Slide 1: Consolidated Financial Results for FYE 2022
Consolidated Financial Results for FYE 2022 SUBARU CORPORATION Tomomi Nakamura, Representative Director, President & CEO May 12 th , 2022 https://www.subaru.co.jp/en/ir/ Thank you for attending our FYE 2022 earnings briefing.
Slide 2: Summary
Summary (Yen in 100 millions, Units in thousands) Results Plan FYE 2021 FYE 2022 FYE 2022 Variance Variance FYE 2023 Variance Results (a) Previous Plan* (b) Results (c) (c)-(a) (c)-(b) (d) (d)-(c) Consolidated Unit Sales 860 740 734 -126 -6 940 +206 Production 810 - 727 -83 - 1,000 +273 Revenue 28,3
Slide 3: Overview of Domestic Production Reorganization Plan
Overview of Domestic Production Reorganization Plan https://www.subaru.co.jp/en/ir/ A year ago, in May of last year, I said in the announcement of “STEP2.0” that we will “accelerate the roadmap toward electrification.” This time, as part of our overall strategy toward electrification, I would like t
Slide 4: Roadmap toward 2050
Roadmap toward 2050 STEP 2.0 CO2 reduction roadmap (announced at the Subaru Technology Briefing in January 2020) By 2030 Make at least 40% of Subaru’s global sales BEVs or HEVs. By the 1st half of the 2030s Apply electrification technologies to all Subaru vehicles sold worldwide. By 2050 Reduce aver
Slide 5: Introduction of the Solterra with the goal of achieving the Subaru difference
Introduction of the Solterra with the goal of achieving the “Subaru difference” Test drive events held in various regions “The Solterra demonstrated amazing capabilities in harsh conditions. It thrives in the snow, not in spite of, but because of being an EV.” * - Takayuki Kinoshita, Sankei Biz (Jap
Slide 6: Strategic reorganization of domestic production for electrified vehicle development
Strategic reorganization of domestic production for the expansion and acceleration of electrified vehicle development 2022 Mid-2020s 2027 or later BEV Solterra released (Production launch through the alliance) Starting in-house BEV production (Starting with ICE/BEV mixed production line) Adding dedi
Slide 7: Strategic reorganization of domestic production
Strategic reorganization of domestic production 2022 Mid-2020s 2027 or later ICE Main Plant Next-gen. HEV ICE HEV Next-gen. HEV Yajima Plant BEV Starting in-house BEV production (ICE/BEV mixed production line) Adding dedicated BEV production line BEV Oizumi Plant Engines Transmissions Kitamoto Next-
Slide 8: This concludes my presentation. In the Mid-Term Management Vision “STEP” that we announced in
https://www.subaru.co.jp/en/ir/ 8 This concludes my presentation. In the Mid-Term Management Vision “STEP” that we announced in 2018, I said we would advance qualitative growth while continuing with quantitative growth at a steady pace in order to be ready for significant changes in the business env
Slide 9: Consolidated Financial Results for FYE 2022
Consolidated Financial Results for FYE 2022 SUBARU CORPORATION Katsuyuki Mizuma, Director, Executive Vice President & CFO May 12 th , 2022 https://www.subaru.co.jp/en/ir/
Slide 10: Consolidated Financial Results for FYE 2022
Consolidated Financial Results for FYE 2022 https://www.subaru.co.jp/en/ir/ 10
Slide 11: FYE 2022: Consolidated Unit Sales / Complete Cars Production
FYE 2022 ： Consolidated Unit Sales / Complete Cars Production (Thousand Units) FYE 2021 FYE 2022 FYE 2022 Variance Variance Results(a) Previous Plan(b) Results(c) (c)-(a) (c)-(b) Production in U.S. 285 - 272 -14 - Production in Japan 525 - 455 -70 - Production* Total 810 - 727 -83 - FYE 2021 FYE 202
Slide 12: FYE 2022: Consolidated Unit Sales (by market)
FYE 2022 ： C: o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t ) (Thousand Units) FYE 2021 FYE 2022 Variance Results Results Passenger cars 82 73 -9 Minicars 20 17 -3 Domestic total 102 89 -12 U.S. 612 506 -105 Canada 50 49 -1 Russia 5 4 -0 Europe 14 15 +1 Australia 31 33 +2 China 24 14 -11
Slide 13: FYE 2022: Consolidated Profit Results
FYE 2022 : Consolidated Profit Results (100 Million Yen) FYE 2021 FYE 2022 FYE 2022 Variance Variance Results(a) Previous Plan(b) Results(c) (c)-(a) (c)-(b) Revenue 28,302 27,000 27,445 -857 +445 Domestic 4,983 4,873 4,880 -103 +7 Overseas 23,319 22,127 22,565 -754 +438 Operating profit 1,025 1,000
Slide 14: Analysis of Variance in Operating Profit (Consolidated)
