Notice Regarding Distribution of Dividends from Surplus

Company name: SUBARU CORPORATION
Representative: Tomomi Nakamura, Representative Director, President and CEO
Code number: 7270 (First Section of Tokyo Stock Exchange)
Contact for inquiries: Yasushi Nagae, Vice President
and General Manager of Investor Relations Department
Phone: +81-3-6447-8825

　At a meeting held on May 18, 2020, the Board of Directors of Subaru Corporation resolved to distribute dividends from surplus recorded as of March 31,2020, as follows.
　This dividend distribution is slated to be referred to the 89th Ordinary General Meeting of Shareholders scheduled to be held on June 23, 2020.

1. Details of dividends

2. Reason for the announcement

The Company regards shareholder interests as an important management priority and applies a performance-linked approach based on continuous and stable dividend payment, by considering the business performance of each fiscal year, investment plans, and the business environment. In the mid-term management vision “STEP” announced in July 2018, we have set the following policies: (1) Position dividends as the main form of return to shareholders, with an emphasis on stable, continuous returns; and (2) Set annual dividend for the next three years (from year ended March 2019 to year through March 2021) at 144 yen per share, and conduct share repurchases flexibly depending on cash flow.
However, the ongoing global pandemic of COVID-19 is signicicantly impacting production, sales and other business activities of the Subaru Group. It is to our regret that we are announcing a change of the year-end dividend from the level projected most recently to 28 yen, which is the level we came to after comprehensively assessing the situation, including our future needs of funds.
As a result, the per-share dividend for the full fiscal year comes to 100 yen, including the interim dividend of 72 yen per share already distributed.

Reference: Annual dividend breakdown

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