Commentary on Strategy

Value Creation Story

Foundations Supporting Value Creation

Corporate Data

At a Glance

Composition of Sales

Our Path to Today

FoundedBusiness Segments

Chikuhei Nakajima establishes
Aircraft Research Laboratory

2

1917

1953

Automotive

Aerospace22

Gunma (Japan), Indiana (U.S.)

Tochigi, Aichi (Japan)

operating locations operating locations

Aerospace

97.8%​

2.1%​

Industry Share*4
Global ShareApprox.

U.S. Market Share1%

Approx.

4.0%​

Affiliated Companies*1

Company Name Change
Birth of Subaru Corporation

Ratio by Region*3

95

2017

Automobile Sales Network*2

Produced in Japan

575 thousand units

Number of Employees (consolidated)*1

37,521locations in Japan

Plus locations in approximately

Performance andFinancial Soundness

Other
0.1%

Automobiles

Production Sites

Establishment of Fuji Heavy Industries Ltd.

90

Segments(Automotive and Aerospace)

Established

439

Businesses

countries
and regions

Consolidated Performance

Revenue*3

Operating profit

3,774.5 billion yen 267.5 billion yen

Units Produced(consolidated)874

thousand units
Produced in the U.S.

299 thousand units
Other:

41 thousand units

China:

10 thousand units

Europe: 23 thousand units

U.S.:

592 thousand units

Canada: 43 thousand units
Australia: 44 thousand units

Units Sold(consolidated)

852

Operating Margin*3

Capital Stock

7.1%

thousand units*3

153.8 billion yen

Japan: 100 thousand units

Automobile Category
Equity Ratio

53.3%

*3

*1 As of March 31, 2023
*2 As of April 1, 2023
*3 Figures for FYE March 2023

04 Integrated Report 2023

SUV sales
Issuer RatingA-

Approx.

81%*3

AWD vehicles

98%

*5

​

Re tail sale sRating and Investment Information, Inc.
As of October 13, 2022

*4 For 2022 (calendar year)*5 Based on sales data from 2018 to 2022 (calendar years). Excludes OEM vehicles from other companies.

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Value Creation Story

Commentary on Strategy

Foundations Supporting Value Creation

Corporate Data

Message from the CEO

In the age of the electrification, we will
pursue the SUBARU-ness through“Monozukuri Innovation” and “Value
Creation,” with the power of our humanresources as the foundations of our Group.
Atsushi Osaki
Representative Director,
President and CEO

Profile1988 Joined SUBARU
Worked in engine and transmission design
1998	Full-time labor union officer (leave of absence)	Served in SUBARU’s Product & Portfolio Planning Division, Engineering Division, Quality Assurance Division,and other posts
2016 Vice President and Senior General Manager, Quality Assurance Division2018 Senior Vice President, CQO (Chief Quality Officer) and Chief General Manager, Quality Assurance Division
2019	Executive Vice President, CQO (Chief Quality Officer) and Chief General Manager, Quality Assurance Division2020	Executive Vice President, CQO (Chief Quality Officer), Chief General Manager, Quality Assurance Division andGeneral Manager, Quality Assurance Management Office2021 Director, Executive Vice President andChief General Manager, Manufacturing Division
Representative Director, President and CEO since June 2023

My Resolve as New CEO

I will stand at the forefront of our transformation as we build thefoundation of a SUBARU Group for the new era.
In June 2023, I was appointed the new Representative Director, President and CEO of SUBARU. My career has
been mainly in engineering, from the design of automotive engines and transmissions, to manufacturing, product &portfolio planning quality assurance, and customer service. Looking back on my career so far, I am proud to say that
I have consistently been involved in Monozukuri*1 and building relationships with customers. However, I also took
leave of absence for about eight years to serve as a full-time SUBARU labor union officer, an experience that firmly
impressed upon me that human resources are the driving force behind Monozukuri and innovation. This was also thetime when I developed my creed: “Human resources are the foundation of everything.”

SUBARU finds itself in a business environment changing at an unprecedented speed, especially with the rapid
shift to EVs*2 in the U.S. market and the rise of emerging manufacturers, including those from other industries. Thisis truly a period of once-in-a-century profound transformation for the automotive industry. My mission as President
and as a man with experience primarily in manufacturing and product planning at a time when car manufacturing isundergoing a profound shift from internal combustion engines to battery electric vehicles (BEVs), is to stand at theforefront of this great transformation, close to the field and the people who work in it, and build the foundation ofa SUBARU Group for the new era as we march forward. In order to achieve this, I will strongly advance “Monozukuri
Innovation” and “Value Creation,” aiming to become a world-leading company. We will focus our management
resources on BEVs so that the SUBARU Group can secure high profit margins over the long term, even after 2030,
when the BEV era is expected to begin in earnest. We will also continue to bring about major innovations in carmaking so that we can compete with other manufacturers even in the BEV era, for which the future can be very
uncertain.

*1 Manufacturing*2 Electric vehicle

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Value Creation Story

Review of the Mid-term Management Vision “STEP”

We will move our efforts up to the next stage in order to reap
the fruits of the reforms promoted in “STEP.”

Commentary on Strategy

Foundations Supporting Value Creation

Corporate Data

only that, but our community engagement activities through the Subaru Love Promise initiative at SOA*5 were alsoranked No. 1 in the automotive category among Forbes' list of the best American brands that have a social impact. I
feel that the greatest progress we have made in our “STEP” initiatives has been in improving the strengths of our
products, company, and brand, as evidenced by the recognition we have received. The strong evaluations of our
products, company, and brand not only from our customers but also from the general public at large is an important
asset for us. We hope to continue to strengthen this relationship in the future.
*3 Zero fatal road accidents among occupants of SUBARU vehicles and people involved in collisions with SUBARU vehicles, including pedestrians and cyclists.
*4 IIHS: Insurance Institute for Highway Safety*5 SOA: Subaru of America, Inc., our headquarters for dealerships in the United States

