Consolidated Financial Results
For the First Quarter of the Fiscal Year Ending March 31, 2011
July 30, 2010
Company Name
: Fuji Heavy Industries Ltd. (Tokyo Stock Exchange First Section, Code No.: 7270)
URL: http://www.fhi.co.jp/english/ir/
Representative: Ikuo Mori, President and CEO
Contact for Inquiries: Toshimasa Nakamura, General Manager of Administration Department Phone +81-3-3347-2005
Scheduled date of submitting Quarterly Report: August 6,2010:
Scheduled date for dividend payment
Quarterly earnings supplementary explanatory documents : Yes
Holding of quarterly financial results meeting : Yes(for investment analysts and institutional investors)(All amounts have been rounded off to the nearest million yen, unless otherwise specified)

1. Consolidated Results for the First Quarter of Fiscal Year 2011 (April 1, 2010 to June 30, 2010)(1)Consolidated Results of Operations(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)

Net sales
1st Quarter of
FY2011
1st Quarter of
FY2010Operating income (loss)

Ordinary income (loss)

Net incom (loss)

370,286

36.5%

22,629―24,229―19,140―271,323(20.5%)(19,673)―(19,472)―(19,288)―

Net income (loss)
per share, basic (Yen)
1st Quarter of
FY2011
1st Quarter of
FY2010Net income per share,
diluted (Yen)

24.57

―

(24.75)―(2) Consolidated Financial Position(Unit: Millions of yen, except for per share figures)
Shareholders’ equity to
Net assets per sharetotal assets (%)(Yen)

Total assets

Net assets

1st Quarter of
FY2011

1,225,056

392,59931.9%

502.30FY20101,231,367

381,89330.9%

488.58

Note: Shareholders’ equity As of June 30, 2010: 391,269 million yen As of March 31, 2010: 380,587 million yen

2. Dividends
Cash dividends per share (yen)2nd Quarter
3rd Quarter
Year-end
0.00
0.00
―

1st Quarter
Annual
FY 20100.0―
FY 2011―
FY 2011 (Forecast)
4.50
4.50
9.00
―
Note: Revision of the forecasts in the first quarter of the fiscal year ending March 31, 2011: No

3. Projection of Consolidated Results for Fiscal Year 2011 (April 1, 2010 to March 31, 2011)(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)

Net sales

Operating income

Ordinary income

Net
incomeNet income pershare,basic(Yen)

1st half

750,000

18.0%

35,000―33,000―23,000―29.53

Full year

1,470,000

2.9%

43,00057.2%

38,00069.9%

23,000―29.53

Note: Revision of the forecasts at the timing of announcement of the results of first quarter of the fiscal year ending March 31, 2011: Yes

4. Others (For detail, please refer to "2. Others" on page 4)(1) Changes of significant subsidiaries in the first quarter of fiscal year 2011

: No

(Transfer of subsidiaries resulting in changes in the scope of consolidation): Yes(2) Application of simple accounting as well as specific accounting for preparing thequarterly consolidated financial statements(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly
consolidated financial statements (changes described in the section of “Changes in significant matters forming thebasis of preparing the quarterly consolidated financial statements”)[1] Changes due to revisions of accounting standards[2] Changes due to other reasons

: Yes
: No

(4) Number of outstanding shares (Common Stock)[1] Number of outstanding shares

As of June 30,2010:

782,865,873 shares

As of March 31,2010:

782,865,873 shares[2] Number of treasury stock

As of June 30,2010:

3,912,114 shares

As of March 31,2010:

3,901,219 shares[3] Average number of shares( for three month period)

1st Quarter of FY2011:

778,958,714 shares

1st Quarter of FY2010:

779,179,082 shares(including treasury stock)*The status of the implementation of the first quarterly review
The first quarterly review is now conducted on the basis of the Financial Instruments and Exchange Act on thedate for the release of this quarterly report.
*Proper use of projection of operating results, and other information
The above performance projections were made based on the information available as of the date when thisdocument was released. Therefore, actual results may differ considerably due to various factors that mightoccur in the future.
For assumptions and other information on which the performance projections were based, please refer to "(3)Qualitative Information on Projection for Current Fiscal Year" on page 3.

