Securities Report - 95th Fiscal Period (2025/04/01 - 2026/03/31)

Subaru Corporation Securities Report - 95th Fiscal Period (2025/04/01 - 2026/03/31)

This report is filed pursuant to the Financial Instruments and Exchange Act, disclosing the business performance and financial condition of Subaru Corporation (hereinafter "the Company") for the 95th fiscal period from April 1, 2025 to March 31, 2026. Under a holding company structure, the Company operates globally in the design, development, manufacturing, and sales of automobiles, primarily under the "SUBARU" brand. Key models include the Impreza, Legacy, Outback, Forester, CROSSTREK, and WRX, renowned for their horizontally opposed engines (BOXER engines) and full-time 4WD systems.

The Subaru Group's business relies heavily on the North American market, which accounts for approximately 70% of total vehicle sales. In the domestic Japanese market, sales of the Forester and CROSSTREK remain strong, driven by sustained demand for SUVs. As part of its electrification strategy, the Company has announced its "2030 Carbon Neutral Vision" and aims to electrify all new vehicle models (BEV/PHEV) by 2028. Toward this goal, multiple new BEVs are scheduled for launch in 2026.

Financially, consolidated revenue for the 94th fiscal period reached 3.824 trillion yen, with operating income of 215 billion yen and net income of 168 billion yen. For the 95th fiscal period, projected figures are revenue of 3.95 trillion yen, operating income of 230 billion yen, and net income of 180 billion yen. Research and development expenses are expected to increase by 5.3% year-on-year to 204 billion yen, with strategic investments focused on BEV platforms and the advancement of the EyeSight driver-assistance system.

Key risk factors include foreign exchange fluctuations (particularly yen appreciation), rising raw material costs, supply chain disruptions, intensifying competition in electrification technologies, and demand volatility in the North American market. Conversely, growth drivers are identified as increasing demand for SUVs and electric vehicles, enhanced reliability of advanced driver-assistance systems, and strengthening brand value.

Going forward, the Company will advance CASE (Connected, Autonomous, Shared, Electric) technologies while simultaneously greening its manufacturing processes to achieve sustainable mobility. Regarding shareholder returns, the Company plans to maintain a dividend payout ratio of over 30% and conduct share buybacks as appropriate.