Notice Regarding Year-on-Year Changesin Consolidated Financial Results for FYE2019

May 10, 2019

Notice Regarding Year-on-Year Changes
in Consolidated Financial Results for FYE2019

Company name: SUBARU CORPORATION
Representative: Tomomi Nakamura, Representative Director, President and CEO
Code number: 7270 (First Section of Tokyo Stock Exchange)
Contact for inquiries: Katsuo Saito, Vice President
and General Manager of Investor Relations Department
Phone: +81-3-6447-8825

Subaru Corporation hereby notifies year-on-year changes between the consolidated financial results for FYE2019 (April 1 – March 31, 2019) announced today and the corresponding of the previous year. Details are set out below.

1. Year-on-Year Changes in Consolidated Financial Results for FYE2019

Net sales
Operating
income
Ordinary
income
Net income
attributable to owners
of parent
Net income
per share

FYE2018 Results (A)
Millions of yen
3,232,695
Millions of yen
379,447
Millions of yen
379,934
Millions of yen
220,354
Yen
287.40

FYE2019 Results (B)
3,160,514
195,529
196,0239
147,812
192.78

Increase or decrease (B-A)
(72,181)
(183,918)
(183,695)
(72,542)

Percentage change (%)
(2.2)
(48.5)
(48.3)
(32.9)

Note: The Company has changed its accounting policies with effect from the first quarter of FYE2019. Accordingly, the new policies have been retroactively applied to FYE2018 results before carrying out year-on-year comparison and analysis of net sales figures.

2. Reasons for the Changes
In the automotive business, 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.
In the Aerospace Company, 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, Net sales in the period under review decreased by ¥72.2billion (2.2%) from the previous fiscal year to ¥3,160.5 billion.
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.

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Subaru Corporation Announces Consolidated Financial Results for FYE2019

May 10, 2019

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.

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.

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.

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.

[PDF/179 KB]

Subaru Corporation Announces Production, Japan Sales and Export Resultsfor March 2019 and FYE2019 (Flash Report)

April 25, 2019

Subaru Corporation Announces Production, Japan Sales and Export Results
for March 2019 and FYE2019 (Flash Report)

March 2019
Jan-Mar 2019

Units
2019 vs 2018
Units
’19 vs ’18

Domestic production *1

56,576

-12.2%
8th consecutive month of y/y decrease

125,943

-25.4%

Overseas production *2

33,188

+12.3%
9th consecutive month of y/y increase

100,963

+14.5%

Global production total

89,764

-4.5%
4th consecutive month of y/y decrease

226,906

-11.8%

Passenger vehicles
16,022
-5.4%
17th consecutive month of y/y decrease
31,093
-15.8%

Mini vehicles
3,034
-27.8%
4th consecutive month of y/y decrease
7,389
-25.7%

Japan sales total
19,056
-9.8%
17th consecutive month of y/y decrease
38,482
-17.9%

Export total *3

46,364

-7.9%
5th consecutive month of y/y decrease

95,342

-30.3%


Domestic production decreased year-on-year due to changes in plant operation schedules.


Overseas production increased year-on-year boosted by production of Ascent which started in May 2018.


Passenger vehicle sales decreased year-on-year, as sales of Impreza and Subaru XV models declined offsetting strong sales of the fully-redesigned Forester launched in July 2018.


Mini vehicle sales decreased year-on-year as sales of Pleo and other models declined.


Exports from Japan decreased year-on-year due to a decrease in domestic production.

April 2018 - March 2019 (FYE2019)

Units
FYE2019 vs FYE2018

Domestic production *1

616,987

-12.0%
2nd consecutive year of decrease

Overseas Production *2


372,162

+6.8%
5th consecutive year of increase

Global Production Total

989,149

-5.8%
2nd consecutive year of decrease

Passenger Vehicles
113,500
-16.9%
First decrease in 3 years

Mini Vehicles
26,568
-16.8%
5th consecutive year of decrease

Japan Sales Total
140,068
-16.9%
First decrease in 3 years

Export Total *3

491,496

-11.7%
2nd consecutive year of decrease

◎: Record high for April-March period


Domestic production decreased as production of Impreza and Subaru XV models declined.