Index of the attachements
1. Qualitative Information on Quarterly Consolidated Operating Results, etc.
(1) Qualitative Information on Consolidated Operating Performance(2) Qualitative Information on Consolidated Financial Position(3) Qualitative Information on Projection for Current Fiscal Year
2. Others(1) Changes of significant subsidiaries in the first quarter of fiscal year 2011
(2) Application of simple accounting as well as specific accounting for preparing the quarterly consolidated
financial statements(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly
consolidated financial statements
3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(2) Quarterly Consolidated Statements of Income(3) Quarterly Consolidated Statements of Cash Flows(4) Notes on Premise of Going Concern(5) Segment Information(6) Notes on Significant Changes in the Amount of Shareholders’ Equity(7) Significant Subsequent Event11. Qualitative Information on Quarterly Consolidated Operating Results, etc.
(1) Qualitative Information on Consolidated Operating Performance
Consolidated net sales for the first quarter of the current fiscal year were up ¥99.0 billion (36.5%) over thesame period of the previous fiscal year to ¥370.3 billion thanks mainly to favorable automobile sales in overseas
markets, despite the stronger yen on a year-on-year basis.
Regarding the profit, reflecting the rise in net sales, with operating income up ¥42.3 billion to ¥22.6 billion,
ordinary income up ¥43.7 billion to 24.2 billion, and net income up ¥38.4 billion to ¥19.1 billion over the same
period of the previous fiscal year.
[Results by Business Segment]
Results for the current consolidated first quarter period by business segment are as described below.
[1] Automobile Division
Total passenger car sales in Japan were 13 thousand units, increased 1 thousand (5.4%) units compared withthe same period of the previous fiscal year, because of the good sales of Exiga and Forester and thanks to theeffects of the eco-car tax reduction and purchase subsidy.
On the other hand, minicars sales were 23 thousand, an increase of 2 thousand (9.2%) units compared with thesame period of the previous fiscal year, fueled by the market launch of new car, Lucra, Pleo, and Pleo Van
models in April in addition to the Samber series ales recovery owing to the effects of purcahes subsidy foreco-car.
As a result, a total of 35 thousand units were sold in Japan for an increase of 3 thousand, (7.8%) over the same
period of the previous fiscal year.
Overseas sales units in all markets increased over the same period of the previous fiscal year, amid continuing
overall demand growth, in North America driven by favorable sales of the new Legacy and in China by robust
sales of Forester and Legacy models.
By region, sales increased 21 thousand (47.2%) over the same period of the previous fiscal year to 67
thousand units in North America, 6 thousand (87.8%) to 13 thousand units in Europe including Russia, 5thousand (81.6%) to 12 thousand units in Australia, 9 thousand (132.6%) to 17 thousand units in China, and 6
thousand (342.2%) to 7 thousand units in other regions.
As a result, the sales in overseas markets were 115 thousand, an increase of 48 thousand, (70.8%) units overthe same period of the previous fiscal year.
The combined sales volume for Japan and overseas markets amounted to 150 thousand, an increase of 50
thousand, (50.1%) over the same period of previous fiscal year, and overall net sales were up ¥101.5 billion,(42.2%) over the same period of the previous fiscal year, to ¥342.1 billion. segment income was also up ¥43.6
billion over the same period of the previous fiscal year to ¥21.9 billion[2] Aerospace Division
Net sales declined over the same period of the previous fiscal year, despite increased deliveries of “P-1”
fixed-wing patrol aircraft to Japan Ministry of Defense, mainly due to the end of development and test
production of “Forward Field Observation System”.
In commercial sector, the mass production of Boeing 787 lifted sales compared with the same period of theprevious fiscal year.
As a result, overall net sales were down ¥4.9 billion (22.0%) over the same period of the previous fiscal yearto ¥17.5 billion, with segment income was down ¥1.6 billion (99.4%) over the same period of the previous
fiscal year to ¥0.01 billion.
[3] Industrial Products Division
With the recovering demand since the start of the year and market inventories were getting short, domestic
and overseas unit sales of engines increased. As a result, net sales were up ¥2 billion (34.3%) over the same
period of the previous fiscal year to ¥8 billion. Segment loss was improved by ¥0.2 billion over the same periodof the previous fiscal year to ¥0.1 billion.
[4] Other Businesses
Net sales were up ¥0.4 billion (16.7%) over the same period of the previous fiscal year to ¥2.7 billion,
because of the increased unit sales of Fuji Mighty sanitation trucks. Segment income was also up ¥0.3 billion2

