SUBARU Technology Briefing

NOTE) This document is an English translation of an original Japanese document. If there are any discrepancies between this document and the original Japanese document, the original Japanese document prevails. Opening Remarks from President and CEO Tomomi Nakamura

2 Mid-Term Management Vision “STEP” (announced in July 2018)

From a company making things, to a company making people smile

3 Mid-Term Management Vision “STEP” (announced in July 2018)

From a company making things, to a company making people smile 2025 Vision

Corporate Social Different Customer-First Responsibility

Fulfill corporate social Become a brand that is Engage in business activities responsibilities by “different” from others by that resonate with customers contributing to diversifying enhancing distinctiveness by putting them center-stage social needs

4 Mid-Term Management Vision “STEP” (announced in July 2018)

From a company making things, to a company making people smile 2025 Vision

Corporate Social Different Customer-First Responsibility

Fulfill corporate social Become a brand that is Engage in business activities responsibilities by “different” from others by that resonate with customers contributing to diversifying enhancing distinctiveness by putting them center-stage social needs

5 Is SUBARU “Different” from Others?

Conversations SUBARU employees often have

From someone encountered From survey firm staff From immigration officers for the first time

My father owns his It’s always fun to talk with Oh, you’re working for SUBARU. A friend of mine rd 3 SUBARU now. SUBARU customers. loves his WRX so much!

6 Is SUBARU “Different” from Others?

Owners smiling with their SUBARUs

SUBARU expressed SUBARU is like a SUBARU with families with “love” rather than family member and pets “like” 7 What Makes SUBARU “Different”

CustomerCustomer expectationsexpectations FunctionalFunctional valuesvalues All-around Long-term use Enjoy driving Solid performance base safety performance (Primary/Active/Preventive/Passive)

Safe travel New exciting experiences AWD Durability Practicality

Through the life with SUBARU vehicles, customers come to feel and express its life-enriching benefits, not just functional values

Safety Longevity Adventure/Versatility Caring for loving Making a series of Enriching lives and family and friends precious memories leisure time 8 What Makes SUBARU “Different”

Strong emotional connection with customers = “Different”

What makes us “Different” is coming from

passions and dedications of our employees

pursuing the utmost SUBARU

9 Mid-Term Management Vision “STEP” (announced in July 2018)

From a company making things, to a company making people smile 2025 Vision

Corporate Social Different Customer-First Responsibility

Fulfill corporate social Become a brand that is Engage in business activities responsibilities by “different” from others by that resonate with customers contributing to diversifying enhancing distinctiveness by putting them center-stage social needs

10 Corporate Social Responsibility

RootsRoots ofof SUBARUSUBARU PhilosophyPhilosophy ofof “Safety-First”“Safety-First”

Our DNA as an aircraft manufacturer Because carry Safety as first priority the most precious cargo

SUBARUSUBARU seriouslyseriously aimsaims toto elimeliminateinate fatalfatal traffictraffic accidents.accidents.

Toward “zero fatal accidents*” in 2030 *Fatal traffic accidents of Subaru drivers/passengers and pedestrians/cyclists Subaru cars collide with

11 Corporate Social Responsibility

Global Environment Preservation

20502050 20302030 On the well-to-wheel basis, we pursue our goal By 2030, we will pursue our goal of increasing the ratio

of reducing the average CO2 emissions from new of electric vehicles (EV) and hybrid cars to at least up to passenger cars by at least 90% by 2050, 40% of the gross number of vehicles sold globally. compared with 2010. In the early 2030’s, all commercial SUBARU cars will be equipped with electric powertrain technology.

SUBARU will accelerate the development of fundamental technologies for EVs and hybrid cars with support from alliance partners and continue offering products accentuating SUBARU’s distinctions even in the emerging electric age.

