Materials for the Analyst Briefing on Second-Quarter Results for the Fiscal Year Ending March 2027 | SUBARU CORPORATION (7270) timely disclosure

Worth reading

58In focus

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Improvement

Direction inferred from the company’s description.

Scale

133

¥100 million (year-on-year increase in operating income)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 202710 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥25,134 100 million+5.4%

Operating profit¥1,160 100 million+13.0%

Net income¥1,021 100 million+12.9%

Results for the three months of the current quarter

Revenue

¥12,626 100 million+7.8%

Operating profit

¥734 100 million+179.1%

Profit before tax for the quarter

¥775 100 million+52.0%

Quarterly profit attributable to owners of the parent

¥529 100 million+48.6%

Full-year earnings forecast

Production volume

90 10,000 units

Consolidated unit sales

94 10,000 units

Revenue

¥52,000 100 million

Operating profit

¥1,500 100 million

Pretax profit

¥1,800 100 million

Profit for the year attributable to owners of the parent

¥1,300 100 million

Capital Expenditures

¥1,600 100 million

Depreciation and amortization

¥1,250 100 million

R&D Expenditure

¥1,450 100 million

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Sales activities are progressing as planned

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Change in operating income

Changes in the business environment97

Manufacturing initiatives-244

Sales Activities-469

Cost-reduction initiatives111

Other638

Changes in the business environment

Foreign exchange impact614

Raw Materials and Market Conditions-517

Foreign exchange impact

Sales/purchase rate variance708

Unrealized profit portion-124

Closing-date rate variance30

Manufacturing initiatives

Manufacturing Fixed Costs-313

R&D Expenses-94

Other163

Sales Activities

Unit sales and sales mix145

Sales incentives-482

Sales-related expenses-26

Other-106

Cost-reduction initiatives

Cost Reduction111

Other

Warranty repair costs576

Environmental regulatory costs132

Other-70

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Exchange rate

US dollars¥155/US$

Key KPIsA metric the company considers important as a management benchmark.

Production volume424 thousand units
Year on year against the same period last year-29.0%
Consolidated finished vehicle sales444 thousand units
Year on year against the same period last year-29.0%
U.S. retail unit sales333 thousand units
Year on year against the same period last year+18.0%
Profit increase from cost reforms¥111 100 million
Net cash¥10,050 100 million

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Unit sales

First-half actual444 thousand units

Second-half outlook496 thousand units

ChangeUp 52,000 units vs. the first half

Unit sales and sales mix

Unit variance¥-453 100 million

Price/mix variance¥598 100 million

Segment results

Automotive

Revenue

¥24,349 100 million

yoy_change1,114

Operating profit

¥1,107 100 million

yoy_change134

Aerospace

Revenue

¥761 100 million

yoy_change166

Operating profit

¥16 100 million

yoy_change-4

Other

Revenue

¥24 100 million

yoy_change-2

Operating profit

¥34 100 million

yoy_change3

Financial targets

Equity ratio attributable to owners of the parent

51.1 %

Debt-to-equity ratio

0.13 x

Capital expenditures

¥593 100 million cumulative 2Q actual

Annual Dividend

Annual dividend

¥116 /share

Interim dividend

¥58 /share

Year-end dividend

¥58 /share

Acquisition of treasury shares

Buyback limit

¥1,500 100 million maximum

Repurchased

¥670 100 million approximately

Acquisition periodThrough 16 March 2027

Scheduled cancellationAll shares scheduled for cancellation on 23 March 2027

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥25,134 100 million (YoY +5.4%)
Operating profit	¥1,160 100 million (YoY +13.0%)
Net income	¥1,021 100 million (YoY +12.9%)
Results for the three months of the current quarter	Revenue ¥12,626 100 million (YoY +7.8%) / Operating profit ¥734 100 million (YoY +179.1%) / Profit before tax for the quarter ¥775 100 million (YoY +52.0%) / Quarterly profit attributable to owners of the parent ¥529 100 million (YoY +48.6%)
Full-year earnings forecast	Production volume 90 10,000 units / Consolidated unit sales 94 10,000 units / Revenue ¥52,000 100 million / Operating profit ¥1,500 100 million / Pretax profit ¥1,800 100 million / Profit for the year attributable to owners of the parent ¥1,300 100 million / Capital Expenditures ¥1,600 100 million / Depreciation and amortization ¥1,250 100 million / R&D Expenditure ¥1,450 100 million
Self-assessment against the plan	Sales activities are progressing as planned
Segment results	Automotive Revenue ¥24,349 100 million / Operating profit ¥1,107 100 million / Aerospace Revenue ¥761 100 million / Operating profit ¥16 100 million / Other Revenue ¥24 100 million / Operating profit ¥34 100 million
Breakdown of Factors Affecting the Change	Change in operating income Changes in the business environment 97 / Manufacturing initiatives -244 / Sales Activities -469 / Cost-reduction initiatives 111 / Other 638 / Changes in the business environment Foreign exchange impact 614 / Raw Materials and Market Conditions -517 / Foreign exchange impact Sales/purchase rate variance 708 / Unrealized profit portion -124 / Closing-date rate variance 30 / Manufacturing initiatives Manufacturing Fixed Costs -313 / R&D Expenses -94 / Other 163 / Sales Activities Unit sales and sales mix 145 / Sales incentives -482 / Sales-related expenses -26 / Other -106 / Cost-reduction initiatives Cost Reduction 111 / Other Warranty repair costs 576 / Environmental regulatory costs 132 / Other -70
Key KPIs	Indicator name Production volume / Value 424 thousand units / Year on year against the same period last year -29 thousand units, Indicator name Consolidated finished vehicle sales / Value 444 thousand units / Year on year against the same period last year -29 thousand units, Indicator name U.S. retail unit sales / Value 333 thousand units / Year on year against the same period last year 18 thousand units, Indicator name Profit increase from cost reforms / Value ¥111 100 million / Year on year against the same period last year Not disclosed, Indicator name Net cash / Value ¥10,050 100 million / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Unit sales First-half actual 444 thousand units / Second-half outlook 496 thousand units / Change Up 52,000 units vs. the first half / Unit sales and sales mix Unit variance ¥-453 100 million / Price/mix variance ¥598 100 million
Assumptions Underlying the Business Outlook	Exchange rate US dollars ¥155/US$
Financial targets	Equity ratio attributable to owners of the parent Value 51.1 % / Debt-to-equity ratio Value 0.13 x
Annual Dividend	Annual dividend ¥116 /share / Interim dividend ¥58 /share / Year-end dividend ¥58 /share
Acquisition of treasury shares	Buyback limit ¥1,500 100 million (maximum) / Repurchased ¥670 100 million (approximately) / Acquisition period Through 16 March 2027 / Scheduled cancellation All shares scheduled for cancellation on 23 March 2027
Capital expenditures	¥593 100 million (cumulative 2Q actual)

Items this document does not state (14)

Ordinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsPayout ratioOrders received and order backlogMarket Size / ShareKey points of the Q&ANew initiatives

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Operating profit was boosted by foreign exchange effects, lower warranty repair costs, and cost reduction initiatives. This was offset by deteriorating raw material prices and market conditions, manufacturing fixed costs, research and development expenses, and sales incentives. The factors boosting first-half profit were ¥18 billion from the weaker yen, ¥14 billion from the deferral of certain expenses into the second half, and ¥25 billion from lower warranty repair costs.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.

Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.

Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.