FYE2019 Consolidated Financial Results

For the Year Ended March 31, 2019

(Japan GAAP)
May 10, 2019
Company Name : SUBARU CORPORATION. (Tokyo Stock Exchange First Section, Code No.7270)
URL : https://www.subaru.co.jp/en/ir/
Representative : Tomomi Nakamura, President and CEO
Contact for Inquiries : Katsuo Saito, General Manager of Investor Relations Department Phone +81-3-6447-8825
Scheduled date of annual meeting of stockholders: June 21, 2019 Scheduled date for dividend payment : June 24, 2019
Scheduled date of submitting Security Report : June 24, 2019
Annual earnings supplementary explanatory documents : Yes
Holding of annual financial results meeting : Yes (for investment analysts and institutional investors)
(All amounts have been rounded off to the nearest million yen, unless otherwise specified)
1. Performance in FYE2019 (April 1, 2018 to March 31, 2019)
(1)Consolidated Results of Operations (for twelve-month period)
(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)
Net income
Net sales Operating income Ordinary income attributable to
owners of parent
FYE2019 3,160,514 (2.2)% 195,529 (48.5)% 196,239 (48.3)% 147,812 (32.9)%
FYE2018 3,232,695 (2.8)% 379,447 (7.6)% 379,934 (3.7)% 220,354 (22.0)%
Note: Comprehensive income FYE2019: 162,837 million yen (21.0%) FYE2018: 206,042 million yen (26.2%)
Note: Certain presentation methods used in FYE 2018 have been changed from FYE 2019. The changed methods are retrospectively applied to
the amounts in FYE 2018 to conform FYE 2019 presentation.
Ratio of ordinary Ratio of
Net income per Net income per Return on income (loss) to operating income
share, basic (Yen) share, diluted (Yen) equity
total assets (loss) to sales
FYE2019 192.78 － 9.4% 6.7% 6.2%
FYE2018 287.40 － 14.6% 13.5% 11.7%
Reference: Equity income from affiliates FYE2019: 377 million yen FYE2018: 778 million yen

(2) Consolidated Financial Position (Unit: Millions of yen, except for per share figures)
Total assets Net assets Shareholders’ equity to Net assets per share (Yen)
total assets (%)
FYE2019 2,982,725 1,612,825 53.8% 2,093.60
FYE2018 2,866,474 1,561,023 54.2% 2,025.31
Reference: Shareholders’ equity FYE2019: 1,605,291 million yen FYE2018: 1,552,844 million yen
Note: Certain presentation methods used in FYE 2018 have been changed from FYE 2019. The changed methods are retrospectively applied to
the amounts in FYE 2018 to conform FYE 2019 presentation.

(3) Consolidated Cash Flows (Unit: Millions of yen)

Net cash provided by Net cash provided by Net cash provided by Cash & cash equivalents
operating activities investment activities financing activities at end of period
FY2019 174,006 (158,327) (96,617) 702,328
FY2018 366,298 (150,711) (170,937) 765,591
2. Dividends
Cash dividends per share (yen) Amount of Dividend Ratio of
dividends payout ratio dividends to
1st 2nd 3rd Year- Annual net assets
Quarter Quarter Quarter end paid (Annual) (consolidated) (consolidated)
FYE 2018 － 72.00 － 72.00 144.00 110,466 50.1% 7.3%
FYE 2019 － 72.00 － 72.00 144.00 110,471 74.7% 7.0%
FYE 2020
(Forecast)
－ 72.00 － 72.00 144.00 －%

3. Projection of Consolidated Results for Fiscal Year 2020 (April 1, 2019 to March 31, 2020)
(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)
Profit for the period
Revenue Operating profit Profit before tax attributable to owners Net income per
of parent share,basic(Yen)
Full year 3,310,000 －% 260,000 －% 270,000 －% 210,000 －% 273.68
Note: Due to voluntary application of International Financial Reporting Standards (IFRS) from the first quarter of the fiscal year ending March
2020, Projection of Consolidated Results for the fiscal year ending 2020 are calculated based on IFRS. Therefore, the percentage
of fluctuation compared to the results based on the Japanese accounting standards for the fiscal year ended March 2019 is not stated.
4. Others
(1) Changes of significant subsidiaries in fiscal year ended 2019 : No
(Change of subsidiaries resulting in changes in the scope of consolidation)
(2) Changes in accounting policies, procedures and methods of presentation for preparing the consolidated
financial statements
[1] Changes due to revisions of accounting standards : No
[2] Changes due to other reasons : Yes
[3] Changes of estimation due to accounting issues : Yes
[4] Restatements : No

(3) Number of outstanding shares (Common Stock)

[1] Number of outstanding shares
As of March 31,2019: 769,175,873 shares As of March 31,2018: 769,175,873 shares
(including treasury stock)
[2] Number of treasury stock As of March 31,2019: 2,414,841 shares As of March 31,2018: 2,455,039 shares
[3] Average number of shares
FYE2019: 766,748,664 shares FYE2018: 766,707,785 shares
(for twelve-month period)

(Reference) Non-consolidated Financial Results Highlights

Performance in FYE2019(April 1, 2018 to March 31, 2019)

(1)Non-consolidated Results of Operations (for twelve-month period)
(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)
Net sales Operating income Ordinary income Net income
FYE2019 1,929,791 (7.4)% 79,822 (68.8)% 82,619 (68.9)% 68,003 (55.7)%
FYE2018 2,083,284 1.2% 256,015 (0.6)% 266,025 1.7% 153,496 (26.3)%

Net income per share, Net income per share,

basic (Yen) diluted (Yen)
FYE2019 88.64 －
FYE2018 200.10 －

(2) Non-consolidated Financial Position

Shareholders’ equity Net assets per share
Total assets Net assets to total assets (%) (Yen)
FYE2019 2,147,612 1,110,809 51.7% 1,447.95
FYE2018 1,943,951 1,156,068 59.5% 1,507.02
Reference: Shareholders’ equity FYE2019: 1,110,809 million yen FYE2018: 1,156,068 million yen

*The status of the implementation of the annual audit

This earnings report is not subject to audit procedures based upon the Financial Instruments and Exchange Act.

*Proper use of projection of operating results, and other information

The performance projections were based on the information available as of the date when this document was
released. Therefore, actual results may differ considerably due to various factors that might occur in the future.
Please refer to page 4 in the attachments for "1.Overview of Operating Results (4) Future forecast".
Index of the attachments

1. Overview of Operating Results ....................................................................................................... 2

(1) Overview of Operating Results for the Current Period under Review.................................................2
(2) Overview of Financial Position in the Period under Review .................................................................4
(3) Overview of Cash Flow in the Period under Review ..............................................................................4
(4) Future forecast ...........................................................................................................................................4

2. Basic policy about the adoption of Accounting standards ........................................................... 5

3. Consolidated Financial Statements ................................................................................................ 6

(1) Consolidated Balance Sheets ....................................................................................................................6
(2) Consolidated Statements of (Comprehensive) Income ...........................................................................8
Consolidated Statements of Income (for twelve-month period) ..............................................................8
Consolidated Statements of Comprehensive Income (for twelve-month period) ...................................9
(3) Consolidated Statements of Changes in Net Assets ..............................................................................10
(4) Consolidated Statements of Cash Flows ................................................................................................12
(5) Notes to Consolidated Financial Statements .........................................................................................13
(Notes on Premise of Going Concern) ......................................................................................................13
(Significant Accounting Policies in Preparing the Consolidated Financial Statement) .......................13
(Changes in Accounting Policies) ..............................................................................................................13
(Changes in presentation methods) ..........................................................................................................13
(Consolidated Statements of Income) .......................................................................................................14
(Segment Information) ..............................................................................................................................15
(Per Share Information) ............................................................................................................................17
(Subsequent Event) ....................................................................................................................................17

4. Non-consolidated Financial Statements ....................................................................................... 18

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

―1―
1. Overview of Operating Results
(1) Overview of Operating Results for the Current Period under Review
The global economy remained stable for the current fiscal year, while uncertainties due to trends in trade
issues caused some slowdown. As the employment and income environment improved and consumer spending
recovered, the Japanese economy also continued on a gradual recovery path, although worries about the
impact of the uncertainty over the world economy persisted. In the meanwhile, the exchange rate was mostly
stable.
With the aim of gaining the sympathy and confidence of customers through the provision of “Peace of mind
and enjoyment”, the SUBARU Group set out a mid-term management vision called “STEP” which was
released in July 2018. Based on the slogan: “From a company making things, to a company making people
smile”, the following set of three goals was established as a vision for 2025:
Vision for 2025
1. Become a brand that is “different” from others by enhancing distinctiveness.
2. Engage in business activities that resonate with customers by putting them center-stage.
3. Fulfill corporate social responsibilities by contributing to diversifying social needs.