Overseas production increased boosted by production of Ascent which started in May 2018.


Passenger vehicle sales decreased as sales of Impreza and Subaru XV models declined offsetting strong sales of the fully-redesigned Forester launched in July 2018.


Mini vehicle sales decreased as sales of Pleo and other models declined.


Exports from Japan decreased due to a decrease in domestic production.

*1 JAMA (Japan Automobile Manufacturers Association Inc.) report basis (CBU)
*2 Local line-off basis
*3 JAMA report basis

[PDF/136 KB]

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Subaru to Debut All-new 2020 Outback at 2019 New York International Auto Show

April 10, 2019

Subaru to Debut All-new 2020 Outback at 2019 New York International Auto Show

Tokyo, April 10, 2019 – Subaru Corporation today announced that the all-new 2020 Subaru Outback (U.S. model) will make its world debut at the 2019 New York International Auto Show (Press preview: April 17 – 18 / Open to the public: April 19 – 28, 2019).

The Subaru Outback will be unveiled at the press briefing scheduled for 11:15 (Eastern Daylight Time) on April 17 at Subaru booth.

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WORLD PREMIER OF ALL-NEW 2020 SUBARU OUTBACK

April 18, 2019

WORLD PREMIER OF ALL-NEW 2020 SUBARU OUTBACK

—Subaru’s flagship crossover SUV gets more rugged —


The sixth-generation of the crossover SUV now in its25th year since 1995 debut


Superior driving dynamics with Subaru Global Platform and an available 2.4-liter direct injection turbo boxer engine


Refined and innovative interior featuring new tablet-style 11.6-inch screen


Superior safety based on Subaru’s comprehensive safety philosophy


Tough and rugged exterior design inspires driver and passengers’ active mind

Tokyo, April 18, 2019 – Subaru Corporation unveiled the all-new 2020 Outback (US Spec) at the 2019 New York International Auto Show on April 17 (local time in New York).

Outback Onyx Edition XT
Outback Touring

Since its debut in 1995, the Outback has built a history as a crossover SUV integrating the attributes of both passenger cars and SUVs, and now enters its sixth-generation. Throughout its history, the Outback has offered core values such as safety, comfort, versatility and quality, not only enriching its owners’ lifestyles but also establishing a unique character as Subaru’s flagship crossover SUV. Developed under the concept of “Crossover vehicle that stimulates intellectual curiosity and encourages new discoveries,” the new Outback has evolved once again by adding the latest technologies on top of the traditional Outback attributes.

The all-new Outback is powered by either a 2.4-liter turbocharged BOXER engine delivering strong torque output from low RPM or a 2.5-liter normally-aspirated BOXER engine with improved efficiency thanks to direct injection system. Combined with the new engine is Subaru Global Platform which optimizes the body rigidity, and Outback’s reputable dynamic performance has been further enhanced as a result. In addition, Subaru’s exclusive EyeSight driver assist system comes standard in all trims and is now equipped with the Advanced Adaptive Cruise Control including new Lane Centering function. In combination with available driver monitoring system*1, EyeSight equipped Outback brings driver additional peace of mind, as a partner that assists owners’ active lifestyles.

The exterior design incorporates the side silhouette expressing a sense of speed, larger profile panel surfaces with sense of thickness and more rugged body claddings. As a result, the Outback gives tough and active feel at a glance. For the interior, an updated infotainment system featuring 11.6-inch tablet style large screen has been applied and it adds advanced functions to the high-quality interior of the flagship model.

With the all-around enhancements, the all-new Outback will deliver safer and more enjoyable experience as a partner for an active lifestyle.

The 2020 Outback will go on sale at U.S. Subaru retailers this fall.

