FY2016 Consolidated Financial Results
For the Year Ended March 31, 2016
(Japan GAAP)May 12, 2016

: Fuji Heavy Industries Ltd.

Company Name
URL
: http://www.fhi.co.jp/english/ir/
Representative: Yasuyuki Yoshinaga, President and CEO
Contact for Inquiries: Katsuo Saito, General Manager of Administration Department Phone +81-3-6447-8825
Scheduled date of annual meeting of stockholders: June 28, 2016 Scheduled date for dividend payment : June 29, 2016
Scheduled date of submitting Security Report: June 29, 2016
Annual earnings supplementary explanatory documents : Yes
Holding of annual financial results meeting: Yes (for investment analysts and institutional investors)(Tokyo Stock Exchange First Section, Code No.7270)(All amounts have been rounded off to the nearest million yen, unless otherwise specified)

1. Performance in FY2016 (April 1, 2015 to March 31, 2016)(1)Consolidated Results of Operations (for twelve-month period)(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)

Net sales
FY2016FY20153,232,258
2,877,913

Note: Comprehensive income

12.3%
19.5%

Operating income

Ordinary income

565,589
423,045576,972
393,648

33.7%
29.6%

FY2016: 405,703 million yen (31.2%)

Net income per
Net income pershare, basic (Yen) share, diluted (Yen)FY2016FY2015559.54335.57

Reference: Equity income from affiliates(2) Consolidated Financial Position
Total assets

Net assets

2,592,410
2,199,714

1,349,411
1,030,719

FY2016FY2015

Reference: Shareholders’ equity

FY2016: 1,343,732 million yen

46.6%
25.2%

FY2015: 309,271 million yen (46.7%)

Return on
equity
36.9%
29.3%

－
－
FY2016: 739 million yen

Ratio of ordinary
Ratio ofincome (loss) to operating income
total assets(loss) to sales
24.1%
17.5%
19.3%
14.7%

FY2015: 499 million yen(Unit: Millions of yen, except for per share figures)
Shareholders’ equity to Net assets per share (Yen)total assets (%)
51.8%
1,721.90
46.5%
1,310.15
FY2015: 1,022,417 million yen(3) Consolidated Cash FlowsFY2016FY2015

Net cash provided by Net cash provided by Net cash provided byoperating activities
investment activities
financing activities
614,256(255,676)(126,190)
311,543(172,780)(110,546)

2. Dividends
Cash dividends per share (yen)
1stQuarter
FY 2015
FY 2016
FY 2017(Forecast)

3rd
Quarter－－

2nd
Quarter
31.00
72.00

－

72.00

Net income
attributable toowners of parent
436,65466.7%
261,873
26.7%

Annual－－Yearend
37.00
72.00

－

72.00

144.0068.00
144.00(Unit: Millions of yen)
Cash & cash equivalents
at end of period
829,461
612,085

Ratio ofAmount ofDividend
dividends
payout ratio dividends topaid (Annual) (consolidated) net assets(consolidated)
53,09320.3%
5.9%
112,432
25.7%
9.5%
38.4%

3. Projection of Consolidated Results for Fiscal Year 2017 (April 1, 2016 to March 31, 2017)(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 half 1,533,500 (4.2)%
Full year 3,170,000 (1.9)%

Operating income
210,000 (26.3)%
420,000 (25.7)%

Net income attributable Net income per
to owners of parent
share,basic(Yen)
214,000 (24.9)%
148,000(23.4)%
189.65420,000 (27.2)%
293,000(32.9)%
375.46

Ordinary income

4. Others(1) Changes of significant subsidiaries in fiscal year 2016
(Transfer of subsidiaries resulting in changes in the scope of consolidation): No(2) Changes in accounting policies, procedures and methods of presentation for preparing the consolidated
financial statements[1] Changes due to revisions of accounting standards[2] Changes due to other reasons[3] Changes of estimation due to accounting issues[4] Restatements

: Yes
: No
: No
: No

(3) Number of outstanding shares (Common Stock)[1] Number of outstanding shares(including treasury stock)[2] Number of treasury stock[3] Average number of shares(for twelve-month period)

As of March 31,2016:

782,865,873 shares As of March 31,2015: 782,865,873 shares

As of March 31,2016:
FY2016:2,487,843 shares As of March 31,2015:
780,380,153 shares FY2015:

2,483,395 shares
780,385,747 shares(Reference) Non-consolidated Financial Results Highlights
Performance in FY2016(April 1, 2015 to March 31, 2016)(1)Non-consolidated Results of Operations (for twelve-month period)(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)

FY2016FY2015Net sales
2,083,464
9.0%
1,910,677
13.1%

Operating income
414,75530.3%
318,39028.2%

FY2016FY2015

Net income per share,
basic (Yen)
463.56281.36

Net income per share,
diluted (Yen)－－

Ordinary income
438,63939.3%
314,819
24.8%

Net income
361,94164.8%
219,684
26.9%

Shareholders’ equity
to total assets (%)
59.0%
53.5%

Net assets per share(Yen)
1,377.63
1,030.68(2) Non-consolidated Financial Position
Total assets
FY2016FY2015

1,824,480
1,503,879

Reference: Shareholders’ equity

Net assets
1,075,625
804,736

FY2016: 1,075,625 million yen FY2015: 804,736 million yen*The status of the implementation of the annual audit
This earnings report is exempt from audit procedure based upon of the Financial Instruments and Exchange Act.
It is under the audit procedure process at the time of disclosure of this report.
*Proper use of projection of operating results, and other information
The performance projections were based on the information available as of the date when this document was
released. Therefore, actual results may differ considerably due to various factors that might occur in the future.
Please refer to page 3 in the attachments for assumptions used for the performance projection and other notes.

Index of the attachments
1. Analysis of Operating and Financial Results.................................................................................2(1) Analysis of Operating Results...................................................................................................................2(2) Analysis of Financial Results ....................................................................................................................4(3) Basic Policy Regarding the Distribution of Profits.................................................................................4

2. Management Policies .......................................................................................................................5(1) Basic Management Policies.......................................................................................................................5(2) Issues That Must Be Addressed................................................................................................................5

3. Basic policy about the adoption of Accounting standards ...........................................................6
4. Consolidated Financial Statements ................................................................................................7(1) Consolidated Balance Sheet ......................................................................................................................7(2) Consolidated Statements of (Comprehensive) Income ...........................................................................9
Consolidated Statements of Income (for twelve-month period)...............................................................9
Consolidated Statements of Comprehensive Income (for twelve-month period) .................................10(3) Consolidated Statements of Changes in Net Assets ..............................................................................11(4) Consolidated Statements of Cash Flows ................................................................................................13(5) Notes to Consolidated Financial Statements .........................................................................................15(Notes on Premise of Going Concern) ......................................................................................................15(Accounting Change) .................................................................................................................................15(Consolidated Balance Sheet)....................................................................................................................15(Consolidated Statements of Income) .......................................................................................................15(Segment Information) ..............................................................................................................................16(Per Share Information) ............................................................................................................................18(Subsequent Event) ....................................................................................................................................18

