FY2009 Consolidated Financial Results
For the Year Ended March 31, 2009
May 8,2009
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 annual meeting of stockholders: June 24, 2009
Scheduled date of submitting Securities Report: June 25, 2009
(All amounts have been rounded off to the nearest million yen, unless otherwise specified)

1. Performance in FY 2009 (April 1, 2008 to March 31, 2009)(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

Operating income (loss)

Ordinary income (loss)

Net income (loss)

FY20091,445,790(8.0%)(5,803)-(4,600)-(69,933)-

FY2008

1,572,346

5.2%

45,680(4.6%)

45,437

7.6%

18,481(42.1%)

FY2009Net income (loss)
per share, basic(Yen)(91.97)

FY2008-(15.8%)

Ratio of ordinary
income (loss) tototal assets(0.4%)

25.73

3.7%

3.5%

Net income pershare, diluted (Yen)

25.73

Note: Equity income from affiliates FY2009: 926 million yen

Return on equity

Ratio of operating
Income (loss) toSales(0.4%)
2.9%

FY2008: 501 million yen(2) Consolidated Financial Position(Unit: Millions of yen, except for per share figures)

Shareholders’ equity tototal assets (%)

Net assets per share(Yen)

Total assets

Net assets

FY20091,165,431

394,71933.8%

505.59FY20081,296,388

494,42338.1%

687.02

Note: Shareholders’ equity

FY2009: 393,946 million yen

FY2008: 493,397 million yen(3) Consolidated Cash FlowsNet cash provided byoperating activities

Net cash provided byinvestment activities

Net cash provided byfinancing activities

Cash & cash equivalents
at end of period

FY2009(26,892)(72,385)

80,44996,515

FY2008107,387(44,920)(45,110)114.649

2. Dividends
Amount of dividends
paid(Annual)Cash dividends per share (yen)2nd Quarter

Year-end

AnnualDividend payout
ratio(consolidated)

Ratio of dividends
to net assets(consolidated)

FY 2008
4.50
4.50
9.00
6,467
35.0%
1.3%
FY 2009
4.50
0.00
4.50
3,508
0.8%
FY 2010 (Forecast)
0.00
Note: For the (projected) dividends of fiscal 2009, we are suspending the payment for the end of the second quarter (interim). A decision
regarding the payment of dividends for the end of the term has not yet been made.

3. Projection of consolidated results for FY 2010 (April 1, 2009 to March 31, 2010)(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 loss

Net loss per share,
basic (Yen)

Net loss

Ordinary loss

1st.half

624,000(16.2%)

34,000-37,000-44,000-57.86

Full year

1,320,000(8.7%)

35,000-40,000-55,000

-

72.33

1

4. Others：No(1) Changes of significant subsidiaries in FY 2009
(Transfer of subsidiaries resulting in changes in the scope of consolidation)(2) Changes in accounting policies, procedures and methods of presentation for preparing theconsolidated financial statements[1] Changes due to revisions of accounting standards：Yes[2] Changes due to other reasons：Yes
Note: Please refer to the section of "7. Change in the Basis for Preparation of Consolidated Financial Statements and Significant
Accounting Policies] on page 20.

(3) Number of outstanding shares (Common Stock)[1] Number of outstanding shares(including treasury stock)[2] Number of treasury stock

FY2009 :782,865,873shares

FY2008 :782,865,873 shares

FY2009 :3,682,316shares

FY2008 :64,698,395 shares

Note: For details on the number of shares as a basis of computing net income per share (consolidated), please refer
to “Information per share” on page 32.

(Reference) Non-consolidated Financial Results Highlights
Performance in the FY 2009 (April 1, 2008 to March 31, 2009)(1) Non-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
FY 2009
FY 2008

969,209
1,018,820

Operating income (loss)(4.9%)
5.6%

Net loss per share, basic(yen)

FY 2009
FY 2008

109.630.08(24,546)
25,830(22.9%)

Ordinary income (loss)(24,840)
24,847(8.4%)Net loss
83,40458-

Net income per share,
diluted (yen)-(2) Non-consolidated Financial Position
Total assets
FY 2009
FY 2008
Note: Shareholders’ equity

Net assets

820,396
380,263889,956449,229
FY 2009 : 380,263 million yen

Net assets per share
Shareholders’ equity to(yen)total assets (%)
46.4%
487.7850.5%
625.17FY 2008 : 449,229 million yen

Proper use of forecasts of business results (disclaimer), and other special information
1.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 topage 5
2. For the (projected) dividends of fiscal 2009, we are suspending the payment for the end of the second
quarter (interim). A decision regarding the payment of dividends for the end of the term has not yet beenmade. Regarding the dividends for the end of the term, we will make a decision based on a consideration of
all factors, including performance and dividend payout ratio, and will promptly announce the estimated value
as soon as possible.

