product warranties involves the estimate of the warranty costs that would be incurred overmultiple years in the future, the actual warranty costs may deviate from the estimates. This could cause the necessity of recording additional
provisions for product warranties, and a significant impact on the consolidated financial statements.

(Consolidated Statements of Financial Position)
1. The allowances for assets are as follows:
The allowance for doubtful trade receivables and other receivables
The allowance for doubtful other financial assets (non-current)
2. Accumulated depreciation and accumulated impairment lossof property, plant and equipment

387 million yen
426 million yen
1,546,174 million yen

3. 6,905 million yen from national subsidies, etc. has been directly deducted from the amount of property, plant andequipment reported on the consolidated balance sheet.
4. Assets pledged as collateral and collateralized loans(1) Assets pledged as collateral
Property, plant and equipment:(2) Collateralized loans
Other non-current liabilities:
Others current liabilities:

8,106 million yen
1,627 million yen
4 million yen

5. Contingent Liabilities(1) Guarantor of third-party indebtedness from financial institutions
Customers of SUBARU Canada Inc.:
Employees:
Others:Total

25,312 million yen
2,285 million yen
508 million yen
28,105 million yen(2) Other Contingencies

Based on the modified agreement between the U.S. subsidiary of Takata Co., Ltd. and the National Highway Traffic
Safety Administration (NHTSA) of the United States dated May 4, 2016, Notification “Extended schedule of therecalls of airbag inflators manufactured by Takata Co., Ltd.” released by the Ministry of Land, Infrastructure,
Transport and Tourism (MLIT) of Japan dated May 27, 2016, and recall policies in other regions including China
and Australia in consideration of the request by the U.S. and Japanese authorities, expenses for extension of recall
for airbag inflators manufactured by Takata are accrued to the extent that the amount can be reasonably estimated.
There is a possibility that additional accrual may be required due to events in the future.

31

[Translation for Reference and Convenience Purposes Only]
6. The unexecuted balance of overdraft facilities and lending commitments at a consolidated subsidiary (Subaru FinanceCo., Ltd.) was as follows:
Total overdraft facilities and lending commitments:
7,800 million yen
Less amounts currently executed:
2,880 million yen
Unexecuted balance
4,920 million yen
7．Inventories and the provision for loss on construction contracts (provision in current liabilities) for which losses are
expected are presented in gross amounts without offsetting. Of inventories related to construction contracts for which
losses are expected, the amount corresponding to the provision for loss on construction contracts (provision in current
liabilities) is 3,347 million yen (all work in process).
(Consolidated Statement of Changes in Net Assets)
1)

Matters related to the type and total issued and outstanding stock, and type and number of treasury stock
Number of shares
Number of shares
Number of shares
Number of sharesas at beginning ofincreased during the reduced during theas at end of theType of Stockthe consolidated
consolidated fiscal
consolidated fiscal
consolidated fiscal
fiscal year
year (shares)
year (shares)
year (shares)(shares)Issued shares
Common stock *1

769,175,873－

15,274,300

753,901,573

2,194,065

15,276,655

15,363,271

2,107,449

Treasury stock
Common stock *2(Note)
1) Decrease of 15,274,300 shares of Common stock was due to cancellation of Treasury Stock.
2) Increase of 15,276,655 shares of Treasury stock was mainly due to purchase of Treasury Stock.
Decrease of 15,363,271 shares of Treasury stock was mainly due to cancellation of Treasury stock.

Dividends(1) Dividend payout

2)

Resolution'The 92nd Ordinary General
Meeting of Shareholders on
June 21, 2023
'The Board of Directors
Meeting on November 2,2023 *1

Total amountof dividends(yen)Dividend pershare (yen)Record date

Effective
date

Commonstock

29,161

38.0

March 31,2023

June 22,2023

Commonstock

36,10548.0

September
30, 2023

December 7,
2023

Type of stock(Note) Cash dividends per share of the Board of Directors Meeting on November 2, 2023 include a Commemorative dividends of 10.00 yen.

32

[Translation for Reference and Convenience Purposes Only](2) Of dividends whose criteria date belongs to the current consolidated fiscal year, those in which the effective date ofthe dividend is the following consolidated fiscal year
Total
Type ofamount of Source for
Resolution
stock
dividends
dividend(yen)'The 93rd Ordinary General
CommonRetained
Meeting of Shareholders on
43,627stock
earnings
June 19, 2024 *1

Dividend
per share(yen)

Recorddate

Effective
date

58.0

March 31,2024

June 20,2024(Note) Cash dividends per share of the Ordinary General Meeting on June 19, 2024 include a Commemorative dividends of 10.00 yen.

(Financial instruments)
1. Summary of Financial Instruments Status(1) Risk Management
The Group's business activities are affected by the business environment and the financial market environment.
Financial instruments held or assumed during the course of the business activities are subject to inherent risks. The
risks include (1) credit risk, (2) market risk and (3) liquidity risk. The Group establishes an internal management system
and implements crisis management to minimize the impact on the Group's financial condition and businessperformance using financial instruments. Specifically, the Group manages those risks according to the following
methods.
(2) Credit Risk
Credit risk is the risk that a party to a financial instrument defaults on its contractual obligations and causes a financial
loss for the Group. The Group's trade receivables, lease receivables, contract assets and other receivables are exposedto the credit risk of customers and counterparties. Also, bonds and other securities held to manage surplus funds are
exposed to the credit risk of the issuers. In addition, Derivative transactions conducted by the Group for the purposeof hedging foreign exchange and interest rate risks as well as banking transactions are exposed to the credit risk of thefinancial institutions that are counterparties to the transactions.
(3) Market Risk
The Group hedges foreign currency fluctuation risks of trade receivables and payables denominated in foreign
currencies that are identified by currency and by month by using, in principle, forward exchange contracts and currency
options.
Depending on the exchange rate situation, forward exchange contracts and other transactions are used against the net
position of trade receivables and trade payables denominated in foreign currencies for a maximum of six months.
(4) Liquidity Risk
The Group raises funds by borrowings from financial institutions and corporate bonds. The Group is exposed to a riskthat the Group would not be able to repay liabilities on the due date in the event of disruptions of financial system andfinancial markets or a significant reduction of credit rating by rating agencies.
In order to ensure liquidity and stability, the Group has sufficient cash and cash equivalents as well as maintains
liquidity that satisfies the level of cash required by entering into commitment line agreements with major financial
institutions.