SUBARU will contribute to building a carbon-free society through our distinctive and technological innovations. 12 Direction of SUBARU’s -making

13 SUBARU Technology Briefing Jan 20, 2020 Technologies that Make a Subaru a Subaru, and their Evolution Tetsuo Onuki Director of the Board, Executive Vice President & Chief Technology Officer Maintaining the Spirit of SUBARU in the Coming Age

What SUBARU Technologies Accentuating 1 Has Delivered 2 “SUBARU-ness” Enjoyment and II Environmental I Peace of Mind Technologies

We will continue to offer “SUBARU-ness” to customers. 2 Maintaining the Spirit of SUBARU in the Coming Age

What SUBARU Technologies Accentuating 1 Has Delivered 2 “SUBARU-ness” Enjoyment and II Environmental I Peace of Mind Technologies

3 1. What SUBARU Has Delivered Human-Oriented Car-Making

Excellent Visibility Comfortable Package

SUBARU’s human-oriented car-making will never change. 4 1. What SUBARU Has Delivered Bringing New Values to Cars “Enjoyment and Peace of Mind” are SUBARU’s distinctive spirit, which is to be constantly forged through the ages Pioneering new categories Creation of technical values

BOXER Engine LEGACY Touring Wagon SGP () developed Vans with sporty performance with a focus on human senses → Dynamic Quality → The basis of touring wagons

Passive safety performance made possible by the symmetrical power + Rough-road capability unit All-around safety based on The basis of OUTBACK compatibility Symmetrical AWD → Leading passive safety performance Forester vehicles with superior Camera technologies originally on-road driving performance and developed for combustion visualization → The world’s first stereo camera rough-road capability only driver-assistance → The basis of modern SUVs system,“EyeSight” SUBARU has constantly presented unique and proprietary technologies

and brought new values to cars. 5 1. What SUBARU Has Delivered SUBARU GLOBAL PLATFORM SUBARU GLOBAL PLATFORM has enhanced the values of “Enjoyment” and “Peace of Mind.” Dynamic Quality Package Driving Quality Quietness Stiffness & Stability Increased interior High levels of comfort and Quietness and dynamic rigidity Top-class width and height comparable to those of European maneuverability vehicles (1.8 times greater than stability

Good Evaluated dynamic sensations Bad sensations Evaluateddynamic Good conventional SUBARU cars) vibration (m/s acceleration New cars Conventional cars

European Conventional cars cars New cars European cars benchmark

Japanese cars 2 ) Maintains top-level Internal data Internal data Low Price High Time (s) Superior dynamic quality The stabilizer system directly Passive superior to Vibrations quickly attenuated mounted on the vehicle body Safety Performance that of European cars reduces vibrations

The SUBARU Global Platform underpins “Enjoyment and Peace of Mind.” 6 1. What SUBARU Has Delivered The Value of “Safety”

Europe USA

Australia

 JNCAP ASV+++ certified: 2019 FORESTER (with EyeSight)  JNCAP 5 Stars & First Prize: 2018 FORESTER  2019 IIHS “TSP+” certified: 2020 IMPREZA 4DR, IMPREZA SW, CROSSTREK, LEGACY, WRX, ASCENT, and FORESTER (with EyeSight and specific headlights)  US-NCAP 5 Stars: 2020 IMPREZA 4DR IMPREZA SW, CROSSTREK, CROSSTREK HYBRID ASCENT, and FORESTER  Euro NCAP 5 Stars & Best in Class: 2019 FORESTER  ANCAP 5 Stars: 2019 FORESTER

Always receives top level evaluations in vehicle safety assessments 7 1. What SUBARU Has Delivered Facts about Fatal Traffic Accidents

Calculated by SUBARU Calculated by SUBARU based on ITARDA data USA based on FARS data Japan (including severe injuries)

Fatal accident numbers per one million Fatal accident numbers per one million vehicles in last five years. vehicles in last five years.

Average of major brands Average of Japanese sold in USA car manufacturers

SUBARU

SUBARU

Average of 13 major brands sold in USA, including SUBARU Average of 8 Japanese car manufacturers, (excluding trucks and large SUVs) including SUBARU (including light vehicles but not trucks) SUBARU has realized lower fatal accident rates in USA and Japan for the last decade. 8 1. What SUBARU Has Delivered A TV Spot for the U.S. Market

Movie played at the briefing

*You can watch it at the following link. https://www.youtube.com/watch?v=hkw3B4QPyFk

9 1. What SUBARU Has Delivered What is “SUBARU-ness?