FYE 2022 : A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) +73 +4 -725 +115 +421 R&D expenses Sales volume & SG&A expenses, mixture, etc. etc. -8 Gain on currency exchange Cost reduction, Other etc. FYE 2021 FYE 2022 Results -120 Res
Slide 15: Previous Plan vs Results: Analysis of Variance in Operating Profit
P r e v i o u s P l a n F Y E 2 0 2 2 ( a s o f F e b r u a r y 7 th) v s R e s u l t s : A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) +61 +37 -101 -89 -31 +28 Cost reduction, R&D expenses SG&A expenses, etc. etc. Sales volume & L
Slide 16: Consolidated Statement of Cash Flows / Cash and cash equivalents
FYE 2022 : Consolidated Statement of Cash Flows / Cash and cash equivalents (100 Million Yen) FYE 2021 FYE 2022 Results Results Net cash provided by (used in) operating activities 2,894 1,957 Net cash provided by (used in) investing activities -2,722 -1,797 Free cash flows 172 159 Net cash provided
Slide 17: Capex / Depreciation / R&D
Capex / Depreciation / R&D (100 Million Yen) FYE 2021 FYE 2022 FYE 2022 Variance Variance Results(a) Previous Plan(b) Results(c) (c)-(a) (c)-(b) Capex *1 862 900 861 -1 -39 Depreciation *1 950 1,000 946 -4 -54 R&D expenditures *2 1,016 1,200 1,138 +121 -62 *1 : Leases, capex & amortization for intan
Slide 18: Forecast for FYE 2023
Forecast for FYE 2023 https://www.subaru.co.jp/en/ir/ 18
Slide 19: FYE 2023 Plan: Consolidated Unit Sales / Complete Cars Production
FYE 2023 Plan ： Consolidated Unit Sales / Complete Cars Production (Thousand Units) FYE 2022 FYE 2023 Variance Results Plan Production in U.S. 272 - - Production in Japan 455 - - Production* Total 727 1,000 +273 FYE 2022 FYE 2023 Variance Results Plan Consolidated Unit Sales Total 734 940 +206 * Pro
Slide 20: FYE 2023 Plan: Consolidated Unit Sales (by market)
FYE 2023 Plan ： C: o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t ) (Thousand Units) FYE 2022 FYE 2023 Variance Results Plan Passenger cars 73 91 +18 Minicars 17 24 +7 Domestic total 89 115 +25 U.S. 506 636 +130 Canada 49 53 +3 China 14 19 +5 Others 75 118 +43 Overseas total 645 826 +181
Slide 21: FYE 2023 Plan: Consolidated Profit Plan
FYE 2023 Plan ： Consolidated Profit Plan (Yen in 100 millions, Units in thousands) FYE 2022 FYE 2023 Variance Results Plan Revenue 27,445 35,000 +7,555 Operating profit 905 2,000 +1,095 Profit before tax 1,070 2,000 +930 Profit for the period attributable to 700 1,400 +700 owners of parent SUBARU US
Slide 22: FYE 2023 Plan: Analysis of Variance in Operating Profit
FYE 2023 Plan ： A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) +859 -1,006 +2,365 -987 Gain on currency SG&A expenses, exchange etc. -156 +20 New car sales total：+2,553 Cost reduction, R&D expenses Other by sales volume +1,647 etc.
Slide 23: Capex / Depreciation / R&D
Capex / Depreciation / R&D (100 Million Yen) FYE 2022 FYE 2023 Variance Results Plan Capex *1 861 1,400 +539 Depreciation *1 946 1,000 +54 R&D expenditures *2 1,138 1,200 +62 *1 : Leases, capex & amortization for intangible assets and lease liabilities are not included in the results and forecast ab
Slide 24: For the Acceleration of Electrification: Strategic reorganization of domestic production
For the Acceleration of Electrification Strategic reorganization of domestic production Starting full-scale Capex Capex (100 million yen) investment in production Capex to revenue ratio (%) reorganization • In FYE 2024, starting full-scale investment in reorganization 1800 8.0% of production inclu
Slide 25: Financial policy updated to utilize net cash for future growth investment
For the Acceleration of Electrification Financial policy updated to utilize net cash for future growth investment Cash and cash equivalents at the end of FYE2022 • Utilization of yen funds and debt financing as needed considering business portfolio and the global financial environment. (100 millio
Slide 26: Shareholder Returns
Shareholder Returns (Yen) Dividend per share FYE 2023 FYE 2022 Forecast * Interim dividend 28 28 Year-end Dividend 28 28 Total 56 56 Payout ratio 61.3% 30.7% ＊Payout ratio：Based on the number of shares in the previous term https://www.subaru.co.jp/en/ir/ 26 Last is our return to shareholders for F
Slide 27: Appendix