5. Non-consolidated Financial Statements .......................................................................................19(1) Non-consolidated Balance Sheet.............................................................................................................19(2) Non-consolidated Statements of Income (for twelve-month period) ...................................................21(3) Non-consolidated Statements of Changes in Net Assets .......................................................................22―1―

1. Analysis of Operating and Financial Results(1) Analysis of Operating Results1) Operating Results for the Current Period under Review
The Japanese economy continued on a gradual recovery path in the period under review, and despite
weaker growth in emerging countries the global economy also showed signs of a gentle resurgence overall,
especially in developed countries. However, factors including the sharp appreciation of the yen against the
US dollar since January this year and the impact of changes in financial and capital markets haveheightened uncertainty over the economic outlook.
Through initiatives set out in the Prominence 2020 mid-term management vision drawn up in 2014,
which aims for Subaru to have a prominent presence in the minds of its customers, FHI has continued tocommit itself to thorough and reliable automobile development and manufacturing, and keep offering its
customers “Enjoyment and Peace of Mind.”
In the period under review, the key North American market continued to drive global sales, and our
initiatives brought steady results, including record unit sales for Subaru.
The above efforts produced the following consolidated results for the period under review. Net sales
increased by ¥354.3 billion (12.3%) from the previous fiscal year to ¥3,232.3 billion, thanks to higher
automobile unit sales and higher sales revenues owing to foreign exchange rate fluctuations. Operating
income rose by ¥142.5 billion (33.7%) year-on-year to ¥565.6 billion in conjunction with higher sales.
Ordinary income increased by ¥183.3 billion (46.6%) from the previous fiscal year to ¥577.0 billion.
Net income attributable to owners of parent increased by ¥174.8 billion (66.7%) year-on-year to ¥436.7
billion, due to factors including an extraordinary gain of ¥48.2 billion associated with the binding judgmenton the lawsuit concerning claims of initial investment expenses related to AH-64D combat helicopters
supplied to the Ministry of Defense.
Results by Business Segment(Automobile Division)
As to industry total automobile demand in Japan, compared with the previous fiscal year, passenger carsremain unchanged and minicars decreased 16.6% mainly due to the effects of a rise in minicar tax combinedwith the continuing negative impact of the consumption tax rise in April 2014. As a result, overall
automobile unit sales in Japan were 4.938 million units(a decrease of 6.8% from the previous fiscal year).
Although domestic sales of the Impreza, Forester, and Crossover 7 models remained strong amid thisoverall downtrend in demand, sales of the Levorg and the Legacy launched a year ago declined. As a result,sales of Subaru passenger cars in Japan decreased by 16 thousand units (12.7%) from the previous fiscal
year to 112 thousand units. In the minicar segment, a decline in sales of the Stella launched a year ago led tounit sales falling by 1 thousand (3.4%) year-on-year to 34 thousand. As a result, total Subaru unit sales inJapan decreased by 17 thousand (10.7%) from the previous fiscal year to 145 thousand.
Overseas, sales of the Outback remained robust throughout the period under review. The Crosstrek(called the Subaru XV in Japan) remained strong in North America, and in Europe the Levorg, shipments ofwhich began in the second half of the fiscal year, contributed to a rise in unit sales. As a result, total
overseas sales increased by 65 thousand units (8.6%) year-on-year to 813 thousand units.
By region, sales in North America rose by 60 thousand units (10.6%) from the previous fiscal year to 630
thousand units, sales in Europe including Russia were steady year-on-year at 48 thousand units, sales in
China decreased by 9 thousand units (17.5%) to 44 thousand units, sales in Australia increased by 6
thousand units (14.7%) to 45 thousand, and sales in other areas region by 8 thousand units (21.0%) to 46
thousand units.
Combined domestic and overseas unit sales thus increased by 47 thousand (5.2%) from the previous
fiscal year to reach a new record of 958 thousand. Taking into account the impact of exchange rate
fluctuations, the value of overall automotive business sales rose by ¥340.5 billion (12.6%) year-on-year to―2―

¥3,039.4 billion. Segment income also increased by ¥142.7 billion (35.6%) from the previous fiscal year to¥543.6 billion.
(Aerospace Division)
Sales of products to the Ministry of Defense decreased from the previous fiscal year due to lower sales of
T-5 trainers and aerial target drones. However, commercial sector sales rose year-on-year due to higher sales
revenues owing to exchange rate fluctuations and increased Boeing 777 production.
As a result, overall net sales increased by ¥10.0 billion (7.0%) from the previous fiscal year to ¥152.8
billion. However, segment income declined by ¥0.7 billion (3.8%) year-on-year to ¥18.2 billion.
(Industrial Products Division)
Net sales increased by ¥3.5 billion (12.2%) from the previous fiscal year to ¥32.6 billion, thanks togrowth in North American sales of engines for leisure equipment. However, segment income decreased by¥0.7 billion (89.5%) year-on-year to ¥0.1 billion, due to ¥0.9 billion in expenses incurred to address defects
in engines for leisure equipment for the North American market.
(Other Businesses)
Net sales increased by ¥0.4 billion (5.2%) year-on-year to ¥7.5 billion. Segment income also increased by¥1.0 billion (53.6%) to ¥2.9 billion.
2) Forecast for the FYE March 2017
In the fiscal year ending March 31, 2017, FHI plans to achieve sales growth in both the domestic andoverseas markets, especially North America, spurring unit sales of automobiles to a new record high. Taking
into account the impact of exchange rate fluctuations, consolidated net sales are projected to be ¥3,170.0
billion. Although higher unit sales of automobiles and reduced costs will boost consolidated income, theimpact of exchange rate fluctuations, together with increases in experiment and research costs and otherexpenses such as SG&A, will have a dampening effect. As a result, income projections are ¥420.0 billion
for operating income, ¥420.0 billion for ordinary income, and ¥293.0 billion for net income attributable toowners of parent.
Projections for full-year consolidated results are based on assumed foreign exchange rates of US$1 =¥105 (previously ¥121) and EUR1 = ¥120 (previously ¥133).
(Consolidated forecast for the full fiscal year)
Net sales
Operating income
Ordinary income
Net income attributable to owners of parent¥3,170.0 billion¥420.0 billion¥420.0 billion¥293.0 billion―3―(down 1.9% year-on-year)(down 25.7% year-on-year)(down 27.2% year-on-year)(down 32.9% year-on-year)