Human-oriented thinking. Thorough consideration of what is important for users. Bringing new values to cars. We think this is “SUBARU-ness.”

10 Maintaining the Spirit of SUBARU in the Coming Age

What SUBARU Technologies Accentuating 1 Has Delivered 2 “SUBARU-ness” Enjoyment and II Environmental I Peace of Mind Technologies

11 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Integration of Artificial Intelligence (AI) Technologies

Peace of Mind Enjoyment ・Monitoring condition of driver ・Dynamic quality ・Correction of recognition, judgment, ・Connecting with cars and operations ・Excitement of being ・Mitigating damage in the event of an accident able to go anywhere

SUBARU Global Platform underpins primary safety and active safety. Pursue “SUBARU-ness” by further enhancing

“Enjoyment and Peace of Mind” using AI technologies 12 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Evolution of Dynamic Quality

What we pursue is “controllability and maneuverability in any environment for any driver.” 2000s 2020 2030 Toward the age of feedforward control Enjoyable driving with peace of mind (4) Enhance “AWD technology” like a skilled driver

Efforts for “dynamic quality”

(1)(1) QuickQuick vehiclevehicle responseresponse Focus on Future human evolution (2)(2) AccurateAccurate vehiclevehicle responseresponse anatomy

(3)(3) Straight-lineStraight-line drivingdriving stabilitystability againstagainst disturbancedisturbance

Enjoyable driving with peace of mind to be further advanced

by AI technology even in the age of autonomous driving. 13 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind

Quick Vehicle Accurate Vehicle Straight-Line AWD Technology Quick Vehicle Response Response Response Driving Stability

Steering Measured delay in vehicle response force 65% caused by hardware (e.g. steering, suspension, and body) Steering angle Inertia force Steering Aero- Gear box dynamic force

65% Body

Inertia force

Realize shorter response delay

by thoroughly improving stiffness of all parts 14 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind

Quick Vehicle Accurate Vehicle Straight-Line AWD Technology Quick Vehicle Response Response Response Driving Stability

First Half of 2020s Improve hardware to shorten the lag in vehicle response Lane change (simulation) Reduce friction in 10% shorter delay results in earlier convergence time and 50% reduction in steering system amplitude, which achieves highly-predictable and stable driving and control.

Stiffness Vehicle transverse position [m] analysis of bolted sections For optimal Response delay 450ms structure design Response delay 400ms

Body hysteresis analysis Time [s] Junction method design

Realize more predictable and stable vehicle behaviors

by shortening the lag in vehicle response 15 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind

Quick Vehicle Accurate Vehicle Straight-Line AWD Technology Accurate Vehicle Response Response Response Driving Stability

Improve the accuracy of vehicle response to realize reliable AD/ADAS* function. First Half of 2020s It also benefits human drivers by delivering a more enjoyable and secure driving experience. *Autonomous Drive/Advanced Driver-Assistance Systems 2-point 3-point top cross-member mounting mounting

Lower arm ball joint

Single point mounting of lower arm area

As the steering shaft axis is determined by the lower arm ball Improve vehicle behavior accuracy corresponding to joint position, accuracy can be improved by more precise steering inputs mounting of the vehicle body and suspension. Improve vehicle response accuracy

with a more precise body and suspension. 16 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind

Quick Vehicle Accurate Vehicle Straight-Line AWD Technology Straight-Line Driving Stability Response Response Driving Stability

Further improve AWD’s superior straight-line driving stability. First Half of 2020s With the new wind tunnel, the impact of disturbances such as temperature change and natural winds will be eliminated and more accurate measurement will be enabled.