33

[Translation for Reference and Convenience Purposes Only]
2. Fair Value of Financial Instruments
Amount on the consolidated statement of financial position and fair value at March 31, 2024 are as follows.
(Unit: Millions of yen)Amount on the
consolidated statement offinancial position

Fair Value

Trade and other receivables
Operating loans

169,296

174,400

Lease receivables

10,858

11,862

Account receivables and other receivables *1

196,094-

Debt instruments measured at fair value

260,691

260,691

Equity instruments

222,676

222,676

Derivatives

28

28

Other *1&*4

597,519-

Borrowings

296,500

294,597

Bonds

103,000

101,380

384,510-

Derivatives

11,71011,710

Other *1&*3

28,386-

Other financial assets

Financing liabilities

Trade and other payables *1
Other financial liabilities(Note)
1) Disclosure of fair value is omitted because the fair values approximate their carrying amounts.
2) The table does not include cash and cash equivalents due to their fair values approximate their respective carrying amounts.
3) Lease liabilities (123,849 million yen on the consolidated statement of financial position ) are not included in "Other financial liabilities".
4) ”Other” included in “Other financial assets” mainly consists of time deposits.

3. Breakdown of fair value of financial instruments by level(1) Valuation techniques used to calculate fair value
The Group uses a three-level hierarchy system when measuring fair value. The following is a description of the threelevels of hierarchy:
Level 1: Quoted prices in active markets for identical assets or liabilities that the Group has the ability to access as ofthe measurement date
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either
directly or indirectly
Level 3: Unobservable inputs for the assets or liabilities(2) Method and assumptions of Fair Value Measurement
The fair values of assets and liabilities are determined based on relevant market information and through the use of an
appropriate valuation method.
The measurement methods and assumptions used in the measurement of assets and liabilities are as follows:34

[Translation for Reference and Convenience Purposes Only](Cash and cash equivalents, Trade and other receivables, Trade and other payables)
Cash and cash equivalents, Trade and other receivables, and Trade and other payables are measured at amortized cost. Lease
receivables are measured in accordance with "IFRS 16 Leases".
The fair value of operating loans and lease receivables is calculated based on the present value of the receivables discounted
by the interest rate, taking into account the maturity period and credit risk, for each receivable classified by a certain period.
Therefore, fair value measurements are classified as Level 3 because credit risks are not observable.
The fair values of financial assets other than lease receivables and operating loans approximate their carrying amounts of
those financial assets due to their short-term maturities.
(Other debt instruments)
Debt instruments (instruments measured at fair value) consist mainly of government bonds, corporate bonds, investment
trust and investments in partnerships, etc.
The fair value of government bonds and investment trust with an active market is measured by using quoted market prices.
Fair value measurement for government bonds are investment trust are classified as Level 1.
The fair value of corporate bonds is measured based on the proprietary pricing models provided by financial institutions
using observable inputs in the market such as credit ratings and discount rates. Fair value of corporate bonds is classified as
Level 2.
The fair value of investments in partnerships is measured based on the estimated fair value of the partnership assets and theCompany's shares of such fair value. Fair value measurement for investments in partnerships is classified as Level 3 because
it uses unobservable inputs.
Other debt instruments are reported as other financial assets (current) and other financial assets (non-current).
(Equity instruments)
Equity instruments consist mainly of stock.
The fair value of equity instruments with an active market is measured by using quoted market prices.
Fair value measurement for equity instruments with an active market is classified as Level 1.
As a general rule, the fair value of equity instruments with no active market is measured mainly by using the comparable
company valuation method and other appropriate valuation methods. Fair value measurement for equity instruments withno active market is classified as Level 3.
Equity instruments are reported as other financial assets (non-current).
Such fair value measurements are conducted in accordance with the Group accounting policy approved by the appropriate
person of authority and based upon valuation methods determined by an accountant of the Group.
(Financing liabilities)
Financing liabilities are measured at amortized cost.
The fair value of financing liabilities is measured by discounting future cash flows using interest rates currently available
for liabilities of similar terms and remaining maturities. Fair value measurement for financing liabilities is mainly classified
as Level 2.
(Derivatives)
Derivatives consist mainly of foreign currency forward exchange contracts, and interest rate swap agreements.
The fair values of derivatives are measured based on observable inputs such as foreign exchange rates and quoted prices
obtained from the financial institutions. Fair value measurements for these derivatives are classified as Level 2.
Derivatives are reported as other financial assets (current) or other financial liabilities (current).
(Other financial liabilities)
Other financial liabilities other than derivatives mainly include liabilities related to chargeable subcontracting.
Liabilities related to chargeable subcontracting are measured at amortized cost and lease liabilities are measured inaccordance with "IFRS 16 Leases".
The fair value of other financial liabilities approximates their carrying amounts.
35

[Translation for Reference and Convenience Purposes Only](3) Financial assets and liabilities recognized in the consolidated statement of financial position at fair value
Financial assets and liabilities recognized in the consolidated statement of financial position at fair value in the current year
are as follows.
(Unit: Millions of yen)
Level 1

Level 2

Level 3

Total

Other financial assets
Financial assets measured at fairvalue through profit or loss:
Derivatives

－

28

－

28

Debt instruments

40,610122

2,190

42,922

Total

40,610150

2,190

42,950Financial assets measured at fairvalue through other comprehensive
income:Equity instruments

215,194－

7,482

222,676

Debt instruments

82,249135,520－

217,769

Total

297,443

135,520

7,482

440,445

Total

338,053

135,670

9,672

483,395

Other financial liabilities:
Financial liabilities measured at fairvalue through profit or loss:
Derivatives－

11,710－11,710Total－

11,710－11,710

The Group recognizes the transfers between the levels of the fair value hierarchy at the end of the day on which an event orchange in conditions that causes the transfer has occurred.
There were no material transfers between the levels.