(2) Analysis of Financial Results
1) Assets, Liabilities, and Net Assets
Total assets increased by ¥392.7 billion from the end of the previous fiscal year to ¥2,592.4 billion. Main
factors included a ¥334.6 billion increase in combined funds on hand comprised of cash, deposits, andshort-term investment securities, and a ¥57.9 billion increase in property, plant, and equipment.
Liabilities increased by ¥74.0 billion from the end of the previous fiscal year to ¥1,243.0 billion. Main
factors included a ¥25.9 billion increase in trade accounts payable comprised of notes and accounts payabletrade and electronically recorded obligations, and a ¥45.3 billion increase in accrued income taxes.
Net assets increased by ¥318.7 billion from the end of the previous fiscal year to ¥1,349.4 billion. Main
factors included a ¥351.6 billion increase in retained earnings from net income recognized for the current
fiscal year.
2) Cash Flow
Cash and cash equivalents (hereinafter “cash”) at the end of the period under review totalled ¥829.5
billion.
(Net cash provided by operating activities)
Net cash provided by operating activities was ¥614.3 billion (compared with ¥311.5 billion in theprevious fiscal year). Main factors included ¥619.0 billion in income before income taxes, a ¥22.8 billion
decrease in notes and accounts receivable-trade, a ¥30.1 billion increase in notes and accounts payable-trade,
receipt of ¥48.2 billion in compensation for damages, and ¥144.4 billion in income taxes paid.
(Net cash used in investment activities)
Net cash used in investment activities was ¥255.7 billion (compared with ¥172.8 billion in the previous
fiscal year). Main factors included ¥125.8 billion in expenditures for the purchase of property, plant andequipment as well as intangible assets (net basis against the proceeds from sales of property, plant andequipment) and ¥21.8 billion in expenditures for the purchase of short-term investment securities (net basis
against proceeds from sales of short-term investment securities).
(Net cash used in financing activities)
Net cash used in financing activities was ¥126.2 billion (compared with ¥110.5 billion in the previous
fiscal year). Main factors included ¥33.0 billion in repayment of long-term loans payable (net basis against
proceeds from long-term loans payable) and ¥84.9 billion in expenditures for cash dividends paid.
(3) Basic Policy Regarding the Distribution of Profits
FHI regards shareholder interests as a vital management issue and applies a results-linked approach thatconsiders earnings, investment plans, and the business environment in each fiscal year while remaining
committed to sustained dividend payments. Dividend payments for each fiscal year are determined after
considering various circumstances and predicated on a 20–40% standard range for the consolidated dividend
payout ratio.
It is proposed to distribute a year-end dividend of ¥72 per share, in line with the previous projection.
Including the interim dividend of ¥72 per share already distributed, this raises the per-share dividend for thefull fiscal year to ¥144, which is ¥76 higher than in the previous fiscal year.
Moreover, to improve shareholder value and capital efficiency, FHI resolved at its Board of Directors
meeting held on May 12, 2016, matters relating to repurchase of its own shares. In accordance with thisresolution, the company will repurchase up to 15 million shares of its common stock to a maximum value of¥48.0 billion during the period from May 13 to September 30, 2016. All of shares repurchased are planned tobe cancelled.
The per-share dividend for the FYE March 2017, is projected to the same amount of ¥144 (interim dividend¥72, year-end dividend ¥72).

―4―

2. Management Policies(1) Basic Management Policies
FHI adheres to the following corporate philosophy:
1. We will strive to create advanced technology on an ongoing basis and provide consumers with distinctive
products with the highest level of quality and customer satisfaction.
2. We will aim to continuously promote harmony between people, society, and the environment while
contributing to the prosperity of society.
3. We will look to the future with a global perspective and aim to foster a vibrant, progressive company.
Based on this corporate philosophy, our management ideal is to be “an appealing company with a strong
presence.” We strive to build a highly profitable corporate structure with automotive business at its core andenhance corporate value. By providing distinctive Subaru quality, we aim to grow and advance with society
and to be a company capable of earning the satisfaction and trust of its shareholders, customers, and all otherstakeholders.
(2) Issues That Must Be Addressed
The FHI Group’s Prominence 2020 mid-term management vision sets the objective of being “Not big in size,
but a high-quality company with distinctive strengths.” We aim to develop a strong brand acclaimed as “No. 1
for customer trust” and to be among the most profitable companies in the industry. To this end, we will focus
on utilizing distinctive Subaru features to enhance the Subaru brand in the aim of practicing higher-addedvalue management and creating a strong business structure that is more capable of withstanding changes in thebusiness environment and ensuring sustainable growth. To accelerate our efforts in this direction, we will
devote our energies to addressing the following issues.
(Expanding the Range of Distinctive Subaru Products)
The next-generation Subaru Global Platform currently being developed will make its debut with the new
Subaru Impreza to be launched in fiscal 2016, and will then be rolled out to other models as they undergo fullmodel changes. In the aim of further expanding its customer base in the booming North American market, we
will launch a new 3-row SUV in 2018.
On the safety front, we will further refine our EyeSight driver assist technology, introducing traffic jam
assist functions for use on limited highway in 2017, autonomous driving for expressways by 2020.
In response to environmental regulations around the world, beginning in 2019 we will progressively launch
new downsized turbo engines as our main internal combustion power units. To comply with US zero emission
vehicle (ZEV) regulations, a plug-in hybrid and an electric vehicle are scheduled to launch in 2018 and 2021
respectively.
(Increase Development Resources in the Automotive Business)
In focusing on enhancing the Subaru brand and further accelerating our initiatives in this direction, we
recognize that increase of development resources in the automotive business is one of the top priority issue. To
address this issue, we will optimize company-wide allocation of management resources by restructuring theIndustrial Products Company to be converted as a part of the Subaru Automobile Division. Manufacturing,sales and service of existing industrial products will continue for the time being, but development projects willcease, and we plan to gradually reassign management resources including development personnel to the
Automobile Division.
(Further Enhancing and Promoting the Subaru Brand)
In addition to strengthening our products and technologies, we aim to take a customer-focused approach to
improving all aspects of quality right through to sales and after- sales service. To further accelerate our efforts
to enhance the Subaru brand and to grow Subaru as a global brand, we plan to change the company name to―5―

SUBARU CORPORATION effective from April 1, 2017, subject to approval of amendment of the company’s
Articles of Incorporation by the 85th General Meeting of Shareholders scheduled for June 28, 2016.
(Boosting Production Capacity)
In a strong sales environment we continued to invest in capacity expansion, and combined domestic andoverseas production capacity reached 854 thousand units (standard operation) as of March 31, 2016. We willcease consignment production of the Toyota Camry at Subaru of Indiana Automotive Inc. (SIA) by the end of
May 2016 and switch this capacity over to Subaru production, boosting global production capacity to 1,030
thousand units (standard operation). By further expanding capacity in Japan and at SIA, we will raise global
production capacity to 1,130 thousand units (standard operation) by the end of March 2019. Through thisexpansion we will make every effort to ensure that our products are delivered to customers around the world
who are waiting for Subaru vehicles. In conjunction with the above initiatives we will raise the global sales forthe fiscal year ending March 2021 target set in Prominence 2020 from 1.1 million-plus vehicles to 1.2 millionplus vehicles.
(Becoming a High-quality Company)
To fulfil our corporate social responsibilities so that we can earn the satisfaction and trust of all our
stakeholders, we will improve the effectiveness of corporate governance, ensure compliance, pursue
sustainable growth for the FHI Group, and enhance its corporate value over the medium to long term. We
regard human resource development and reform of the organization and its corporate culture as essential for
supporting sustained growth. Providing opportunities for female employees to flourish within the group is a
key issue, and we are expanding promotion of women to management positions in the aim of creating acompany where women can play even greater roles.