Air breather Air breather CARF* Wind tunnel to be built in UK Testing starts in 2022 *Catesby Aero Research Facility

Straight line 2.74km

Air dam

Narrower Downstream Narrower region

Improve straight-line driving stability

by optimizing chassis geometries and vehicle aerodynamics 17 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind

Quick Vehicle Accurate Vehicle Straight-Line AWD Technology Wind Tunnel Testing at CARF Response Response Driving Stability

18 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind

Quick Vehicle Accurate Vehicle Straight-Line AWD Technology Evolution of AWD Technology Response Response Driving Stability

Adequate control over AWD stability and RWD turning performance Driving force distribution varies between front and rear wheels depending on wheel speed differentials and a multitude of driving forces. Deceleration Changes in Front > Rear driving force distribution of Driving force distribution direct-connecting AWD controlled in accordance with (β varies depending on wheel speed driver’s intention and situation differentials)

1 · Front-wheel driving force distribution · · 2

1 · · · 2 Acceleration Front = Rear

Driving force Cornering- Acceleration- Front < Rear [N] focused focused even with direct-connecting AWD

Enjoyable driving like a skilled driver regardless of driving skill 19 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Realize Greater Dynamic Quality with a Human Anatomy-Focused Approach

Conventional vehicle vibration-based approach Indexing based on human body structure

Time domain Frequency domain

An anatomical approach to reveal the mechanisms of comfort 20 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Facts about Fatal Traffic Accidents (Reminder)

Calculated by SUBARU Calculated by SUBARU based on ITARDA data USA based on FARS data Japan (including severe injuries)

Fatal accident numbers per one million Fatal accident numbers per one million vehicles in last five years. vehicles in last five years.

Average of major brands Average of Japanese sold in USA car manufacturers

SUBARU

SUBARU

Average of 13 major brands sold in USA, including SUBARU Average of 8 Japanese car manufacturers, (excluding trucks and large SUVs) including SUBARU (including light vehicles but not trucks) SUBARU has realized lower fatal accident rates in USA and Japan for the last decade. 21 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Technologies to Safeguard Human Lives

SUBARU’s unique philosophy of “overall safety” What has been done What is to be enhanced

Primary safety Excellent visibility/Package DMS capability to recognize driver/passengers

Dynamic performance/ Active safety Vehicle motion control technologies Risk-aversion performance Image recognition performance and its Preventive safety Real world-oriented measures automation

Vehicle occupants protection + Vulnerable road users protection Passive safety Compatibility ADAS coordination

Connected AACN*/Infrastructure safety coordination/STARLINK

* Advanced Automatic Collision Notification

AI technology applications

Toward the goal of “zero fatal accidents” in 2030 22 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Breakdown of Fatal Traffic Accidents of SUBARU Cars

USA Japan Turning Pedestrians/ right Fatal traffic Collision with Cyclists involved Fatal/serious injury vehicle from 15% 8% accidents by opposite direction traffic accidents by situation 20% situation (results of internal (results of internal Crossing Collision analysis) Going off analysis) Rear ended the edge of % by vehicle 23 traveling in the the road Pedestrians same direction 13% involved With vehicle from 8% 38% crossing street at intersection Going over 4% the lane line With vehicle from Rear-ended adjacent lane, 10% parking lane, median, 6% shoulder, roadside, driveway 2% Traveling too fast With other car Head-on 2% Departure into the Cyclists Object in road opposite lane 4% 7% involved 4% % Single-vehicle 6% Crossing over 6 /obstacle/tree/pole Passing over Out of 164 cases from intersection Turning at Rear end collision with vehicle Out of 278 cases from With parked car junction travelling in the same direction 6% among cars sold in past 5 years 5% among cars sold in past 5 years 1% 5% 6% 1% from the 2017 FARS data from the 2017 ITARDA data Accidents caused by own vehicle account for 60-70% while accidents

caused by another vehicle account for over 30% of all accidents 23 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind A Scenario toward Zero Fatal Traffic Accidents

Fatal traffic accidents of SUBARU cars (estimated from US FARS data)

Today Evolution of ADAS Accidents (Advanced Driver caused Assistance Systems) by other vehicle 6565% reduced Toward Adoption of AACN “zero fatal accident” (Advanced Automatic Collision Notification) Accidents in 2030 caused by own vehicle Accidents 3535% Continuous caused by other reduced vehicle enhancement of passive safety Accidents caused by own vehicle Advancing EyeSight and coordinating it

with connected safety and passive safety 24 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Collision Evolution of ADAS ADAS AACN safety

All-around sensing with a stereo camera as its core to promote the constant evolution of object recognition and situation judgment capabilities.