Main features of the new Outback (US Spec)
■ Driving enjoyment and peace of mind supported by superior dynamic quality feel

As Subaru’s flagship crossover, improved control, stability, ride comfort, and quietness of new Outback make a driving experience more comfortable and enjoyable in a variety of scenes, from cities to highways, in any weather conditions

Chassis and body supporting superior dynamic quality feel

・Application of Subaru Global Platform, which makes the vehicle body significantly rigid compared to previous model, ensures accurate steering response, greater ride comfort and quieter cabin space

・Significant enhancement in dynamic quality feel thanks to stiffer and lighter body structure with full inner frame construction in which the outer panels are welded to the structure after the entire body framework is assembled

・Newly designed dampers and reduced unsprung weight due to the application of lightweight parts, including aluminum lower L-arm, contribute to much improved handling and ride comfort while maintaining the 8.7-inch ground clearance

Subaru unique mechanisms and technologies for distinctive driving experience

・Standard Symmetrical All-Wheel Drive offers stable drive in any road condition

・Available 2.4-liter turbocharged BOXER engine generates strong torque from low rpm and delivers smooth acceleration

・Updated Lineartronic*2 with wider gear range and re-worked hydraulic system transfers engine power more efficiently and delivers better fuel economy and superior driving experience

・Up to 3,500-lb of towing capacity thanks to newly developed rear differential gear (2.4L Turbocharged Boxer engine equipped model)

・X-Mode enhances rough road driving capability by optimizing the operation of engine, transmission and brakes

■ High-quality and advanced interior space

Quality interior design, relaxing cabin space with improved packaging and advanced feature provide comfort and enjoyment for driver and all passengers

Advanced features for convenience and comfort

・Updated Starlink infotainment system with available 11.6-inch tablet-style touch screen features a newly designed Human Machine Interface and allows smartphone-like operation of various functions consolidated on one large screen

・In addition to Apple CarPlay*3, AndroidAutoTM*4, the SUBARU STARLINK now supports SmartDeviceLinkTM*5 which allows the use of various apps regardless of smartphone operating system

・Telematics system with additional functions including Wi-Fi hotspot and remote engine starter for more convenience

・Available Driver Monitoring System not only identifies signs of driver fatigue or distraction and provide warning to driver and passengers for additional safety, but also delivers convenience by identifying individual in the driver seat and automatically adjusts driver settings for seat position, door mirror angles and air-conditioning preferences

High quality, comfortable interior design

・Brown-colored Nappa leather seats for ‘Touring’ trim

・Enlarged windshield and long line motif extended from the center of the instrument panel to the door panels express a relaxed and open atmosphere of the cabin space

・A color of the seat material is also applied on a part of instrument panel consisted of 3 different surfaces to create a sense of openness

・Thick center console and arm rests surrounding driver and passenger provide a sense of protection

・Carefully selected materials for high-quality feel throughout the entire cabin

Well-considered packaging and convenient features for a comfortable feeling

・Windshield and front door windows have been moved outward for class-leading driver visibility

・Extended vehicle length was allocated for both rear passenger space and cargo space for further enhancement of passenger comfort and versatility

・New PTC heating system for quicker heating in winter (For 2.4L Turbocharged Boxer engine equipped model)

・Front seat ventilation standard on Touring trim

・Adjustable seat cushion length (driver only) for Limited and Touring trim levels

■Functionality that supports various lifestyles

With a variety of convenient features suited for outdoor use, new Outback invites you to active outdoor lifestyle

User friendly, versatile cargo space enhances the value as a SUV

・Subaru-first hands-free power rear gate and single-touch lifting cargo cover allows easy operation even on the rough ground surface in outdoor environment

・Wider cargo room opening and faster gate operation from new power rear gate system allow smoother cargo loading

・Roof rails with integrated and retractable cross bars now enhanced with tie-down holes for more security

・Added hooks in cargo room for more convenience

■ Overall safety top in its class

The new model offers safe and enjoyable driving for driver and all passengers at all times in all settings—not just in emergencies—based on Subaru’s philosophy of overall safety.

