Presentation of Interim Business Results
for the term ending March 2008

Fuji Heavy Industries Ltd.
October 31, 2007
http://www.fhi.co.jp/english/ir0

A Summary ofBusiness Results

http://www.fhi.co.jp/english/ir

111st Half：
Half： Consolidated Automobile Sales（Thousand Units）
Actual Results
1st Half
FYE March 2007

Passenger Car
Minicar

Domestic Total
U.S.
CanadaEurope
Australia
Others

39.5
72.4

111.9
81.2
8.0
32.3
19.6
15.6

Actual Results
1st Half
FYE March 2008

Changes

35.0
64.2

99.2

-4.5-8.2

-12.7

81.8
8.1
38.4
19.7
24.2

＋0.6＋0.1＋6.0＋0.1＋8.6

Overseas Total

156.8

172.2＋15.4

Grand Total

268.7

271.4

＋2.7

（U.S. and Canada figures are on the calendar year basis from Jan to Jun.)
http://www.fhi.co.jp/english/ir2

1st Half：
Half： Consolidated Statements of Income（100 million yen）
Actual Results
1st Half
FYE March 2007

Actual Results
1st Half
FYE March 2008

Changes

6,987

7,088

+101

Domestic

2,864

2,457-406

Overseas

4,123

4,631+508

Operating Income

181

189+8

Ordinary Income

139

142+3Net Income

116

78-38

¥115/$¥120/$+¥5/$

Net Sales

FHI Exchange Rate

http://www.fhi.co.jp/english/ir

321st Half：
Half： Analysis of Increase and Decrease in

Operating Income Changes

If adding theamortization ofDecrease ofnegative goodwill SG&A

(191)

expensesand others

Amortizationof negative
goodwill

111

11

Gain oncurrency
exchange

Reductionin cost ofmaterials

Deterioration ofsales volume &mixture and others

38

65
US$: 46
Euro: 9
CA$: 10（100 million yen）

-191
FHI:25
SIA:13
Net of raw
material cost
increase

Increase ofR&D expenses-15
Japan：
Deterioration of sales
volume & mixtureDecrease of SG&A,
warranty claims
and others

181

Operating Income
1st Half
FYE March 2007

189

Overseas：
Deterioration of sales
mixtureOperating Income
1st Half
FYE March 2008

+0.8 billion

http://www.fhi.co.jp/english/ir4

1st Half: Net Sales by Business Segment (consolidated)（100 million yen）
Percentage ofActual Results
1st Half
FYE March 2007

Total Sales
Industrial
Products
3.1%
Aerospace
5.7%

Other
0.7%

Changes

Automobile

6,224

6,414

+3.0%

Aerospace425

403-5.1%

Industrial
Products

272

218 -20.0%

65

53 -18.8%

Other
Automobile
90.5%

Actual Results
1st Half
FYE March 2008

Total

6,987

7,088+1.5%

http://www.fhi.co.jp/english/ir531st Half: Net Sales by Geographic Area (consolidated)（100 million yen）
Actual Results
1st Half
FYE March 2007

Percentage ofTotal Sales
Other
3.5%

North
America
38.6%

Japan
57.9%

Actual Results
1st Half
FYE March 2008

Changes

Japan

4,351

4,102-5.7%

North
America

2,542

2,739

+7.7%

Other

93

247+165.8%

6,987

7,088+1.5%

Total

http://www.fhi.co.jp/english/ir

6

Operating Results of Subsidiaries in U.S.
(million US$)SOA(Jan to Jun)

Actual Results
1st Half of CY2006

Actual Results
1st Half of CY2007
2007

Changes$1,941$1,934-7-118-38+80

Net Income/Loss-76-22+55

Retail Sales (Thousand units)

95.6

89.4

-6.2

Net Sales
Operating Income/Loss

SIA(Jan to Jun)

Net Sales
Operating Income/Loss
Net Income/Loss
Production (Thousand units)

Actual Results
1st Half of CY2006

Actual Results
1st Half of CY2007
2007

Changes$1,00429$1,29423+290

13

130

57.3

52.7

-4.6-6(U.S. subsidiaries were consolidated on calendar year basis.)
http://www.fhi.co.jp/english/ir

74

Analysis of NonNon-Operating Income and Expense
Actual Results
1st Half
FYE March 2007