(82.4%) over the same period of the previous fiscal year to ¥0.6 billion.
Note:”Segment income” and “Segment loss” in section [Results by Segment] corresponds to “Operating
income” and “Operating loss”, respectively, which were used until last year.
(2) Qualitative Information on Consolidated Financial Position[1] Assets, Liabilities, and Net Assets
Total assets at the end of the first quarter of the current fiscal year was ¥1,225.1 billion, reflecting a ¥6.3
billion decline over the end of the previous fiscal year. This was mainly due to a ¥22.1 billion fall in trade notes
and accounts receivable-trade, offsetting a ¥18.4 billion rise in inventories.
Total liabilities fell ¥17 billion over the end of the previous fiscal year to ¥832.5 billion. This was mainly due
to the redemption of ¥20 billion in bond. .
Net assets increased ¥10.7 billion over the end of the previous fiscal year to ¥392.6 billion. This was mainly
due to a ¥19.1 billion increase in retained earning as the same amount of net income for the period was posted.
[2] Cash Flows
Cash and cash equivalents at the end of the first quarter of the current fiscal year (hereinafter “Cash”) totaled¥192.3 billion.
(Net cash provided by operating activities)
Net cash from operating activities was ¥33.7 billion (compared with ¥39.8 billion provided by operating
activities in the same period of the previous fiscal year). Main factors were ¥24.5 billion in income before
income taxes and minority interests and a ¥21.4 billion reduction in notes and accounts receivable-trade.
(Net cash provided by investment activities)
Net cash used in investment activities was ¥9.1 billion (compared with ¥22.5 billion used in investment
activities in the same period of the previous fiscal year). Main factor was a ¥9.7 billion net outlay for property,
plant and equipment purchases (net of income from sales of property, plant and equipment).
(Net cash used in financing activities)
Net cash used in financing activities was ¥19.3 billion (compared with ¥42.6 billion provided by financing
activities in the same period of the previous fiscal year). Main factor was ¥20 billion in redemption of bond.
(3) Qualitative Information on Projection for Current Fiscal Year
The previous projection of consolidated results for the first-half of the fiscal year ending March 2011 isrevised as described above. This revision takes into account favorable Legacy sales mainly in overseas markets,with prospects that the sales mixture will be improved.
The revised projection of the consolidated results for the first half of the fiscal year ending March 2011 arebased on assumed foreign exchange rates of ¥90/US (unchanged from the previous announcement) and¥116/EUR (¥120 at the previous announcement).
The full-year consolidated results projection for the fiscal year ending March 2011 remains unchanged,
considering recent tends of strong yen and the material price hike including steel.
However, the full-year consolidated results projection for the fiscal year ending March 2011 are based onassumed foreign exchange rates of ¥89/US$1.0 (¥90 at the previous announcement) and ¥113/EUR1.0 (¥120 at
the previous announcement).
(Consolidated Results Forecast for the First Half of the Fiscal Year Ending March 2011)¥ million
750,000
750,000――

Operating
Income¥ million
25,00035,00010,00040.0

Ordinary
Income¥ million
23,00033,00010,00043.5

635,550(11,437)(11,835)

Net sales
Previous projection (A)Revised projection (B)Change in amount (B-A)
Percentage change (%)(Supplemental information)
Actual interim results of theprevious fiscal year
(April 1 to September 30, 2010)

3

Net Income¥ million
14,00023,0009,000
64.3(21,732)

Net Income
per Share
Yen
17.97
29.53

(27.89)