36

[Translation for Reference and Convenience Purposes Only](4) Reconciliation of financial instruments classified in Level 3
The following is a reconciliation of the beginning to ending balances for Level 3 assets and liabilities measured at fair value
on a recurring basis.
(Unit: Millions of yen)
(Unit: Millions of yen)
FYE 2024(April 1, 2023 to March 31, 2024)
Equity instruments
Beginning balance

Debt instruments

5,973

1,332

－

171

1,509

－

Purchases

－

687

Sales

－

－

Exchange differences on translating foreign
operations

－

－

7,482

2,190

－

80

Total gains or losses:
Profit or loss
Other comprehensive income

Ending Balance
Unrealized gains or losses included in profit orloss on assets held at March 31. 2024

(Note)
1) Gains or losses included in profit or loss for the consolidated fiscal years ended March 31, 2024 is included in finance income and financecosts in the consolidated statements of income.
2) Gains or losses included in other comprehensive income for the consolidated fiscal years ended March 31, 2024 is included in net changes
in revaluation of equity instruments designated as measured at fair value through other comprehensive income in the consolidated
statements of comprehensive income.
3) Unrealized gains and losses on assets held at the end of the current fiscal year included in net gains or losses on debt instruments areincluded in "Financial income" in the consolidated statement of income.

37

[Translation for Reference and Convenience Purposes Only](5) Financial Assets and Financial Liabilities that are not measured at fair value
The carrying amounts and fair values of financial assets and financial liabilities that are not measured at fair value as ofMarch 31, 2024 is as follows:(Unit: Millions of yen)

FYE 2024(as of March 31, 2024)
Carrying
Fair value
amountTrade and other receivables
Operating loans
Lease receivables
Account receivables and other receivables*1
Other financial asset*1&2
Financing liabilities
Borrowings
Bonds payables
Trade and other payables*1
Other financial liabilities*1&3

169,296
10,858196,094
597,519

174,400
11,862

296,500
103,000
384,510
28,386

294,597
101,380－－－－(Notes)1)Disclosure of fair value is omitted because the fair values approximate their carrying amounts.
2)
Items disclosed in “(3) Financial Assets and Financial Liabilities that are measured at fair value” are not included.
3)
Other financial liabilities do not include derivatives of 11,710 million yen and lease liabilities of 123,849 million yen.
4)
The table does not include cash and cash equivalents due to their fair values approximate their respective carrying amounts.

(Investment property)
1. Summary of investment properties
The Company and certain consolidated subsidiaries own rental office buildings and rental commercial facilities in
Saitama prefecture and other locations.
2. Fair Value of Investment property(Unit: Millions of yen)

Carrying Amount
21,766

Fair Value
38,091(Notes)1)
Carrying amount represents acquisition cost less accumulated depreciation and accumulated impairment losses.
2)
Fair values of certain main investment and rental properties are estimated by third party real-estate appraisers. Fair values ofremaining properties are estimated by the Group based principally on land assessment value that are used to calculate property taxes.

(Per Share Information)
1. Net assets per share attributable to owners of parent 3,409.45
2. Income per share attributable to owners of parent
Basic
509.20
Diluted509.18

38

yen
yen
yen

[Translation for Reference and Convenience Purposes Only](Significant Subsequent Event)Acquisition and cancellation of the Company’s treasury stock
The Company resolved, at a meeting of its Board of Directors held on May 13, 2024, the matters concerning theacquisition of treasury stock pursuant to the provisions of Article 156 of the Companies Act, as applied by replacing therelevant terms pursuant to the provisions of Article 165, Paragraph 3 and the matters concerning the cancellation oftreasury stock in accordance with Article 78 of the Act.
1. Reason for conducting acquisition and cancellation of treasury stock
The Company acquires and cancels its treasury stock for the purpose of improving efficiency of its capital structure.
2. Details of the share acquisition(1) Type of stock to be acquired:Company’s common stock(2) Total number of shares to be acquired:
23 million shares (upper limit)
Ratio of total number of issued shares (excluding treasury stock): 3.1%
(3) Total share acquisition cost:
60,000 million yen (upper limit)
From May 14, 2024 to December 30, 2024
(4) Acquisition period:(Estimated)(5) Acquisition method:
Purchase on Tokyo Stock Exchange
Market purchases based on a discretionary trading contract regarding acquisition of treasury stock.
3. Details of the share cancellation(1) Type of stock to be cancelled:

Company’s common stock
23 million shares(All treasury stock acquired pursuant to 2. above)
To be determined(2) Total number of shares to be cancelled:(3) Scheduled date of the cancellation:

39

[Translation for Reference and Convenience Purposes Only](Reference) Consolidated Statement of Income(Unit: Millions of yen)
FYE 2023(April 1, 2022 toMarch 31, 2023)

FYE 2024(April 1, 2023 toMarch 31, 2024)

Net cash provided by (used in) operating activities

503,759

767,665

Net cash provided by (used in) investing activities(336,813)(703,699)

Net cash provided by (used in) financing activities(122,307)(66,469)

Effect of exchange rate changes on cash and cash equivalents

51,81670,974

Net increase (decrease) in cash and cash equivalents

96,45568,471

Cash and cash equivalents at beginning of the year

883,074

979,529

Cash and cash equivalents at end of the year

979,529

1,048,000

40

[Translation for Reference and Convenience Purposes Only]

Non-consolidated Financial Statements
Non-consolidated Balance Sheet(Unit: Millions of yen)
FYE 2023(as of March 31, 2023)
ASSETSⅠ Current assets
Cash and deposits
Accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Short-term loans receivable to subsidiaries and affiliates
Current portion of long-term loans receivable fromsubsidiaries and affiliates
Deposits paid
Accounts receivable-other
Other

FYE 2024(as of March 31, 2024)

985,713
225,508
65,35972,702
58,12336,3695,298
41,0401,460,213
244,138
56,805
68,146
61,49243,335
6,002
46,62227,00014,00023,57550,33233,992

24,62545,51043,820Total 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, net
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 provable inrehabilitation and otherPrepaid pension cost
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for investment loss

1,625,011

2,114,708

114,159
18,207105,0883,314
10,11579,202
32,1795,862

150,944
20,934
106,426
3,484
12,87078,493
41,5307,644

368,126

422,325

46,10940,44643,80670,25386,555

114,059

3,847
235,172
3,947
2
52,2606,390
320,960
9,027
253,3000

05,584
74,1338,819(46)(1,694)

4,023
70,6979,457(5)(1,826)