Actual Results
1st Half
FYE March 2008

Changes

55-4

Non-Operating Income59

Amortization of negative goodwill

11--11Gain on revaluation of derivatives-7+722220101102+1-53+53

Other

Non-Operating Expense
Exchange loss
Loss on revaluation of derivatives

20-2

Other

79

28-52-42-47-5

Actual Results
1st Half
FYE March 2007

Actual Results
1st Half
FYE March 2008

Changes-17+8-47-53-6-48-46+2Net
FOREX effects
Net of gain and loss on revaluationof Derivatives
Net of FOREX gain and loss

Total（100 million yen）

FY2007: Gain on revaluationof derivatives +1

FY2007: Exchange loss 47

http://www.fhi.co.jp/english/ir

8

Analysis of Extraordinary Gains and Losses（100 million yen）
Actual Results
1st Half
FYE March 2007

Actual Results
1st Half
FYE March 2008

Changes

Extraordinary Gains

76

44-32

Gain on sale of property, plantand equipment

6110-50

Gain on sale of investment
securities

014+14

Prior period adjustment

1516+1Extraordinary Losses4228-14

Loss on sale and disposal ofproperty, plant and equipment

2912-17

Impairment loss on property,
plant and equipment

116+15

Loss on liquidation of affiliatedcompanies

9--9
http://www.fhi.co.jp/english/ir

95

Consolidated Balance Sheets（100 million yen）
As of
March 31, 2007

As of
September 30, 2007

Changes

Total Assets

13,16013,184+24

Current Assets

5,947
7,214
599

5,940
7,244
640

-7

3,439
4,957

3,168
5,059

+102

Less treasury stock,at cost-405-405-0Shareholders’ Equity
to Total Assets

37.5%

38.3%+0.8%

0.70

0.63-0.07

Fixed Assets
Leased Assets

Interest Bearing Debt

Net Assets

D/E ratio+30+41-271

http://www.fhi.co.jp/english/ir

10

Consolidated Statement of Cash Flows（100 million yen）
Actual Results
1st Half
FYE March 2007

Actual Results
1st Half
FYE March 2008

ChangesCash Flows fromOperating Activities

1620+619

656

Cash Flows from
Investing Activities-263-263-0-434

Free Cash Flows-262

357+619

222

Cash Flows from
Financing Activities-87-320-234-362-349

37+386-140-11

33*+447

Net Increase (Decrease)in Cash and Cash Equivalents-361

69+430-133

Cash and Cash Equivalents
at the end of the period763

1,060+297

991

Total
Effect of exchange ratechanges on Cash andCash Equivalents, etc

Actual Results
FYE March 2007

*Including net increase related to the change of scope of consolidation.
consolidation.
http://www.fhi.co.jp/english/ir

116

<Appendix> 2nd Quarter：
Quarter： Consolidated Automobile Sales（Thousand Units）
Actual Results
2Q
FYE March 2007

Actual Results
2Q
FYE March 2008

Changes

20.6
34.5

-2.9

Minicar23.5
43.3

Domestic Total

66.755.0-11.7

Others

38.5
4.1
16.8
9.1
9.5

46.3
3.2
23.2
11.1
12.9+7.9-0.8+6.4+2.0+3.4

Overseas Total

77.9

96.7+18.8

Grand Total

144.7

151.7+7.1

Passenger Car

U.S.
CanadaEurope
Australia-8.8（U.S. and Canada figures are on the calendar year basis from April
April to June.)
http://www.fhi.co.jp/english/ir

12<Appendix> 2nd Quarter：
Quarter： Consolidated Statements of Income（100 million yen）
Actual Results
FYE March 2007

Actual Results
FYE March 2008

Changes

3,691

3,906+214

Domestic

1,6511,334-317

Overseas

2,041

2,572+531

Operating Income

74154+80

Ordinary Income

42135+93

Net Income

70

81+12

¥115/$¥120/$+¥5/$

Net Sales

FHI Exchange Rate

http://www.fhi.co.jp/english/ir137

<Appendix> 2nd Quarter: Analysis of Increase and Decrease in
Operating Income Changes
Changes
Gain oncurrency
exchange
Decrease of
SG&A
If adding theexpenses
amortization of and others

US$: 28
Euro: 6CA$: 7（100 million yen）

12-53

Increase of
R&D expenses

-12

FHI:８
SIA:４(79)93

Deterioration ofsales volume &mixture and others

41negative
goodwill

Amortizationof negative
goodwill

Reductionin cost ofmaterials

Net of raw
material cost
increase

6Japan：Deterioration of sales
volume & mixture

154

Overseas：
Increase of sales
volumeDecrease of
selling expenses,
warranty claims,
and others