3. Basic policy about the adoption of Accounting standards
The consolidated financial statements of the group are prepared in accordance with Japanese GAAP. The
Group will consider its future adoption of International Financial Reporting Standards (IFRS), observing thetrend of the adoption among Japanese companies.

―6―4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Unit: Millions of yen)
FY2015(as of March 31, 2015)
ASSETSⅠ 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
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets―7―

FY2016(as of March 31, 2016)

228,821
164,540
24,098444,737
203,347
52,73439,56978,789157,070
80,796(1,233)
1,473,268

507,553
140,319
21,532500,572
192,705
50,66634,99690,893
151,973
93,509(625)
1,784,093

128,225
130,433
177,075
8,765
28,611
41,588514,697

158,386
138,519
182,5317,460
46,951
38,786572,633

16,85016,85020,98920,989111,558
3,659
13,11399,648(33,079)
194,899
726,446
2,199,714

109,804
1,774
16,33990,205(3,427)
214,695
808,317
2,592,410

(Unit: Millions of yen)
FY2015(as of March 31, 2015)
LIABILITIESⅠ Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
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 directors' retirement benefits
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Ⅰ Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Ⅱ Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Remeasurements of other postretirement benefitsof foreign consolidated subsidiaries
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets―8―

FY2016(as of March 31, 2016)

317,801
74,42041,44344,329－54,987126,007
21,66849,7080142,693873,056

326,625
91,47633,252
33,692
10,000100,272
132,759
23,554
51,251
645
155,969
959,495

10,000115,420
13,996409
17,963
138,151
295,939
1,168,995－
93,03018,769478
18,586
152,641
283,504
1,242,999

153,795
160,071
697,414(1,382)
1,009,898

153,795
160,071
1,049,016(1,402)
1,361,480

17,986
10,025(11,616)

11,344(13,415)(12,808)(3,876)(2,869)12,5198,302
1,030,719
2,199,714(17,748)
5,679
1,349,411
2,592,410

(2) Consolidated Statements of (Comprehensive) Income
Consolidated Statements of Income (for twelve-month period)(Unit: Millions of yen)
FY2015(April 1, 2014 toMarch 31, 2015)
Ⅰ Net sales
Ⅱ Cost of sales
Gross profit
Ⅲ Selling, general and administrative expenses
Operating income
Ⅳ Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Gain on valuation of derivatives
Other
Total non-operating income
Ⅴ Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on valuation of derivatives
Depreciation
Other
Total non-operating expenses
Ordinary income
Ⅵ Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Reversal of allowance for doubtful accounts
State subsidy
Other
Total extraordinary income
Ⅶ Extraordinary loss
Loss on sales and retirement of noncurrent assets
Loss on reduction of non-current assets
Loss on valuation of investment securities
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income (loss) attributable to non-controlling interests
Net income attributable to owners of parent―9―

FY2016(April 1,2015 toMarch 31, 2016)

2,877,913
2,017,490
860,423437,378
423,045

3,232,258
2,187,136
1,045,122
479,533
565,589

2,320
1,807
499
－
2,335
6,961

3,253
1,937
739
9,883
4,896
20,7082,903
24,277
2,003
985
6,190
36,358

2,499
2,056
－
981
3,789
9,325

393,648576,972

638
1,052
－
－
2,188
3,878

282
2,732
30,152
2,999
19,65655,821

3,943
－
－
1,377
5,320
392,206
133,256(6,199)127,057
265,149
3,276
261,873

4,812
1,660
5,387
1,931
13,790619,003
191,168(8,524)
182,644436,359(295)
436,654

Consolidated Statements of Comprehensive Income (for twelve-month period)(Unit: Millions of yen)
FY2015(April 1, 2014 toMarch 31, 2015)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Remeasurements of other postretirement benefits offoreign consolidated subsidiaries
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests―10―

FY2016(April 1,2015 toMarch 31, 2016)

265,149

436,359

7,357
37,321
2,270(6,642)(23,777)(1,192)(2,957)

1,007

131

(52)

44,122309,271(30,656)
405,703305,229
4,042

406,387(684)

(3) Consolidated Statements of Changes in Net Assets
FY 2015 (April 1, 2014 to March 31, 2015)(Unit: Millions of yen)
Shareholders' equity
Capital stock
Balance at the beginning ofcurrent period
Cumulative effects ofchanges in accounting policies

Capital surplus

Retained earnings

Treasury stock

Total shareholders' equity

153,795

160,071483,910(1,395)796,381

－

－

1,385

－

1,385

153,795

160,071

485,295(1,395)

797,766

Dividends from surplus－－(49,970)－(49,970)

Net income attributable toowners of parent－－

261,873－

261,873

Purchase of treasury stock

－

－

－

(22)

(22)

Disposal of treasury stock

－

－

－

－

－

Other

－

－

216

35

251

－

－

－

－

－

－

－

212,119

13

212,132

153,795

160,071

697,414(1,382)

1,009,898

Restated balance
Changes of items during theperiodNet changes of items otherthan shareholders’ equity
Total changes of items
during the period
Balance at the end of current
periodAccumulated other comprehensive income
Remeasurements
Totalof otheraccumulated
postretirement
other
benefits ofcomprehensive
foreign consolidated
incomesubsidiaries

Valuationdifference
on availablefor-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

10,629(26,661)(13,886)(919)(30,837)

4,527

770,071

－

－

－

－

－

－

1,385

10,629(26,661)(13,886)(919)(30,837)

4,527

771,456

Dividends from surplus

－

－

－

－

－

－

(49,970)

Net income attributable toowners of parent

－

－

－

－

－

－

261,873

Purchase of treasury stock

－

－

－

－

－

－

(22)