Based on the “STEP” prioritizing the corporate culture reforms to enhance the corporate quality (including
with regard to the product quality) and dedicated to the protection of human life through safety measures
aiming to achieve zero fatal road accidents* by 2030, the Group will intensify its efforts to build a strong
brand and sustainable growth based on focus strategy.
*Reducing to zero the number of fatal accidents occurring while a driver or passenger in a Subaru and the number of fatalities
among pedestrians, cyclists, and the like arising from collisions with a Subaru.

Net sales in the period under review decreased by ¥72.2billion (2.2%) from the previous fiscal year to
¥3,160.5 billion due to the fall in automobile unit sales.
The increase in quality-related expenses triggered by the recall in November 2018 and the decrease in
automobile unit sales affected both operating income and ordinary income, which respectively dropped by
¥183.9 billion (48.5%) to ¥195.5 billion and by ¥183.7 billion (48.3%) to ¥196.2 billion compared with the
previous fiscal year. Net income attributable to owners of the parent also fell by ¥72.5 billion (32.9%) from the
previous fiscal year to ¥147.8 billion.
(In Japanese yen in million except for profit ratio and percentage change from the previous period)
Net income Foreign
Net Sales Operating Income Ordinary Income attributable to Exchange Rate
(Margin) (Margin) owners of parent
(Margin)
FYE2019 3,160,514 195,529 196,239 147,812 ¥111/US$
Profit Margin 6.2％ 6.2％ 4.7％ ¥129/EUR
FYE2018 3,232,695 379,447 379,934 220,354 ¥111/US$
Profit Margin 11.7％ 11.8％ 6.8％ ¥130/EUR
Change (72,181) (183,918) (183,695) (72,542)
Percentage Change (2.2)％ (48.5)％ (48.3)％ (32.9)％

Results for the period under review by business segment are as described below.
(In Japanese yen in million except for profit ratio and percentage change from the previous period)
Net Sales Segment Income
Percentage Percentage
FYE2018 FYE2019 Change FYE2018 FYE2019 Change
Change Change
Automobile Div. 3,062,340 3,014,476 (47,864) (1.6) 361,454 184,947 (176,506) (48.8)
Aerospace Div. 142,163 131,669 (10,494) (7.4) 12,259 6,047 (6,212) (50.7)
Other 28,192 14,369 (13,823) (49.0) 5,066 3,846 (1,220) (24.1)
Adjustments - - - - 668 689 21 3.1
Total 3,232,695 3,160,514 (72,181) (2.2) 379,447 195,529 (183,918) (48.5)
Notes: 1. Net sales are sales to outside customers.
2. Adjustment to segment income refers to the elimination of intersegment transactions.

―2―
(Automobile Division)
Total automobile demand in the United States, which is a priority market for us, was 17.16 million units
(decrease on 0.9% year-on-year) with decrease in passenger vehicle and increase in light trucks including
SUVs compared with the previous fiscal year. As to the total automobile demand in Japan, compared with the
previous fiscal year, passenger cars remained steady year-on-year while minicars increased to 5.26 million
units (an increase of 1.2% from the previous fiscal year).
With such trends of total demand, overseas retail sales remained stable in North America, which is a priority
market for us, contributed by strong sales of Ascent, a new model vehicle newly launched. However, total unit
sales dropped by 39 thousand units (4.3%) from the previous fiscal year to 865 thousand units due to the
decrease in shipment of Forester, which had not been fully remodeled for the first half of this fiscal year.
Overall domestic sales also decreased by 28 thousand units (17.2%) from the previous fiscal year to 135
thousand units due to the decline in sales of Impreza, SUBARU XV and Levorg, while the sales of Forester,
which was fully remodeled in July, grew steadily.
Combined domestic and overseas unit sales thus decreased by 67 thousand units (6.3%) from the previous
fiscal year to 1 million units, with net sales dropping by ¥47.9 billion (1.6%) to ¥3,014.5 billion. Segment
income also decreased by ¥176.5 billion (48.8%) from the previous fiscal year to ¥184.9 billion.
The production decreased to 989 thousand units (a decrease of 5.8% from the previous fiscal year), for the
Company’s Gunma plant related factors including changes in plant operation schedules implemented since the
fall of 2018 to ensure quality-first production and inspection work as well as production halt in January 2019
due to a defect in the Electric Power Steering unit.
Unit sales by region in the period under review are as shown below.
(Units in thousands and percentage change from the previous period)
Percentage
FYE2018 FYE2019 Change
Change
Total in Japan 16.3 13.5 (2.8) (17.2)
Passenger cars 13.3 11.0 (2.3) (17.2)
Minicars 3.1 2.6 (0.5) (17.1)
Total Overseas 90.3 86.5 (3.9) (4.3)
North America 72.8 71.7 (1.1) (1.5)
Europe/Russia 4.8 4.0 (0.8) (16.1)
Australia 5.6 4.2 (1.4) (25.0)
China 2.7 2.3 (0.4) (15.2)
Other regions 4.5 4.3 (0.2) (4.3)
Total 106.7 100.0 (6.7) (6.3)

(Aerospace Division)
Deliveries to the Japan Ministry of Defense saw sales decrease from the previous fiscal year, partly because
the performance of a contract for the test production of a new multi-purpose helicopter for the Ground Self-
Defense Force had been completed.
Affected by the decline in production of Boeing 777 aircraft, the sales in the civilian market also fell below
the previous fiscal year.
As a result, overall sales decreased by ¥10.5 billion (7.4%) from the previous fiscal year to ¥131.7 billion.
Segment income also fell by ¥6.2 billion (50.7%) from the previous fiscal year to ¥6 billion.

(Other Businesses)
Net sales decreased by ¥13.8 billion (49%) from the previous fiscal year to ¥14.4 billion. Segment income
also dropped by ¥1.2 billion (24.1%) from the previous fiscal year to ¥3.8 billion.

―3―
(2) Overview of Financial Position in the Period under Review
[1] Assets
Total assets increased by ¥116.3 billion from the previous fiscal year to ¥2,982.7 billion. Main factors
included ¥60.5 billion increase in property, plant and equipment, ¥47.1 billion increase in goods and products,
¥24 billion increase in raw materials and supplies, ¥13.4 billion increase in short-term loans receivable and
¥56.3 billion decrease in funds on hand (cash on hand, cash in bank and securities).

[2] Liabilities
Liabilities increased by ¥64.4 billion from the previous fiscal year to ¥1,369.9 billion. Main factors included
¥58.5 billion increase in reserve for product warranties, ¥31.9 billion increase in long-term loans payable
(including those due within one year), ¥25.2 billion increase in long-term differed revenue, ¥12.7 billion
increase in accrued expenses, ¥40 billion decrease in accrued corporate tax, etc. and ¥17.7 billion decrease in
short-term loans payable.

[3] Net Assets

Net assets increased by ¥51.8 billion from the previous fiscal year to ¥1,612.8 billion. This owes mainly to
the increase in retained earnings and foreign exchange adjustment account, respectively by ¥36.6 billion and
¥15.5 billion.