Appendix • Segment information by Business & Geographic • Consolidated Financial Results for 4th Quarter (3 months) • Overseas Revenue • FYE 2022 Results (by Quarter) • Consolidated Statement of Financial Position • Complete Cars Production / Retail Sales Units • Non-consolidated Unit Sales • Operat
Slide 28: Revenue and Operating Profit by Business Segment (Consolidated)
FYE 2022 ： Revenue and Operating Profit by Business Segment (Consolidated) (100 Million Yen) Revenue Operating profit FYE 2021 FYE 2022 Variance FYE 2021 FYE 2022 Variance Results Results Results Results Automobile 27,375 26,775 -600 1,091 925 -165 Aerospace 877 623 -254 -98 -70 +28 Other 50 48 -3 3
Slide 29: Revenue and Operating Profit by Geographic Area (Consolidated)
FYE 2022 ： Revenue and Operating Profit by Geographic Area (Consolidated) (100 Million Yen) Revenue Operating profit FYE 2021 FYE 2022 Variance FYE 2021 FYE 2022 Variance Results Results Results Results Japan 6,752 6,663 -90 -356 -195 +161 North America 20,302 19,688 -614 1,027 1,109 +82 Other 1,247
Slide 30: Overseas Revenue (Consolidated)
FYE 2022 ： Overseas Revenue (Consolidated) (100 Million Yen) FYE 2021 FYE 2022 Variance Results Results North America 20,830 20,040 -791 Europe 536 642 +106 Asia 940 734 -206 Other 1,012 1,149 +137 Total 23,319 22,565 -754 https://www.subaru.co.jp/en/ir/ 30
Slide 31: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (100 Million Yen) As of March As of March Variance 2021 2022 Total assets 34,117 35,438 +1,320 Current assets 19,828 20,422 +594 Non-current assets 14,289 15,015 +726 Total liabilities 16,253 16,427 +174 Interest bearing debts 3,339 3,340 +2 Total equity
Slide 32: Non-consolidated Unit Sales
FYE 2022 ： Non-consolidated Unit Sales : (Thousand Units) FYE 2021 FYE 2022 Variance Results Results Domestic production* 525 455 -70 Domestic sales 106 90 -15 Passenger cars 84 73 -11 Minicars 21 17 -4 Export total 439 371 -68 Components for overseas 276 308 +32 production Total 820 769 -51 * Produ
Slide 33: Operating Results of Subsidiaries in U.S.
FYE 2022 ： Operating Results of Subsidiaries in U.S. （Million US$） FYE 2021 FYE 2022 SOA *1 Variance Results Results Net sales 18,028 16,257 -1,771 Operating income 966 1,096 +130 Net income 831 852 +21 Retail sales (Thousand units) 640 553 -87 FYE 2021 FYE 2022 SIA *2 Variance Results Results Net s
Slide 34: 4th Quarter: Consolidated Unit Sales (by market)
4 th Q u a r t e r ( 3 mo n t h s ) ： C: o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t ) (Thousand Units) FYE 2021 FYE 2022 Variance 4Q Results 4Q Results Passenger cars 27 19 -8 Minicars 5 5 -0 Domestic total 32 24 -8 U.S. 155 135 -20 Canada 11 10 -1 Russia 2 1 -1 Europe 4 3 -1 Australi
Slide 35: 4th Quarter: Consolidated Profit Results
4 th Q u a r t e r ( 3 mo n t h s ) : Consolidated Profit Results (100 Million Yen) FYE 2021 FYE 2022 Variance 4Q Results 4Q Results Revenue 7,554 7,370 -184 Domestic 1,558 1,423 -135 Overseas 5,996 5,947 -49 Operating profit 42 133 +91 Profit before tax 83 157 +75 Profit for the period attributable
Slide 36: 4th Quarter: Analysis of Variance in Operating Profit
4 th Q u a r t e r ( 3 mo n t h s ) : A : n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d ) (100 Million Yen) +69 +7 -239 +225 R&D expenses SG&A expenses, etc. +31 -2 Cost reduction, Sales volume & Other etc. mixture, etc. Gain on currency exchange Result
Slide 37: FYE 2022 Results (by Quarter)
FYE 2022 Results(by Quarter) (Yen in 100 millions, Units in thousands) FYE 2022 Results 1Q 2Q 3Q 4Q Consolidated Unit Sales 175 200 172 187 Production * 184 158 207 177 Revenue 6,352 7,065 6,659 7,370 Operating profit 295 249 227 133 Profit for the period attributable to owners of parent 185 263 181
Slide 38: Complete Cars Production / Retail Sales Units
Complete Cars Production / Retail Sales Units (1,000units） Production Retail Sales 300 280 276 278 273 277 276 271 271 268 270 269 269 269 262 262 262 264 260 264 250 258 261 257 254 254 250 253 253 249 249 252 245 248 242 241 244 242 242 237 240 236 240 237 231 233 229 227 229 200 207 209 204 196 1
Slide 39: Forward-looking statements
Forward-looking statements including projections and future strategies mentioned in this presentation are based on currently available information and assumptions and are subject to risks and uncertainties. Actual results may vary materially as a result of various factors including, without limitati