Disposal of treasury stock

－

－

－

－

－

－

－

Other

－

－

－

－

－

－

251

7,357

36,6862,270(2,957)43,356

3,775

47,131

7,357

36,6862,270(2,957)43,356

3,775

259,263

17,986

10,025(11,616)(3,876)

12,5198,302

1,030,719

Balance at the beginning ofcurrent period
Cumulative effects ofchanges in accounting policies
Restated balance

Noncontrollinginterests

Total net
assetsChanges of items during
the period

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period―11―

FY 2016 (April 1, 2015 to March 31, 2016)(Unit: Millions of yen)
Shareholders' equity
Capital stock
Balance at the beginning ofcurrent period
Cumulative effects ofchanges in accounting policies

Capital surplus

Retained earnings

Treasury stock

Total shareholders' equity

153,795

160,071

697,414(1,382)

1,009,898

－

－

－

－

－

153,795

160,071

697,414(1,382)

1,009,898

Dividends from surplus－－(85,105)－(85,105)

Net income attributable toowners of parent－－

436,654－436,654

Purchase of treasury stock

－

－

－

(20)

(20)

Disposal of treasury stock

－

0

(1)

0

(1)

Other

－

－

54

－

54

－

－

－

－

－

－

0

351,602(20)

351,582

153,795

160,071

1,049,016(1,402)

1,361,480

Restated balance
Changes of items during theperiodNet changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
periodAccumulated other comprehensive income
Remeasurements of
Totalother postretirement accumulated
benefits of foreign
otherconsolidated
comprehensive
subsidiaries
incomeNoncontrollinginterests

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

17,986

10,025(11,616)(3,876)

12,5198,302

1,030,719

－

－

－

－

－

－

－

17,986

10,025(11,616)(3,876)

12,5198,302

1,030,719

Dividends from surplus

－

－

－

－

－

－

(85,105)

Net income attributable toowners of parent

－

－

－

－

－

－

436,654

Purchase of treasury stock

－

－

－

－

－

－

(20)

Disposal of treasury stock

－

－

－

－

－

－

(1)

Other

－

－

－

－

－

－

54

(6,642)(23,440)(1,192)

1,007(30,267)(2,623)(32,890)(6,642)(23,440)(1,192)

1,007(30,267)(2,623)

318,692

11,344(13,415)(12,808)(2,869)(17,748)

5,679

1,349,411

Balance at the beginning ofcurrent period
Cumulative effects ofchanges in accounting policies
Restated balance

Total net
assetsChanges of items during
the period

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period―12―

(4) Consolidated Statements of Cash Flows(Unit: Millions of yen)
FY2015(April 1, 2014 toMarch 31, 2015)
Ⅰ Net cash provided by (used in) operating activities
Income (loss) before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Loss (gain) on sales and retirement of noncurrent assets
Loss (gain) on sales and valuation of investment securities
Decrease (increase) in operating loans receivable
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other extraordinary income
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Proceeds from compensation for damage
Income taxes paid
Net cash provided by (used in) operating activities
Ⅱ Net cash provided by (used in) investing activities
Net decrease (increase) in time deposits
Purchase of short-term investment securities
Proceeds from sales of short-term investment securities
Purchase of non-current assets
Proceeds from sales of non-current assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities―13―

FY2016(April 1,2015 toMarch 31, 2016)

392,206
71,821(146)(4,127)
2,903
3,305
(953)
(23,112)
19,283(27,180)
38,223(833)
31,753503,143
4,361(2,839)－(193,122)
311,543

619,003
72,938(30,260)(5,190)
2,499
4,530
2,957
(6,540)22,791(1,342)30,082(19,656)
15,538707,350
5,668(2,528)48,184(144,418)
614,256(11,944)(43,424)
17,905(115,173)
1,540(47,031)
26,364(104,891)
108,065(4,191)(172,780)(101,631)(48,845)
47,032(126,732)
975(47,005)
25,240(106,117)
108,636(7,229)(255,676)

(Unit: Millions of yen)
FY2015(April 1, 2014 toMarch 31, 2015)
Ⅲ Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Ⅳ Effect of exchange rate change on cash and cash equivalents
Ⅴ Net increase (decrease) in cash and cash equivalents
Ⅵ Cash and cash equivalents at beginning of period
Ⅶ Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Ⅷ Cash and cash equivalents at end of period―14―

FY2016(April 1,2015 toMarch 31, 2016)(18,811)
6,190(42,858)(4,060)(49,887)(1,120)(110,546)
25,99854,215557,870(7,822)
11,760(44,797)－(84,938)(393)(126,190)(14,887)
217,503
612,085－(127)612,085

829,461(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not Applicable(Accounting Change)
The Accounting Standard for Business Combinations (ASBJ Statement No.21, September 13, 2013) andConsolidated Financial Statements (ASBJ Statement No.22, September 13, 2013) and Business Divestitures(ASBJ Statement No.7, September 13, 2013) were applied from the period of the first quarter of fiscal year
2016.
The presentation method of net income was amended and the reference to "minority interests" was changed
to "non-controlling interests". To reflect these changes in presentation, the quarterly consolidated financial
statements and consolidated financial statements in the previous fiscal year have been reclassified.
(Consolidated Balance Sheet)
Accumulated depreciation on property, plant and equipment
FY2015(as of March 31, 2015)
Accumulated depreciation on property, plantand equipment

1882,752million yen

886,905million yen(Consolidated Statements of Income)Research and development cost included in general and administrative expenses and cost of sales
FY2015(April 1, 2014 toMarch 31, 2015)
83,535million yen

Research and development cost

2

FY2016(as of March 31, 2016)

FY2016(April 1, 2015 toMarch 31, 2016)
102,373million yen

Extraordinary income

FY2016 (April 1, 2015 to March 31, 2016)
Reversal of allowance for doubtful accounts
Reversal of allowance for doubtful account includes 29,624 million yen of the allowance
for receivables of the initial investment fees associated with the AH-64D combat
helicopter for the Japan Ministry of Defense was released because the lawsuit against theGovernment of Japan over the claims of the initial investment fees was concluded.
Other extraordinary income
Other extraordinary income includes 18,561 million yen of accrued delay damages
receivable recognized due to the conclusion of the lawsuit against the Government of Japanover the claims of the initial investment fees associated with the AH-64D combat helicopter
for the Japan Ministry of Defense.

―15―

(Segment Information)
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 todetermine 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 divisions. This framework makes clearer the responsibility of eachdivision and accelerates business execution. The Company manages the subsidiaries on the basis of thisclassification. Therefore, the business segments consist of Automobile, Aerospace, Industrial products, and Other
which does not belong to any division.
Automobile segment manufactures and sells vehicles and related products. Aerospace segment manufacturesaircrafts, parts of space-related devices. Industrial products segment manufactures and sells Robin engines andrelated products.
2. Method of calculating sales and income(loss), identifiable assets, and other items by business segment reported
Accounting method for business segment reported is almost the same as the accounting method to prepare forconsolidated financial statements.
Segment income by business segment reported is calculated based on operating income.
Net sales - Inter-segment are calculated based on current market prices.