Outstanding visibility recognizable at a glance as soon as driver get into the car—Primary Safety

・The excellent high eye-level view and careful optimization of the shape of the pillars have reduced blind spots and provides outstanding visibility

・Well-considered interface layout to reduce unnecessary eye-movement while driving

・Optimization of the seat shape and cushion materials helps to reduce driver fatigue

Dynamic performance driver can depend on in the unlikely event of an Incident—Active Safety

・Active Torque Vectoring ensures that the driver is in control of the vehicle, exactly as the driver intended

Comprehensive advanced safety systems—Preventive Safety

・Subaru’s exclusive EyeSight driver assist system comes standard in all trims and now equipped with the new Advanced Adaptive Cruise Control including new Lane Centering function

・EyeSight assist monitor notifies the system activation status with LED lighting projected on the windshield

・Driver Monitoring System supports safe driving by warning a driver when it detects signs of distraction or drowsiness

・Standard LED headlights for better nighttime visibility

・Reverse Automatic Braking helps to avoid collisions when reversing and mitigates the damage in case of collision

・Subaru Rear Vehicle Detection system senses vehicles approaching from the rear and gives audio and visual alert

・Front view monitor captures images within the driver’s blind spots in front of the vehicle and displays a 180-degree view on the 11.6-inch display

・Rear view camera washer clears up the camera for better visibility

Class-leading crash protection—Collision Safety

・Optimized body structure with the adoption of Subaru Global Platform ensures class-leading crash protection

・An increase in the amount of high-tensile steel panel materials ensures improved protection in frontal, side and rear end collisions

■ Tough and rugged exterior design

Following Subaru’s common “Dynamic x Solid” design philosophy, the exterior design of Outback aimed to express a feel of active gear at a glance, based on the design concept “Active & Tough”

Front face emphasizes its toughness

・Wide grille decorated with chrome-plated sharp frame and thick bar inside emphasizes dignity o..

Subaru Corporation Announces Organizational Changes (Effective April 1, 2019)

April 1, 2019

Subaru Corporation Announces Organizational Changes (Effective April 1, 2019)

Tokyo, April 1, 2019 – Subaru Corporation announces the following organizational changes with effect from today.

[ Overseas Sales & Marketing Division 2 ]

Both departments have been renamed to clearly identify the regions and markets for which they are responsible.

To clearly identify the regions and markets for which it is responsible, Sales & Marketing Department 2 has been divided into the China Business Department and the Asia Business Department.
The Asia CKD Business Department, which is responsible for work relating to CKD production in Malaysia and Thailand, has been integrated into the Asia Business Department.

[ Engineering Division 1 ]

In response to changing automotive product values, units responsible for infotainment and telematics development and evaluation of cooperative vehicle control systems, which belonged to the 2nd and 3rd Vehicle Research & Experiment Departments, have been combined to form a new department.

[ Purchasing Division ]

A unit responsible for purchasing advanced technology components, which belonged to the 2nd Purchasing Department, has been made independent to form a new department.

The 4th Purchasing Department, which is responsible for purchasing interior and exterior parts, has been integrated into the 1st Purchasing Department.

[ Aerospace Company ]

With a view to business in fields such as optionally piloted vehicles, the Unmanned Aircraft System Design Department has been renamed the Autonomous System Design Department.

* Related past news release:
https://www.subaru.co.jp/press/news-en/2019_03_01_6952/

[PDF/181 KB]

Subaru Corporation Announces Production, Japan Sales and Export Resultsfor February 2019 (Flash Report)

March 28, 2019

Subaru Corporation Announces Production, Japan Sales and Export Results
for February 2019 (Flash Report)

February 2019
Jan-Feb 2019

Units
2019 vs 2018
Units
’19 vs ’18

Domestic production *1

47,414

-20.7%
7th consecutive month of y/y decrease

69,367

-33.6%

Overseas production *2

32,146

+9.5%
8th consecutive month of y/y increase

67,775

+15.5%

Global production total

79,560

-10.8%
3rd consecutive month of y/y decrease

137,142

-15.9%

Passenger vehicles
9,688
-8.6%
16th consecutive month of y/y decrease
15,071
-24.6%

Mini vehicles
2,391
-20.5%
3rd consecutive month of y/y decrease
4,355
-24.2%

Japan sales total
12,079
-11.3%
16th consecutive month of y/y decrease
19,426
-24.5%

Export total *3

27,644

-45.8%
4th consecutive month of y/y decrease

48,978

-43.4%


Domestic production decreased year-on-year, due mainly to limited supply of Electric Power Steering units*4 from a supplier.


