Business performance
Past results and forecasts for the current fiscal year.

Latest Results

Consolidated Financial Results for FYE2022 (April 1, 2021 to March 31, 2022)

(100 Millions of yen)

FYE2021
Full Year
Results
FYE2022
Full Year
Results
Change %
Revenue 28,302 27,445 −857 −3.0%
Operating profit 1,025 905 −120 −11.7%
Profit before tax 1,140 1,070 −70 −6.1%
Profit for the period attributable
to owners of parent
765 700 −65 −8.5%
Consolidated unit sales
(1,000 units)
860 734 −126 −14.7%
  Overseas 758 645 −114 −15.0%
Japan 102 89 −12 −12.1%
SUBARU exchange rate ¥106/US$
¥123/EURO
¥112/US$
¥130/EURO
   

As parts supply constraints continued due to the global shortage of semiconductors throughout the year and the spread of the coronavirus in Southeast Asia during the second quarter period, operations at the Company’s Japanese and U.S. manufacturing plants were affected by production adjustments and temporary suspensions. As a result, global vehicle sales decreased 14.7% to 734,000 units. Overseas vehicle sales fell 15.0% to 645,000 units, while vehicle sales in Japan dropped 12.1% to 89,000 units.
Consolidated revenue decreased 3.0% to 2,744.5 billion yen.As the higher costs of raw materials and the decline in unit sales more than offset the positive impact of the reduction in sales incentives, the decrease in warranty expenses, and the effects of foreign exchange rates, operating profit decreased 12 billion yen to 90.5 billion yen, profit before tax fell 7 billion yen to 107 billion yen, and profit for the period attributable to owners of parent declined 6.5 billion yen to 70 billion yen.

FYE 2022
Analysis of Variance in Operating Profit (Consolidated)

We compensated for the impact of the decrease in unit sales mainly by reducing sales incentives, revising selling prices, and increasing the high-profit models in the sales mix. Although exchange rate fluctuation was an increasing factor, the sharp rise in material cost, etc. had a significant impact, bringing operating profit down 12.0 billion yen year on year.
U.S. sales incentives per unit were down 600 dollars from 1,300 dollars in the previous year to 700 dollars, bringing the total amount of U.S. sales incentives down 45.6 billion yen.

Past 5 years

Revenue & Operating profit

Revenue*1
Operating Profit / Operating Margin

* The Company is voluntarily adopting International Financial Reporting Standards (IFRS) for its consolidated financial statements from the fiscal year ending March 2020 (FYE2020) in place of the Japanese generally accepted accounting principles (JGAAP) previously adopted. The first-quarter and full-year result figures for the previous fiscal year (FYE2019) have been recalculated based on IFRS for comparison and analysis purposes.

*1
“Net sales” in JGAAP is stated as “revenue” in IFRS.

Automobile Sales

In fiscal 2021, demand in the automobile industry was on a recovery track along with the economy. However, automobile production stagnated in various countries due to global shortage of semiconductor supply, which also affected sales. Overall automobile demand in the United States, our mainstay market, decreased from the previous fiscal year by about 4% to approximately 14.5 million units. Total automobile demand in Japan decreased by 9% to approximately 4.2 million units.
Under such business environment, supply constraints of parts procured from business partners continued and we also had to adjust production and temporarily suspend operations at our plants in the U.S. and Japan. Consequently, overseas and domestic unit sales decreased year on year by 114,000 units (15.0%) to 645,000 units and by 12,000 units (12.1%) to 89,000 units, respectively.
This resulted in a decrease in combined overseas and domestic unit sales by 126,000 units (14.7%) to 734,000 units. Revenue decreased by 60.0 billion yen (2.2%) to 2,677.5 billion yen. Segment profit decreased by 16.5 billion yen (15.2%) to 92.5 billion yen.

Forecast

Forecast of Consolidated Results for FYE2023 (April 1,2022 to March 31,2023)

Update: May 20, 2022

(100 Millions of yen)

FYE2022
Full Year
Results
FYE2023
Full Year
Forecast
Change %
Revenue 27,445 35,000 7,555 27.5%
Operating profit 905 2,000 1,095 121.1%
Profit before tax 1,070 2,000 930 87.0%
Profit for the period attributable
to owners of parent
700 1,400 700 100.0%
Consolidated unit sales
(1,000 units)
734 940 206 28.1%
  Overseas 645 826 181 28.1%
Japan 89 115 25 28.2%
SUBARU exchange rate ¥112/US$
¥130/EURO
¥120/US$
¥130/EURO
   

In prospect of a recovery especially in its key North American market, Subaru projects consolidated global vehicle sales of 940,000 units.
While uncertainties surrounding the semiconductor shortage remain, the Company, incorporating the expected positive impact of the increase in vehicle sales and effects of foreign exchange rates, projects consolidated revenue of 3,500 billion yen , operating profit of 200 billion yen , profit before tax of 200 billion yen , and profit for the period attributable to owners of parent of 140 billion yen .The projections are based on exchange rate assumptions of 120 yen to the U.S. dollar and 130 yen to the euro.

FYE 2023 Plan
Analysis of Variance in Operating Profit (Consolidated)

The main factor behind the increase in profits is sales volume & mixture, etc., and we anticipate an improvement of 236.5 billion yen.
In addition to a 164.7 billion yen increase from the 206.0 thousand unit increase in consolidated unit sales, we also expect an increase of 90.6 billion yen from an improvement in model/grade composition and revised selling prices.
On the other hand, due to skyrocketing material cost, etc., including for steel and precious metals, we anticipate a year on year decline of 104.2 billion yen.
This assumes a roughly 8 yen depreciation of the yen against the U.S. dollar.
Factoring in rising interest rates, we also expect U.S. sales incentives per unit to increase 200 dollars from 700 dollars in the previous year to 900 dollars, bringing the total amount of U.S. sales incentives up 33.3 billion yen.