I N T E G R AT EDREPOR T2 0 23Ebisu Subaru Bldg., 1-20-8, Ebisu, Shibuya-ku,Tokyo 150-8554, Japan
Phone : +81-3-6447-8000
https://www.subaru.co.jp/en/ir/

INTRODUCTION

Pursuing Our Goal ofDelivering Happiness to All

My drive for adventure
while also remembering
to slow down to enjoy thesimple things. This is exactly
what my Subaru allows meto do.

I love my Subaru Forester! Hername is Betty Too. We just
took her on a 3500 mile roadtrip. Looking forward to many
more adventures!

The SUBARU Group, by no means a large automaker, concentrates its limited management resources in pursuit ofThanks for making the perfectspring break road trip
adventure vehicle!

the value it provides to its customers, which is “Enjoyment and Peace of Mind.” The customers who support us value
SUBARU vehicles like lifestyle partners. Together, we are marching ahead to make society better, inspiring our customers
to say that SUBARU is “different.” Our vision of becoming a company “delivering happiness to all” was inspired by thevery happiness we perceived in our customers' behavior and feedback, which we cherish in the deep relationships wehave with them. We will put these customers who have nurtured the SUBARU brand first, and continue to pursue our goalof delivering happiness to people, society, and even the Earth.
We have collected feedback from SUBARU owners submitted via our SUBARU Group websites. It is our hope to continue
satisfying the expectations of SUBARU owners who have chosen and cherished our vehicles.

Why, SUBARU? (in Japanese only)

Dear Subaru,

https://www.subaru.jp/whysubaru/

https://www.subaru.com/owners/dear-subaru.html(Left page)(Right page)

I can’t even begin to express
how much I LOVE this vehicle!
Not only has this been a funtrip, but knowing we are safe inthis vehicle makes it even better.

Our local quilt guild, madeover 100 quilts for a summer
camp for kids going thru cancer.

Some messages have been translated from Japanese to English.

Even though we’ve only had itfor a year, our SUBARU is suchan essential companion for mywife and I, taking us to all kindsof places. A little time free, andboom! We’re off. We’d love forour kids to experience this kindof enjoyment too one day.

“What color do you think looks
good for a Forester? Any
options you like?” Since Mom
called me that day giddy withexcitement, the Forester has
been part of our family,
protecting my parents.

Our SUBARU has made every
day so special, and holds a lot ofmemories for us. We’ve just hit
100,000 kilometers, and I’m looking
forward to taking good care ofmy SUBARU and exploring
together in the kilometers
beyond!

Vacations are so much more
now with our XV. Our old car
didn’t have as much storage
space, and we couldn’t campout of the car like we do now,or take our bicycles on the roadwhile traveling.

I used to be more of an indoor
type, but now I’m out every
weekend doing what I love
most—being in nature with mycar. It’s been the best thing formaking my life more enriched.

For our wedding anniversary,
I took my wife out for a breakfrom everyday life. We got in
our SUBARU and drove toward
the ocean, out on the horizon,
eating locally-caught seafoodand enjoying a long walk on thebeach. I’m already planning ournext special trip together.

Seamus and Bettie know
safety, comfort and style when
they see it!

My Legacy started on the first
try not missing a beat!! I lovefeeling safe in my Subaru withwhatever Wyoming weather
throws at me!! Thanks Subaru!

The outback is great in thesnow and off road. Our 2
rescues love the car too!

Integrated Report 2023 01

On Publication

Contents

The automotive industry is confronting a once-in-a-century transformation, and the business environment surrounding
our operations has experienced substantial and non-linearly changes in recent times. The SUBARU Group, with a global
market share of approximately 1%, is not considered a large-scale company within the automotive industry. Nevertheless,rooted in its origins as an aircraft manufacturer and driven by a dedication to the human-oriented approach to Monozukuri(Manufacturing), the SUBARU Group aims to capitalize on its agility and flexible approach as a nimble team of craftsmen
made possible by its corporate size. Our objective is to achieve sustainable growth by lead the company's efforts in“Monozukuri Innovation" and “Value Creation.”
Regardless of the business environment, theSUBARU Group’s enduring vision is “Delivering
happiness to all” and provide value in the form of“Enjoyment and Peace of Mind.” To enrich people’s
lives and minds, we aim to evolve what it means
to provide “Enjoyment and Peace of Mind” in all
our business activities, not only in our products,
and seek empathy from our customers, retailers,
local communities and all other stakeholders. By
doing so, we strive for the sustainable growthof the SUBARU Group and the realization of aenjoyable and sustainable society. In order for abroad set of stakeholders, including shareholders
and investors, to better understand the SUBARUGroup’s approach, strengths, and business models
that underlie these initiatives, we endeavor to provide
the integrated disclosure of financial and non-financial
information in compiling our Integrated Report.