73
Operating Income
2Q
FYE March 2007

+8.1 billion

Operating Income
2Q
FYE March 2008
http://www.fhi.co.jp/english/ir

14<Appendix> 1st Half: NonNon-consolidated Automobile Sales（Thousand Units）
Actual Results
1st Half
FYE March 2007

Actual Results
1st Half
FYE March 2008

Changes

250.4

237.0

-13.4

0.10-0.1

Domestic Sales

119.7

105.1

-14.6

Passenger cars

41.7

39.5

-2.2

Minicar

78.0

65.6

-12.4

Number of Vehicles
Exported

121.2

132.5

+11.3

Components forOverseas Production

51.4

59.3

+7.8

292.3

296.8

+4.5

Domestic Production
For Saab

Total Sales Units

http://www.fhi.co.jp/english/ir

158

Outlook for the TermEnding March 2008

http://www.fhi.co.jp/english/ir

16

Full Year：
Year： Consolidated Automobile Sales Plan（Thousand Units）
Actual Results
FYE March 2007

Plan
FYE March 2008

Changes

Minicar

81.2
145.6

78.5
125.1

-20.5

Domestic Total

226.8

203.5

-23.3

Passenger Car-2.7

Others

190.3
16.2
71.4
38.1
35.1

Overseas Total

351.1

389.0

+37.9

Grand Total

577.9

592.6

+14.7

U.S.
CanadaEurope
Australia

196.6
18.5
84.7
39.3
49.9

+13.3

（U.S. and Canada figures are on the calendar year basis from Jan toDec.)

+6.4
+2.3
+1.2
+14.8

http://www.fhi.co.jp/english/ir

179Full Year：
Year： Consolidated Operating Plan
（100 million yen）
Actual Results
FYE March 2007

PlanFYE March 2008

Changes

14,94815,600+652

Domestic

5,762

5,300-462Overseas

9,186

10,300+1,114

Operating Income

479

400-79Ordinary Income

422

350-72Net Income319

170-149¥117/$¥118/$+¥1/$

Net Sales

FHI Exchange Rate

http://www.fhi.co.jp/english/ir

18

Full Year: Analysis of Increase and Decreasein Operating Income Changes
If adding theamortization ofnegative goodwill(501)

Amortizationof negativegoodwill

22（100 million yen）
Reductionin cost ofmaterials

63

Deterioration ofsales volume &mixture and others

36-116

US$: 9Euro: 12
CA$: 15

FHI:31
SIA:32

479

Gain oncurrency
exchange

Net of raw
material costincreaseIncrease of
Increase of
R&D expenses SG&Aexpenses
and others-53-9Japan：
Deterioration of sales
volume & mixture

Overseas：
Deterioration of sales
mixtureIncrease of fixedmanufacturing
cost400-7.9 billion
Actual Results
Operating Income
FYE March 2007

Plan
Operating Income
FYE March 2008
http://www.fhi.co.jp/english/ir

1910

Operating Plan of Subsidiaries in U.S.
(million US$)SOA(Jan to Dec)

Plan
CY2007

Actual Results
CY2006

Changes$4,408$4,500+92

Operating Income/Loss-832+40

Net Income/Loss-528+33200.0

192.0-8.0

Net Sales

Retail Sales (Thousand units)

SIA(Jan to Dec)

PlanCY2007

Actual Results
CY2006

Changes$2,258$2,459+201

Operating Income/Loss3144+13Net Income/Loss

1221+9110.4

109.6-0.8

Net Sales

Production (Thousand units)(U.S. subsidiaries are consolidated on calendar year basis.)
http://www.fhi.co.jp/english/ir

20<Appendix> Full Year: NonNon-consolidated Automobile
Sales Plan（Thousand Units）
Actual Results
FYE March 2007

PlanFYE March 2008

Changes

484.3

483.8

-0.5

0.1

0-0.1

243.7

211.2

-32.5

86.3
157.5

85.9
125.3

-0.3-32.2Number of Vehicles
Exported239.7

274.0

+34.2

Components forOverseas Production

101.0

111.3

+10.3

Total Sales Units

584.4

596.5

+12.1

Domestic Production
For Saab

Domestic Sales
Passenger cars
Minicar

http://www.fhi.co.jp/english/ir

2111

<Appendix> 2nd Half：
Half： Consolidated Automobile Sales Plan（Thousand Units）
Plan
2nd Half
FYE March 2008