(3) Overview of Cash Flow in the Period under Review

Cash and cash equivalents (hereinafter “cash”) at the end of the period under review totaled ¥702.3 billion.

[1] Net cash provided by operating activities

Net cash provided by operating activities increased by ¥174 billion (compared with ¥366.3 billion increase
in the previous fiscal year). Main factors included ¥195.8 billion of net profit before tax and other adjustments,
¥102.7 billion of depreciation, ¥57.6 billion increase in reserve for product warranties, ¥100.3 billion of
corporate tax, etc. paid and ¥90.4 billion increase in inventory assets.

[2] Net cash used in investment activities

Net cash used in investing activities decreased by ¥158.3 billion (compared with ¥150.7 billion decrease in
the previous fiscal year). Main factors included ¥138.7 billion in expenditures for the purchase of property,
plant and equipment (net basis against proceeds from sales of property, plant and equipment).

[3] Net cash used in financing activities

Net cash used in financing activities decreased by ¥96.6 billion (compared with ¥170.9 billion decrease in
the previous fiscal year). Main factors included ¥110.4 billion in expenditures for cash dividends paid, ¥17.5
billion decrease in short-term loans payable, and ¥31.9 billion proceeds from long-term loans payable (net
basis against repayment of long-term loans payable).

(4) Future forecast

Consolidated performance forecast of the SUBARU Group is calculated according to the International
Financial Reporting Standards (IFRS) which the Group applies voluntarily from the first quarter of the fiscal
year ending March 31, 2020, instead of the Japanese Generally Accepted Accounting Principles currently
adopted (hereafter JGAAP).
Even with an anticipated increase in R&D expenditure, the consolidated performance in the first quarter of
the fiscal year ending March 31, 2020 is expected to reach, reflecting the decrease in overhead and the
increase in automobile unit sales, ¥3,310 billion in revenue, ¥260 billion in operating profit, ¥270 billion in
profit before tax and ¥210 billion in profit for the period attributable to owners of parent.
Currency rate assumptions: 110 yen/US$ (actual rate for previous fiscal period was 111 yen), 120 yen/euro
(actual rate for previous fiscal period was 129 yen)

―4―
 (In Japanese Yen in million)
＜For Reference＞
FYE2019 FYE2020 FYE2020
(actual results) (forecast) (forecast)
[JGAAP] [IFRS] [JGAAP]
Revenue 3,160,514 3,310,000 3,302,000

Operating profit 195,529 260,000 250,000

Profit before tax 195,838 270,000 252,000

Profit for the period attributable 147,812 210,000 200,000
to owners of parent
Note 1: “Revenue” corresponds to “Net Sales” in JGAAP.
2. “Operating profit” corresponds to “Operating Income” in JGAAP.
3. “Profit before tax” corresponds to “Income before income taxes” in JGAAP.
4. “Profit for the period attributable to owners of parent” corresponds to “Net income attributable to owners of parent”
in JGAAP.

2. Basic policy about the adoption of Accounting standards

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

―5―
3. Consolidated Financial Statements
(1) Consolidated Balance Sheets
(Unit: Millions of yen)
FYE2018 FYE2019
(as of March 31, 2018) (as of March 31, 2019)
ASSETS
Ⅰ Current assets
Cash and deposits 765,397 831,700
Notes and accounts receivable-trade 155,247 148,832
Lease investment assets 17,120 14,731
Short-term investment securities 242,573 119,963
Merchandise and finished goods 202,435 249,558
Work in process 52,307 74,711
Raw materials and supplies 42,448 66,431
Short-term loans receivable 185,364 198,737
Other 107,893 121,903
Allowance for doubtful accounts (340) (347)
Total current assets 1,770,444 1,826,219
Ⅱ Noncurrent assets
1. Property, plant and equipment
Buildings and structures, net 207,133 218,664
Machinery, equipment and vehicles, net 169,814 193,624
Land 184,339 187,052
Vehicles and equipment on operating leases, net 18,638 15,809
Construction in progress 55,908 31,334
Other, net 67,276 70,911
Total property, plant and equipment 703,108 717,394
2. Intangible assets
Other 28,293 33,754
Total intangible assets 28,293 33,754
3. Investments and other assets
Investment securities 113,465 122,453
Net defined benefit asset 82 －
Deferred tax assets 139,171 151,019
Other 115,273 135,132
Allowance for doubtful accounts (3,362) (3,246)
Total investments and other assets 364,629 405,358
Total noncurrent assets 1,096,030 1,156,506
Total assets 2,866,474 2,982,725

―6―
 (Unit: Millions of yen)
FYE2018 FYE2019
(as of March 31, 2018) (as of March 31, 2019)
LIABILITIES
Ⅰ Current liabilities
Notes and accounts payable-trade 320,137 315,026
Electronically recorded obligations-operating 64,863 63,772
Short-term loans payable 22,082 4,352
Current portion of long-term loans payable 42,982 7,592
Income taxes payable 45,372 5,367
Accrued expenses 148,945 161,661
Provision for bonuses 24,131 22,650
Provision for product warranties 206,423 256,814
Provision for loss on construction contracts 160 666
Provision for loss on business liquidation 3,098 1,575
Other 172,813 172,696
Total current liabilities 1,051,006 1,012,171
Ⅱ Noncurrent liabilities
Long-term loans payable 21,138 88,452
Deferred tax liabilities 2,466 5,040
Provision for product warranties 35,801 43,934
Provision for directors' retirement benefits 447 488
Net defined benefit liability 19,337 22,900
Long-term unearned revenue 132,270 157,446
Other 42,986 39,469
Total noncurrent liabilities 254,445 357,729
Total liabilities 1,305,451 1,369,900
NET ASSETS
Ⅰ Shareholders' equity
Capital stock 153,795 153,795
Capital surplus 160,197 160,192
Retained earnings 1,283,539 1,320,177
Treasury stock (7,054) (6,910)
Total shareholders' equity 1,590,477 1,627,254
Ⅱ Accumulated other comprehensive income
Valuation difference on available-for-sale securities 7,038 6,131
Foreign currency translation adjustment (36,193) (20,687)
Remeasurements of defined benefit plans (10,136) (10,631)
Remeasurements of other postretirement benefits
1,658 3,224
of foreign consolidated subsidiaries
Total accumulated other comprehensive income (37,633) (21,963)
Non-controlling interests 8,179 7,534
Total net assets 1,561,023 1,612,825
Total liabilities and net assets 2,866,474 2,982,725

―7―
 (2) Consolidated Statements of (Comprehensive) Income
Consolidated Statements of Income (for twelve-month period)
(Unit: Millions of yen)
FYE2018 FYE2019
(April 1, 2017 to (April 1,2018 to
March 31, 2018) March 31, 2019)
Ⅰ Net sales 3,232,695 3,160,514
Ⅱ Cost of sales 2,442,706 2,561,753
Gross profit 789,989 598,761
Ⅲ Selling, general and administrative expenses 410,542 403,232
Operating income 379,447 195,529
Ⅳ Non-operating income
Interest income 6,812 12,350
Dividends income 1,374 1,244
Equity in earnings of affiliates 778 377
Gain on valuation of derivatives 2,266 －
Other 3,071 3,609
Total non-operating income 14,301 17,580
Ⅴ Non-operating expenses
Interest expenses 1,379 732
Foreign exchange losses 7,395 199
Loss on valuation of derivatives － 6,993
Depreciation 1,025 1,287
Plant shutsdown related costs － 2,532
Other 4,015 5,127
Total non-operating expenses 13,814 16,870
Ordinary income 379,934 196,239
Ⅵ Extraordinary income
Gain on sales of noncurrent assets 563 1,274
Gain on sales of investment securities 4,618 3,659
Gain on sales of business － 1,294
Other 759 726
Total extraordinary income 5,940 6,953
Ⅶ Extraordinary loss
Loss on sales and retirement of noncurrent assets 5,400 5,610
Loss related to airbags 81,261 －
Other 1,873 1,744
Total extraordinary losses 88,534 7,354
Income before income taxes 297,340 195,838
Income taxes-current 113,155 56,942
Income taxes-deferred (37,554) (8,443)
Total income taxes 75,601 48,499
Net income 221,739 147,339
Net income (loss) attributable to non-controlling interests 1,385 (473)
Net income attributable to owners of parent 220,354 147,812