―16―

3. Information on sales and income(loss) by business segment reported
FY 2015 (April 1, 2014 to March 31, 2015)(Unit: Millions of yen)

Business segment reported
Automobiles Aerospace
Ⅰ. Net sales(1) Outside customers(2) Inter-segment
Total sales
Segment income
Identifiable assets bybusiness segment
Ⅱ. Other items
Depreciation
Investment to equitymethod affiliates
Increase of property,
plant and equipment
and intangible assets

Industrial
Products

SubTotal

Other
*1

Total

Consolidated
Adjustment
Statement of*2
income *32,698,974
4,236
2,703,210
400,874

142,801－
142,801
18,912

29,029207
29,236779

2,870,804
4,443
2,875,247
420,565

7,109
15,74422,8531,884

2,877,913
20,1872,898,100
422,449－(20,187)(20,187)596

2,877,913－
2,877,913
423,045

1,944,178

186,292

32,9262,163,396

59,7352,223,131(23,417)

2,199,714

65,342

4,583

429

70,354

1,467

71,821－

71,821

589

－

775

1,364

－

1,364

－

1,364

122,689

4,509

985

128,183

7,163

135,346－

135,346

Notes: *1. Other means the category which is not included into any business segment reported. It consists of realestate lease, etc.
*2. Adjustment of segment income refers to elimination of intersegment transaction.
*3. Segment income is adjusted on the operating income of the consolidated statements of income.
(Unit: Millions of yen)

FY 2016 (April 1, 2015 to March 31, 2016)
Business segment reported
Automobiles Aerospace
Ⅰ. Net sales(1) Outside customers(2) Inter-segment
Total sales
Segment income
Identifiable assets bybusiness segment
Ⅱ. Other items
Depreciation
Investment to equitymethod affiliates
Increase of property,
plant and equipment
and intangible assets

Industrial
products

SubTotal

Other
*1

Total

Consolidated
Adjustment
Statement of*2
income *33,039,424
4,752
3,044,176
543,609

152,786－
152,786
18,201

32,570185
32,75582

3,224,780
4,937
3,229,717
561,892

7,478
17,88925,367
2,894

3,232,258
22,8263,255,084
564,786－(22,826)(22,826)803

3,232,258－
3,232,258
565,589

2,298,942

220,786

35,961

2,555,689

61,4452,617,134(24,724)

2,592,410

67,2293,668

507

71,404

1,534

72,938－72,938

711

－

768

1,479

－

1,479

－

1,479

160,048

6,902

726

167,676662

168,338－

168,338

Notes: *1. Other means the category which is not included into any business segment reported. It consists of realestate lease, etc.
*2. Adjustment of segment income refers to elimination of intersegment transaction.
*3. Segment income is adjusted on the operating income of the consolidated statements of income.

―17―(Per Share Information)
FY2015(April 1, 2014 toMarch 31, 2015)

FY2016(April 1, 2015 toMarch 31, 2016)

1,310.15

1,721.90

335.57559.54

Net assets per share (yen)Net income per share, basic (yen)Notes: 1. Since there are no dilutive potential securities, diluted information is not presented.
2. The following shows the basis of calculating net income per share.
FY2015(April 1, 2014 toMarch 31, 2015)

FY2016(April 1, 2015 toMarch 31, 2016)

261,873436,654－－261,873436,654780,386

780,380

FY2015(as of March 31, 2015)

FY2016(as of March 31, 2016)

Net assets per share
Net income attributable to owners of parent (millions of yen)
Monetary value not related to common shareholders(millions of yen)
Net income attributable to owners of parent
related to common stock (millions of yen)
Number of weighted average common shares outstanding
during the fiscal year (Thousands of shares)

3. The following shows the basis of calculating net assets per share.

Total amount of net assets (millions of yen)

1,030,719

1,349,411

The amount deducted from total amount of net assets(millions of yen)

8,302

5,679

(Held by Non-controlling interests)(8,302)(5,679)1,022,417

1,343,732

780,382

780,378

Net assets related to common stock (millions of yen)
Number of common stock used in the calculation of net assets
per share (Thousands of share)(Subsequent Event)Fuji Heavy Industries Ltd. (FHI) resolved at its Board of Directors meeting held on May 12, 2016 torepurchase of its own shares pursuant to the provisions of Article 156 of the Companies Act that are
applied by the reading of terms under the provisions of Article 165, Paragraph 3 of that Act.
1
2

Reason for the repurchase of its own shares
FHI will repurchase its own shares to improve shareholder value and capital efficiency.
Details of the repurchase(1) Class of shares to be repurchased: Common stock issued by FHI(2) Total number of shares to be repurchased: Up to 15,000,000 shares
Proportion of the total number of shares issued and outstanding, excluding treasury stock: 1.92%(3) Total value of shares to be repurchased: Up to 48.0 billion yen(4) Period of repurchase: From May 13 to September 30, 2016(5) Other: All of shares repurchased are planned to be cancelled.

―18―

5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheet(Unit: Millions of yen)
FY2015(as of March 31, 2015)
ASSETSⅠ Current assets
Cash and deposits
Accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Short-term loans receivable to subsidiaries and affiliates
Current portion of long-term loans receivable fromsubsidiaries and affiliates
Deposits paid
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Ⅱ Noncurrent assets
1. Property, plant and equipment
Buildings, net
Structures, net
Machinery and equipment, net
Vehicles, net
Tools, furniture and fixtures, net
LandConstruction in progress
Other
Total property, plant and equipment
2. Intangible assets
Software
Other
Total intangible assets
3. Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in capital of subsidiaries and affiliates
Long-term loans receivable
Long-term loans receivable from subsidiaries and affiliates
Claims provable in bankruptcy, claims provablerehabilitation and otherPrepaid pension cost
Deferred tax assets
Other
Allowance for investment loss
Allowance for doubtful accounts
Total investments and other assets

inTotal noncurrent assets
Total assets―19―

FY2016(as of March 31, 2016)

76,241
235,503344,982
33,41847,428
19,845
3,693
1,851
22,09899,164363,284
224,663352,896
38,51245,275
16,4992,547
5,147
32,192
86,461