Total investments and other assets
Total noncurrent assets
Total assets

382,024
836,705
2,461,716

472,025
1,008,409
3,123,11741

[Translation for Reference and Convenience Purposes Only](Unit: Millions of yen)
FYE 2023(as of March 31, 2023)
LIABILITIESⅠ Current liabilities
Notes payable-trade
Accounts payable-trade
Electronically recorded obligations-operating
Current portion of long-term loans payable
Current portion of bonds payable
Lease obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Provision for product warranties
Provision for vehicle environmental control
Provision for loss on construction contracts
Provision for environmental measures
Other
Total current liabilities
Ⅱ Noncurrent liabilities
Bonds payable
Long-term loans payable
Lease obligations
Provision for product warranties
Provision for vehicle environmental control
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Ⅰ Shareholders' equity
Capital stock
Capital surplus
Legal 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 stocks
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
42

FYE 2024(as of March 31, 2024)

236
217,548
18,00744,90010,0001,527
20,31247,03524,89350,459387,263
16,681
76,776
4,930
8,550
50
3,766

373
208,727
27,75959,00010,0001,758
27,42958,10580,54944,159565,992
19,321
95,02818,671
8,588－
16,128932,933

1,241,587

80,000177,000
4,536
83,15910,26416
1,857

93,000237,500
5,393
121,634
21,81116
1,781

356,832
1,289,765

481,135
1,722,722

153,795

153,795

160,071160,071160,071160,071

7,901

7,901

1,341
35,335808,103852,680(6,136)

1,341
35,335
973,862
1,018,439(4,616)

1,160,410

1,327,689

11,541

72,706

11,541
1,171,951
2,461,716

72,706
1,400,395
3,123,117

[Translation for Reference and Convenience Purposes Only]

Non-consolidated Statement of Income(Unit: Millions of yen)
FYE 2023(April 1, 2022 toMarch 31, 2023)
2,174,178
1,754,868

FYE 2024(April 1, 2023 toMarch 31, 2024)
2,573,824
2,059,257

419,310
238,965

514,567
282,468

Operating income
Ⅳ Non-operating income
Interest income
Dividends income
Foreign exchange 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

180,345

232,099

17,192
104,386
－
2,852
5,186
3,278
132,894

40,981
86,14430,902
2,771
－
4,412
165,210

9,576
3,036
1,868
－
10,08024,56023,722
4,719－
10,615
7,103
46,159Ordinary income
Ⅵ Extraordinary income
Gain on sales of noncurrent assets
Reversal of allowance for doubtful accounts
Other
Total extraordinary income
Ⅶ Extraordinary loss
Loss on sales and retirement of noncurrent assets
Impairment loss
Provision of allowance for investment loss
Other
Total extraordinary losses

288,679

351,150

3,768
199
5
3,972

898
41
172
1,111

Income before income taxes
Total income taxes
Income tax-current
Income taxes-deferred

3,795
2,369
308
19
6,491
286,160
53,257
18,427
34,830

7,673
－
131
51
7,855
344,406
72,093
95,499(23,406)

Net income

232,903272,313Ⅰ Net sales
Ⅱ Cost of sales
Gross profit
Ⅲ Selling, general and administrative expenses

43

[Translation for Reference and Convenience Purposes Only]

Non-consolidated Statements of Changes in Net Assets

FYE 2024 (April 1, 2023 to March 31, 2024)(Unit: Millions of yen)

Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Capitalstock

Balance at the beginning of
the year
Changes of items during the
year

Legal
capitalsurplus153,795 160,071

OthercapitalsurplusTotal
capitalsurplus

Provisionofreserve
Legal
for
tax
retained
purposeearnings
reduction
entry ofland

－ 160,071

Generalreserve

Retainedearnings
brought
forwardTotal
retainedearnings

7,901

1,341

35,335808,103852,680

Dividends from surplus

－

－

－

－

－

－

－

(65,266)(65,266)

Net income

－

－

－

－

－

－

－

272,313272,313Purchase of treasury stock

－

－

－

－

－

－

－

－

－

Disposal of treasury stock

－

－

4

4

－

－

－

－

－

－

－ (41,292) (41,292)

－

－

－

－

－

－

－

41,28841,288－－－(41,288)(41,288)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

165,759

165,759－ 160,071

7,901

1,341

35,335Cancellation of treasury
stock
Transfer from retained
earnings to capital surplus
Net changes of items otherthan shareholders' equity
Total changes of items during
the year

Balance at the end of the year 153,795 160,071

Shareholders' equity

Treasury stock

Balance at the beginning of the year

Total
shareholders'equity973,862 1,018,439

Valuation and translation
adjustments
Valuation
Total valuationdifference onand translation
available-for-saleadjustments
securities

Total net assets(6,136)

1,160,410

11,541

11,541

1,171,951

Dividends from surplus－(65,266)－－(65,266)

Net income－

272,313－－272,313Purchase of treasury stock(40,006)(40,006)－－(40,006)

Disposal of treasury stock

234

238

－

－

238

41,292

－

－

－

－

－

－

－

－

－

－

－

61,165

61,165

61,165

Total changes of items during the year

1,520

167,279

61,165

61,165

228,444

Balance at the end of the year

(4,616)

1,327,689

72,706

72,706

1,400,395

Changes of items during the year

Cancellation of treasury stock
Transfer to capital surplus from retained
earnings
Net changes of items otherthan shareholders' equity

44[Translation for Reference and Convenience Purposes Only]

Notes to Non-consolidated Financial Statements(Significant accounting policies)
1. Valuation standards and methods for securities(1) Held-to-maturity debt securities are stated using the amortized cost method. (straight-line method).
(2) Shares of subsidiaries and associates are stated at cost, as determined by the moving-average method.
(3) Available-for-sale securities for which fair values are available:
Fair value method based on the market price etc. at the end of the accounting period(Unrealized holding gains and losses included as a separate component of net assets until realized; and the cost ofsold securities is determined by the moving-average method).
Non-marketable securities: Mainly moving-average cost method.
2. Valuation standards and methods for investments in equity
Moving-average cost method.
In addition, investment in the union is evaluated by taking in the equivalent amount to the ownership in equity
based on the latest available financial statements.
3. Valuation standards and methods for derivatives transactions: Fair value method
4. Valuation standards and methods for inventory(1) Merchandise and finished goods: Mainly with moving-average cost method.
(Book value on the balance sheet is measured based on the lower of cost or market value.)(2) Work in process, raw materials and supplies: Mainly with FIFO cost method.