Before discussing the Monozukuri transformation that is about to begin in earnest, I would like to first review ourefforts in the “STEP” mid-term management vision, our management focus since 2018. Under “STEP,” we haveengaged in priority initiatives toward corporate culture reforms, quality enhancement, and evolution of the SUBARU
Difference.
With respect to corporate culture reforms, we have acted based on the slogan of “Change mindset, change
behavior, change the company,” working to foster a mindset of reform by providing various opportunities for
dialogue, with the aim of becoming a company open to new ideas. This has resulted in positive change, manifestingin spontaneously vibrant communication across departments. Since FYE March 2022, as the next step, we havefocused on the growth of the individual, and have been advancing the priority initiatives to increase engagement sothat each and every employee can experience growth and job satisfaction, as well as make sure that the growth of
the individual drives the growth of the organization. As for quality enhancement, I have been at the forefront ofreforms in my capacity as CQO (Chief Quality Officer). In my work toward this end, I have been encouraging
thorough awareness and reinforced systems for each and every employee as a first priority from a trifecta ofapproaches: thorough implementation of a quality-first mindset and reinforcement of organizational efforts andstructure, execution quality enhancement, and innate quality enhancement. Through these efforts, we have steadily
reduced the number of recalls (including the number of vehicles affected) and total costs related to quality. Quality is
the foundation of the SUBARU brand and is a duty that absolutely must not be shirked. Going forward, we willcontinue to step up our reforms as part of our unyielding efforts to deliver happiness to our customers throughproduct development and Monozukuri with solid quality even in the age of the electric vehicle. With respect toevolution of the SUBARU Difference, we have worked toward “Monozukuri Innovation,” such as adjustingdevelopment and prototyping processes and promoting data linkage for traceability from production to after-sales
service, in the interest of updating how we build SUBARU toward delivering enjoyment and peace of mind. In 2020,
we announced at a technology meeting that we would aim for zero fatal traffic accidents by 2030*3 and contributetoward achieving a carbon-free society with SUBARU strengths and technological innovation. Toward this end, we
have been strengthening technologies that support the values we provide, namely enjoyment and peace of mind.
We will continue to advance the corporate culture reforms and quality enhancement that we have been working
on in “STEP” as the foundation of ourreforms. Regarding evolution of the
SUBARU Difference, we will evolve these
efforts into the two pillars of “Monozukuri
Innovation” and “Value Creation” in order
to effect a major pivot to BEVs going
forward.
These initiatives in “STEP” have resulted
in strong evaluations by third parties, notonly for our products but also for ourcompany and brand. For example, ourproducts have received high ratings fromthe American Customer Satisfaction Index(ACSI) and as an IIHS*4 Top Safety Pick+. Not

The SUBARU Group Vision for 2030

We will strive toward total global sales of 1.2 million-plus vehicles
in 2030, and 50% of those from BEVs.
Today, I hold in my mind a clear image of what I want to make the SUBARU Group by around 2030. The appealof SUBARU is that it is unique compared to other automakers, showing a solid orientation for the SUBARU brand.
With this appeal, we are committed to always being a corporate group capable of creating value to bring genuine
happiness to people, not just the customers buying our products, but all stakeholders. As the world shifts toward
carbon neutrality, so too are our customers’ preferences shifting toward environmental friendliness. Knowing this, weannounced an update in August 2023 to our electrification plan targeting the year 2030.
In our updated plan, we will target 1.2 million-plus units sold worldwide in 2030, of which 600,000 will be BEVs,
making up the entirety of the 50% share we aim to allocate to electric vehicles. This is up from the previous targetof 40% for hybrid vehicles and BEVs combined. As for ensuring we have a production system to support our sales,
we have already announced in May 2023 that we will increase the production capacity of our plants in Japan from
200,000 to 400,000 units. Furthermore, we have announced that we will begin production of next-generation HEVs
equipped with the Toyota Hybrid System and BEVs in the U.S. By the end of 2028, four BEVs will be added to ourfour already-announced SUV models, for a total of eight BEV models in the lineup, and we will aim to sell 400,000
BEVs, sold, more than half of the total vehicles sold in the U.S.
To give some background on our decision to produce in the U.S. at this time, our initial plan for the production
system was to start up a production line at our plants in Japan and expand this to the U.S. after cultivating a
range of expertise in quality, cost, procurement, and other areas. The change of plan was not only due to thecoincidental timing that we were coming to realize the direction of our reorganization plan within Japan, but also
to the determination that we needed to overlap Japanese and U.S. production with an emphasis on speed, given
the pace of the transition to BEVs in the U.S. and the need to address the U.S. IRA Act*6. Though we are targeting2027 and 2028, we will explore these and a wide range of potential timings for launching production in the U.S. incomprehensive consideration of the supply chain situation, battery supply, and other factors.
Our target for 2030 is to reach 1.2 million units of global production capacity across our U.S. and Japanese plants.
However, during the transitional period to electrification, we will closely monitor regulatory and market trends, andas the launch of a dedicated BEV plant in Japan progresses, we will also make preparations for the launch of BEV
production in the U.S. so that we can start up production at the appropriate time.
We will take on challenges based on the principles of flexibility and expandability, and once we can discern themarket’s full-fledged shift toward electrification, we will attack the market in one fell swoop.
In order to realize this series of production and development, we will make growth investments to the tune ofapproximately 1.5 trillion yen*7 by around 2030 so as to prevail in the age of electrification.
*6 IRA Act: Inflation Reduction Act*7 Including the 250 billion yen investment quota for domestic production system reorganization announced in May 2021 (subject to change depending on battery
investment method)

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Value Creation Story

We will aim to become a world-leading company by increasing
our corporate competitiveness through steering the company
toward EVs and “Monozukuri Innovation” and “Value Creation.”
Even if the world reaches carbon neutrality, we will remain unchanged in continuing to provide products and services
that satisfy our customers and brings them happiness. Going forward, we will continue to engage in initiatives basedon the two pillars of “Monozukuri Innovation” and “Value Creation,” and by overwhelmingly enhancing our corporate
competitiveness as a manufacturing company, we aim to become a world-leading carmaker in the BEV era.
Allow me to continue with a detailed explanation of the two pillars of “Monozukuri Innovation” and “Value
Creation.” The former is where we will carry out initiatives that integrate production, development, and the supply
chain, including engagement from our suppliers. In the past, we referred to ourselves as “a group of craftsmen witha nimble, flexible approach,” which gave us strengths from close cooperation between and unity among our various
departments. These strengths enabled us to introduce a variety of technologies such as all-wheel drive (AWD)
and the EyeSight driver assistance system. However, as times have changed, customer preferences have changed,cars have become more complex. The need to respond to these changes led to rapid progress in the division offunctions, especially in the areas of product development, production, and the supply chain.
My desire is to use “Monozukuri Innovation” to go back to basics and help build “one SUBARU” with the entire
supply chain working together toward high-density manufacturing. Until now, our manufacturing has not necessarily
been the most efficient method with respect to sales and development, with a growing number of parts toaccommodate a rich model lineup. Looking ahead, we must alter the premise of our manufacturing to focus on how
to make products simple and easy to produce, while keeping the customer's point of view in mind. This includes
how to streamline production and how many parts and what specifications are necessary to achieve efficiency.
Specifically, we will halve the development lead time, halve the number of parts, and halve production processes,
resulting in half the time required for manufacturing through an agile approach to each traditional operation domain,
where conception, design, and production were once divided up and carried out in waterfall-style management.
This is a major reform of manufacturing on a scale and level never seen before in the history of SUBARU, and it isan initiative that will fundamentally rebuild our automotive business. In making such a profound transformation thatdeviates so greatly from past practices, we may face tough barriers and resistance to change. However, SUBARUGroup enjoys the benefit of having just the right size to carry out such a disruptive manufacturing innovation all at
once. SUBARU has the strength to exert tremendous impetus when employees are oriented in a given direction, andbecause this is who we are, I am confident that we can speedily proceed with reforms in the situation we are in.
Not only that, but we have a great opportunity to build a new BEV plant in Oizumi from an unrestrictedvacant lot, which we will harness to launch a new plant embodying our hopes and dreams as we reinforce our
production system.
In the latter pillar of “Value Creation,” we will use SUBARU products as the core of an ever-expanding circle ofvalue we provide to society and the future through efforts to build strong bonds between SUBARU, its customers,
its retailers and its communities. This, we will achieve even in the age of the electric vehicle. “Value Creation”
is intended to focus on the products at the core of these efforts, for which the most important thing is greater
evolution of enjoyment and peace of mind, a major value we provide. Though some say that the era of the EV may
lead to the loss of the SUBARU-ness, our horizontally-opposed engine design and symmetrical AWD are merely
technological icons that express the SUBARU-ness, rather than the difference itself. In this new era, we are setting
our discerning sights on elevating active and passive safety performance and rough-road capability to the next level.
Looking ahead, we will build in new technologies toward electrification to further evolve the enjoyment and peace ofmind we offer. Beyond this, we will pursue strong versatility to benefit our customers, such as a seamless and stress-freeuser experience. We will also provide further benefits through our “Retaining Value” and “Continuing to Deliver NewCar Feel” initiatives, which are based on our desire for customers to have long relationships with their SUBARUs while
maintaining the value of their vehicles. The “Retaining Value” approach was born from the fact that many customers,
mainly in the U.S., drive their cars for long periods of time due to an emotional attachment for their cars. Our approachis to create value even after a car’s purchase, for example by enhancing product performance through software updates.