Guidelines Referenced

58 Respect for Human Rights

12 New Management Structure Policies

59 Corporate Governance61	Message from the Chairman ofthe Board of Directors
62	Directors, Auditors, andExecutive Officers
68 Message from Outside Directors
76 Compliance28	Initiatives to Achieve Our Goal of Zero Fatal
Traffic Accidents in 2030
32	SUBARU’s Idea for a Digital
Transformation Strategy
36 Quality Enhancement

86 Consolidated Ten-year Financial Summary

40 Cultivating Human Resources

88 Five-year Unit Sales

46 Six Priority Areas for CSR

90 Corporate Data

Reporting System
The SUBARU Group discloses various information to engage in communication with all stakeholders. In addition to thisreport, information can be obtained from the introductory content on our website, which provides an overview of theSUBARU Group’s values and value creation, as well as from the Sustainability & CSR section of our website, where ESGrelated information is comprehensively disclosed in accordance with international evaluation standards.

Scope of Our Value Creation Story
Philosophy of Value Creation
Strategy and Approach to Value Creation
Specific Initiatives for Value Creation
SUBARU’s Vision
Awarenessand interest

3. E
 ach department then collaborates with the secretariat to compile thereport based on the approved strategy.

Communication Aims

Disclaimer Regarding Forward-Looking Statements

78 Business Overview
84 Previous Mid-term Management Vision

2. C onsidering the feedback and evaluation, the secretariat develops theeditorial policy for the upcoming fiscal year and seeks approval from theSustainability Committee, which is composed of all executive officers.

4. A fter compilation, the report is presented to the Sustainability
Committee and the content is verified by the executive officers ofeach department before publication.

Corporate Data

34 Message from the CFO

1. A
 fter issuing our Integrated Report, we actively seek candid feedback
from both internal and external stakeholders, with a particular focus on
institutional investors. We also submit our report for evaluation by anoutside organization.

Statements herein regarding plans, strategies, and other information that are not historical facts are assumptions, judgments and forecasts based on
information available at the time of creation, and are subject to various risks and uncertainties. Actual results may differ materially from these statements
due to changes in economic conditions surrounding the Company and its Group companies, fluctuations in demand and exchange rates, and otherfactors. Final investment decisions shall be made by investors themselves based on their own judgment and responsibility in light of the above factors.
Please note that the parties providing the information in this report regarding the Company and its Group shall not be liable for any loss or damage
incurred as a result of investment based on the information contained in this report.

02 Integrated Report 2023

06 Message from the CEO

Commentary on Strategy

Production Process

Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues
for Collaborative Value Creation, Ministry of Economy, Trade and Industry
International Integrated Reporting Council (IIRC)’s International Integrated
Reporting Framework

Foundations Supporting Value Creation

22 The SUBARU Group’s Unique Business Model

We began issuing our Integrated Report in FYE March 2022, and areconsistently striving for improvements in the annual publication.

* Some information provided may be from outside the reporting period.
* The departments, titles, etc. of the people introduced in this report are as of the time of writing.

04 At a Glance

20 Value Creation Process

SUBARU CORPORATION

April 1, 2022–March 31, 2023

Value Creation Story

18 SUBARU’s History of Value Creation

Scope of Reporting

Reporting Period

50 Environment ~Climate change~
56 Risk Management

Vision, Value statement, Corporate statement

In this Integrated Report 2023, we begin by featuring our policies under the new management structure announced inAugust 2023 with an explanation of key initiatives and a message from the CEO. We have also enhanced the disclosure ofour value creation story by highlighting the past strategies of the SUBARU Group and the progress of specific actions in
the Six Priority Areas for CSR, while introducing employees working on the frontline. We will continue to utilize this report
as one of our tools for communicating with stakeholders, further enhancing our information disclosure going forward.

* In this report, the “SUBARU Group” and “the Group” refer to the SUBARU Group; “SUBARU”
or “the Company” refers to SUBARU Corporation; “affiliated companies (affiliates)” refers toSUBARU’s subsidiaries in Japan and overseas, including dealerships in the Automotive Business;and “group companies” refers to SUBARU’s subsidiaries in Japan, excluding dealerships in theAutomotive Business.

03 Contents/Reporting System

This provides the key points of SUBARU’svalues and value creation.
https://www.subaru.co.jp/en/introduction/

Integrated Report
Understandingand empathy

This aim to convey a broad overview of the value creation process in a clear
and accessible manner to a wide array of stakeholders, including shareholders and investors,
with a particular focus on the sustainability of our business model and strategy.
https://www.subaru.co.jp/en/ir/library/annual-reports.html

Dialogueand evaluation

Website: Sustainability & CSR
This disclose ESG-related information in line with international evaluation standards.
https://www.subaru.co.jp/en/csr/

Integrated Report 2023 03