(Book value on the balance sheet is measured based on the lower of cost or market value.)
5. Depreciation Method of Fixed Assets(1) Property, plant and equipment (excluding lease assets): Straight-line method is mainly applied.
Primary period of depreciation are as follows:
Buildings:

8 to 50 years

Structures:

7 to 50 years

Machinery and equipment:

4 to 10 years

Vehicles:

3 to 7 years

Tools, furniture, and fixtures:

2 to 10 years(2) Intangible assets (excluding leased assets): Straight-line method is applied.

Computer software used internally by the Company is amortized by the straight-line method over the
relevant economic useful lives of 3 or 5 years.
(3) Leased assets

For leased assets under finance lease transactions in which the ownership is transferred to the lessee:… The leased assets are depreciated by the same method as used for other property, plant and equipment
owned by the Company.
For leased assets under finance lease transactions in which the ownership is not transferred to the lessee:… The leased assets are depreciated by the straight-line method over the leased period and the residual
value is zero.
45

[Translation for Reference and Convenience Purposes Only]
6. Standards for provisions(1) Allowance for doubtful
accounts… Allowance for doubtful accounts is provided based on the amount calculated from thehistorical ratio of bad debt for ordinary receivables, and estimated amounts ofuncollectible accounts for specific overdue receivables. Specific allowances are provided
for the estimated amounts considered to be unrecoverable after reviewing individual
recoverability of certain doubtful accounts such as claims provable in bankruptcy.
(2) Provision of allowance for … Allowance for losses on investments in subsidiaries based on the financial position of
investment loss
the investees and the recoverability of the investments in the future.
(3) Provision for bonuses(4) Provision for productwarranties(5) Provision for vehicle
environmental control… Employees' bonuses are recognized as expenses for the period in which those are
incurred.
… In order to prepare for future repair costs for products sold, the total of the following
amounts has been recorded.
1. According to the terms and conditions of the warranties, estimated cost calculated
based on the past experience and the future warranties estimation.
2. Estimated amount calculated as recall related costs based on notification to thecompetent authority.
In provision for expenses to comply with vehicle environmental regulations, theestimated amount to be incurred at the end of the current fiscal year is recorded.

(6) Provision for loss on
construction contracts… The provision for losses on uncompleted construction of contracts in the Aerospacesegment is provided when substantial losses on the contracts are anticipated at the fiscal
year end for the next fiscal year and beyond and such losses can be reasonably estimated.
(7) Provision for environmental … In provision for expenses for the purpose of environmental countermeasure construction,measuresetc, the estimated amount to be incurred at the end of the current fiscal year is recorded.
(8) Provision for retirement… Net defined benefit liability (assets) for employees is provided based on the estimatedbenefits
amounts of projected pension and severance obligation and plan assets at the end of theor prepaid pension costs
fiscal year.
1. In determining retirement benefit obligations, the plan’s benefit formula is used for
attributing expected benefit to periods.
2. Unrecognized prior service cost is being amortized on the straight-line method over a
period (16 years) that is shorter than the average remaining service period of the eligible
employees.
3. Unrecognized net actuarial cost is amortized from the following fiscal year on thestraight-line method over a period (16 years) that is shorter than the average remaining
service period of the eligible employees.
7. Basis for recognition of revenues and expenses
The Group identifies a performance obligation in a contract with a customer, and recognizes as revenue the amount ofconsideration to which the Group expects to be entitled in exchange for transferring promised goods or services to thecustomer. If variable consideration is included in the consideration promised in a contract with a customer, some or allof an amount of variable consideration is included in the transaction price only to the extent that it is highly probablethat a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associatedwith the variable consideration is subsequently resolved.
Revenue is recognized at a point in time or over a certain period of time in accordance with satisfaction of a performanceobligation in a contract with a customer.
In case of the automobile segment, with regard to revenue from the sale of cars, performance obligations are principallyconsidered to be fulfilled at the time of delivery of the cars, at which point customers obtain control of the cars andrevenue is recognized.

46

[Translation for Reference and Convenience Purposes Only]
In case of the aerospace segment, the Company has contracting agreements with a customer. Revenue from construction
contracts is recognized based on the progress of performance obligations and the progress is measured by using the input
method based on costs incurred and other methods. The payment for contracted work is generally made in stages basedon the contract with the customer.
.
8. Standard for Japanese yen conversion for significant foreign currency-denominated assets or liabilities
Monetary assets and liabilities denominated in foreign currencies are translated into Japanese yen at the exchange rates
prevailing at each balance sheet date with the resulting gain or loss included in the statement of income of each period.
9. Other principle matters for preparation of the statements(1) Method for accounting for retirement benefits
Accounting method for unrecognized actuarial differences and unrecognized prior service costs are different fromaccounting methods used for these items in the consolidated financial statements.
(2) Unit of amount

Unit of amount is displayed by rounded off.
(3) Application of consolidated taxation system

Group Tax Sharing system is applied.

(Revenue Recognition)
Notes have been omitted since the information that provides the basis for understanding revenue from contracts withcustomers is presented in the "Notes to Consolidated Financial Statements (Revenue Recognition)”.

(Accounting estimates)
Items for which the amount was recorded in the non-consolidated financial statements for the current fiscal year based on
accounting estimates, and which may have a significant impact on the non-consolidated financial statements for thefollowing fiscal year, are as follows.
Deferred tax assets
70,697 million yen
Deferred tax assets are recognized based on the estimated timing and amount of taxable income based on future businessplans. However, since the calculation of deferred tax assets may be affected by changes in uncertain economic conditions
and other factors, and the timing and amount of actual taxable income may differ from the estimates. This could cause asignificant impact on the amount of deferred tax assets in the non-consolidated financial statements for the following
fiscal year.
Provision for product warranties
216,662 million yen
The Company provides product warranties based on the terms and conditions of warranties granted at the time of productsales, as well as free repair services on an individual basis in accordance with the notification to the competent authorities.
The coverage of product warranties based on the terms and conditions of warranties is determined by the duration, mileage,cause of defects, and other factors in accordance with the terms and conditions of warranties of each country.
The Company recognize estimated warranty costs for the product warranties when the products are sold to customers,
based on the terms and conditions of warranties. The estimated warranty costs are recorded based on the best estimates of
future occurrences, which are based on the past repair experience and past sales volume for the total cost of repairing or
replacing parts due to defects occurring within the warranty period.
The estimated expenses related to the warranty items in accordance with notifications to the competent authority arerecognized as provision for product warranties when it is probable that payment will be required, and reasonable estimates
can be made of the amount of the obligations. The estimated expenses are recorded based on the best estimate of the repair
cost per unit, which is calculated based on past experience with product defects, and the number of units subject to repair,which is calculated based on past experience with product defects.
47

[Translation for Reference and Convenience Purposes Only]
We believe that we have made sufficient provisions for the warranty costs that we expect to be incurred based on currently
available information. However, since the calculation of the provision for product warranties involves the estimate of thewarranty costs that would be incurred over multiple years in the future, the actual warranty costs may deviate from theestimates. This could cause the necessity of recording additional provisions for product warranties, and a significant impact
on the non-consolidated financial statements.