Actual Results
2nd Half
FYE March 2007

Passenger Car
Minicar

Domestic Total

41.7
73.2

114.9

Changes

43.4
60.9

+1.8
-12.4

104.3

-10.6

Others

109.0
8.2
39.1
18.6
19.5

Overseas Total

194.3216.9+22.5

Grand Total

309.3

321.2

+11.9

U.S.
CanadaEuropeAustralia

114.8
10.4
46.3
19.6
25.7

+5.8+2.2+7.2+1.1+6.2（U.S. and Canada figures are on the calendar year basis from Jul toDec.)
http://www.fhi.co.jp/english/ir

22<Appendix> 2nd Half：
Half： Consolidated Operating Plan
（100 million yen）
Actual Results
2nd Half
FYE March 2007Plan
2nd Half
FYE March 2008

Changes

7,961

8,512+550

Domestic

2,898

2,843-56

Overseas

5,063

5,669+606

Operating Income

298

211-87

Ordinary Income

283

208-75Net Income203

92-111¥119/$¥115/$-¥4/$

Net Sales

FHI Exchange Rate

http://www.fhi.co.jp/english/ir

2312

<Appendix> 2nd Half：
Half： Analysis of Increase and Decreasein Operating Income Changes
If adding theamortization ofnegative goodwill(309)

Amortizationof negativegoodwill

11（100 million yen）

Reduction
Improvementof sales volume in cost of& mixture and materials
others2575

Increase ofSG&A
expensesand others-120・Increase of fixedmanufacturing cost・Increase of SG&A

Increase ofR&D expenses-38
Japan：

298

Decrease ofsales volumeOverseas：

FHI:6
SIA:19Net of raw
material cost
increase

Increase ofsales volume

Actual Results
Operating Income
2nd Half
FYE March 2007

Loss oncurrency
exchange-29
US$: -37
Euro: 3
CA$: 5-8.7 billion

211

Plan
Operating Income
2nd Half
FYE March 2008
http://www.fhi.co.jp/english/ir

24＜Appendix＞

Difference from
Previous Outlook

http://www.fhi.co.jp/english/ir

25

13

1st Half: Consolidated Automobile Sales
Plan (Beginning/１(Beginning/１Q) VS Actual Results（Thousand Units）
Plan （Beginning/1Q）
1st Half
FYE March 2008

Actual Results
1st Half
FYE March 2008

35.0
64.240.7
65.7

Passenger Car
Minicar

-5.7
-1.5

99.2

106.4

Domestic Total

Changes

-7.1

82.7
8.3
37.4
18.5
19.3

81.8
8.1
38.4
19.7
24.2

-0.9
-0.2
+1.0
+1.2+4.9

Overseas Total

166.1

172.2

+6.0

Grand Total

272.5

271.4

-1.1

U.S.
CanadaEurope
Australia
Others（U.S. and Canada figures are on the calendar year basis from Jan to Jun.)
http://www.fhi.co.jp/english/ir

26

1st Half: Consolidated Statements of Income
Plan (Beginning/１(Beginning/１Q) VS Actual Results（100 million yen）
Plan(Beginning)

Plan (1Q)FYE March 2008

Actual Results
1st Half
FYE March 2008

1st Half

1st Half

FYE March 2008

Changes
FromBeginning

Changesfrom
1Q

Net Sales

6,900

6,900

7,088+188+188

Domestic-

2,6002,457--143

Overseas-

4,300

4,631-+331

Operating
Income50100189+139+89

Ordinary
Income1050

142+132+92

Net Income

00

78+78+78

FHI ExchangeRate¥115/$¥120/$¥120/$+¥5/$±0

http://www.fhi.co.jp/english/ir

2714

1st Half: Analysis of Increase and Decrease in Operating Income Changes
Previous Plan (Beginning) VS Actual Results（100 million yen）
Reductionin cost ofmaterials

Gain oncurrency
exchange・Decrease of fixedmanufacturingcost
・Decrease of SG&A
Decrease of
SG&A
expensesand others