2020 2025

Further evolution of driver Next-Generation EyeSight assist technologies

 Enhance capacity for avoiding  Enhance capacity for avoiding local road accidents intersection accidents Improve object recognition / situation judgment  Extend highway driving assist capabilities function Extend cooperative control with other devices  Upgrade stereo camera:  Communication with infrastructure and Cooperative Expand FOV control with connected technology Increase data processing capacity +  Autonomous driving system cooperative control with all-around sensor Auto parking, auto valet parking, etc.

Thorough and constant enhancement of ADAS technologies 25 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Collision Evolution of Accident Prevention Features of EyeSight ADAS AACN safety

First Half of 2020s Enhance capacity for avoiding Enhance capacity for monitoring driver intersection/urban area accidents condition and respond to driver errors Hitting pedestrian while turning Right-turn collision Swaying Loss of consciousness

Unintentional acceleration Head-on crash Avoidance by steering & runaway Driver distraction

Some features to be developed for avoiding

severe accidents and risks 26 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Collision Evolution of Driver Assist Technologies ADAS AACN safety Lane change assist, auto deceleration based on curve prediction, First Half of 2020s and hands-off driving in congested traffic

State-of-the-art features for comfortable and safe travel on highways 27 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Collision EyeSight: Stereo Camera System ADAS AACN safety EyeSight obtains precise stereoscopic views of all objects in camera images. It captures every object’s profile, measures distance and velocity, and identifies its location.

*The stereo camera system views objects e.g. EyeSight Ver.3 on a highway stereoscopically on the same principle as human eyes Camera image

EyeSight Ver.3 Stereoscopic Nearby A car driving 10 Sidewall meters ahead, image car represented by a group of about Video Groups of distance 4,000 data points data points and detected objects

The strong points of the system are object detection, object locating and motion prediction based on high-resolution distance data points

The stereo camera system enables efficient collection of essential information for recognition and judgment. 28 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Collision Integration of Stereo Camera and AI ADAS AACN safety

Second half of 2020s Stereo camera system’s recognition capacity + AI’s judgment capacity

Segmentation technology Holistic Path AI-based driving-range detection integrated with proprietary stereoscopic recognition AI-based prediction of traveling path

Boost capacities for recognition and judgment, and enhance safety on any road 29 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Collision Communication with the Car ADAS AACN safety

First Half of 2020s - Observing the driver with DMS* and linking the detected information with various controls including EyeSight - Deploying the new infotainment system globally *Driver Monitoring System

Display device DMS CAN Audio

Driver Information(*) Body integrated •Head position •Eye opening unit・・・ •Facial features Seat •Personal recognition Air conditioner & Mirror

EyeSight

Connect EyeSight with DMS 30 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Value of Connecting with a Car

Call center Convenience & SOS Comfort Concierge Remote engine start Destination Remote A/C setting Remote door lock/unlock Curfew alerts Safety & Service Appointment Peace of mind Scheduler, etc. AACN Roadside Assistance Stolen vehicle recovery Stolen Vehicle Immobilizer

Provides values suited to the modern era through new experiences 31 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind “Enjoyment of Connecting”

3-year free service subscription rate Paid* service subscription rate Based on statistics in November 2019 Based on statistics in November 2019

Non-subscribers 70% 60% 4% Average 50% 40% 48% Subscribers 30% 20% 10% *Paid service 96% ・Extended service period 0% beyond the free period Ascent Outback Legacy Forester Crosstrek Impreza ・Upgraded services ※Data in the USA High subscription rates for both free and paid services 32 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Collision Adoption of AACN ADAS AACN safety

First Half of 2020s Algorithm to estimate death/serious injury probabilities ・ Collision direction ・ Location data ・ Collision severity (ΔV) ・ Airbag status Accident Accident ・ Seatbelt usage ・ Estimated ・ Multiple collisions serious injury probability

Call center (HELPNET)

Rescue 10 minutes earlier would reduce the mortality rate by about 70%. According to Dr. Mashiko of Nippon Medical School Chiba Hokusoh Hospital *For the Japanese market

AACN will enable early rescue activities in the event of an accident. 33 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Collision A Roadmap for AACN Evolution ADAS AACN safety

