• Corporate & Financial

Notice Regarding Change to Shareholder Return Policy and Revision to Year-end Dividend Forecast (Dividend Increase)

SUBARU CORPORATION (the “Company”) hereby announces that at its Board of Directors held on February 7, 2025, the Company resolved that it would change its shareholder return policy and revise its year-end per-share dividend forecast for the fiscal year ending March 31, 2025 as described below.

1.　Change to Shareholder Return Policy

（1）Reasons

The Company has resolved to make the following change based on the current situation of its cash holdings and the level of its share price, adopting the concept of the ratio of dividends to equity attributable to owners of parent (DOE), with the aim of delivering progressive dividend payments to provide better returns to its shareholders and of proactively distributing its profits to its shareholders through share repurchases. Despite the growing uncertainty in Japan and overseas, the Company will adhere to its capital policy of proactively and appropriately making growth investments to survive in the era of electrification while achieving the soundness and stability of its finance.

（2）Details

Before

The Company positions shareholder returns as an important managerial issue and endeavors to make stable and continuous dividend payments and to flexibly repurchase its shares to achieve a total return ratio of 30–50 percent, while comprehensively considering factors such as its performance, investment plans, and business environment each fiscal year.

After

The Company positions shareholder returns as an important managerial issue and aims to maintain a total return ratio of 40% or higher with dividends as its base, comprehensively considering factors such as its business performance, investment plans, and business environment each fiscal year. The Company will pay dividends at the DOE rate (rate of dividends to equity attributable to owners of parent) of 3.5%. If its dividend amount is below a total return ratio of 40%, the Company will address the situation mainly through share repurchases. Equity attributable to owners of parent, which forms the basis of DOE, excludes “Other components of equity” that fluctuate significantly due to the impact of foreign exchanges and other factors, because the Company aims to deliver progressive dividend payments.

(Reference) DOE’s calculation formula

DOE =	Total annual dividends
	Equity attributable to owners of parent – Other components of equity

（3）Effective Period

The above change will take effect from the end of the fiscal year ending March 31, 2025.

2.　Revision to Year-end Dividend Forecast (Dividend Increase)

Based on the above change to the Company’s shareholder returns policy, the Company plans to provide a term-end dividend of ¥67 per share, an increase of ¥19 per share from the previous forecast.

	Dividend per share (¥)
Record date	End of 2Q	Year-end	Total
Previous forecast (Announced on May 13, 2024)	¥48.00 (Ordinary dividend: ¥48.00)	¥48.00 (Ordinary dividend: ¥48.00)	¥96.00 (Ordinary dividend: ¥96.00)
Latest forecast	-	¥67.00 (Ordinary dividend: ¥67.00)	¥115.00 (Ordinary dividend: ¥115.00)
Actual dividend paid during this fiscal year	¥48.00 (Ordinary dividend: ¥48.00)	-	-
Actual dividend paid during the previous fiscal year (ended March 31, 2024)	¥48.00 (Ordinary dividend: ¥38.00) (Commemorative dividend: ¥10.00)	¥58.00 (Ordinary dividend: ¥48.00) (Commemorative dividend: ¥10.00)	¥106.00 (Ordinary dividend: ¥86.00) (Commemorative dividend: ¥20.00)

*The year-end dividend for the fiscal year ending March 31, 2025 will be submitted for approval to the 94th Annual General Meeting of Shareholders scheduled for June 2025.