2. Others(1) Changes of significant subsidiaries in the first quarter of fiscal year 2011
(Transfer of subsidiaries resulting in changes in the scope of consolidation)
Not Applicable(2) Application of simple accounting as well as specific accounting for preparing the quarterly consolidated
financial statements[Specific accounting for preparing the quarterly consolidated financial statements](Income taxes)
Income tax expense was calculated as multiplying income before income taxes and minority interests byreasonably estimated annual effective tax rate. This annual tax rate was reasonably estimated after applying thedeferred tax accounting to the annual income before income taxes and minority interests which included theamounts of this first quarter period ended June 30, 2010.
“Income taxes-deferred” was included in “Total income taxes”.
(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly
consolidated financial statements[Changes in significant matters forming the basis of preparing the quarterly consolidated financial statements](Changes in accounting policies)
Application of accounting standard for Asset Retirement Obligations
From the first quarter of fiscal year 2011, the Company has adopted Accounting Standard for Asset
Retirement Obligations (ASBJ Statement No.18, March 31, 2008) and its Implementation Guidance on
Accounting Standard for Asset Retirement Obligations (ASBJ Guidance No.21, March 31, 2008).
This impact of this adoption on profit and loss was insignificant.
[Changes in Presentation of Financial Statements](Quarterly Consolidated Statements of Income)On the basis of "Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22,
December 26)", the Company has adopted "Cabinet Office Ordinance Parcially Revising Regulation on
Terminology, Forms and Presentation of Financial Statements (Cabinet Office Ordinance No.5, March 24)".
Therefore "Income before moinority interests" is included in the quarterly Consolidated Statements of income
for the first quarter of fiscal year 2011.
“Reversal of allowance for doubtful accounts” was included in “Other” of “Extraordinary income” in the firstquarter of fiscal 2010. However it is presented separately because of its increased materiality in the first quarterof fiscal 2011. In addition, “Reversal of allowance for doubtful accounts” included in “Other” in the first quarterof fiscal 2010 was 66 million yen.
(Quarterly Consolidated Statements of cash flows)“Increase (Decrease) in provision for product warranties” was included in “Other” of “Net cash provided by(used in) operating activities” in the first quarter of fiscal 2010. However it is presented separately because of its
increased materiality in the first quarter of fiscal 2011. In addition, “Increase (Decrease) in provision for productwarranties” included in “Other” in the first quarter of fiscal 2010 was overdrawn 33 million yen.
“Proceeds from sales of short-term investment securities” was included in “Other” of “Net cash provided by(used in) investing activities” in the first quarter of fiscal 2010. However it is presented separately because of its
increased materiality in the first quarter of fiscal 2011. In addition, “Proceeds from sales of short-term
investment securities” included in “Other” in the first quarter of fiscal 2010 was 571 million yen.

4

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Unit: Million of yen)
1st Quarter of FY2011(as of June 30, 2010)
Amount

FY2010(as of March 31, 2010)
AmountASSETSI Current assets
Cash and deposits
Notes and accounts receivable-trade
Lease investment assets
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
II Noncurrent assets
1. Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Vehicles and equipment on operating leases, net
Construction in progress
Other, net
Total property, plant and equipment
2. Intangible assets
Other
Total intangible assets
3. Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total noncurrent assets
Total assets

5

166,236
81,462
27,41014,952
114,978
62,787
37,24615,12970,45946,802(1,588)635,873

168,643
103,521
27,78812,458101,351
59,59635,672
15,54975,78040,216(1,686)
638,888

123,135
91,626
179,387
25,0296,990
25,460451,627

125,086
87,411
179,512
18,394
12,672
26,452449,527

12,29012,29011,99911,99962,341
4,271
64,075(5,394)(27)
125,266
589,183
1,225,056

67,783
5,742
62,602(5,149)(25)
130,953
592,479
1,231,367

(Unit: Million of yen)
1st Quarter of FY2011(as of June 30, 2010)
Amount

FY2010(as of March 31, 2010)
AmountLIABILITIESICurrent liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for product warranties
Provision for loss on construction contracts
Other
Total current liabilities
II Noncurrent liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities

214,960
132,463
14,92620,0103,230
49,00323,223
21,034
1,737
71,072551,658

217,051
142,121
13,91220,0102,873
56,244
15,34819,9991,399
66,104555,061

24,090155,800
11,73335,527618
53,031
280,799
832,457

44,090147,479
13,541
34,867685
53,751
294,413
849,474

153,795
160,071
129,315(2,178)441,003

153,795
160,071
110,172(2,173)421,865

8,025(57,759)(49,734)
1,330

10,309(51,587)(41,278)
1,306
381,893
1,231,367

NET ASSETS
I

Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
II Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests

392,599
1,225,056

Total net assets
Total liabilities and net assets

6

(2) Quarterly Consolidated Statements of Income
FY2010(April 1, 2009
to June 30, 2009)
Amount271,323
228,660
42,66362,336I Net sales
II Cost of sales
Gross profit
III Selling, general and administrative expenses
Operating income (loss)
IV Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Real estate rent
Gain on valuation of derivatives
Other
Total non-operating income
V Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary income (loss)
VI Extraordinary income
Gain on sales of noncurrent assets
Reversal of allowance for doubtful accounts
Gain on sales of loans receivable
Other
Total extraordinary income
VII Extraordinary loss
Loss on sales and retirement of noncurrent assets
Loss on adjustment for changes of accounting standard
for asset retirement obligation
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in income (loss)
Net income (loss)