(Balance Sheet)
1. Accumulated depreciation of property, plant and equipment

684,859 million yen

2. 6,604 million yen from national subsidies, etc. has been directly deducted from the amount of property, plant andequipment reported on the balance sheet.
3. Assets pledged as collateral and secured obligations
There were no assets pledged as collateral at the end of the fiscal year.
In addition, 33 million yen of land has been pledged as collateral for 1,503 million yen of long-term loans payable andreceived-guarantee deposited, etc. of affiliates.
4. Monetary claims and obligations to affiliates
Short-term monetary claims to affiliates

260,729 million yen

Short-term monetary obligations to affiliates 627,046 million yen
Long-term monetary claims to affiliates

54,205 million yen

5. Contingent liability(1) Guarantee obligation for loans from financial institutions
Subaru of America, Inc.
Employees

41,623 million yen
2,285 million yen

Subaru Kohsan Co., Ltd.

825 million yen

Tan Chong Subaru Automotive (Thailand) Co., Ltd.

508 million yen

Total

45,241 million yen(2) Other contingent liabilities

Based on the modified agreement between the U.S. subsidiary of Takata Co., Ltd. and the National Highway Traffic
Safety Administration (NHTSA) of the United States dated May 4, 2016, Notification “Extended schedule of therecalls of airbag inflators manufactured by Takata Co., Ltd.” released by the Ministry of Land, Infrastructure,
Transport and Tourism (MLIT) of Japan dated May 27, 2016, and recall policies in other regions including China
and Australia in consideration of the request by the U.S. and Japanese authorities, expenses for extension of recall
for airbag inflators manufactured by Takata are accrued to the extent that the amount can be reasonably estimated.
There is a possibility that additional accrual may be required due to events in the future.
6. Inventory and the provision for loss on construction contracts for which losses are expected are presented in grossamounts without offsetting. Of the inventory related to construction contracts for which losses are expected, the amountcorresponding to provision for loss on construction is 3,347 million yen (all work in process).

48

[Translation for Reference and Convenience Purposes Only](Income Statement)
1. Cost of Sales"Cost of sales" includes 38 million yen of provision for loss on construction contracts.
2. Transactions with affiliates
Operating Transactions

Non-Operating Transactions

Net sales
Purchase amount
Other transactions
IncomeExpenses

2,152,623
514,11445,73490,444
24,393

million yen
million yen
million yen
million yen
million yen(Statement of Changes in Net Assets)
Type and number of treasury stock at the end of the fiscal year
Common stock ……………………………………………………… 1,707,449 shares(Accounting for Deferred Tax)
1. Main sources of deferred tax assets and liabilities
As of March 31, 2024
(Unit: Millions of yen)
Deferred tax assets
Provision for product warranties
Accrued expenses
Valuation loss on investment securities
Amount exceeding the limit for provision for retirement benefits
Provision for bonuses
Depreciation of fixed assets, etc.
Carry-forward creditable foreign tax
Business office tax payable
Inventory
Amount exceeding the limit for allowance for doubtful accounts
Deferred expenses
Other
Subtotal deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities
Valuation difference on available-for-sale securities
Prepaid pension costReserve for reduction entry
Other
Total deferred tax liabilities
Net deferred tax assets

49

66,082
17,412
10,496
8,318
5,893
5,186
4,842
4,101
3,688
813
278
2,408
129,517(25,418)
104,099(31,908)
(887)
(588)
(19)
(33,402)70,697

[Translation for Reference and Convenience Purposes Only]
2. Breakdown of primary items causing the difference between statutory effective tax rate and rate of income taxes after
application of accounting for deferred tax
Statutory effective tax rate
30.5%
(Adjustment)
Valuation allowance(0.4)%
Dividends paid not deductible for income tax(7.0) %Tax Credit for R&D Expenses(4.1) %
Total income of specified foreign subsidiaries
1.2%
Other
0.7%
Effective tax rate after applying tax effect accounting
20.9%
3. The accounting treatment of income taxes, local income taxes and tax effect accounting
The company applied the Group Tax Sharing system. And the company accounts for the accounting treatment anddisclosure of income taxes and local income taxes and tax effect accounting in accordance with “Practical Solution on
the Accounting and Disclosure Undere the Group Tax Sharing system” ASBJ PITF No.42, August 12, 2021).

(Transactions with Related Parties)

StatusName ofRatio ofCompany,
voting rights
etc.

Relationship withrelated party

Contents of transaction

Loans receivable *1
Credit and financing
SUBARUrelated to SUBARU
100% direct
Subsidiary Finance Co.,
vehicles and leasing
ownershipLtd.
and rental of SUBARU
Repayment of loans *1
vehiclesSales of products

100%
SUBARU of
Subsidiaryindirect
America Inc.
ownership

SUBARU of
100%
Indiana
Subsidiaryindirect
Automotive
ownership
Inc.