6,700

13,50023,74036,54727,034(565)
977,679

26,44433,801
26,097(10)
1,267,308

48,3295,222
90,645
1,462
6,812
80,2356,255
990
239,950

61,097
6,731
82,827
1,603
6,994
79,972
16,532
1,161
256,917

9,871
2,023
11,894

12,361
4,044
16,40539,055
145,8901,498
905
64,35428,764
145,692
1,498
805
72,635

2,692

2,674

19,159－36,489(84)(35,602)274,356

17,6463,401
16,279－(5,544)
283,850526,200
1,503,879

557,172
1,824,480

(Unit: Millions of yen)
FY2015(as of March 31, 2015)
LIABILITIESⅠ Current liabilities
Notes payable-trade
Accounts payable-trade
Electronically recorded obligations-operating
Current portion of long-term loans payable
Current portion of bonds
Lease obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Advances received
Deposits received
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
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Deferred tax liabilities
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Ⅰ Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for reduction entry of land
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders' equity
Ⅱ Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets―20―

FY2016(as of March 31, 2016)

2,687
258,788
73,76041,028－730
12,51957,383
51,83130,7001,198
14,414
15,650010,824
571,5123,163
250,020
90,70329,90010,000592
26,10862,337
98,48135,954
1,233
16,004
19,509645
9,633
654,282

10,000107,700
684
1,473
775
33
6,966
127,631
699,143－
87,200
914
－
389
32
6,038
94,573748,855

153,795

153,795

160,0710
160,071160,0710
160,071

7,901

7,901

968
35,335432,524
476,728(1,382)789,212990
35,335709,337
753,563(1,402)
1,066,027

15,524
15,524
804,736
1,503,879

9,598
9,598
1,075,625
1,824,480

(2) Non-consolidated Statements of Income (for twelve-month period)(Unit: Millions of yen)
FY2015(April 1, 2014 toMarch 31, 2015)
Ⅰ Net sales
Ⅱ Cost of sales
Gross profit
Ⅲ Selling, general and administrative expenses
Operating income
Ⅳ Non-operating income
Interest income
Interest on securities
Dividends income
Real estate rent
Gain on valuation of derivatives
Other
Total non-operating income
Ⅴ Non-operating expenses
Interest expenses
Depreciation
Foreign exchange losses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary income
Ⅵ Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Reversal of allowance for doubtful accounts
State subsidy
Other
Total extraordinary income
Ⅶ Extraordinary loss
Loss on sales and retirement of noncurrent assets
Loss on reduction of noncurrent assets
Provision of allowance for doubtful accounts
Other
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income―21―

FY2016(April 1, 2015 toMarch 31, 2016)

1,910,677
1,405,108
505,570
187,180
318,390

2,083,464
1,467,477
615,987
201,232
414,755

810
338
11,262
2,968
－
1,993
17,371

919
394
17,051
2,814
9,883
5,001
36,062

1,428
938
10,3062,003
6,267
20,942
314,819

977
937
6,567
－
3,697
12,178438,639

282
22
770
－
833
1,907

143
2,449
30,574
2,999
19,38655,551

1,844
－
171
931
2,946
313,780
95,538(1,443)94,095

3,311
1,660
－
1,539
6,510
487,680
137,580(11,841)
125,739

219,684

361,941

(3) Non-consolidated Statements of Changes in Net Assets
FY 2015 (April 1, 2014 to March 31, 2015)(Unit: Millions of yen)
Shareholders' equity
Capital surplus

Other retained earnings

Capitalstock

Balance at the beginningof current period
Cumulative effects ofchanges in accounting policies

Retained earnings

Other
capitalsurplusCapitalreserve

Total capitalsurplusLegalretainedearnings

Reserve for
reduction entryof land

Total
Retainedearnings retainedbrought earnings
forwardGeneralreserve

153,795

160,0710

160,071

7,901

921

35,335

262,438

306,595

－

－

－

－

－

－

－

372

372

153,795

160,0710

160,071

7,901

921

35,335

262,810

306,967

－

－

－

－

－

47

－

－

47

Dividends from surplus

－

－

－

－

－

－

－ (49,970) (49,970)

Net income

－

－

－

－

－

－

－

219,684

219,684

Purchase of treasury stock

－

－

－

－

－

－

－

－

－

Disposal of treasury stock

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

47

－

169,714

169,761

153,795

160,0710

160,071

7,901

968

35,335432,524

476,728

Restated balance
Changes of items during
the period
Provision of reserve
for reduction entry of land

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
periodShareholders' equity
Treasury stock
Balance at the beginningof current period
Cumulative effects ofchanges in accounting policies

Valuation and translation adjustments

Totalshareholders'equityValuation difference
on available-forsale securities

Total valuationand translation
adjustments

Total net assets(1,360)619,101

8,920

8,920

628,021

－

372

－

－

372

(1,360)619,473

8,920

8,920

628,393

－

47

－

－

47

Dividends from surplus－(49,970)－－(49,970)

Net income－

219,684－－

219,684

Purchase of treasury stock

(22)

(22)

－

－

(22)

Disposal of treasury stock

－

－

－

－

－

－

－

6,604

6,604

6,604

(22)

169,739

6,604

6,604

176,343(1,382)789,212

15,524

15,524

804,736

Restated balance
Changes of items during
the period
Provision of reserve
for reduction entry of land

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period―22―

FY 2016 (April 1, 2015 to March 31, 2016)(Unit: Millions of yen)
Shareholders' equity
Capital surplus

Other retained earnings

Capitalstock

Balance at the beginningof current period
Cumulative effects ofchanges in accounting policies

Retained earnings

Other
capitalsurplusCapitalreserve

Total capitalsurplusLegalretainedearnings

Reserve for
reduction entryof land

Total
Retainedearnings retainedbrought earnings
forwardGeneralreserve

153,795

160,0710

160,071

7,901

968

35,335432,524

476,728

－

－

－

－

－

－

－

－

－

153,795

160,0710

160,071

7,901

968

35,335432,524

476,728

－

－

－

－

－

22

－

(22)

－

Dividends from surplus

－

－

－

－

－

－

－ (85,105) (85,105)

Net income

－

－

－

－

－

－

－

361,941

361,941

Purchase of treasury stock

－

－

－

－

－

－

－

－

－

Disposal of treasury stock

－

－

0

0

－

－

－

(1)

(1)

－

－

－

－

－

－

－

－

－

－

－

0

0

－

22

－

276,813276,835

153,795

160,0710

160,071

7,901

990

35,335709,337

753,563

Restated balance
Changes of items during
the period
Provision of reserve
for reduction entry of land

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
periodShareholders' equity
Treasury stock
Balance at the beginningof current period
Cumulative effects ofchanges in accounting policies

Valuation and translation adjustments

Totalshareholders'equityValuation difference
on available-forsale securities

Total valuationand translation
adjustments

Total net assets(1,382)789,212

15,524

15,524

804,736

－

－

－

－

－

(1,382)789,212

15,524

15,524

804,736

－

－

－

－

－

Dividends from surplus－(85,105)－－(85,105)

Net income－

361,941－－

361,941

Purchase of treasury stock

(20)

(20)

－

－

(20)

Disposal of treasury stock

0

(1)

－

－

(1)

－

－

(5,926)(5,926)(5,926)(20)

276,815(5,926)(5,926)

270,889(1,402)

1,066,027

9,598

9,598

1,075,625

Restated balance
Changes of items during
the period
Provision of reserve
for reduction entry of land

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of current
period―23―

May 12, 2016
Fuji Heavy Industries Ltd.