10 Integrated Report 2023

Commentary on Strategy

Foundations Supporting Value Creation

Corporate Data

Though the SUBARU Group’s future will be built on the “Monozukuri Innovation” and “Value Creation” I havediscussed up to this point, this future is only possible through the power of human resources. In my career, I haveseen many situations in which employees, both technical and administrative, are constantly pursuing the essence ofMonozukuri through active discussions and repeated testing, and I have been a party to many of these situations
myself. The driving force behind the successful and sustained creation of unique advanced technologies, such as the
EyeSight driver assistance system, is human resources with unique ideas. That is why I can say with great convictionthat “human resources are the foundation of everything.” In order to further enhance our competitiveness in
Monozukuri, it is necessary to accelerate our efforts focused on "individual growth"a priority of the "STEP", and todevelop innovation leaders. It is my mission to lead the creation of a climate that empowers human resources with awealth of ideas who will lead the new era.

Toward Delivering Happiness to All

Under our new management structure, we will work with
employees to create a SUBARU Group for the new era.
The SUBARU Group has been strengthening corporate governance in the interest of greater corporate value overthe medium to long term. The new management structure started in June 2023 will have two representative directors
working in sync to steer management: myself, with experience mainly in manufacturing, and Deputy President
Fumiaki Hayata, with experience in the North American and Japanese sales and management planning divisions.
In addition, we have increased the share of independent outside directors to strengthen the board’s supervisory
function. We are aware that in order to support sustainable growth from the aspect of corporate governance, it is aprerequisite that we provide a stronger external perspective and put in place a corporate governance structure that
leads to improved business soundness and transparency.
As we take on the challenge of drastically transforming our manufacturing, it is our desire to be a SUBARUGroup that can maintain sustainable growth and delivering happiness to not only our customers, but to all of our
stakeholders.
It is a self-evident fact that the common denominator in both car and aircraft manufacturing is that if any criticalelement is missing, our product will not reach the customer. These critical elements are suppliers who supply tensof thousands of parts, colleagues involved in various development and manufacturing processes, and staff engaged
in sales, after-sales service, and other administrative tasks who support the aforementioned processes. Naturally,
defects or inappropriate behavior would also render a product non-viable. In 2017, I was serving as Chief Quality
Officer. In response to the improprieties relating to final vehicle inspections that were uncovered at that time, I
asked employees at each workplace if they could confidently say the work they were doing had earned the trust of
our customers. I asked them because breaking this unspoken mutual understanding will never lead to the happinessof our customers. This is why it is so important for us to always be thinking about our customers’ happiness and to
do our jobs in a way that earns their trust. Employees working in our factories and engineering departments areroutinely told to act in a highly transparent manner toward local communities. We will continue to build relationships
with local communities through our various corporate activities so that they will feel a sense of pride and peace ofmind about SUBARU.
Under the new management structure, we will work alongside employees to create a SUBARU Group for the new
era so that we can bring happiness to our customers and other stakeholders, while maintaining the broad directionof the SUBARU brand.
As we take these steps forward, I humbly ask for the ongoing support and understanding of all of our
stakeholders.

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Value Creation Story

Commentary on Strategy

Foundations Supporting Value Creation

Corporate Data

New Management Structure Policies

Our Vision for 2030

Steady STEPs for Steady Results

On August 2, 2023, SUBARU presented its policies under
the new management structure. In the report, weannounced our target for 2030 of 1.2 million-plus units
sold worldwide, of which BEVs will account for 50% ofsales. We also announced our resolution to see ourchallenges through in the coming five years to 2028 withan eye to 2030.
The automotive industry finds itself in a once-in-acentury time of great upheaval, experiencing moredisruptive and rapid changes than ever before. In thissection, we will present SUBARU’s actions toward achieving
its vision for 2030 within this turbulent environment.

We are committed to providing SUBARU’s unwavering value of “Enjoyment and Peace of Mind,” pursuing the SUBARU
Difference with not only functional values but also emotional values. Here, we have defined our vision for SUBARU as acompany “Delivering Happiness to All.” In 2018, we formulated our Mid-term Management Vision “STEP,” which consistsof the following three directives: become a brand that is “different” from others by enhancing distinctiveness; engage inbusiness activities that resonate with customers by putting them center-stage, and; fulfill corporate social responsibilities
by contributing to diversifying social needs. The directions set forth in STEP remain unchanged in our policies under the
new management structure.
Our priority efforts as part of STEP—corporate culture reforms, quality enhancement, and evolution of the SUBARU
Difference—have begun to yield steady results, evidenced by the recent high praise* earned by SUBARU not only for its
products, but also for its company and brand. We believe that this recognition of SUBARU as a company and brand,which comes not only from SUBARU owners and evaluating organizations, but also from a broad range of generalcustomers is proof that our initiatives within STEP are moving in the right direction. Simultaneously, we consider thisrecognition we have received as a great asset for SUBARU.
* Please refer to page 31 of this report for some of our product evaluations and page 27 for brand evaluations.

Management Approach Messaging

Further Enhancing SUBARU’s CompetitivenessIn presenting our policies under the new management structure, we announced our vision for 2030 and our determinationfor 2028. Previously, our medium-term management approach has been formulated as the Mid-Term Management Vision,
which would cover a period of three to five years, which has been periodically revised and published.
However, our business environment is experiencing disruptive and non-linear changes, including the rapid shift to
BEVs in the U.S. market, major changes in the automotive industry, and the emergence of new manufacturers, including
those from other industries. Our belief is that we must adapt to this rapid change in a more timely manner, mindful of
flexibility and expandability. Based on this belief, we have altered our approach to the formulation and messaging of ourapproach to management. Now, we will be newly unbound from conventional methodologies, instead dynamicallyconsidering various measures while keeping a close eye on changes in the environment, and reporting on progress as
appropriate. This is the substance of our new management structure policies, as announced.