Overseas production increased year-on-year boosted by production of the Ascent that started in May 2018.


Passenger vehicle sales decreased year-on-year, due to supply shortages of vehicles caused by limited supply of Electric Power Steering units*4 from a supplier.


Mini vehicle sales decreased year-on-year due to decreased sales of the Chiffon and other models.


Exports from Japan decreased year-on-year due to decreased production in January and February.

*1 JAMA (Japan Automobile Manufacturers Association Inc.) report basis (CBU)
*2 Local line-off basis
*3 JAMA report basis
*4 EPS units for Forester, Impreza, Subaru XV models produced in the Gunma manufacturing plant

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Subaru Corporation Announces Production, Japan Sales and Export Resultsfor January 2019 (Flash Report)

February 27, 2019

Subaru Corporation Announces Production, Japan Sales and Export Results
for January 2019 (Flash Report)

January 2019

Units
2019 vs 2018

Domestic production *1

21,953

-50.9%
6th consecutive month of y/y decrease

Overseas production *2


35,629

+21.6%
7th consecutive month of y/y increase

Global production total

57,582

-22.2%
2nd consecutive month of y/y decrease

Passenger vehicles
5,383
-42.6%
15th consecutive month of y/y decrease

Mini vehicles
1,964
-28.2%
2nd consecutive month of y/y decrease

Japan sales total
7,347
-39.4%
15th consecutive month of y/y decrease

Export total *3

21,334

-40.0%
3rd consecutive month of y/y decrease

☆: January record


Domestic production decreased year-on-year, because of production halt from January 16 through January 26 due to a defect in the Electric Power Steering unit as well as changes in plant operation schedules.


Overseas production increased year-on-year boosted by production of the Ascent that started in May 2018.


Passenger vehicle sales decreased year-on-year, because of production halt and suspension of new vehicle registration due to a defect in the Electric Power Steering unit.


Mini vehicle sales decreased year-on-year due to decreased sales of the Chiffon and other models.


Exports from Japan decreased year-on-year due to a decline in domestic production.

*1 JAMA (Japan Automobile Manufacturers Association Inc.) report basis (CBU)
*2 Local line-off basis
*3 JAMA report basis

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[PDF/317 KB]

SUBARU UNVEILED EUROPEAN SPEC “e-BOXER” EQUIPPED MODELSAT GENEVA INTERNATIONAL MOTOR SHOW

March 5, 2019

SUBARU UNVEILED EUROPEAN SPEC “e-BOXER” EQUIPPED MODELS
AT GENEVA INTERNATIONAL MOTOR SHOW

Tokyo, March 5, 2019 – Subaru Corporation today unveiled the European spec version of “Forester” and “SUBARU XV” both equipped with the “e-BOXER”, a power unit combining the Subaru’s signature Boxer engine with an electrification technology, at the 89th Geneva International Motor Show.

Forester(European Spec)
SUBARU XV(European Spec)

“Forester” and “SUBARU XV” with “e-BOXER” are the Subaru’s first electrified products for European markets. The “e-BOXER” used for both vehicles is a power unit utilizing 2.0L horizontally-opposed direct injection engine and an electric motor integrated in the Lineartronic transmission. As an electrified power unit, it achieves not only improved fuel economy, but also brings enjoyment in a variety of scenes, from city driving to rough road driving, through responsive throttle and linear acceleration thanks to the power assist from an electric motor.

Built on SUBARU GLOBAL PLATFORM, “Forester” and “SUBARU XV” are both benefitted from low-center-of-gravity BOXER engine and Symmetrical AWD known for well-balanced weight distribution. As a result, “Forester” and “SUBARU XV” both deliver superior handling, stability and safety performance.

“e-BOXER” equipped ”Forester” and “Subaru XV” will go on sale in fall 2019 at European markets.

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[PDF/449 KB]