―8―
 Consolidated Statements of Comprehensive Income (for twelve-month period)
(Unit: Millions of yen)
FYE2018 FYE2019
(April 1, 2017 to (April 1,2018 to
March 31, 2018) March 31, 2019)
Net income 221,739 147,339
Other comprehensive income
Valuation difference on available-for-sale securities (1,061) (907)
Foreign currency translation adjustment (18,985) 15,520
Remeasurements of defined benefit plans 860 (495)
Remeasurements of other postretirement benefits of
3,543 1,566
foreign consolidated subsidiaries
Share of other comprehensive income of associates
(54) (186)
accounted for using equity method
Total other comprehensive income (15,697) 15,498
Comprehensive income 206,042 162,837
Comprehensive income attributable to
Comprehensive income attributable to owners of parent 204,449 163,482
Comprehensive income attributable to non-controlling interests 1,593 (645)

―9―
 (3) Consolidated Statements of Changes in Net Assets
FYE 2018 (April 1, 2017 to March 31, 2018)
(Unit: Millions of yen)
Shareholders' equity

Capital stock Capital surplus Retained earnings Treasury stock Total shareholders' equity
Balance at the beginning of
153,795 160,178 1,173,277 (7,173) 1,480,077
current period
Changes of items during the
period
Dividends from surplus － － (110,463) － (110,463)
Net income attributable to
－ － 220,354 － 220,354
owners of parent
Purchase of treasury stock － － － (11) (11)

Disposal of treasury stock － 19 － 130 149

Adjustments due to change in
fiscal year end of consolidated － － 828 － 828
subsidiaries
Change of the scope of
－ － (355) － (355)
consolidation
Change of the scope of equity
－ － 922 － 922
method
Other － － (1,024) － (1,024)
Net changes of items other
－ － － － －
than shareholders' equity
Total changes of items
－ 19 110,262 119 110,400
during the period
Balance at the end of current
153,795 160,197 1,283,539 (7,054) 1,590,477
period

Accumulated other comprehensive income

Remeasurements
Valuation Total Non-
Foreign of other Total net
difference Remeasurements accumulated controlling
currency postretirement assets
on available- of defined benefit other interests
translation benefits of
for-sale plans comprehensive
adjustment foreign consolidated
securities income
subsidiaries
Balance at the beginning of
8,099 (16,631) (10,996) (1,885) (21,413) 6,224 1,464,888
current period
Changes of items during
the period
Dividends from surplus － － － － － － (110,463)
Net income attributable to
－ － － － － － 220,354
owners of parent
Purchase of treasury stock － － － － － － (11)

Disposal of treasury stock － － － － － － 149

Adjustments due to change in
fiscal year end of consolidated － － － － － － 828
subsidiaries
Change of the scope of
－ － － － － － (355)
consolidation
Change of the scope of equity
－ － － － － － 922
method
Other － － － － － － (1,024)
Net changes of items other
(1,061) (19,562) 860 3,543 (16,220) 1,955 (14,265)
than shareholders' equity
Total changes of items
(1,061) (19,562) 860 3,543 (16,220) 1,955 96,135
during the period
Balance at the end of current
7,038 (36,193) (10,136) 1,658 (37,633) 8,179 1,561,023
period

―10―
 FYE 2019 (April 1, 2018 to March 31, 2019)
(Unit: Millions of yen)
Shareholders' equity

Capital stock Capital surplus Retained earnings Treasury stock Total shareholders' equity
Balance at the beginning of
153,795 160,197 1,283,539 (7,054) 1,590,477
current period
Changes of items during the
period
Dividends from surplus － － (110,468) － (110,468)
Net income attributable to
－ － 147,812 － 147,812
owners of parent
Purchase of treasury stock － － － (5) (5)

Disposal of treasury stock － (5) － 149 144

Adjustments due to change in
fiscal year end of consolidated － － － － －
subsidiaries
Change of the scope of
－ － － － －
consolidation
Change of the scope of equity
－ － 158 － 158
method
Other － － (864) － (864)
Net changes of items other
－ － － － －
than shareholders' equity
Total changes of items during
－ (5) 36,638 144 36,777
the period
Balance at the end of current
153,795 160,192 1,320,177 (6,910) 1,627,254
period

Accumulated other comprehensive income

Remeasurements of Total Non-
Valuation Foreign Total net
Remeasurements other postretirement accumulated controlling
difference on currency assets
of defined benefit benefits of foreign other interests
available-for- translation
plans consolidated comprehensive
sale securities adjustment
subsidiaries income
Balance at the beginning of
7,038 (36,193) (10,136) 1,658 (37,633) 8,179 1,561,023
current period
Changes of items during
the period
Dividends from surplus － － － － － － (110,468)
Net income attributable to
－ － － － － － 147,812
owners of parent
Purchase of treasury stock － － － － － － (5)

Disposal of treasury stock － － － － － － 144

Adjustments due to change in
fiscal year end of consolidated － － － － － － －
subsidiaries
Change of the scope of
－ － － － － － －
consolidation
Change of the scope of equity
－ － － － － － 158
method
Other － － － － － － (864)
Net changes of items other
(907) 15,506 (495) 1,566 15,670 (645) 15,025
than shareholders' equity
Total changes of items during
(907) 15,506 (495) 1,566 15,670 (645) 51,802
the period
Balance at the end of current
6,131 (20,687) (10,631) 3,224 (21,963) 7,534 1,612,825
period

―11―
 (4) Consolidated Statements of Cash Flows
(Unit: Millions of yen)
FYE2018 FYE2019
(April 1, 2017 to (April 1,2018 to
March 31, 2018) March 31, 2019)
Ⅰ Net cash provided by (used in) operating activities
Income (loss) before income taxes 297,340 195,838
Depreciation and amortization 102,102 102,749
Increase (decrease) in allowance for doubtful accounts (149) (109)
Increase (decrease) in provision for product warranties 103,651 57,585
Interest and dividends income (8,186) (13,594)
Interest expenses 1,379 732
Loss (gain) on sales and retirement of noncurrent assets 4,837 4,336
Loss (gain) on sales and valuation of investment securities (4,096) (3,152)
Decrease (increase) in operating loans receivable (7,799) (8,179)
Decrease (increase) in notes and accounts receivable-trade 40 6,048
Decrease (increase) in inventories (15,922) (90,354)
Increase (decrease) in notes and accounts payable-trade (54,159) (8,825)
Increase (decrease) in accrued expenses 13,894 8,506
Other, net 7,660 9,801
Subtotal 440,592 261,382
Interest and dividends income received 8,397 13,717
Interest expenses paid (1,446) (798)
Income taxes paid (81,245) (100,295)
Net cash provided by (used in) operating activities 366,298 174,006
Ⅱ Net cash provided by (used in) investing activities
Net decrease (increase) in time deposits (7,219) 14,028
Purchase of short-term investment securities (143,418) (131,019)
Proceeds from sales of short-term investment securities 168,525 120,940
Purchase of non-current assets (149,897) (144,164)
Proceeds from sales of non-current assets 3,413 5,469
Purchase of investment securities (52,645) (54,531)
Proceeds from sales of investment securities 34,272 36,549
Payments of loans receivable (123,552) (129,286)
Collection of loans receivable 120,383 126,753
Other, net (573) (3,066)
Net cash provided by (used in) investing activities (150,711) (158,327)
Ⅲ Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable (18,393) (17,482)
Proceeds from long-term loans payable 3,500 75,300
Repayments of long-term loans payable (44,443) (43,382)
Purchase of treasury shares (11) (5)
Cash dividends paid (110,326) (110,384)
Other, net (1,264) (664)
Net cash provided by (used in) financing activities (170,937) (96,617)
Ⅳ Effect of exchange rate change on cash and cash equivalents (10,831) 17,675
Ⅴ Net increase (decrease) in cash and cash equivalents 33,819 (63,263)
Ⅵ Cash and cash equivalents at beginning of period 728,616 765,591
Ⅶ Increase (decrease) in cash and cash equivalents resulting from
(534) －
change of the scope of consolidation
Increase (decrease) in cash and cash equivalents resulting from
3,690 －
change in fiscal period of consolidated subsidiaries
Ⅷ Cash and cash equivalents at end of period 765,591 702,328