Our efforts in the priority areas to date of corporate culture reforms and quality enhancement will remain unrelenting as
we go forward. These are the foundations underlying SUBARU’s sustainable growth, and we will continue our actions
toward these as the basis for enhancing our competitiveness in our policies under the new management structure.
Furthermore, in order to continue to pursue our unwavering value statement of “Enjoyment and Peace of Mind” in the
BEV era, we will step up our efforts under “Evolution of the SUBARU Difference,” moving these up to the next stage in theform of two new initiatives: “Monozukuri Innovation” and “Value Creation.” Both “Monozukuri Innovation” and “Value
Creation” are Key Initiatives for our success and survival in the BEV era, and we will vigorously advance efforts in these areas tobecome a world-leading company.

Key Initiatives
Move up to
the next stage
3

CarbonNeutrality

BEVs

Once-in-a-century transformation

Non-Linear Transformation
Unprecedented Speed
Growth of emerging
manufacturers

12 Integrated Report 2023

2

Evolution of the
SUBARU Difference

Quality Enhancement
Initiatives as a foundation

1

Corporate Culture
Reforms

Previous Mid-term Management
Vision “STEP”

Monozukuri
Innovation

Value
Creation

Corporate Culture Reforms
Quality Enhancement
Going forward

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Commentary on Strategy

Value Creation Story

Foundations Supporting Value Creation

Corporate Data

Substantial Revision to 2030 Target for BEVs Share of Sales

Our Determination for 2028: Launch of “Monozukuri Innovation” and “Value Creation”

SUBARU aims to reduce its well-to-wheel CO2 emissions by 90% or more from 2010 levels by 2050 in working to bringabout a decarbonized society. To this end, we will apply electrification technology to all SUBARU vehicles sold worldwide
by the early 2030s. Our milestone for 2030 had previously been to shift to electric vehicles comprising 40% or more of all
vehicles sold worldwide, with BEVs and hybrid cars making up this 40%. However, within our policies under the new
management structure, we have significantly raised this target to make 50% of SUBARU's total global sales be BEVs alone.

We have decided to significantly update our electrification sales target and production structure to support those sales toward2030. In our pursuit of these visions, we are positioning the next five years up to 2028 as a very important period for us, andunder the new management structure, we will work with strong determination on two key areas: “Monozukuri Innovation” and“Value Creation.” In this transition period when internal combustion engine (ICE) vehicles are being replaced by battery
electric vehicles (BEVs), we will strongly promote these key initiatives while updating our development process and productplanning concurrently with our decision to update our production system by reorganizing our plants in Japan and overseas.
Under the new management, SUBARU will pursue “Monozukuri Innovation" and “Value Creation" while restructuring all the way from the production structure to the development process and product planning.

CO2 reduction roadmap
Aim for 50% of global sales to be BEVs.

In 2030

By the 1st halfof the 2030s
By 2050

New Management Initiatives

UpdatedDevelopment
開発

Apply electrification technologies*1 to all SUBARU vehicles*2 sold worldwide.
Reduce average well-to-wheel CO2, emissions from new vehicles sold worldwide
by at least 90% compared to 2010 levels.

*1 Refers to the technology used to foster the use of electricity for EVs, HEVs, and others.
*2 Excluding models supplied by OEMs.

Monozukuri Innovation
Value Creation

Product

Production

SUBARU’s electrification sales target for 2030 (Ratio, Volume)
Previous

New

HEVs + BEVs

40%

BEVs

600,000% units

50

HEVs

2030
Total Global Sales

1.2

million-plus
units

Updated Production System Reorganization Plan
In conjunction with the aforementioned revisions, we have also updated the reorganization plan for our production
system, which has been announced in stages since May 2022. Specifically, in addition to the announced reorganization of
our domestic production system, we have decided to extend our production plans for next-generation HEVs equippedwith the Toyota Hybrid System and BEVs. These vehicles, originally slated for production in Japan, will now also be
manufactured in the U.S. As a result, our global factory production capacity will reach a level of 1.2 million units.
In this transition period of the shift to electrification, while keeping a close eye on regulations and market trends, we will
be flexible by taking advantage of the reorganization of our production in Japan and the U.S., and expand at once when
the direction of the shift becomes clear. With this concept of flexibility and expandability at the core, we intend tonavigate through these challenging times.
2023

2025

2026

2028

HEV

Production capacity
for transitional period

BEV

Starting in-house BEV production
BEV

Adding dedicated BEV production line

Capacity:
200,000 units/yr
Capacity:
200,000 units/yr

Next-gen. HEV
BEV

Aim to achieve this goal at an early stage
by shifting our focus and resources to BEVs.

BEV Sales in the U.S.
Aim for U.S. sales of 400,000 BEVs in 2028.

By the end of 2028: 4 more models

A total of

8 models in
BEV lineup
by the endof 2028

1.2 million-plus
units per year
(Japan + U.S.)

8 BEV models

ICE

Productionin the U.S.

To become the world’s leading company
in “Monozukuri” and “Value Creation”

Introduce four additional BEV models
by the end of 2028.
*

Next-gen. HEV

Value
Creation

Monozukuri
Innovation

Expansion of BEV Lineup
By the end of 2026: 4 SUVs

ICE

Productionin Japan

Rather than simply advancing these initiatives, our goal is tobecome a world leading company in “Monozukuri” and “Value
Creation,” so that we do not fall behind in this era of profoundtransformation. We aim to achieve our “Monozukuri Innovation”
and “Value Creation” at an early stage by shifting our focus andresources to battery electric vehicles. Our determination under
the new management structure is to take on these challenges andsee them through in the five years to 2028.
In addition to the four BEV SUVs already announced for launchby the end of 2026, we plan to launch four more models by theend of 2028. As a result, SUBARU will have a total of eight models
in its BEV lineup by the end of 2028. With this BEV lineup, we aim
to sell 400,000 BEVs in the U.S. in 2028. This will account for morethan half of our total U.S. sales.

Flexibility
andExpandability

Images are for illustration purposes only.

Starting BEV production

400,000
BEVs
2021

2022

2023

2024

2025

2026

2027

2028

* Incl. Solterra

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Value Creation Story

Monozukuri Innovation

Past

Present

Going forward

Group of craftsmen
with a flexible, nimble approach

Organization segmented by function

Becoming“One SUBARU”

SUBARU's monozukuri, which has always been centered on the lives of its customers, has long created memories in theirhearts. This has evolved into the Subaru Love Promise, to which SUBARU, together with our retailers, is deeply committed.
The Subaru Love Promise initiatives strongly connect SUBARU, its customers, its retailers and its communities, with SUBARU's uniquemonozukuri/ products at the core. SUBARU will protect and expand this as a source of value creation for society and the future.