2020 2025 and onward AACN features enriched

 Accident location finding  Notification of number of  Pedestrian rescue  Impact estimation occupants (front/rear) → EyeSight →  Collision direction Seat sensors  Medical crisis response  Talk with the call center  Notification of pedestrian accident → DMS → Pedestrian airbag

Addressing any medical crisis

Commitment to survival rate improvement through greater information accuracy 34 2. Technologies and Evolution Accentuating “SUBARU-ness” ― I. Enjoyment and Peace of Mind Collision Constant Enhancement of Passive Safety ADAS AACN safety

Second half of 2020s

Airbag system to protect cyclists Idea of occupant restraint system controls as well as pedestrians coordinated with EyeSight

Controls the use of restraint equipment depending on the characteristics of collision situations, occupants, and pedestrians. It can reduce injuries to vulnerable road users, e.g. children and the elderly Occupant Conventional restraint Cyclist restraint force protection area Absorbs more energy while easing restraint Pedestrian force protection area F: Device drag D: Displacement (injury index) M: Mass X: Travel Protection area needs to be k: Rigidity extended to protect cyclists c: viscous resistance

Time

Enhance passive safety in preparation for severe crashes that cannot be avoided by ADAS and no-fault accidents. 35 Maintaining the Spirit of SUBARU in the Coming Age

What SUBARU Technologies Accentuating 1 Has Delivered 2 “SUBARU-ness” Enjoyment and II Environmental I Peace of Mind Technologies

We will continue to offer “SUBARU-ness” to customers. 36 Maintaining the Spirit of SUBARU in the Coming Age

What SUBARU Technologies Accentuating 12Has Delivered “SUBARU-ness” Enjoyment and II Environmental I Peace of Mind Technologies

37 2. Technologies and Evolution Accentuating “SUBARU-ness” ― Environmental Technologies Customer Expectations and Improvement of Fuel Efficiency

SUBARU has refined its proprietary technologies to respond to environmental needs.

Items that were considered more important for SUBARU cars than for any other brand in our internal survey as Customer expectations reasons for purchasing SUBARU (USA) SUBARU’s advantages Safety features / AWD availability / Holds road well during hazardous driving / Fun To Drive Areas where SUBARU cars are more frequently used Driving along unpaved roads 73%

79% Volume sales 82% states 53%

48%

Enhance environmental performance while offering driving enjoyment 38 2. Technologies and Evolution Accentuating “SUBARU-ness” ― Environmental Technologies Customer Expectations and Fuel Efficiency Improvement

SUBARU has refined its proprietary technologies to respond to environmental needs.

Fuel Efficiency of SUBARU: Top-level in the SUV category Proprietary technologies BOXER engine / Symmetrical AWD / Subaru Global Platform

2020MY HWY label [MPG] 2020MY HWY label [MPG] U.S. Market C-SUV AWD U.S. Market D-SUV AWD 73% 33 33 26 26 26 27 27 24 25 Ascent 32 32 Forester 22 22 79% 31 30 30

48%

Enhance environmental performance while offering driving enjoyment 39 2. Technologies and Evolution Accentuating “SUBARU-ness” ― Environmental Technologies

Technology Roadmap for Reduction in CO2 Emissions

Reducing CO2 emissions with electrification technologies while further accentuating “SUBARU-ness” in the environmental era 20202025 2030 2035

Battery 202X EV (BEV) Launch Compact SUV model first

2012 Mild Hybrid (e-BOXER) Hybrid Vehicle 2018 Plug-in Hybrid (HEV) 202X Strong Hybrid 203X Make all models xEV* 2020 Apply electrification technologies to Engine Newly-designed 1.8L lean-burn turbo engines all Subaru vehicles sold worldwide Vehicle by the first half of the 2030s

*vehicle equipped with any electric powertrain technology

By 2050: Reduce average well-to-wheel CO2 emissions from new vehicles (in operation) sold worldwide by 90% or more compared to 2010 levels By 2030: Make at least 40% of Subaru global sales BEV or HEV 40 2. Technologies and Evolution Accentuating “SUBARU-ness” ― Environmental Technologies SUBARU Engines Engine Cars Hybrid Cars BEV