―12―
(5) Notes to Consolidated Financial Statements
(Notes on Premise of Going Concern)
Not Applicable

(Significant Accounting Policies in Preparing the Consolidated Financial Statement)

FYE 2019(April 1, 2018 to March 31, 2019)
Significant changes in the scope of equity method
Newly established SUBARU-SBI Innovation Fund is included in the scope of the equity method from the
consolidated accounting period ended March 31, 2019.

(Changes in Accounting Policies)

(Changes in accounting method for sales)
FYE 2019(April 1, 2018 to March 31, 2019)
The Group previously recorded sales incentives as selling, general and administrative expenses. From the
consolidated fiscal year of FYE 2019, the group has changed the method to deduct from sales.
In the business environment surrounding the Group, as sales incentives tend to increase constantly, we
reexamined the actual circumstances of the transactions. Sales incentives are taken into consideration when
the terms of the transactions are decided and are considered as a part of selling price practically. In addition,
the Group has improved business management system such as business process and system structure. It is so
judged that the method of deducting sales incentives from sales is more appropriate under the circumstances.
The Group applied the changes in the accounting policy retrospectively, and reclassified in the
consolidated financial statements of the previous fiscal year to reflect the changes. As a result, net sales and
selling, general and administrative expenses in the consolidated statement of income for the consolidated
previous fiscal year decreased by 172,526 million yen, respectively, compared to the amounts before the
retroactive application. There is no effect on operating income, ordinary income and income before income
taxes by the changes.

(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates)
(Changes in depreciation method for tangible fixed assets)
FYE 2019(April 1, 2018 to March 31, 2019)
The Company and its major domestic consolidated subsidiaries changed depreciation method of certain
tangible fixed assets from the declining-balance method to the straight-line method from the consolidated
fiscal year of FYE 2019.
In recent years, with the expansion of the product lineup, shorter intervals of full model changes and
acceleration of new products to the market, there is a tendency of less fluctuation in the number of units sold
after the launch. In addition, it is expected that sharing production facilities among different models makes
utilization stable over the useful life in the future. It is so judged that the equalized allocation of depreciation
expenses of the tangible fixed assets over the useful life reflects the actual usage of tangible fixed assets.
As a result, compared with the previous method, operating income increased by 12,898 million yen, and
ordinary income and income before income taxes increased respectively by 13,049 million yen.

(Changes in presentation methods)

(Consolidated Balance sheets)
(Provision for product warranties)
In the fiscal year ended March 31, 2018, recall expenses in the future were included in “Accrued expenses”
and “Provision for loss related to airbags”, and warranty expenses in the future were included in "Provision
for product warranties". From the fiscal year ended March 31, 2019, in order to improve the perspicuity and
clarity of provision for claims expenses, all of them are collectively shown as "Provision for product
warranties". To reflect this change in presentation, the consolidated financial statements for the fiscal year
ended March 31, 2018 have been reclassified.

―13―
 As a result, the “Accrued expenses” of “Current liabilities” 106,969 million yen out of 255,914 million yen,
“Provision for loss related to airbags” 64,711 million yen and “Provision for product warranties” 34,743
million yen in the Consolidated Balance Sheets of the fiscal year ended March 31, 2018 are aggregated and
presented as “Provision for product warranties” 206,423 million yen.

(Long-term unearned revenue)

In the fiscal year ended March 31, 2018, “Long-term unearned revenue” was included in “Others” of
“Noncurrent liabilities”. From the fiscal year ended March 31, 2019, it is presented as a separate balance
sheet caption due to the increase in monetary significance. To reflect this change in presentation, the
consolidated financial statements for the fiscal year ended March 31, 2018 have been reclassified.
As a result, the “Others” of “Noncurrent liabilities” 175,256 million yen in the Consolidated Balance
Sheets of the fiscal year ended March 31, 2018 have been split to “Long-term unearned revenue” 132,270
million yen and “Others” 42,986 million yen.

(Changes according to application of Guidance on Accounting Standard for Tax Effect Accounting)
“Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, revised on
February 16, 2018) has been applied from the first quarter of FYE 2019. Deferred tax assets are presented in
the “Investment and other assets”, and Deferred tax liabilities are presented in the “Non-current liabilities”
on the consolidated balance sheets.
As a result, the “Deferred tax assets” of “Current liabilities” 124,766 million yen, “Deferred tax assets”
of “Investments and other assets” 32,244 million yen and “Deferred tax liabilities” of “Noncurrent
liabilities” 17,839 million yen out of 20,305 million yen in the Consolidated Balance Sheet of the fiscal year
ended March 31, 2018 are presented as “Deferred tax assets” of “Investments and other assets” 139,171
million yen and “Deferred tax liabilities” of “Noncurrent liabilities” 2,466 million yen.

(Consolidated Statements of Cash Flows)

“Increase (decrease) in provision for loss related to airbags” 64,711 million yen, “Increase (decrease) in
accrued expenses” 26,264 million yen out of 40,158 million yen and “Other, net” 12,676 million yen of
20,336 million yen "Net cash provided by(used in) operating activities" section in the Consolidated
Statements of Cash Flows of the fiscal year ended March 31, 2018 are aggregated and presented as “Increase
(decrease) in Provision for product warranties” 103,651 million yen.

(Consolidated Statements of Income)

1. Extraordinary gain
FYE 2019 (April 1, 2018 to March 31, 2019)
Gain on sales on business
The gain is recognized due to the sale of retail business of other brand vehicles.

2. Extraordinary loss
FYE 2018 (April 1, 2017 to March 31, 2018)
Loss related to airbags
The loss was recognized due to the market measures concerning Takata airbag inflator not containing
desiccant (hereinafter referred to as "the airbag"). It is quality-assurance expenses which further market
measures relating to the airbags to be taken in the current fiscal year and beyond.

―14―
 (Segment Information)
1. Outline of business segment
The business segments the Company reports are the business units for which the Company is able to obtain
respective financial information separately in order for the Board of Directors to conduct periodic investigation to
determine distribution of management resources and evaluate their business result.
The Company recognizes Automobile at its main business, and introduces an internal company system and
recognizes Aerospace, and Other divisions. This framework makes clearer the responsibility of each division and
accelerates business execution. The Company manages the subsidiaries on the basis of this classification. Therefore,
the business segments consist of Automobile, Aerospace, and Other which does not belong to Automobile nor
Aerospace.
Automobile segment manufactures and sells vehicles and related products. Aerospace segment manufactures
and sells aircrafts, parts of space-related devices.

2. Method of calculating sales and income(loss), identifiable assets, and other items by business segment reported
Accounting method for business segment reported is almost the same as the accounting method to prepare for
consolidated financial statements.
Segment income by business segment reported is calculated based on operating income.
Net sales - Inter-segment are calculated based on current market prices.