7(Unit: Million of yen)
FY2011(April 1, 2010
to June 30, 2010)
Amount370,286
285,892
84,394
61,765(19,673)

22,629

192
288
336
142
2,479
449
3,886

274
283
1,149
125
5,421
698
7,950

1,143
1,871
1
670
3,685

1,299
3,973

(19,472)

24,229

19

93
112

36
330
324
188
878

329

159

―

372

248
577
(19,937)
(574)
(75)

59
590
24,517
5,348
19,16929(19,288)

19,140

―
―

―

―

1,078
6,350

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
FY2010FY2011(April 1, 2009
(April 1, 2010
to June 30, 2009) to June 30, 2010)
I Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests(19,937)

24,517

Depreciation and amortization

16,973

13,244

Increase (decrease) in provision for bonuses

7,346

7,875

Increase (decrease) in provision for product warranties

―

1,222

Increase (decrease) in provision for loss on construction contracts

50

338

Increase (decrease) in provision for retirement benefits

1,434

593

Interest and dividends income

(480)

(557)

Interest expenses

1,143

1,299

Loss (gain) on valuation of derivatives(2,478)(5,421)Equity in (earnings) losses of affiliates(336)(1,149)Loss (gain) on sales and retirement of noncurrent assets

310

123

Decrease (increase) in notes and accounts receivable-trade

15,287

21,387

Decrease (increase) in inventories

8,481(22,895)

Increase (decrease) in notes and accounts payable-trade(2,022)(914)

Decrease (increase) in lease investment assets

(77)

87

Decrease (increase) in operating loans receivable(3,784)

4,930

Decrease (increase) in vehicles and equipment on operating leases(9,109)(8,562)

Increase (decrease) in deposits received

9,847

8,057

Other, net

19,523(5,969)Subtotal

42,171

38,205479

557

Interest expenses paid

(1,057)(1,285)

Income taxes paid

(1,780)(3,780)Net cash provided by (used in) operating activities

39,81333,697

(228)

(939)

―

1,066

(22,120)(9,881)

Proceeds from sales of property, plant and equipment

656

159

Purchase of intangible assets

(314)

(396)

Purchase of investment securities(3,846)(4,974)

Proceeds from sales of investment securities

2,156

4,803

Payments of loans receivable(16,277)(19,845)

Collection of loans receivable

17,233

21,990250(1,096)(22,490)(9,113)

Interest and dividends income received

II Net cash provided by (used in) investing activities
Purchase of short-term investment securities
Proceeds from sales of short-term investment securities
Purchase of property, plant and equipment

Other, net
Net cash provided by (used in) investing activities

8

(Millions of yen)
FY2010FY2011(April 1, 2009
(April 1, 2010
to June 30, 2009) to June 30, 2010)
III Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable432(9,655)

Increase (decrease) in commercial papers

1,000

―

Proceeds from long-term loans payable

44,871

12,519

Repayments of long-term loans payable(3,735)(1,912)

Redemption of bonds―(20,000)

Other, net

(1)

(227)

42,567(19,275)

IV Effect of exchange rate change on cash and cash equivalents(1,009)(4,512)

V Net increase (decrease) in cash and cash equivalents

58,881797

VI Cash and cash equivalents at beginning of period

96,515

191,466

209―

155,605

192,263

Net cash provided by (used in) financing activities

VII Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
VIII Cash and cash equivalents at end of period(4) Notes on Premise of Going Concern
Not Applicable9(5) Segment Information[Business Segment Information]
1st Quarter of FY 2010 (April 1, 2009 to June 30, 2009)
Automobiles Aerospace

Net sales(1) Outside customers(2) Inter-segment
Total sales
Operating income (loss)

240,669539
241,208(21,679)(Unit: Million of yen)
Elimination
Consolidated
and
total
corporate

Industrial
products

Other

Total

5,918
12
5,930
(292)

2,330
2,576
4,906
340

271,323
3,127
274,450(19,992)

22,406―
22,406
1,639[Geographic Segment Information]
1st Quarter of FY 2010 (April 1, 2009 to June 30, 2009)

