Path to Further Growth

Creating the Mid-Term Management Vision

In July of 2018, we formulated our mid-term management vision “STEP,” with the goal of building trust and resonating with customers by providing “Enjoyment and Peace of Mind.”

“STEP” is an acronym formed from the initial letters of Speed, Trust, Engagement, and Peace of Mind and Enjoyment, which are four important elements of the vision. The letter “T” is emphasized in the logo as Subaru considers trust to be the most important element of all. The name also expresses the Company's determination to take “steady, strong steps” before a future jump over social changes.

Vision for 2025

To realize the vision, we have been taking various initiatives primarily centered on “Corporate culture reform,” “Quality enhancement,” and the “Evolution of the Subaru difference.” And we have been steadily making progress in these key initiatives.
For “Corporate culture reform,” we promoted activities focused on growth and development of individual employees and have moved on to a phase for strengthening engagement so that each employee can feel their growth and job satisfaction. For “Quality enhancement,” we consider high quality as the bedrock of the Subaru brand and the source of additional values. We are currently at a stage to deliver results of our quality enhancement including the responses to new technology and are driving forward such activities. For “Evolution of the Subaru difference,” we further evolved technology that supports “Enjoyment and Peace of Mind” towards achievement of zero fatal traffic accident^* and contribution to a carbon-free society announced at the technology briefing in January 2020. We will continue to strengthen “Subaru difference” also in the age of electrification through utilization of all-wheel drive (AWD) control knowhow, our strength, in motor control and through other means.

* Fatal traffic accidents of Subaru drivers/passengers and pedestrians/cyclists Subaru cars collide with.

Market Strategy

We aim to maintain and expand our market share in each market by increasing the value we provide to our customers and enhancing the strength of our brand. In our priority market of the U.S., we are making progress toward a 5% market share.

Market share for SUBARU vehicles in the U.S.

Profit Direction and Capital Policy

• We aim for an industry-leading operating margin (8%).
• Capital expenditures and R&D expenditures will be steadily executed for initiatives aimed at enhancing the SUBARU difference.
  
  • Capital expenditures: In addition to recurring investment (3.5% to 4.0% of revenue), full-scale investment in reorganizing the domestic production system will begin in FYE March 2024 (250 billion yen over five years)
  • R&D expenditures: 120 billion yen level/year
• We aim for a ROE of at least 10% while ensuring a capital equity ratio of 50%.
• Our stance on shareholder returns remains unchanged.
  
  • Positioning dividends as the main form of return to shareholders with emphasis on stable, continuous returns. Based on the performance-linked approach, dividend payments will be determined considering the business performance of each fiscal year, investment plans, and the business environment. (Consolidated payout ratio: 30%–50%)
  • Conducting share repurchases flexibly in line with our cash flow.

Toward the Realization of a Carbon-free Society

As the electrification of automobiles continues, Subaru will contribute to this carbon-free society by demonstrating the Subaru Difference through distinctiveness and technological innovation. Specifically, our plan is to make at least 40% of Subaru global sales be battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs) by 2030. In addition, by the early 2030s, we aim to apply electric powertrain technology to all Subaru vehicles sold worldwide, and by 2050, we aim to reduce well-to-wheel^*1 CO2 emissions by 90% or more^*2 compared to 2010 levels.

*

Battery electric vehicle

*1

Well-to-Wheel: Approach to calculating CO₂ emissions including the emissions produced by the generation of electricity to be used by EVs and other vehicles.

*2

Reduce total CO₂ emissions calculated based on the fuel efficiency (notified value) of all Subaru automobiles sold across the world by 90% or more relative to the 2010 levels in 2050. Changes in the sales quantity due to changes in the market environment shall be taken into consideration, while minor changes in running distance shall not.

*3

Refers to the technology used to foster the use of electricity for HEVs, HVs, and others.

*4

Excluding models supplied by OEMs.

Next : Return to Shareholders