< Reference for FYE2016 Consolidated Financial Results >FYE2015

RESULTSFYE2016

FORECASTS
FYE20172014.4 - 2015.3

2015.4 － 2016.3

2016.4 － 2017.3

RESULTS

ChangeNet sales
Japan
Overseas

Operating income
Profit margin (%)

12.3

31,700

(623)

(1.9)

6,529
22,2504,230

6,054
26,269
5,656

(475)
4,018
1,425

(7.3)
18.1
33.7

6,103
25,597
4,200

49
(672)
(1,456)0.8(2.6)(25.7)

1,833

46.6

4,200

(1,570)(27.2)(1,437)(32.9)

17.5

5,770

Profit margin (%)

13.7

17.9

Net income attributable toProfit margin (%)
owners of parent

2,619

4,367

9.1

13.5

Change factors
in operating income

13.2
13.2

1,748

66.7

2,930

9.2
Improvements on unit sales
volume/mix, etc

Gain on currency exchange

1,084

Improvements on unit sales
volume/mix, etc

588

Cost reduction effort, etc

320

Cost reduction effort, etc

331

Loss on currency exchange(1,686)

Increase in SG&A exp, etc(390)

Increase in SG&A exp, etc(913)

Increase in R&D exp(188)

Increase in R&D exp(176)

JPY/US$

108/US$

121/US$

105/US$

JPY/EUR

140/EUR

133/EUR

120/EUR

Capital expenditures
Depreciation and amortization
R&D expenses
Interest bearing debts

%

3,543

14.7

Exchange rates

Change32,323

3,936

Ordinary income%

28,779

1,357
650
1,024
1,700

1,107
648
835
2,112

1,600
800
1,200
1,650

- 4th consecutive year of increases in net sales
and all profits

Performance description

999- Net sales and profit to decrease for the firsttime in 5 years.

- Fiscal year records for consolidated unit sales, - Consolidated unit sales to post a fiscal year
net sales and all profits.
record.

Consolidated unit sales (Japan)

163
128
35
748
570
47
54
77
911
914
708
207

145
112
34
813
630
48
44
90
958
951
715
236

(17)
(16)
(1)
65
60
0
(9)
14
47
37
7
29

(10.7)(12.7)
(3.4)
8.6
10.6
0.4
(17.5)
17.8
5.2
4.0
1.0
14.2

Automobile

26,99030,394

3,405

12.6

Aerospace

1,428

1,528

100

7.0

Industrial Products

290

326

35

12.2

Other

71

75

4

5.2

Automobile

4,009

5,436

1,427

35.6

Aerospace

189

182

(7)

(3.8)

Industrial Products

8

1

(7)

(89.5)

Other

19

29

10

53.6

Passenger Cars
Minicars

Consolidated unit sales (Overseas)
North America
EuropeChina
Other

Consolidated unit sales total
Production units total
Japan
U.S.

Net sales bybusiness segment

Operating income bybusiness segment

156
119
37
893
696
50
49
99
1,050
1,051
710
341

11
7
4
81
65
2
4
9
92
100
(5)
105

7.6
6.7
10.6
9.9
10.4
4.6
9.3
10.0
9.6
10.5
(0.7)
44.6

Elimination &
6
8
2
34.7
Corporate*1 Starting FYE2016 reporting, figures previously reported as "Net Income" are stated as "Net Income Attributable to Owners of Parent".
*2 Exchange Rates are the rates used for FHI's non-consolidated sales recording.
*3 Consolidated Unit Sales include retail sales of Japanese consolidated dealers, wholesale sales of overseas consolidated distributors, and deliveries from FHI to nonconsolidated distributors/dealers.
*4 Production in Japan includes production of the 86 models for Toyota.
< Forward-looking statements in this document are based on the information available at the time of the announcement and are subject to various risks and uncertainties
that could cause actual results to vary materially. >FHI Announces Consolidated Financial Results for FYE2016
Tokyo, May 12, 2016 - Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today announced its
consolidated financial results for the fiscal year ended March 31, 2016.

< FYE2016 Results: Consolidated Net Sales >Subaru’s consolidated global unit sales rose 5.2% to 958,000 units. Unit sales in Japan fell 10.7% to 145,000 units, as
passenger car sales decreased due to a decline in new model launch momentum. Overseas unit sales grew 8.6% to813,000 units, driven by strong sales of the Impreza and the Crosstrek*1 in North America as well as high demand for theLegacy and the Outback throughout the year.
Consolidated net sales rose 12.3% to 3,232.3 billion yen due to exchange rate gains, unit sales growth and other factors.

< FYE2016 Results: Consolidated Profit and Loss >Operating income rose 33.7% to 565.6 billion yen, as increases in SG&A and R&D expenses were offset by exchange
rate gains, unit sales growth, cost reduction progress and other factors. Ordinary income grew 46.6% to 577.0 billion yen
and net income attributable to owners of parent increased 66.7% to 436.7 billion yen.
Consolidated unit sales in North America marked an all-time record*2 for the 7th consecutive year. Consolidated global unit
sales, consolidated overseas unit sales, net sales and all profit figures posted all-time records*2 for the 4th consecutive year.

< FYE2017 Forecasts >In prospect of further growth in North America and other regions, Subaru’s consolidated global unit sales are projected toincrease 9.6% to 1,050,000 units, surpassing the 1-million milestone for the first time in the company’s history.
Unit sales growth and cost reduction progress are expected to offset increases in SG&A and R&D expenses; but on theassumption of a stronger yen, FHI forecasts net sales of 3,170 billion yen (down 1.9%), operating income of 420 billion yen(down 25.7%), ordinary income of 420 billion yen (down 27.2%) and net income attributable to owners of parent of 293 billion yen(down 32.9%).
Consolidated unit sales in North America are projected to mark an all-time record*2 for the 8th consecutive year. Consolidated
global unit sales, consolidated overseas unit sales are projected to post all-time records*2 for the 5th consecutive year.
Currency rate assumptions: 105 yen/US$, 120 yen/euro*1: “Subaru XV” outside North America.
*2: Since fiscal year ended March 1986 - the year FHI started full-year consolidated financial reporting

Forward-looking statements in this document including financial and other forecasts are based on the information available at thetime of the announcement and are subject to various risks and uncertainties that could cause actual results to vary materially.

###