3. Information on sales and income(loss) by business segment reported

FYE 2018 (April 1, 2017 to March 31, 2018) (Unit: Millions of yen)
Business segment reported Consolidated
Other Adjustment
Total Statement of
Sub- *1 *2
Automobiles Aerospace income *3
Total
Net sales
Outside customers 3,062,340 142,163 3,204,503 28,192 3,232,695 － 3,232,695
Inter-segment 2,918 5 2,923 23,852 26,775 (26,775) －
Total sales 3,065,258 142,168 3,207,426 52,044 3,259,470 (26,775) 3,232,695
Segment income 361,454 12,259 373,713 5,066 378,779 668 379,447
Identifiable assets by
2,580,353 234,619 2,814,972 77,583 2,892,555 (26,081) 2,866,474
business segment
Other items
Depreciation 95,193 5,298 100,491 1,611 102,102 － 102,102
Investment to equity-
3,461 － 3,461 54 3,515 － 3,515
method affiliates
Increase of property,
plant and equipment 185,056 8,316 193,372 417 193,789 － 193,789
and intangible assets

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

―15―
FYE 2019 (April 1, 2018 to March 31, 2019) (Unit: Millions of yen)
Business segment reported Consolidated
Other Adjustment
Total Statement of
Sub- *1 *2
Automobiles Aerospace income *3
Total
Net sales
Outside customers 3,014,476 131,669 3,146,145 14,369 3,160,514 － 3,160,514
Inter-segment 3,134 804 3,938 26,822 30,760 (30,760) －
Total sales 3,017,610 132,473 3,150,083 41,191 3,191,274 (30,760) 3,160,514
Segment income 184,947 6,047 190,994 3,846 194,840 689 195,529
Identifiable assets by
2,656,560 275,866 2,932,426 76,818 3,009,244 (26,519) 2,982,725
business segment
Other items
Depreciation 96,867 4,487 101,354 1,395 102,749 － 102,749
Investment to equity-
3,362 － 3,362 1,321 4,683 － 4,683
method affiliates
Increase of property,
plant and equipment 162,132 6,058 168,190 1,770 169,960 － 169,960
and intangible assets

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

4. Changes in Segment reported

(Changes in accounting method for sales)
As described in "(Changes in Accounting policies)", changes in accounting method for sales are retrospectively
applied. As a result, sales of "Automobiles" decreased by 172,526 million yen in the FYE 2018.

(Changes in depreciation method for tangible fixed assets)

As described in "(Changes in Accounting policies)", the Company and its major consolidated subsidiaries changed
the depreciation method for tangible fixed assets. Segment income of "Automobiles" increased by 11,731 million
yen, "Aerospace" increased by 1,055 million yen and "Other" increased by 112 million yen respectively in the FYE
2019.

(Changes in classification of Deferred tax assets)

As described in "(Changes in presentation methods)", the Company changed classification of Deferred tax assets.
As a result, identifiable assets by business segment of "Automobile" decreased by 17,839 million yen in the FYE
2018.

―16―
 (Per Share Information)

FYE2018 FYE2019
(April 1, 2017 to (April 1, 2018 to
March 31, 2018) March 31, 2019)
Net assets per share (yen) 2,025.31 2,093.60
Net income per share, basic (yen) 287.40 192.78

Notes: 1. Since there are no dilutive potential securities, diluted information is not presented.
2. The following shows the basis of calculating net income per share.
FYE2018 FYE2019
(April 1, 2017 to (April 1, 2018 to
March 31, 2018) March 31, 2019)
Net income per share
Net income attributable to owners of parent (millions of yen) 220,354 147,812
Monetary value not related to common shareholders
－ －
(millions of yen)
Net income attributable to owners of parent
220,354 147,812
related to common stock (millions of yen)
Number of weighted average common shares outstanding
766,708 766,749
during the fiscal year (Thousands of shares)

3. The following shows the basis of calculating net assets per share.
FYE2018 FYE2019
(as of March 31, 2018) (as of March 31, 2019)
Total amount of net assets (millions of yen) 1,561,023 1,612,825
The amount deducted from total amount of net assets
8,179 7,534
(millions of yen)
(Held by Non-controlling interests)(millions of yen) (8,179) (7,534)
Net assets related to common stock (millions of yen) 1,552,844 1,605,291
Number of common stock used in the calculation of net assets
766,721 766,761
per share (Thousands of shares)

(Subsequent Event)
Not Applicable

―17―
4. Non-consolidated Financial Statements
(1) Non-consolidated Balance Sheet
(Unit: Millions of yen)
FYE2018 FYE2019
(as of March 31, 2018) (as of March 31, 2019)
ASSETS
Ⅰ Current assets
Cash and deposits 601,440 742,751
Accounts receivable-trade 244,157 261,785
Short-term investment securities 102,499 80,997
Merchandise and finished goods 39,307 48,330
Work in process 47,567 66,718
Raw materials and supplies 15,663 20,016
Advance payments-trade 6,644 14,924
Prepaid expenses 6,957 4,801
Short-term loans receivable to subsidiaries and affiliates 56,195 58,704
Current portion of long-term loans receivable from
22,500 18,000
subsidiaries and affiliates
Deposits paid 30,759 30,540
Accounts receivable-other 36,845 38,594
Other 25,683 20,964
Allowance for doubtful accounts (32) (11)
Total current assets 1,236,184 1,407,113
Ⅱ Noncurrent assets
1. Property, plant and equipment
Buildings, net 86,423 90,496
Structures, net 12,469 13,725
Machinery and equipment, net 99,248 118,217
Vehicles, net 1,771 2,774
Tools, furniture and fixtures, net 7,608 10,078
Land 80,002 81,612
Construction in progress 33,493 7,684
Other 1,737 3,050
Total property, plant and equipment 322,751 327,636
2. Intangible assets
Software 20,008 22,863
Other 5,668 6,758
Total intangible assets 25,676 29,621
3. Investments and other assets
Investment securities 9,371 3,673
Stocks of subsidiaries and affiliates 147,657 148,828
Investments in capital of subsidiaries and affiliates 2,436 3,634
Long-term loans receivable 604 504
Long-term loans receivable from subsidiaries and affiliates 71,885 80,949
Claims provable in bankruptcy, claims provable in
2,690 2,660
rehabilitation and other
Prepaid pension cost 12,506 11,638
Deferred tax assets 94,129 111,639
Other 22,099 22,989
Allowance for doubtful accounts (4,037) (3,272)
Total investments and other assets 359,340 383,242
Total noncurrent assets 707,767 740,499
Total assets 1,943,951 2,147,612

―18―
 (Unit: Millions of yen)
FYE2018 FYE2019
(as of March 31, 2018) (as of March 31, 2019)
LIABILITIES
Ⅰ Current liabilities
Notes payable-trade 1,270 507
Accounts payable-trade 263,317 237,125
Electronically recorded obligations-operating 63,841 63,954
Current portion of long-term loans payable 40,100 5,500
Lease obligations 909 1,831
Accounts payable-other 29,374 17,398
Accrued expenses 37,638 38,269
Income taxes payable 42,294 912
Advances received 33,937 33,416
Deposits received 1,468 237,943
Provision for bonuses 15,686 14,294
Provision for product warranties 192,915 255,836
Provision for loss on construction contracts 160 666
Provision for loss on business liquidation 3,098 1,575
Asset retirement obligations 0 －
Other 9,594 4,261
Total current liabilities 735,601 913,487
Ⅱ Noncurrent liabilities
Long-term loans payable 16,000 85,200
Lease obligations 1,345 1,603
Provision for product warranties 30,380 33,046
Provision for retirement benefits 381 261
Asset retirement obligations 16 16
Other 4,160 3,190
Total noncurrent liabilities 52,282 123,316
Total liabilities 787,883 1,036,803
NET ASSETS
Ⅰ Shareholders' equity
Capital stock 153,795 153,795
Capital surplus
Legal capital surplus 160,071 160,071
Other capital surplus 19 14
Total capital surplus 160,090 160,085
Retained earnings
Legal retained earnings 7,901 7,901
Other retained earnings
Reserve for reduction entry of land 990 990
General reserve 35,335 35,335
Retained earnings brought forward 802,203 759,738
Total retained earnings 846,429 803,964
Treasury stock (7,054) (6,910)
Total shareholders' equity 1,153,260 1,110,934
Ⅱ Valuation and translation adjustments
Valuation difference on available-for-sale securities 2,808 (125)
Total valuation and translation adjustments 2,808 (125)
Total net assets 1,156,068 1,110,809
Total liabilities and net assets 1,943,951 2,147,612