84

8

Deterioration ofsales volume &mixture andothers
Increase of-19

R&D expenses

-672
FHI:８

Japan：Net of raw
material cost
increase

Deterioration ofsales volume &mixture

189

Overseas：

US$: 51
Euro: 9CA$: 12

Increase of sales
volume50+13.9 billion

Previous Plan (Beginning)
Operating Income
1st Half
FYE March 2008

Actual Results
Operating Income
1st Half
FYE March 2008
http://www.fhi.co.jp/english/ir28

1st Half: Analysis of Increase and Decrease in Operating Income Changes
Changes
Previous Plan(1Q) VS Actual Results（100 million yen）

Decrease ofSG&Aexpenses
and others

Gain oncurrency
exchange

Reductionin cost ofmaterials

2884

Previous Plan （１Ｑ）
Operating Income
1st Half
FYE March 2008

Deterioration ofsales volume &mixture andothers

4-9

FHI:８
US$:-1
Euro: 3

100

Increase ofR&D expenses

Net of raw
material cost
increase

Japan：

Deterioration ofsales volume &mixture

189

・Decrease of fixedmanufacturingcost
・Decrease of SG&A+8.9 billion

Actual Results
Operating Income
1st Half
FYE March 2008
http://www.fhi.co.jp/english/ir

2915Full Year: Consolidated Automobile Sales
Previous Plan(Beginning/１Plan(Beginning/１Q) VS Revised Plan（Thousand Units）
Previous Plan
(Beginning/1Q)
FYE March 2008

Revised PlanFYE March 2008

Changes

89.4

78.5

-10.9

Minicar

128.6

125.1-3.5

Domestic Total

218.0

203.5

-14.4

Passenger Car

Others

196.5
18.5
79.6
38.0
33.1

196.6
18.5
84.7
39.3
49.9

+0.1
0+5.0+1.3+16.7

Overseas Total

365.8

389.0+23.3

Grand Total583.7

592.6+8.9

U.S.
CanadaEurope
Australia（U.S. and Canada figures are on the calendar year basis from Jan to Dec.)
http://www.fhi.co.jp/english/ir

30

Full Year: Consolidated Operating Plan
Previous Plan(Beginning/１Plan(Beginning/１Q) VS Revised Plan
（100 million yen）
Previous Plan
(Beginning)

FYE March 2008

Previous Plan
(1Q)

FYE March 2008

FYE March 2008

Net Sales

15,50015,50015,600

Domestic

5,600

5,600

5,300

-300-300

Overseas

9,900

9,900

10,300+400+400

OperatingIncome

350

350

400+50+50

Ordinary
Income300

300

350

+50+50Net Income

160

160

170+10+10

FHI ExchangeRate¥115/$¥118/$¥118/$+¥3/$±0

Revised Plan

Changes
FromBeginning

Changes
from1Q+100 +100

http://www.fhi.co.jp/english/ir

31

16

Full Year: Analysis of Increase and Decrease in Operating Income Changes
Previous Plan (Beginning) VS Revised Plan
（100 million yen）

Decrease of
SG&A
expensesand others

Gain oncurrency
exchange

Reductionin cost ofmaterials

92

10-121

Increase ofR&D expenses

-30

99

FHI:８
SIA:2

US$: 53
Euro: 18
CA$: 21350

Deterioration ofsales volume &mixture andothers

Net of raw
material costincrease

Deterioration of sales
volume & mixture

Overseas：

・Decrease of fixed

400

Deterioration ofsales mixture

manufacturing cost・Decrease of SG&A

Previous Plan (Beginning)
Operating Income
FYE March 2008

Japan：+5.0 billions

Revised Plan
Operating Income
FYE March 2008
http://www.fhi.co.jp/english/ir

32

Full Year: Analysis of Increase and Decrease in Operating Income Changes
Previous Plan (1Q) VS Revised Plan
（100 million yen）
Decrease ofSG&A
expensesand others

109

Gain oncurrency
exchange

22
US$: 1Euro: 12
CA$: 9350

・Decrease of fixedmanufacturing cost・Decrease of SG&A

Reductionin cost ofmaterials

Deterioration ofsales volume &mixture andothers

10-91

FHI:８
SIA:2
Net of raw
material cost
increase

400

Japan：

Deterioration of sales
volume & mixture

Overseas：

Deterioration of sales
mixturePrevious Plan (1Q)
Operating Income
FYE March 2008

+5.0 billions

Revised Plan
Operating Income
FYE March 2008

http://www.fhi.co.jp/english/ir33

17http://ir.fhi.co.jp/18