Net sales(1) Outside customers(2) Inter-segment
Total sales
Operating income (loss)

Japan

North
America

155,152
51,083
206,235(13,037)

109,814799
110,613(2,745)

Overseas net sales
Consolidated net sales
Percentage of overseas net sales overconsolidated sales

118,925

271,323―
271,323(19,673)(Unit: Million of yen)
Other

Elimination Consolidated
and corporate
total

Total

6,357
111
6,468
97

―
(51,993)(51,993)(3,988)271,323
51,993323,316(15,685)[Overseas Net Sales]
1st Quarter of FY 2010 (April 1, 2009 to June 30, 2009)
North America―(3,127)(3,127)319

Europe14,509Other271,323―
271,323(19,673)(Unit: Million of yen)Total

30,400163,834
271,323

43.8%

10

5.4%

11.2%

60.4%

(Additional information)
From the first quarter of fiscal 2011, the Company has adopted "Revised Accounting Standard forDisclosures about Segments of an Enterprise and Related Information" (ASBJ Statement No.17, March 27,2009) and Implementation Guidance on Accounting Standard for Disclosures about Segments of an Enterpriseand Related Information" (ASBJ Guidance No.20, March 21, 2009).
1.Outline of business segment
The business segments the Company reports are the business units for which the Company is able to obtainrespective financial information separately in order for the Board of Directors to conduct periodic investigation
to determine distribution of management resources and evaluate their business result.
The Company places Automobile at the center of the whole businesses, and introduces an internal company
system into Aerospace, Industrial Products and Eco technology divisions. This framework makes clearer the
responsibility of each division and accelerates business execution. The Company manages the subsidiaries on
the basis of this classification. Therefore the business segments consist of Automobile, Aerospace, Industrial
products, Eco technology, and Other which does not belong to any division.
As for Eco technology division, the Company includes it into "Other" because it does not satisfy thequantitative standard for the business segments reported. As a result, business segments reported are
Automobile, Aerospace, and Industrial products.
Automobile segment manufactures vehicles and related products. Aerospace segment manufactures aircrafts,
parts of space-related devices. Industrial products segment manufactures Robin engines and related products.
2.Information on sales and income(loss) by business segment reported
1st Quarter of FY 2011 (April 1, 2010 to June 30, 2010)
Business segment reported
Automobiles Aerospace

Net sales(1) Outside customers(2) Inter-segment
Total sales
Operating income(loss)

Industrial
products

SubTotal(Unit: Million of yen)

Other
*1

Total

Consolidated
Adjustment Statement of*2
income*3342,144607
342,751

17,473―
17,473

7,950
3
7,953

367,567610
368,177

2,719
3,120
5,839

370,286
3,730
374,016―(3,730)(3,730)370,286―
370,286

21,93510(53)

21,892620

22,512

117

22,629Note: *1. Other means the category which is not included into any business segment reported. It consists ofgarbege collection vehicles, specialized vehicles, real estate lease, etc.
*2. Adjustment of segment income (loss) refers to elimination of intersegment transaction.
*3 Operating income (loss) for segment is adjusted on operating income on the quarterly consolidated
statements of income.

11

(6) Notes on Significant Changes in the Amount of Shareholders’ Equity
Not Applicable(7) Significant Subsequent Event(Notification with Respect to the Execution of an Agreement Regarding a Share Exchange through which
Ichitan Co., Ltd. Will Become a Wholly Owned Subsidiary of FHI)FHI and Ichitan Co., Ltd. (“Ichitan”) resolved, at their respective meetings of the Board of Directors held on
March 31, 2010, to conduct a share exchange (the “Share Exchange”) through which Ichitan will become awholly owned subsidiary of FHI and entered into an agreement concerning the Share Exchange (the “Share
Exchange Agreement”).
The effective date of the Share Exchange (the “Effective Date”) is scheduled to be August 1, 2010, after
Ichitan obtains approval for the Share Exchange Agreement at the ordinary general meeting of its
shareholders held on June 29, 2010. FHI will implement the Share Exchange without obtaining approval for
the Share Exchange Agreement at a general meeting of its shareholders in accordance with “simplified shareexchange” procedures pursuant to Article 796, Paragraph 3 of the Companies Act of Japan. In addition, prior
to August 1, 2010, the scheduled Effective Date of the Share Exchange, the shares of common stock of Ichitan
were delisted from Osaka Securities Exchange Co., Ltd. on July 28, 2010 (the final day on which the shares ofcommon stock of Ichitan were traded on Osaka Securities Exchange Co., Ltd. was July 27, 2010).

