SUBARU CORPORATION
7270・Prime Market・Transportation Equipment
Governance
Company with a Board of Corporate Auditors (planned transition to a company with an Audit and Supervisory Committee, subject to approval at the Ordinary General Meeting of Shareholders on June 24, 2026). As of the filing date of the Annual Securities Report, the Board of Directors consists of 8 directors (including 3 independent outside directors) and 4 corporate auditors (including 2 independent outside corporate auditors), with the executive officer system separating supervision and execution. The Governance and Officer Nomination Council (held 9 times per year) and the Officer Compensation Council (held 8 times per year) are established as advisory bodies to the Board of Directors.
Risk Management
The Risk Management and Compliance Committee, chaired by the CRMO (Chief Risk Management Officer) appointed by the Board of Directors, oversees group-wide risk management and compliance activities, and promotes company-wide risk management activities based on a risk map. The company is working to reduce priority risks, including establishing a Cybersecurity Committee and developing a BCP framework in preparation for a large-scale earthquake.
Shareholder Returns
Dividends are the primary means of shareholder return, with a target total payout ratio of 40% or more. DOE of 3.5% serves as the basis for the dividend amount, with any shortfall supplemented by share buybacks. The annual dividend for FY2026 (ending March 2026) is ¥115.50 per share (interim ¥57 + year-end ¥58.50), with a payout ratio of 92.0%. For FY2027 (ending March 2026), an annual dividend of ¥116 (interim ¥58 + year-end ¥58) is forecast. As a subsequent event, a resolution was passed for share buybacks and retirement with an upper limit of ¥150,000 million and 80 million shares.
Dividend Policy
Dividends are the primary means of shareholder return, aiming for a total payout ratio of 40% or more. DOE (dividend on equity attributable to owners of the parent) of 3.5% serves as the basis for the dividend amount, and when the dividend amount falls below the 40% total payout ratio target, share buybacks are used as the primary means to address the shortfall. Equity attributable to owners of the parent, which forms the base for DOE, is calculated excluding "other components of equity," which fluctuate significantly due to foreign exchange and other effects, with the aim of achieving progressive dividends. Dividends are paid twice a year, as an interim dividend and a year-end dividend. The actual result for FY2026 (ending March 2026) was an annual dividend of ¥115.50 (interim ¥57 + year-end ¥58.50), with a payout ratio of 92.0% and a dividend on equity attributable to owners of the parent of 3.0%. The forecast for FY2027 (ending March 2026) is an annual dividend of ¥116 (interim ¥58 + year-end ¥58).
ESG
The company has set six priority sustainability areas (human-centered mobility culture, empathy and coexistence, safety, DE&I, environment, and compliance), with environmental targets including carbon neutrality by 2050, a 60% reduction in Scope 1 and 2 emissions by FY2035 (versus FY2016 levels), and a BEV sales ratio of 50% or more from 2030 onward. On the human capital side, the company has set KPIs such as 100 female managers by 2030 and an engagement score of 70% by FY2028; actual results for FY2025 were an engagement score of 54% and 50 female managers.
Last updated: June 22, 2026