―19―
 (2) Non-consolidated Statements of Income (for twelve-month period)
(Unit: Millions of yen)
FYE2018 FYE2019
(April 1, 2017 to (April 1, 2018 to
March 31, 2018) March 31, 2019)
Ⅰ Net sales 2,083,284 1,929,791
Ⅱ Cost of sales 1,604,246 1,641,311
Gross profit 479,038 288,480
Ⅲ Selling, general and administrative expenses 223,023 208,658
Operating income 256,015 79,822
Ⅳ Non-operating income
Interest income 1,362 8,814
Interest on securities 38 37
Dividends income 19,523 3,531
Foreign exchange income － 3,031
Real estate rent 2,835 2,868
Gain on valuation of derivatives 2,266 －
Other 3,258 4,544
Total non-operating income 29,282 22,825
Ⅴ Non-operating expenses
Interest expenses 311 3,926
Depreciation 966 1,233
Foreign exchange losses 14,242 －
Loss on valuation of derivatives － 6,993
Plant shutdown related costs － 2,532
Other 3,753 5,344
Total non-operating expenses 19,272 20,028
Ordinary income 266,025 82,619
Ⅵ Extraordinary income
Gain on sales of noncurrent assets 46 95
Gain on sales of investment securities 4,256 3,214
Other 1,375 1,379
Total extraordinary income 5,677 4,688
Ⅶ Extraordinary loss
Loss on sales and retirement of noncurrent assets 3,092 3,609
Loss related to airbags 81,261 －
Other 1,419 566
Total extraordinary losses 85,772 4,175
Income before income taxes 185,930 83,132
Income tax-current 72,913 31,362
Income taxes-deferred (40,479) (16,233)
Total income taxes 32,434 15,129
Net income 153,496 68,003

―20―
 (3) Non-consolidated Statements of Changes in Net Assets
FYE 2018 (April 1, 2017 to March 31, 2018)
(Unit: Millions of yen)
Shareholders' equity

Capital surplus Retained earnings

Other retained earnings

Capital Other Legal Total
Legal capital Total capital Retained
stock capital retained Reserve for
surplus surplus General earnings retained
surplus earnings reduction entry
reserve brought earnings
of land
forward
Balance at the beginning
153,795 160,071 － 160,071 7,901 990 35,335 759,170 803,396
of current period
Changes of items during
the period
Dividends from surplus － － － － － － － (110,463) (110,463)

Net income － － － － － － － 153,496 153,496

Purchase of treasury stock － － － － － － － － －

Disposal of treasury stock － － 19 19 － － － － －

Net changes of items other
－ － － － － － － － －
than shareholders' equity
Total changes of items during
－ － 19 19 － － － 43,033 43,033
the period
Balance at the end of current
153,795 160,071 19 160,090 7,901 990 35,335 802,203 846,429
period

Shareholders' equity Valuation and translation adjustments

Total Valuation difference Total valuation Total net assets
Treasury stock shareholders' on available-for- and translation
equity sale securities adjustments
Balance at the beginning
(7,173) 1,110,089 5,160 5,160 1,115,249
of current period
Changes of items during
the period
Dividends from surplus － (110,463) － － (110,463)

Net income － 153,496 － － 153,496

Purchase of treasury stock (11) (11) － － (11)

Disposal of treasury stock 130 149 － － 149

Net changes of items other
－ － (2,352) (2,352) (2,352)
than shareholders' equity
Total changes of items during
119 43,171 (2,352) (2,352) 40,819
the period
Balance at the end of current
(7,054) 1,153,260 2,808 2,808 1,156,068
period

―21―
 FYE 2019 (April 1, 2018 to March 31, 2019)
(Unit: Millions of yen)
Shareholders' equity

Capital surplus Retained earnings

Other retained earnings

Capital Other Legal Total
Legal capital Total capital Retained
stock capital retained Reserve for
surplus surplus General earnings retained
surplus earnings reduction entry
reserve brought earnings
of land
forward
Balance at the beginning
153,795 160,071 19 160,090 7,901 990 35,335 802,203 846,429
of current period
Changes of items during
the period
Dividends from surplus － － － － － － － (110,468) (110,468)

Net income － － － － － － － 68,003 68,003

Purchase of treasury stock － － － － － － － － －

Disposal of treasury stock － － (5) (5) － － － － －

Net changes of items other
－ － － － － － － － －
than shareholders' equity
Total changes of items during
－ － (5) (5) － － － (42,465) (42,465)
the period
Balance at the end of current
153,795 160,071 14 160,085 7,901 990 35,335 759,738 803,964
period

Shareholders' equity Valuation and translation adjustments

Total Valuation difference Total valuation Total net assets
Treasury stock shareholders' on available-for- and translation
equity sale securities adjustments
Balance at the beginning
(7,054) 1,153,260 2,808 2,808 1,156,068
of current period
Changes of items during
the period
Dividends from surplus － (110,468) － － (110,468)

Net income － 68,003 － － 68,003

Purchase of treasury stock (5) (5) － － (5)

Disposal of treasury stock 149 144 － － 144

Net changes of items other
－ － (2,933) (2,933) (2,933)
than shareholders' equity
Total changes of items during
144 (42,326) (2,933) (2,933) (45,259)
the period
Balance at the end of current
(6,910) 1,110,934 (125) (125) 1,110,809
period

―22―
 May 10, 2019
Subaru Corporation
< Reference for FYE2019 Consolidated Financial Results >
(Yen in 100 Millions, Units in Thousands)
FYE2018 (Note 1) FYE2019 (Note 1) FYE2020 (Note 2)
[ 2017.4 - 2018.3 ] [ 2018.4 - 2019.3 ] [ 2019.4 - 2020.3 ]
RESULTS RESULTS FORECASTS
JGAAP JGAAP JGAAP (Reference)
Originally- Change IFRS Change
(a) reported
(b) % (c) %
(b-a) (c-b)
Revenue *1 32,327 34,052 31,605 (722) (2.2) 33,100 33,020 1,415 4.5
Japan 6,680 6,686 5,966 (714) (10.7) 5,841 5,760 (206) (3.4)
Overseas 25,647 27,367 25,639 (8) (0.0) 27,260 27,260 1,620 6.3
Operating profit *2 3,794 1,955 (1,839) (48.5) 2,600 2,500 545 27.9
Profit margin (%) 11.7 11.1 6.2 7.9 7.6
Ordinary income 3,799 1,962 (1,837) (48.3) 2,575 613 31.2
Profit margin (%) 11.8 11.2 6.2 7.8
Profit before tax *3 2,973 1,958 (1,015) (34.1) 2,700 2,520 562 28.7
Profit margin (%) 9.2 8.7 6.2 8.2 7.6
Profit for the period attributable to 2,204 1,478 (725) (32.9) 2,100 2,000 522 35.3
owners of parent *4 Profit margin (%) 6.8 6.5 4.7 6.3 6.1