Higher density
Monozukuri
only achievablewith the size of SUBARU.

SupplyChain
Development

SupplyChainaStrong people-to-people ties between
SUBARU, customers, retailers, and communities.

Production

Communities in
SUBARU ma
rke
ver
ll o

Customers

SUBARU

Development

Achieve world-leading Monozukuri and Value Creation by cutting the product development process and lead time in half,
the configuration and number of parts in half, and the production process and lead time in half.

Retailers

Products

SupplyChain

Based on this approach, we will strive to achieve world-leading monozukuri by cutting the development process and lead timein half, the number of configurations and parts in half, and the production process and lead time in half. In our current
operations, each segmented function, such as product planning, design, and production, waits for the previous process tocomplete its work, and then passes the work on to the next process like a relay. Through our Monozukuri Innovation initiatives,
we will make the process agile, which will lead to a 50% reduction in Monozukuri time. At the same time, by continuously
advancing these initiatives, we will reduce the process and lead time for product development and production in existingdomains and strengthen our ability to respond to domains experiencing non-linear transformation in this age of uncertainty.

ts

Production

An important factor in creating value in the BEV era is to further enhance “Enjoyment and Peace of Mind,“ the unwaveringvalue that SUBARU offers to customers. We are sometimes asked whether SUBARU can maintain its strengths and the
SUBARU Difference in the BEV era. As one of our answers, we believe that our long-cultivated AWD capability will be further
enhanced by the precise control enabled by BEV technology, leading to further enhancement of our strengths; safety andpeace of mind. In addition, we are pursuing new benefits for our customers, such as a seamless & stress-free user experiencein the age of the BEV. We will also provide further benefits through our “Retaining Value” and “Continuing to Deliver NewCar Feel” initiatives, which are based on our desire for customers to have long relationships with their SUBARUs while
maintaining the value of their vehicles. We intend to realize these visions with our technologies. Through our products andtechnologies, we believe that our customers can enjoy the unfading emotional value that comes from spending time with
their SUBARU, such as “peace of mind,” “stimulated desire for self-challenge,” and their vehicles being “always up-to-date.”
As the shift to electrification progresses, SUBARU aims to become even closer to our customers' lives through these efforts.
Further evolve “Enjoyment and Peace of Mind” in the BEV era.
Enhance “seamless & stress-free” user experience with the latest technology in the BEV era.

Present

Going forward

Functionally segmented organizations achieve their own
goals and work is passed from one process to the next.

Becoming “One SUBARU”

Pursue the SUBARU-unique initiatives of "Retaining Value” and “Continuing to Deliver New-Car Feel”.

Production

The value SUBARU delivers through technology

50%
Reduction

The unfading emotional value that comesfrom spending time with SUBARU vehicles“Retain value” “Continue to deliver new-car feel”

Longevity

SUBARU-unique OTA
Value proposition in joint efforts with retailers

From“Reliable”“Long-lasting”
to “Always up-to-date” “Memories”

Versatility

Seamless & Stress-free

DesignProduction

Planning

DesignPlanning

Corporate Data

At SUBARU, making cars has always been about being close to our customers' lives. SUBARU cars have created memories fortheir owners, and our customers feel “love” for their cars and for SUBARU. In the U.S., “love” has evolved into the Subaru
Love Promise, the philosophy and initiatives to which our sales subsidiary Subaru of America (SOA) and its retailers are deeplycommitted. With SUBARU products at its core, the Subaru Love Promise creates a strong bond between Subaru, itscustomers, its retailers and its communities. We believe this is a source of our value creation for society and the future, andwe intend to protect and expand it. This commitment will remain unchanged in the period of profound change or in the eraof the electric car. We will further enhance the value of our products that are at the heart of this strong relationship between
SUBARU, customers, retailers, and communities.

Subaru Love Promise

Production-Development process and lead time
-Configuration and number of parts-Production process and lead timeFoundations Supporting Value Creation

Value Creation

In the past, SUBARU has referred to itself as a group of craftsmen with a nimble, flexible, a group that introduced theworld to technologies such as AWD and EyeSight. As the times have changed, so too have customer preferenceschanged and vehicles become more complex. This has resulted in a wide range of areas needing action, andsubsequently a rapid division of work into the product development, production and supply chain areas, including
specialization in individual areas and outsourcing of work to suppliers.
However, in this once-in-a-century period of profound transformation, , we are facing a situation in which we mustfight and outperform not only competitors within our own industry, but also competitors with completely new values fromother industries. Through Monozukuri Innovation, we will promote high-density manufacturing by integrating our supply
chain, including product development to production and the supply chain to create “one SUBARU,” something that can
only be achieved through nimbleness granted by our scale.

Development

Commentary on Strategy

Non-linearlytransforming
domains

Adventure
Enjoyment and Peace of Mind

Existing
domains

From“Practical”
to “Capable of anything”

On board / off board user experienceNo wait time

SUBARU strengths enhancedwith electrification technology.

SafetyFrom“Desire to go further”
to “Excited” “Desire for self-challenge”

From“Safe”
to “Peace of mind”

SUBARU will become even closer to our customers’ lives.

16 Integrated Report 2023

Integrated Report 2023

17

Commentary on Strategy

Value Creation Story

Foundations Supporting Value Creation

Corporate Data

SUBARU’s History of Value Creation
We have always been ahead of the curve in using products exemplifying the SUBARU difference torespond to customer needs based in the context of the times. This has created strong relationships withour customers. In particular, we believe that the driver’s universal value of safety is an unshakable
strength felt by our customers in our continuous refinement of all kinds of technologies.

PeriodTo 1950

Customer needs
based in historicalcontext
SUBARU’s value

1950s

1960s and 1970s

1980s

Since 2000

• Postwar
reconstruction• National Car
Concept• Rapid economic growth• Motorization• Leisure (skiing)
boom• Motorsports boom

• The 2008 ‘Lehman shock’ economic downturn• Increasing safety awareness• Increasing environmental awareness• Desiring mobility• Desiring anaffordable car• Desiring a car ride withoutworrying about the weather• Desiring family fun with apersonal vehicle• Desiring leisuretime with friends• Desiring to bond with cars
• Desiring to manifest uniquepersonality• Desiring car safety at all times• Desiring to do more for society and theenvironment

and 1990s

Mobility

provided throughSafety performancecar manufacturing

Family mobility for all
The SUBARU community
An unpretentious, self-actualized style
Technology

Visibility design Primary Safety

embodying our1965 Began crash tests Passive Safety

safety concept

1966 Horizontally-opposed engine

Active Safety

1972 4WD/AWD Active Safety
1989
Began stereo camera development
Preventive Safety

1999
ADA

(Active Driving Assist)

2008
EyeSight
2016 
SUBARU Global Platform
Active Safety

Passive Safety

2020
SUBARU STARLINK
Connected Safety

Products

1966
SUBARU 1000
Pre-Subaru
Aircraft

1958
SUBARU 360

1992
Impreza2012
SUBARU XV

1995
Grand Wagon
1972
Leone 4WD
Estate Van

Note: The information above is mainly about the Japanese market.