Sales of SUBARU
vehicles andcomponents;
Concurrent
appointment ofcorporate officers

Purchasing ofproduction parts for
SUBARU vehicles,
sales of completed
vehicles to SUBARU
of America Inc. (SOA)
and others; Concurrent
appointment ofcorporate officers(Unit: Millions of yen)
Balance at theAmount of Accountend of thetransaction
titlesfiscal year
499,575
Loans
113,922
receivable

504,993
1,233,845

Purchase of products

106,201

Acceptance Acceptanceof surplus
fund *2
Interest
expenses
Guarantees *3
Sales of products

303,023

Acceptance Acceptanceof surplus
fund *2
Interest
expenses

121,632

Accounts
receivable
Accounts
payableDeposit

78,11623,183
369,408

15,394
41,623
321,641

Accounts
receivable

33,197

Deposit

193,687

7,345

Transaction terms and policies for determination of transaction terms(Note)
1) Loans to SUBARU Finance Co., Ltd. are determined considering the market rate. No collaterals are received.
2) Acceptance of surplus funds is a transaction related to the CMS (Cash Management System) operated by the Group.
The transaction amount is the average balance during the term. Interest expenses are determined considering market
interest rates.
3) The Company guarantees loans from financial institutions, etc. of SUBARU of America, Inc.
50

[Translation for Reference and Convenience Purposes Only](Per Share Information)
1. Net assets per share
2. Net income per share
Basic
Diluted

1,861.75 yen
359.89 yen
359.87 yen(Significant subsequent Event)Acquisition and cancellation of the Company’s treasury stock
The Company resolved, at a meeting of its Board of Directors held on May 13, 2024, the matters concerning theacquisition of treasury stock pursuant to the provisions of Article 156 of the Companies Act, as applied by replacing therelevant terms pursuant to the provisions of Article 165, Paragraph 3 and the matters concerning the cancellation oftreasury stock in accordance with Article 178 of the Act.
1. Reason for conducting acquisition and cancellation of treasury stock
The Company acquires and cancels its treasury stock for the purpose of improving efficiency of its capital structure.
2. Details of the share acquisition(1) Type of stock to be acquired:(2) Total number of shares to be acquired:
Ratio of total number of issued shares (excluding treasury stock):(3) Total share acquisition cost:

Company’s common stock
23 million shares (upper limit)
3.1%
60,000 million yen (upper limit)
From May 14, 2024 to December 30, 2024
(4) Acquisition period:(Estimated)(5) Acquisition method:
Purchase on Tokyo Stock Exchange
Market purchases based on a discretionary trading contract regarding acquisition of treasury stock.

3. Details of the share cancellation(1) Type of stock to be cancelled:

Company’s common stock
23 million shares(All treasury stock acquired pursuant to 2. above)
To be determined(2) Total number of shares to be cancelled:(3) Scheduled date of the cancellation:

51

[Translation for Reference and Convenience Purposes Only]

Audit Report
Accounting Audit Report on Consolidated Financial Statements
Independent Auditor’s Report
May 13, 2024

To the Board of Directors of SUBARU CORPORATION:
KPMG AZSA LLC
Tokyo Office, Japan
Masakazu Hattori
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Takashi Hasumi
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Shuji Yasuzaki
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant

OpinionWe have audited the consolidated financial statements, which comprise the consolidated statements of financial
position, the consolidated statements of income, the consolidated statement of changes in equity and the related notesof SUBARU CORPORATION(“the Company”) and its consolidated subsidiaries (collectively referred to as “theGroup”), as of March 31, 2024 and for the year from April 1, 2023 to March 31, 2024 in accordance with Article 4444 of the Companies Act.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, theconsolidated financial position and the results of operations of the Group for the period, for which the consolidated
financial statements were prepared, in accordance with the second sentence of Article 120-1 of the Regulation on
Corporate Accounting that prescribes some omissions of disclosure items required under International Financial
Reporting Standards.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are
relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.

Other Information
The other information comprises the business report and its supplementary schedules. Management is responsible forthe preparation and presentation of the other information. Corporate auditors and the board of corporate auditors are
responsible for overseeing the directors’ performance of their duties with regard to the design, implementation and52

[Translation for Reference and Convenience Purposes Only]

maintenance of the reporting process for the other information.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact.
We have nothing to report in this regard.

Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors for theConsolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with the second sentence of Article 120-1 of the Regulation on Corporate Accounting that prescribes someomissions of disclosure items required under International Financial Reporting Standards, and for such internal control
as management determines is necessary to enable the preparation of consolidated financial statements that are freefrom material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern in accordance with the second
sentence of Article 120-1 of the Regulation on Corporate Accounting that prescribes some omissions of disclosure
items required under International Financial Reporting Standards.
Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’ performance of
their duties with regard to the design, implementation and maintenance of the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, while the objective of the audit is not to express an opinion on the effectivenessof the Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to continue as a going concern.



Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance withthe second sentence of Article 120-1 of the Regulation on Corporate Accounting that prescribes some omissionsof disclosure items required under International Financial Reporting Standards, the overall presentation, structure53

[Translation for Reference and Convenience Purposes Only]and content of the consolidated financial statements, including the disclosures, and whether the consolidated
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Group to express an opinion on the consolidated financial statements. We are responsible forthe direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with corporate auditors and the board of corporate auditors regarding, among other matters, theplanned scope and timing of the audit, significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide corporate auditors and the board of corporate auditors with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threatsor safeguards applied.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company and its subsidiaries whichis required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
Notes to the Reader of Independent Auditor’s Report:
The Independent Auditor’s Report herein is the English translation of the Independent Auditor’s Report as requiredby the Companies Act for the conveniences of the reader.

54

[Translation for Reference and Convenience Purposes Only]

Accounting Audit Report on Non-consolidated Financial Statements
Independent Auditor’s Report
May 13, 2024

To the Board of Directors of SUBARU CORPORATION:

KPMG AZSA LLC
Tokyo Office, Japan
Masakazu Hattori
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Takashi Hasumi
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Shuji Yasuzaki
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant

OpinionWe have audited the financial statements, which comprise the balance sheets, the statements of income, the statementsof changes in net assets and the related notes, and the accompanying supplementary schedules (“the financial
statements and the accompanying supplementary schedules”) of SUBARU CORPORATION (“the Company”) as ofMarch 31, 2024 and for the year from April 1, 2023 to March 31, 2024 in accordance with Article 436-2-1 of theCompanies Act.
In our opinion, the financial statements and the accompanying supplementary schedules referred to above present
fairly, in all material respects, the financial position and the results of operations of the Company for the period, forwhich the financial statements and the accompanying supplementary schedules were prepared, in accordance withaccounting principles generally accepted in Japan.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements andthe Accompanying Supplementary Schedules section of our report. We are independent of the Company in accordancewith the ethical requirements that are relevant to our audit of the financial statements in Japan, and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Other Information
The other information comprises the business report and its supplementary schedules. Management is responsible forthe preparation and presentation of the other information. Corporate auditors and the board of corporate auditors are
responsible for overseeing the directors’ performance of their duties with regard to the design, implementation andmaintenance of the reporting process for the other information.
55

[Translation for Reference and Convenience Purposes Only]

Our opinion on the financial statements and the accompanying supplementary schedules does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements and the accompanying supplementary schedules, our
responsibility is to read the other information and, in doing so, consider whether the other information is materiallyinconsistent with the financial statements and the accompanying supplementary schedules or our knowledge obtainedin the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact.
We have nothing to report in this regard.

Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors for the Financial
Statements and the Accompanying Supplementary Schedules
Management is responsible for the preparation and fair presentation of the financial statements and the accompanying
supplementary schedules in accordance with accounting principles generally accepted in Japan, and for such internal
control as management determines is necessary to enable the preparation of financial statements and the accompanying
supplementary schedules that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements and the accompanying supplementary schedules, management is responsible forassessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern in accordance with accounting principles generally accepted in Japan.
Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’ performance of
their duties with regard to the design, implementation and maintenance of the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements and the Accompanying Supplementary
Schedules
Our objectives are to obtain reasonable assurance about whether the financial statements and the accompanying
supplementary schedules as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements and the accompanying supplementary schedules.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements and the accompanying
supplementary schedules, whether due to fraud or error, design and perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, while the objective of the audit is not to express an opinion on the effectivenessof the Company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in thefinancial statements and the accompanying supplementary schedules or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However, future events or conditions may cause the Company to cease to continue as a going concern.



Evaluate whether the presentation and disclosures in the financial statements and the accompanying
supplementary schedules are in accordance with accounting standards generally accepted in Japan, the overall
presentation, structure and content of the financial statements and the accompanying supplementary schedules,
including the disclosures, and whether the financial statements and the accompanying supplementary schedules
represent the underlying transactions and events in a manner that achieves fair presentation.
56

[Translation for Reference and Convenience Purposes Only]

We communicate with corporate auditors and the board of corporate auditors regarding, among other matters, theplanned scope and timing of the audit, significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide corporate auditors and the board of corporate auditors with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threatsor safeguards applied.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company which is required to bedisclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
Notes to the Reader of Independent Auditor’s Report:
This is an English translation of the Independent Auditor’s Report as required by the Companies Act of Japan for theconveniences of the reader.

57

[Translation for Reference and Convenience Purposes Only]

Board of Corporate Auditors’ Report
Audit Report
The Board of Corporate Auditors have prepared this Audit Report by analyzing the Audit Report prepared by theauditors concerning the performance of duties by the directors for the 93rd fiscal period between April 1, 2023 and March
31, 2024, and report as follows.
1. The Corporate Auditors, and the Methods and Contents of Audit by the Board of the Corporate Auditors(1) The Board of the Corporate Auditors determined the audit policy and allocation of duties, received reports on the status
and results of audits from each auditor, received reports on the status of performance of duties from directors, etc., andaccounting auditors, and requested explanation where necessary.
(2) In accordance with the standards for auditor's audit prescribed by the Board of the Corporate Auditors, each auditor
attempted to communicate with the directors, internal control division and other employees, etc., following the audit
policy and allocation of duties, etc., strove to gather information and establish audit environment, and performed theaudit using the following methods.
(i)

Participated in board of directors’ meetings and other important meetings, received reports from the directors andemployees, etc., on the status of performance of their duties, requesting explanations where necessary, inspected
important approval documents, etc., and examined the status of the business and assets at the headquarters andmajor offices. With respect to subsidiaries, the Corporate Auditors sought communication and exchange of
information with the directors and corporate auditors, etc., of the subsidiaries, and received reports on businessfrom the subsidiaries where necessary.

(ii) With respect to the content of the board of directors' resolution concerning the establishment of the systemprescribed in Article 100, Paragraphs 1 and 3 of the Enforcement Rule for the Company Act as necessary forsecuring the system to ensure that the performance of duties by the directors described in the Business reportcomply with the laws and articles of incorporation and appropriateness of the business of the corporate group
comprising of the stock company and its subsidiaries, as well as the status of the system established based on the
resolution of the board of directors' meeting (internal control system), the Corporate Auditors received periodic
reports on the status of establishment and operation of such system, requested explanation and stated our opinions
where necessary.
(iii) We monitored and reviewed that the accounting auditors maintained independence and performed appropriate
audits and received reports from the accounting auditors on the status of performance of their duties, and requested
explanation where necessary. We also received a notice from the Accounting Auditors that the "system to secure
appropriate performance of duties" (matters listed in the Items of Article 131 of Company Calculation Rules) were
established in accordance with the "Quality Control Standards for Audit" (October 28, 2005 Business Accounting
Council), etc. and requested explanation where necessary.
Based on the above methods, we reviewed the Business Report and its supporting documents, Non-consolidated
Financial Statements (Non-consolidated Balance Sheet, Non-consolidated Statements of Comprehensive Income, Nonconsolidated Statement of Changes in Net Assets, and Notes to Non-consolidated Financial Statements) and theirsupporting documents as well as Consolidated Financial Statements (Consolidated Statement of Financial Position,
Consolidated Statements of Comprehensive Income, Consolidated Statement of Changes in Equity, and Notes toConsolidated Financial Statements).
2. Audit Results(1) Audit Result for the Business Report, etc.
(i) The business report and its supporting documents correctly represent the status of the Company in accordancewith the laws and the Articles of Incorporation.
(ii) There were no unlawful acts or material facts in violation of laws or the Articles of Incorporation in relation to
the performance of duties of the directors.
(iii) We acknowledge that the resolutions of the Board of Directors with respect to the internal control system areappropriate. We have found no matters to point out for the description of Business Report and the execution ofduties by Directors with respect to the internal control systems.
58

[Translation for Reference and Convenience Purposes Only](2) Audit Results for the Non-consolidated Financial Statements and Supporting Documents
The methods and results of the audit by the accounting auditors KPMG AZSA LLC were appropriate.
(3) Audit Results for Consolidated Financial Statements
The methods and results of the audit by the accounting auditors KPMG AZSA LLC were appropriate.
May 13, 2024

SUBARU CORPORATION Board of Corporate Auditors
Standing Corporate Auditor
Yoichi Kato
Standing Corporate Auditor
Hiromi Tsutsumi
Outside Corporate Auditor
Yuri Furusawa
Outside Corporate Auditor
Yasumasa Masuda

59