Decrease in R&D exp Decrease in SG&A exp,

Factors contributing to 186 706
etc.
change in operating income Increase in SG&A exp,
(987) Accounting Improvement in model
252
etc. standard mix, etc.
Deterioration in model difference: Increase in R&D exp
(874) (173)
mix, etc. 100
Increase in raw material Effects of foreign
(107) (148)
costs, etc. exchange rates
Effects of foreign Increase in raw material
(57) (92)
exchange rates costs, etc.
Exchange rates JPY/US$ 111/US$ 111/US$ 110/US$
JPY/EUR 130/EUR 129/EUR 120/EUR
Capital expenditures 1,414 1,135 1,400
Depreciation and amortization 898 888 1,000
R&D expenditures *5 1,211 1,027 1,200
Interest bearing debts 862 1,004 1,450
Performance description - First decrease in net sales in 7 yrs
yrs. - First increase in net sales in 2 yrs
yrs.
(Comparison on JGAAP basis) - Decrease in all profits for 3
- First increase in all profits in 4 yrs.
consecutive yrs.
- First decrease in consolidated unit - First increase in consolidated unit
sales in 7 yrs. sales in 2 yrs.
Consolidated unit sales <Japan> *6 163 135 (28) (17.2) 141 *5 138 2 1.7
Passenger Cars 133 110 (23) (17.2) 112 *5 110 0 0.3
Minicars 31 26 (5) (17.1) 28 *5 28 2 7.7
Consolidated unit sales <Overseas> 903 865 (39) (4.3) 918 53 6.2
North America 728 717 (11) (1.5) 753 37 5.1
Europe 48 40 (8) (16.1) 46 6 15.0
China 27 23 (4) (15.2) 25 2 10.6
Other 101 85 (16) (15.7) 93 8 9.5
Consolidated unit sales total 1,067 1,000 (67) (6.3) 1,058 1,055 56 5.6
Production units total 1,050 989 (61) (5.8) 1,056 67 6.8
Japan 701 617 (84) (12.0) 668 51 8.2
U.S. 349 372 24 6.8 389 17 4.5
Automobile 30,623 32,349 30,145 (479) (1.6)
Net sales by
Aerospace 1,422 1,317 (105) (7.4)
business segment
Other 282 144 (138) (49.0)
Automobile 3,615 1,849 (1,765) (48.8)
Operating income Aerospace 123 60 (62) (50.7)
by business
Other 51 38 (12) (24.1)
segment
Elimination & 7 7 0 3.1
Corporate
Note 1: With effect from FYE2019, the Company has changed its accounting policies. In the new method, sales incentives are deducted from net sales,
whereas they were previously recognized as SG&A expenses. For comparison purposes, net sales and SG&A of the previous year (FYE2018) have been
recalculated according to the new policies. The recalculated figures are stated along with the originally-announced figures. There is no impact of the
recalculation on FYE2018 profit figures. Performance description notes for FYE2019 are stated in comparison with the recalculated figures of FYE2018.
Note 2: As the Company is voluntarily adopting International Financial Reporting Standards (IFRS) from the fiscal year ending March 2020 in place of the
Japanese generally accepted accounting principles (JGAAP) previously adopted, forecasts for FYE2020 are calculated based on IFRS. For the purposes
of comparison with the previous year (FYE2019), forecast figures for FYE2020 based on JGAAP are also stated as a reference.
*1: “Net sales” in JGAAP is stated as “revenue” in IFRS. *2: “Operating income” in JGAAP is stated as “operating profit” in IFRS.
*3: “Income before income taxes” in JGAAP is stated as “profit before tax” in IFRS.
*4: "Net income attributable to owners of parent" in JGAAP is stated as "profit for the period attributable to owners of parent" in IFRS.
*5: "R&D expenditures" are R&D activity related costs incurred during the reporting period. Under JGAAP, the amount of "R&D expenditures" matches that of "R&D expenses" on the
Consolidated Statement of Income. Under IFRS, a part of "R&D expenditures" that meets capitalization criteria is recognized as an intangible asset and amortized over its estimated
useful life. As such, the amount of "R&D expenditures" does not match that of "R&D expenses" on the Consolidated Statement of Income under IFRS.
*6: Under IFRS, revenue recognition timing for unit sales in Japan is on a delivery-to-customer basis, whereas it is on a vehicle registration basis under JGAAP.
- "Exchange rates" are the rates used for Subaru Corporation's non-consolidated revenue recording.
- "Consolidated unit sales" include retail sales of Japanese consolidated dealers, wholesale sales of overseas consolidated distributors, and deliveries from Subaru
Corporation to non-consolidated distributors/dealers.
- Production in Japan includes production of the Toyota 86 models for Toyota.
< Forward-looking statements in this document are based on the information available at the time of the announcement and are subject to various risks and
uncertainties that could cause actual results to vary materially. >
 Subaru Corporation Announces Consolidated Financial Results for FYE2019

Tokyo, May 10, 2019 – Subaru Corporation today announced its consolidated financial results for the fiscal year ended March
31, 2019.

< Results for FYE2019: Consolidated Net Sales >

In overseas markets, Subaru kept strong momentum on retail sales, as the newly-introduced Ascent led sales in Subaru’s
largest North American market. On the other hand, consolidated overseas unit sales fell 4.3% to 865,000 units, for reasons
including decreased deliveries of the Forester before the launch of its fully-redesigned version in the first half of the year.
Consolidated unit sales in Japan decreased 17.2% to 135,000 units, as sales of Impreza, Subaru XV and Levorg declined,
offsetting strong demand for the fully-redesigned Forester launched in July 2018. Consolidated global unit sales of Subaru
vehicles decreased 6.3% to 1,000,000 units.
Consolidated net sales declined 2.2% to 3,160.5 billion yen.*1
Subaru’s total production decreased 5.8% to 989,000 units, for the Company’s Gunma plant related factors including changes
in plant operation schedules implemented since the fall of 2018 to ensure quality-first production and inspection work as well
as production halt in January 2019 due to a defect in the Electric Power Steering unit.

< Results for FYE2019: Consolidated Profit and Loss >

Operating income declined 48.5% to 195.5 billion yen for factors such as an increase in quality-related expenses due to recall
campaigns notified in November 2018 and a decrease in consolidated unit sales. Ordinary income decreased 48.3% to 196.2
billion yen. Net income attributable to owners of parent fell 32.9% to 147.8 billion yen.

< Forecasts for FYE2020 >

As the Company is voluntarily adopting International Financial Reporting Standards (IFRS) for its consolidated financial
statements from the fiscal year ending March 2020, forecasts for FYE2020 are calculated based on IFRS.*2
Consolidated global unit sales are projected to be 1,058,000 vehicles*3 in prospect of growth mainly in the North American
market. The Company projects revenue*4 of 3,310 billion yen, operating profit*5 of 260 billion yen, profit before tax*6 of 270
billion yen, and profit for the period attributable to owners of parent*7 of 210 billion yen.
Currency rate assumptions: 110 yen/US$, 120 yen/euro

*1: With effect from the fiscal year ended March 2019, the Company has changed its accounting policies. In the new method, sales incentives are
deducted from net sales, whereas they were previously recognized as SG&A expenses.
For comparison purposes, net sales and SG&A expenses of the previous fiscal year (FYE2018) have been recalculated according to the new policies.
The recalculated figures of net sales and SG&A expenses for FYE2018 are 3,232.7 billion yen and 410.5 billion yen, respectively, a decrease of 172.5
billion yen each from the originally-reported figures announced on May 11, 2018. There is no impact of the recalculation on profit figures of the
previous fiscal year.
*2: Percent changes from the previous year (FYE2018) for forecast figures are not stated, as results for the previous year are based on the Japanese
generally accepted accounting principles (JGAAP).
*3: Under IFRS, revenue recognition timing for unit sales in Japan is on a delivery-to-customer basis, whereas it is on a vehicle registration basis
under JGAAP.
*4: “Net sales” in JGAAP is stated as “revenue” in IFRS.
*5: “Operating income” in JGAAP is stated as “operating profit” in IFRS.
*6 “Income before income taxes” in JGAAP is stated as “profit before tax” in IFRS.
*7: “Net income attributable to owners of parent” in JGAAP is stated as “profit for the period attributable to owners of parent” in IFRS.
Note: Vehicle volume figures are rounded off to the nearest thousand.

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