18 Integrated Report 2023

1989
Legacy1988
Established
SUBARU Tecnica
International Inc.

1997
Forester
1997
Three-time World
Rally Championship(WRC) winner

2022
Solterra

2012
SUBARU BRZ
2014
LevorgFrom 2021
Participated in

the Super
Taikyu Series

From 2008
Participated in the
Nürburgring
24-hour race
Integrated Report 2023

19

Value Creation Story

Commentary on Strategy

Foundations Supporting Value Creation

Corporate Data

Value Creation Process
At SUBARU, we hope to enrich the lives and minds of all people connected to our Group, with a vision of becoming a company “Delivering Happiness to All.”
With its DNA as an aircraft manufacturer and based on our human-oriented approach to Monozukuri, we provide product value that embodies the SUBARU Difference,and by continuing to meet the various expectations of our customers who share these values, we will enhancing relationship with our customers. In order to achieve this,
we are encouraging the growth of the individual and harnessing and aggregating the power of all employees, including innovation leaders and those who will support
them to achieve the organization growth. In addition, we will aim to achieve both the sustainable growth of the SUBARU Group and the realization of an enjoyable andsustainable society.

ab

rcu

larity

Sus

ta

in

le

Ci

Customer
expectations

Financial
capitalSusta

Enjoyment andPeace of Mindinab

Manufacturing
capital

le

Ci

rcu

larityIndividual growthIntellectual
capitalOrganizational growth

Cultivate self-motivated,
self-directed individuals

Continue developing
supportive culture

Empowerment
Engagement

Human
capitalSix Priority
Areas for CSR

Key Initiatives

Socialcapital

New management
structure policies

People-oriented Car Culture
Monozukuri
Innovation

Value
Creation

Resonance and Coexistence

NaturalcapitalPeace of Mind
Diversity
Environment

Quality Enhancement
Corporate Culture Reforms

Compliance e aim to be a compelling company with a strong market
Corporate Statement W
presence built upon our customer-first principle.

Sustainable Growth of
the SUBARU Group

Cultivating humanresources

Innovation LeadersAchieving an Enjoyable
and Sustainable Society

Enhancing relationships with customers

Delivering Happiness to All

Management
Resources

Enriching People’s Minds and LivesThe SUBARU Group’s Unique Business Model

Selection and concentration
Work stylechanges
20 Integrated Report 2023

Advancement of innovationin the auto industry+ Differentiation + Added value
ClimatechangeSocial Issues
Resource
Traffic
recycling
accidents

Respect forhuman rights
Integrated Report 2023

21

Value Creation Story

Commentary on Strategy

Foundations Supporting Value Creation

Corporate Data

The SUBARU Group’s Unique Business Model
SUBARU is building a unique business model to achieve its vision of being a company “Delivering happiness to all.”Instead of simply expanding our priorities in our business, products, markets, and development, we aim to achievesustainable growth by selecting and concentrating our business resources in areas where we can best utilize thetechnologies and know-how that we have built up over the years as part of the human-oriented approach to Monozukuri
which SUBARU has maintained throughout its history.
In our automotive business, for example, we select and focus on specific areas to provide enhanced functional value in theform of vehicle safety, durability, and superior handling. This allows us to offer value to our customers in the form of
Enjoyment and Peace of Mind. As a result of these efforts, our customers see SUBARU vehicles as more than just a meansof transport—they are an essential part of our customers’ lifestyles.
We will continue to meet our customers’ expectations and make efforts to enrich people’s lives. This will allow us todeepen our relationships with our customers and enhance the value of the SUBARU brand.

SUBARU’s Selected Focus Areas

ActiveSafetyPreventive
SafetyConnected

Passive
SafetyAerospace BusinessFYE March 2018
Discontinued

Industrial Products Business
Sanitation Truck andWind Power Business
Railcar and
Bus BusinessPrimary
SafetySafetyEver since the SUBARU 360 popularized personal car ownership in Japan,
the philosophy at SUBARU has been to give top priority to safety
because people entrust their cars with their lives. The safety technologies
that we continue to refine based on this philosophy are integrated into the concept of delivering All-Around Safety tocustomers whenever they ride in our vehicles, from when they put on their seat belts to unexpected situations. SUBARU’senhanced safety performance constantly receives the highest safety performance ratings from various third parties in andoutside of Japan.

Automotive Business

Our priority is not simply expanding
our business. Instead, we concentrate
our business resources by narrowing
down our focus to automobiles andaerospace, where we can best utilize
the technologies and know-how wehave built up over the years.

FYE March 2013
Transferred
FYE March 2004
Transferred

Product Focus

SUVs

664

thousand units

Development and production of minicars ended in 2012.We
shifted our focus to the SUV category due to their versatility forboth daily use and more active lifestyles, making them very
well-suited to how SUBARU owners use their vehicles.

69%

Development based on our customers’ car use in the real world

thousand units

At SUBARU, we place importance on being practical for our customers, which is
why we build cars that match their lifestyles and changing needs. Examples
include a touring wagon that combines a spacious luggage compartment withsporty driving performance, and a crossover SUV that combines off-road
capability with everyday usability. Meticulous attention to materials, structure,and layout are factors that enhance the safety of the vehicle. This attention todetail enables us to make the frame thin and strong, which results in a highlevel of both driving visibility and passive safety performance.
Our vehicles are tested on our company’s test track by taking into accountvarious patterns of use by our customers. We also conduct numerous other tests
in harsh environments around the world, including uphill driving, rough roadhandling, and towing. This allows us to collect a diverse array of performancedata which we use to boost the reliability of our vehicles in the real world.

Note: Retail sales
for FYE March 2023

We aim for our cars to be easy to freely control for anyone in any environment

Market Focus

Note: Retail sales
for FYE March 2023

SUVs

592

Growth by focusing on the U.S. market, which matches
SUBARU’s car-making and the lifestyles of our customers,
and by gaining further affinity toward SUBARU’s initiatives.

Development Focus
Competitiveness

Collaboration

We focus on Enjoyment andPeace of Mind.

We effectively utilize partnerships tojointly develop vehicles instead ofdeveloping everything in-house.