12

(JUL.30,2010)
Fuji Heavy Industries Ltd.

<Reference for the 1st Quarter of FY2011 Consolidated Financial Results>(in 100 millions of yen)

ACTUAL RESULTS

ACTUAL RESULTSFORECASTFORECAST(in thousands of units)

1st Quarter of FY 2010

1st Quarter of FY 2011

1st Half of FY 2011

FY2011

Apr.2009 to Jun.2009

Apr.2010 to Jun.2010

Apr.2010 to Sep.2010

Difference

Ratio

990

36.5

7,500

Apr.2010 to Mar.2011

Difference

Ratio

1,145

18.0

Difference

Ratio

413

2.9

4,490

(718)

(13.8)

10,210

1,131

12.5

156

57.2

156

69.9

395

－

Improvement of sales volume &mixture and others

359

2,713

3,703

Domestic

1,075

1,045

(30)

(2.8)

2,320

(119)

(4.9)

Overseas

1,638

2,658

1,020

62.3

5,180

1,263

32.3

(197)

226

423

－

350

464

－

430

Net Sales

Operating Income/Loss
Margin Percentage

Ordinary Income/Loss
Margin Percentage

Net Income/Loss

－

6.1

(195)
－

242

437

－

330

384

－

230

6.5

(193)

Margin Percentage

4.7

－

5.2

448

－

380

447

－

230

2.6

3.1

Change of operating income

Improvement of sales volume &mixture and others

by factors

Reduction in cost

441
34

Decrease of SG&A expenses andothersExchange rates

2.9

4.4

191

1

14,700

1.6

Improvement of sales volume &mixture and others
Reduction in cost
Decrease of SG&A expenses andothers571
37

Reduction in cost70

15

Decrease of SG&A expenses andothers17

Loss on currency exchange(49)

Loss on currency exchange(120)

Loss on currency exchange(202)

Increase of R&D expenses(4)

Increase of R&D expenses(39)

Increase of R&D expenses(88)

YEN/US$YEN98/US$YEN92/US$YEN90/US$YEN89/US$YEN/EURO

YEN130/EUROYEN113/EUROYEN121/EUROYEN116/EURO

Capital expenditures

215

82

260

560

Depreciation and amortization

147

116

250

520

R&D expenses
Interest bearing debts

84

89

210

460

4,235

3,473

3,200

3,200

Net Sales to increase

Net Sales to increase

Net Sales to increase

Net Income to increase

Net Income to increase

Net Income to increase

Performance of operation

33

35

3

7.8

83

3

4.1

161

(10)

(5.8)

Passenger Cars

12

13

1

5.4

36

2

7.0

69

(6)

(8.1)

Minicars

21

23

2

9.2

47

1

2.1

92

(4)

(4.0)

67

115

48

70.8

242

79

48.4

469

77

19.7

North America

45

67

21

47.2

140

32

29.9

270

20

8.2

Europe

7

13

6

87.8

29

13

84.9

60

21

54.8

China

7

17

9

132.6

33

16

96.0

60

11

22.6

Domestic sales

Overseas sales

8

19

11

133.7

39

17

75.6

78

24

45.0

Total sales

100

150

50

50.1

325

82

33.9

630

67

11.9

Production Units Total

95

162

67

70.8

322

88

37.9

604

46

8.3

85

122

37

44.3

244

47

23.6

458

5

1.1

78

42

116.7

146

41

39.6

Others

Japan

10

40

30

288.8

Net sales

Automobile

2,407

3,421

1,015

42.2

by business

Aerospace

224

175

(49)

(22.0)

Industrial Products

59

80

20

34.3

Other

23

27

4

16.7

Automobile

(217)

219

436

－
(99.4)

U.S.

segment

Operating income
by businesssegment

Aerospace

16

0

(16)

Industrial Products

(3)

(1)

2

－

Other

3

6

3

82.4

Elimination andCorporate

3

1

(2)

(63.3)* Figures of Total Sales are the sum of retail sales units of the Japanese subsidiary dealers,
wholesale units of the overseas subsidiary distributors, and wholesale units of FHI to other distributors/dealers* Exchange rates is the non-consolidated sales rate of FHI.