Subaru : Announces Consolidated Financial Results for the First Half of FYE 2024

Subaru Corporation Announces Consolidated Financial Results for the First Half of FYE 2024

Tokyo, November 2, 2023 - Subaru Corporation today announced its consolidated financial results for the first half of the fiscal year ending March 31, 2024.

Results for April-September 2023: Consolidated Revenue

Global production increased 15.9% to 493,000 units as a result of continued initiatives in production and parts purchasing.

Production in Japan rose 13.2% to 320,000 units, while production in the U.S. grew 21.2% to 173,000 units.

As a result of the production increase, global unit sales rose 17.8% to 469,000 units, led by steady sales in Subaru's key U.S. market.

Due to the increase in unit sales and other factors, consolidated revenue rose 26.4% to 2,213.5 billion yen.

Results for April-September 2023: Consolidated Profit and Loss

As sales volume growth, the effects of foreign exchange rates, and other factors more than offset the increases in raw material costs and SG&A expenses, operating profit rose 68.3% to 185.8 billion yen, profit before tax grew 88.2% to 226.5 billion yen, and profit for the period attributable to owners of parent increased 93.9% to 150.9 billion yen.

Forecast for FYE 2024

As the effects of foreign exchange rates, an improvement in sales mix, and a decline in market prices, particularly for precious metals, are expected to more than offset the increase in SG&A expenses and potential constraints in parts supply and logistics, the Company is revising its previous forecasts for FYE 2024 (announced on August 2, 2023) as follows:

• Revenue: 4,650 billion yen (an increase of 450 billion yen from the previous forecast)
• Operating profit: 420 billion yen (an increase of 120 billion yen from the previous forecast)
• Profit before tax: 460 billion yen (an increase of 160 billion yen from the previous forecast)
• Profit for the period attributable to owners of parent: 320 billion yen (an increase of 110 billion yen from the previous forecast)

Reflecting the upward revision of the full-year earnings forecast based on the first-half results, and to commemorate the 70th anniversary of the Company's founding, the Company has decided to pay an interim dividend of 48 yen per share, consisting of 38 yen as an ordinary dividend and 10 yen as a commemorative dividend. The Company plans to pay a year-end dividend of the same amount of 48 yen, resulting in an annual dividend of 96 yen per share (76 yen ordinary dividend and 20 yen commemorative dividend).

The forecasts for FYE 2024 are based on exchange rate assumptions of 140 yen to the U.S. dollar and 150 yen to the euro.

Notes on figures in the results:

Vehicle volume figures are rounded to the nearest thousand. Yen figures are rounded to the nearest hundred million.

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

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														November 2, 2023
	Reference for the Second Quarter of FYE 2024 Consolidated Financial Results
										(Yen in 100 millions, Units in thousands)
				FYE 2023	FYE 2024		FYE 2023			FYE 2024		FYE 2024
				1st Half		1st Half		Full Year			Full Year		Full Year
				[ 2022. 4-9 ]	[ 2023. 4-9 ]		[ '22.4 - '23.3 ]		[ 2023.4 - 2023.3 ]		['23.4-'24.3]
				RESULTS	RESULTS		RESULTS		FORECASTS		PREVIOUS
							FORECASTS
						Change	%					Change		%
	Revenue		17,509	22,135	4,626	26.4	37,745		46,500		8,755		23.2	42,000
			Japan	2,816	2,886	70	2.5	5,810		-		-		-	-
			Overseas	14,693	19,248	4,555	31.0	31,935		-		-		-	-
	Operating profit (loss)			1,104	1,858	754	68.3	2,675		4,200		1,525		57.0	3,000
			Profit margin (%)	6.3	8.4			7.1		9.0					7.1
	Profit (loss) before tax		1,204	2,265	1,061	88.2	2,784		4,600		1,816		65.3	3,000
			Profit margin (%)	6.9	10.2			7.4		9.9					7.1
	Profit for the quarter attributable	779	1,509	731	93.9	2,004		3,200		1,196		59.7	2,100
	to owners of parent	Profit margin (%)	4.4	6.8			5.3		6.9					5.0
	Factors contributing to			Sales volume, mix, etc.	930		Sales volume, mix, etc.	1,627
	change in operating profit		Effects of foreign	625		Effects of foreign	746
					exchange rates		exchange rates
					Other		30		Cost impacts	39
					Increase in SG&A	(451)		Other				5
					exp., etc.
					Cost impacts	(334)		Increase in SG&A	(771)
						exp., etc.
					Increase in R&D exp.	(46)		Increase in R&D exp.	(121)
	Exchange rates	JPY/US$	130/US$		139/US$		135/US$			140/US$		128/US$
			JPY/EUR	137/US$		151/US$		141/US$			150/US$		138/EUR
	Capital expenditures		551		964		1,228			1,800			1,800
	Depreciation		495		483		1,030			1,000			1,000
	R&D expenditures *		519		621		1,078			1,350			1,200
	Interest bearing debts		3,326		3,232		3,126			-			-
					- Increase in revenue for three		- Increase in revenue for two
	Performance description			consecutive years			consecutive years
					- Increase in profit at each stage for		- Increase in profit at each stage for
					three consecutive years			two consecutive years
					- Increase in consolidated unit		- Increase in consolidated unit
					sales for three consecutive years		sales	for two consecutive years
	Consolidated unit sales		49	45	(4)	(7.3)	100		116		17		16.9	126
	< Japan >		Passenger Cars	40	38	(2)	(4.3)	81		100		19		23.6	107
			Minicars	9	7	(2)	(20.1)	19		16		(2)		(12.8)	19
	Consolidated unit sales			350	424	75	21.3	753		894		141		18.7	884
	< Overseas >		North America	301	358	57	19.0	635		759		124		19.5	729
			Europe	8	15	7	90.2	23		-		-		-	-
			China	6	4	(2)	(39.9)	10		12		1		14.1	14
			Other	35	48	13	37.3	84		-		-		-	-
	Consolidated unit sales	total	398	469	71	17.8	852		1,010		158		18.5	1,010
	Production units total		425	493	68	15.9	874		1,010		136		15.6	1,010
			Japan	283	320	37	13.2	575		-		-		-	-
			U.S.	143	173	30	21.2	299		-		-		-	-
	Revenue by		Automobile	17,134	21,635	4,500	26.3	36,906		45,394		8,489		23.0	40,907
		Aerospace	351	474	123	35.1	790		1,057		267		33.8	1,045
	business segment
		Other	24	26	2	8.1	49		49		(0)		(0.6)	48
			Automobile	1,100	1,837	737	67.1	2,633		4,140		1,507		57.3	2,962
	Operating profit (loss)
		Aerospace	(32)	(11)	21	-	(21)		20		41		-	17
	by business
		Other	36	30	(7)	(18.9)	63		40		(23)		(36.3)	21
	segment
			Elimination &	0	3	3	536.2	0		-		-		-	-
			Corporate

• • "R&D expenditures" indicate R&D activity related costs incurred during the reporting period. Under IFRS, a part of these costs that meets capitalization criteria is recognized as an intangible asset and amortized over its estimated useful life; thus, the amount of "R&D expenditures" stated here does not match that of "R&D expenses" stated on the Consolidated Statement of Income.
• Forward-lookingstatements 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. >