22 Integrated Report 2023

SUBARU, which has roots as an aircraft manufacturer, has constantly maintained a human-oriented approach to
Monozukuri. Even in the midst of changing times, this approach has always been the core of our manufacturing
philosophy, allowing us to create various unique and advanced technologies by continually taking on challenges
that enrich the lives of our customers and society. Based on this human-oriented approach to Monozukuri,
SUBARU will continue to enhance the basic functions of our vehicles—expanding our customers’ freedom of
movement—to provide customers with Enjoyment and Peace of Mind.
Ensuring driving safety from every perspective, from putting on
your seat belt to unexpected situations

Business Focus Areas

81%

Enhancing the Most Basic Functions of Our Vehicles to Provide“Enjoyment and Peace of Mind”

Unless the driver can control the car freely, they will not be able to drive with
Enjoyment and Peace of Mind. The car must respond to the driver’s control ofthe steering wheel without delay, move smoothly without any awkwardness,
and never require steering adjustments when driving straight. This is the kind of
car that SUBARU strives for when refining basic performance—a car that anyone
can operate freely with peace of mind.
SUBARU does not have dedicated test drivers—that job is carried out by
our engineers. Our engineers strive to achieve better basic performance byunderstanding the level of skills possessed by professional test drivers. This
sharpens their ability to feel the difference between the ideal and reality, andtheorize the mechanism behind that difference, which they can then reflect in
the best possible design drawings.
If our engineers cannot acquire the equipment they need to identify thesource of any differences felt between the ideal and reality, they will create
their own equipment to solve the problem. By constantly making cars informed
not just by hard data, but also by sensory aspects, we are able to exceed the
expectations of our customers while accumulating unique theoreticalknowledge and know-how.
Integrated Report 2023

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Commentary on Strategy

Value Creation Story

People and Technologies for Pursuing Enjoyment and Peace of Mind
As aforementioned, SUBARU does not employ dedicated test drivers because our engineers assess all of our cars in
the development stage. Our engineers want to deliver products that make our customers satisfied, so they drive ourcars while assessing sensory qualities that are difficult to express numerically, such as Enjoyment and Peace of Mind.
They then reflect their observations in the design drawings after studying their observations theoretically.
SUBARU’s strength comes from having the same engineer handle the entire process of driving, feeling, considering,and quantifying instead of dividing it among multiple staff. The SUBARU Driving Academy (SDA) exists to further refine
these skills to allow the creation of even better cars.

Drive

Feel

ConsiderCorporate Data

Enhancing Relationships with Customers —Creating the SUBARU Difference for our customers—
We at SUBARU have worked to enhance the functionality of our vehicles, including safety and longevity, as part of ourefforts to provide value in the form of “Enjoyment and Peace of Mind.” Our customers tell us about their lifestyles,
experiences, and affinity using words that describe their SUBARU vehicle as a part of their lives. Safety is one area where
SUBARU has worked to elevate functional value into emotional value in our customers’ minds, and our customers express
this value as caring for beloved family and friends.
Enjoyment and Peace of Mind

Functional values

SUBARU development: Our engineers’ dedication to one project is our strength

Foundations Supporting Value Creation

SafetyLongevity

Capability

Elevated

Elevated

Elevated

Strengths of SUBARU vehicles have come to be expressed more intimately in terms of the customer’s life.

Quantify
Emotional values

Caring for beloved
family and friends...

Building precious
memories...

Enriching life and addingcolor to leisure time...

Activities at SDA

Driving skill

Measuring skill

Logical thinking

Assessment skill

At SUBARU, we believe that we cannot build a car that is better than the driver's ability to evaluate it. However, clear
sensory differences felt by the driver do not often show up in figures acquired using conventional measurement
methods. Therefore, at the SDA, we produce engineers who have trained to elevate their driving skills and sharpen
their senses. With these engineers deeply probing the mechanisms that give rise to these differences, we will broaden
the domains where we can quantify the factors creating “Enjoyment and Peace of Mind” while driving, not only inhardware but in control software as well. By incorporating these elements into the development process, we create
vehicles with the SUBARU Difference regardless of their particular model or power unit.

On the inception of the SDA, I became a member of its inaugural class. Prior to that, SUBARU

We will further enhance this“deep relationship between SUBARU and our customers that makes us different from other brands.”

In the priority market of the U.S., we see many social media posts featuring images and videos of SUBARU vehicles withfamily members, friends, and pets in front of gorgeous backdrops. This shows us that our customers recognize ourvehicles as more than just a means of transportation - they are an integral part of our customers’ lifestyles and aspirations.
Many of our customers tell us that they feel attached to our vehicles, and they feel that SUBARU is appealing because it isdifferent to its competitors. This “difference” is truly an asset to the SUBARU brand.
The deep relationship between SUBARU and our customers creates emotional value that makes us different from otherbrands, and we feel strongly that we must continue to enhance it. We hope the “Enjoyment and Peace of Mind” that the
SUBARU Group provides allows our customers to experience greater joy, fulfillment and attachment to our vehicles. This
includes driving experiences that offer “Enjoyment and Peace of Mind,” active lifestyles, memorable experiences withloved ones, and a deeper relationship between retailer staff and customers. We will also respond to new expectations
from our customers to build a virtuous cycle that further develops our relationships and enhances the SUBARU brand.

had already offered training to obtain a license for test course driving, but I felt there was aneed for systematic training to improve driving skills and evaluation abilities. So, when I heardthat the SDA would be created, I was first in line to join the program.
Today, I serve as an instructor, engaged in human resource development and the planningand operation of training programs. Since each person will sense different parts of how a car
handles, the instructor rides with the driver during training to gain a thorough understanding of
how the driver perceives the car and to provide explanations tailored to each individual. If weare able to identify the slightest differences in vehicle handling and performance, like why acertain car’s comfort is better than another’s when going over a bump, despite having
equivalent measured values, then we can avoid being trapped by legacy measurement methods

Kazuhiro Itoand deeply probe the mechanisms giving rise to these differences, identifying the true cause.

Vehicle dynamics performancedevelopment Department

have been helping to spread activities learned at the SDA all over the SUBARU Group.

Graduates organize their own training sessions and workshops in their own departments andIn addition, SDA instructors play a central role in the development of race vehicles used in

the Super Taikyu* series of races that SUBARU competes in, with many young employees also involved in this development. The entire
process of making a car to enter in a race is carried out at an unimaginable speed when viewed from the usual mass production perspective.
At this breakneck speed, vehicle development must have an even greater clarity about the strengths and weaknesses of a vehicle’s

Subaru of America, Inc. (hereinafter, “SOA”), which is the local sales management company for the U.S., and its
participating retailers work together to make the world a better place all year round with our motto “Do the right things.”
Customers who share our values and actively support these activities will not be content with ensuring their own
happiness. Instead, they are deeply concerned about society and global resources, and they are making the effort to act
in an altruistic way, including helping those in need and want to improve society and the environment. In many cases, ourcustomers become our teachers through the various activities we implement to improve society. These ongoing initiatives
allow us to build stronger and deeper relationships with them.
We at SUBARU will continue to work with our retailers to be a trusted part of our customers’ lives. Together with ourcustomers, we will work to achieve an enjoyable and sustainable society.

performance, including in the areas of driving, turning, and stopping. When I see colleagues tackling issues by bringing together insightsfrom the respective specialized domains and actively exchanging opinions toward issue resolution, rather than taking on an issue alone, it
gives me the distinct sense that this is precisely what we need in the future of vehicle development. Building a single car under the harshconditions of racing and across departmental boundaries has led to the growth of each of our racing team members as engineers, and I
believe this has also led to further improvements in the performance and quality of our mass-produced vehicles.
* An endurance race where race cars are built to specific regulations and divided into classes for competition. Vehicles include production vehicles modified for racing.