Evolution of proprietary technology (BOXER engine) Thermal Efficiency and Torque (engine cars) Pursue optimal combustion Optimal design and control Other brand D

Other brand C

Levorg 1.6L turbo Other brand B Reduce frictions on

all sliding surfaces [Nm/L] Torque Other brand A Forester 2.5L NA - Baseline - Improved Newly-designed 1.8L lean- Friction torque Friction burn turboMaximum engines thermal efficiency Crank angle [deg]

Next-generation BOXER engines offer both abundant torque and environmental performance 41 2. Technologies and Evolution Accentuating “SUBARU-ness” ― Environmental Technologies SUBARU Engines Engine Cars Hybrid Cars BEV

Max. thermal Four approaches to improve efficiency thermal efficiency Engines for SUBARU’s newly- SUBARU’s designed 1.8L SUBARU lean-burn turbo target for the Reduce Increase CR future HEVs engine cycle loss Lean combustion ε: compression ratio k: specific-heat ratio

Reduce delay loss, Improve knock limit combustion loss, High-speed combustion and pump loss Improve turbo efficiency

Reduce Optimal combustion chamber profile cooling loss Heat insulation Turbo (Turbo)

Reduce friction Reduce auxiliaries loss

Enhance “SUBARU-ness” in the environmental era with the evolution of internal combustion engines 42 2. Technologies and Evolution Accentuating “SUBARU-ness” ― Environmental Technologies SUBARU’s Hybrid System Engine Cars Hybrid Cars BEV

Subaru Global Symmetrical BOXER Platform AWD engine Three approaches

Mild Hybrid (e-BOXER)

These proprietary SUBARU Strong Hybrid technologies are integrated with with THS* technology hybrid technologies xEV

Hybrid System

* Hybrid System Enhance environmental performance while offering driving enjoyment 43 2. Technologies and Evolution Accentuating “SUBARU-ness” ― Environmental Technologies SUBARU’s Hybrid System Engine Cars Hybrid Cars BEV

Accentuating “SUBARU-ness” through integration of proprietary technologies with THS 44 2. Technologies and Evolution Accentuating “SUBARU-ness” ― Environmental Technologies SUBARU’s Hybrid System Engine Cars Hybrid Cars BEV

Integration of SUBARU technologies with THS

BOXER engine Optimize engine operations for a hybrid system specially designed for hybrid vehicles [Thermal efficiency map]

Motor assist

The range engine can operate

Engine torque Engine with utmost efficiently EV driving

Engine revolution SUBARU’s accumulated expertise Maximize the synergy effect through elaborately applied to hybrid vehicles efficient engine operation in consideration of motor-assist

Maximize the advantage of BOXER engines with the advantages of electric systems 45 2. Technologies and Evolution Accentuating “SUBARU-ness” ― Environmental Technologies SUBARU’s Hybrid System Engine Cars Hybrid Cars BEV Increase both vehicle stability and regeneration energy efficiency with front and rear restraint forces of direct-connecting AWD

Benefits of direct-connecting AWD

About 30% higher regenerative energy gain compared with FWD vehicles even 1 on icy roads in winter

Regenerative brake force distributed to 2 4 wheels to achieve greater vehicle stability

Regenerative energy

FF Rear-motor SUBARU AWD direct-connecting AWD Enhance safety, AWD performance, and

dynamic quality besides reducing CO2 emissions 46 2. Technologies and Evolution Accentuating “SUBARU-ness” ― Environmental Technologies SUBARU Electrification Technologies (BEV) Engine Cars Hybrid Cars BEV Improve functionality and driving performance to meet customer expectations

Customer expectations Items that were selected more for SUBARU cars than for any other brand in our internal survey as reasons for purchasing SUBARU (USA)  Safety features  AWD availability  Holds road well during hazardous driving  Fun To Drive

Subaru’s Direction  Superior traction with highly- responsive motor control  Stable handling in any condition with flexible driving force distribution

Launch BEV with distinctive “SUBARU-ness” in the first half of 2020s 47 48 SUBARU Technology Briefing Technologies that Make a Subaru a Subaru, and Their Evolution Thank you for your kind attention.