24 Integrated Report 2023

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Value Creation Story

Our goal of being More Than a Car Company®: SOA‘s Love Promise® Initiatives
SOA Launches Programs with Love as the Keyword
In the United States, a key SUBARU Group market, SOA has been conducting its Love Campaign since 2008. Every day,SOA receives messages from customers saying things like, “I love my SUBARU.” What really stands out is that so many
people use the word ‘love’ to express their feelings about their SUBARU. Launched with love as the keyword, the Love
Campaign involves a variety of initiatives that are closely attuned to customer feelings and values. That approach isespecially represented during the year-end holiday season by the Share the Love® campaign. Large discounts are thenorm during the season, but the Share the Love® campaign gives customers who buy a SUBARU vehicle during thisperiod the chance to have SUBARU donate on their behalf to a charity of their choice. This program is closely attuned tothe sensibilities of customers who are committed to community engagement, and has been running for the 15 years from2008 to 2023.

SUBARU and its participating retailers donatedmore than $256 million to over 2,100 hometown charities.

Evolution from Love Campaign to Love Promise – An Initiative That Makes Us More Than a Car Company
The Love Campaign began as a sales promotion initiative, and over the past 15 years has grown into a more significant
activity that makes use of community networks built through collaboration with more than 630 retailers across the U.S.
SOA and retailers are participating in the Love Promise Community Commitment based on a core belief in helping
those in need through charitable efforts, and the concept that everyone connected with SUBARU should feel loved
and respected. Focusing on initiatives in five areas of interest, we are making the world a better place through activities
for the communities and regions that each retailer calls home. Specifically, in addition to the four organizations*1 that
SOA partnerships with, retailers independently support community and regional organizations.
Love will guide SOA’s aspirations to transcend what it means to be an automaker with programs to link customers,
SUBARU vehicles, and life and lifestyles.
*1 SOA has partnerships with these four national charity partner beneficiaries: the ASPCA, Make-A-Wish, Meals on Wheels, and the National Park Foundation

Commentary on Strategy

Foundations Supporting Value Creation

Corporate Data

The Subaru Love Promise® Retailer of the Year Awards
The Subaru Love Promise® Retailer of the Year Awards are presented annually
by SOA to retailers across the United States that are making a positive impact
on their customers and communities.
In 2022, Adventure Subaru, a dealership in the city of Fayetteville innorthwest Arkansas, was named Retailer of the Year, which is the mostprestigious of the awards.

Initiatives by Adventure Subaru, the 2022 Subaru Love Promise® Retailer of the YearFor the past 50 years, Adventure Subaru owner Don Nelms has
built a reputation in Northwest Arkansas for treating customers
with the utmost respect and service while also making an impact
on the lives of the community through the many charities andorganizations Adventure Subaru supports.
In the past 10 years alone, Adventure Subaru and Mr. Nelms
have donated more than $3.2 million dollars to more than 70
charities and initiatives in Northwest Arkansas. This includes Don‘s personal donation of 350 acres of land on
the Buffalo National River to The Nature Conservancy of Arkansas. They have also helped many educationfocused organizations in the area such as Apple Seeds, Single Parent Scholarship Fund of Northwest Arkansas,
Ozark Literacy Council, and Champions for Kids. Their contributions have helped increase literacy rates,
improve career opportunities, and give kids new pathways to succeed in school.
When Managing Partner Brent Baker took over operations in March 2020, at the beginning of the pandemic,
Adventure Subaru and the world faced many challenges. During this difficult time, they remembered to put
their customers first and implemented changes to better serve their customers and keep them safe by creating
an at-home delivery service and providing test drives, as well as service department sanitation practices that
continue to this day.
Subaru of America has awarded Adventure Subaru the 2022 Subaru Love Promise® Retailer of the Year for
their commitment and dedication to their customers and outstanding contributions to making a difference intheir community.

Love Promise® Initiatives in Five Areas
Subaru Loves the Earth®

Subaru Loves to Care®

Subaru Loves to Help®

Subaru Loves Learning®

Subaru Loves Pets®

2022 Love Promise Retailer of The Year | Adventure Subaru
https://www.adventuresubaru.com/2022-love-promise-retailer-of-the-year.htm

Activities to protect
the Earth

Support for people
battling illness

Support for those in needof housing and foodSupport for
education• In response to the devastating
wildfires that ravaged the North
Pacific National Forest, worked
in partnership with the National
Forest Foundation to replant a totalof 1,000,000 trees in California,
Idaho, Oregon, and Washington•D onated more than 230,000
blankets•G ifted 31,000 arts and crafts kits•T
 housands of messages of hopewritten by SUBARU retailers andcustomers•D onated 80 preproduction
vehicles, worth 3 million U.S.
dollars, to fire departments
across the U.S. to be used forlifesaving extraction training•S UBARU and its retailers
supported the educations ofmore than 300,000 students
nationwide through a variety ofpartnerships, donations, andvolunteer efforts	

Animal welfare• Donated over 51 million U.S.
dollars, supporting the welfareof 420,000 animals

Subaru Loves the Earth® 
https://ourimpact.subaru.com/our-community/subaru-loves-the-earth/

Subaru Loves Learning® 
https://ourimpact.subaru.com/our-community/subaru-loves-learning/

Subaru Loves to Care® 
https://ourimpact.subaru.com/our-community/subaru-loves-to-care/

Subaru Loves Pets® 
https://ourimpact.subaru.com/our-community/subaru-loves-pets/

Subaru Loves to Help® 
https://ourimpact.subaru.com/our-community/subaru-loves-to-help/

26 Integrated Report 2023

U.S. Accolades for the SUBARU Brand
SOA programs, including Love Promise® initiatives withretailers and customers, rank highly in U.S. consumer
brand evaluations for all industries and in U.S. customer
satisfaction surveys. This has helped to enhance theForbes BEST BRANDSACSI®

SUBARU brand.

SUBARU was named one of the top brands on
Forbes’*2 Best Brands for Social Impact 2023 list.
SUBARU ranked No. 1 in the automotive category
and No. 2 among the top 300 brands.

SUBARU has received top rating in numerous categories
in the American Customer Satisfaction Index (ACSI)
survey for the automobile industry.

Accolades and Awards
https://www.subaru.com/vehicles/accolades.html*2 A leading global economic magazine based in
the United States• Safety: Ranked 1st (3 years in a row)*3• Driving performance: Ranked 1st*3• Service quality: Ranked 1st*3• Endurance: Ranked 1st (2 years in a row)*4• Production quality: Ranked 1st (2 years in a row)*4• Satisfaction 1st*3*3 Compared to all other measured mass-market automotive companies in the 2022 American Customer Satisfaction Index (ACSI) surveys of customers rating their own automobile. ACSI® isa registered trademark of ACSI, LLC.
*4 Compared to all other measured mass-market automotive companies in the 2022 American Customer Satisfaction Index (ACSI) surveys of customers rating their own automobile. The #1
rating is shared with one other automotive company.

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27