21. Operating Results
1. Analysis of operating results(1) Operating results for the current term under review
Regarding the economic circumstances surrounding FHI during the period under review, the effects of thefinancial crisis triggered by the subprime loan problem has rapidly spread into the real economy during thelatter half of the fiscal year, resulting in an overlap of extremely difficult conditions, including sluggish
demand for products such as automobiles, an increasingly strong yen and falling stock prices.
Under these conditions, the FHI Group introduced new products according to market demands, based on
philosophy in the mid-term management plan announced in February 2007 with the keywords "customers
come first". These products included the seven-seater "Exiga" in June 2008 and the compact "Dex" with
OEM supplied (original products manufactured) by Daihatsu Motor Co., Ltd. in November 2008, bothlaunched in the Japanese market.
In addition, as the management environment undergoes drastic change at a speed not experienced before,
FHI has implemented emergency measures in the form of a variety of cost reductions, while also
implementing constitutional improvements and starting corporate structural reconstruction that will secure
profits in the future even under severe economic circumstances.
Although we have moved forward with such efforts, the impacts of the severe economic circumstances
surrounding FHI have resulted in the following consolidated results for the period under review.
Net sales were down ¥126.6 billion, or 8.0% from the previous fiscal year to ¥1,445.8 billion, due to alower sales volume caused by sluggish demand for automobiles and losses on currency exchange generated
by the strong yen.
Regarding the profit, operating income was down ¥51.5 billion from the previous fiscal year to operating
loss of ¥5.8 billion, due to losses on currency exchange generated by the strong yen and an increase in fixed
cost to launch new car models, and ordinary income was down ¥50.0 billion from the previous fiscal year toordinary loss of ¥4.6 billion. In addition, net income was down ¥88.4 billion from the previous fiscal year to
net loss of ¥69.9 billion, due to the provision of valuation allowance of deferred tax assets of ¥39.4 billion,
the amount of 8.9 billion yen of the failure to collect receivables and others from business partner Eclipse
Aviation Corporation, and extraordinary loss such as ¥3.0 billion in expenses to withdraw from WRC(World Rally Championship).
Results by Business Segment(Automobile Division)
Total demands of domestic passenger cars was 4.7 million units, a decrease of 11.6% from the previous
fiscal year as a result of reduced consumer spending due to the global economic recession triggered by thefinancial crisis in the United States in the latter half of last fiscal year.
Two new Subaru models were launched domestically, with the "Exiga" in June 2008 and the "Dex" inNovember 2008. However, as a result of reduced demands for the "Legacy" and the "Impreza", the numberof passenger cars sold was 70 thousand, a decrease of 8 thousand or 10.2% from the previous fiscal year.
On the other hand, the number of domestic minicars sold was 109 thousand units, a decrease of 22 thousandor 16.8% from the previous fiscal year, due to the a slowdown in total demands and the prolonging ofcurrent models.
As a result, the sales in Japan were 179 thousand, a decrease of 30 thousand, or 14.3% from the previous
fiscal year.
As for overseas, overall sales during the first half of last fiscal year was up from the previous fiscal year,
as the new "Forester" model and the "Legacy Diesel" launched in Europe contributed the sales volume. On
the other hand, sales during the second half of last fiscal year were down from the same period of theprevious fiscal year, due to sluggish demands as a result of the recession triggered by the global financial
crisis and the strong yen. As a result, net overseas sales for the period under review were down 11 thousand,or 2.9% from the same period of the previous fiscal year to 377 thousand.
By region, although sales in China continued to be strong and were up 14 thousand, or 107.5% over theprevious fiscal year to 26 thousand, they were down in North America by 3 thousand (1.5%) to 207
thousand, down in Europe (including Russia) by 9 thousand (9.9%) to 77 thousand, down in Australia by 33

thousand (8.7%) to 37 thousand, and down in other regions by 10 thousand (25.1%) to 29 thousand.
As a result, the combined sales volume for Japan and overseas markets amounted to 555 thousand, adecrease of 41 thousand, or 6.9% from the previous fiscal year, and overall net income for the Automobile
Division was down ¥104.9 billion, or 7.4% from the previous fiscal year to ¥1,316.3 billion. Operating
income was down by ¥46.3 billion from the previous fiscal year to operating loss of ¥9.2 billion, due tolosses on currency exchange generated by the strong yen and others.

(Industrial Products Division)
Although sales for finished power generators increased, domestic sales fell below the previous fiscal year
as a result of decreased sales of engines for construction machinery.
As for overseas, although we recorded our highest ever number of engines sold to the European market
due to strong orders before the start of the global recession, net sales were down from the previous fiscal
year, in the same manner as for domestic sales, due to the strong impact of the sluggish economy in the
North American market.
As a result, overall net sales were down ¥5.8 billion, or 14.2% from the previous fiscal year to ¥34.9
billion, and operating income was down ¥2.3 billion from the previous fiscal year to operating loss of ¥1.6
billion.

(Aerospace Division)
As for sales to the Japan Ministry of Defense, although sales of unmanned research systems increased due
to a progress in deliveries, net sales decreased from the previous fiscal year due to a decrease in sales of thenext-generation Maritime Patrol and Cargo Transport Aircraft "XP-1/CX", and the "AH-64D" combat
helicopter.
In the commercial sector, although there was an increase in the number of deliveries of center wings forthe "Boeing 787" and the number of deliveries of main wings for the medium business jet "H4000", net
sales decreased from the previous fiscal year due to a strike at Boeing that lead to decreased production ofexisting planes and discontinued production of the "Eclipse 500", and losses on currency exchange
generated by the strong yen.
As a result, overall net sales were down ¥18.8 billion, or 18.9% from the previous fiscal year to ¥80.9
billion, and operating income was down ¥2.9 billion, or 64.5% from the previous fiscal year to ¥1.6 billion.

(Other Businesses)
As the delivery of large-scale wind-generated electricity systems contributed the increase in sales and two
subsidiaries were newly complete consolidated, net sales were up ¥2.9 billion, or 26.7% from the previous
fiscal year to ¥13.7 billion. Operating income was up ¥0.6 billion, or 23.5% from the previous fiscal year to¥3.1 billion.

Results by Geographic Region(Japan)Although there was an increase in export volume to China by the Automotive Division, net sales were
down ¥44.9 billion, or 5.0% from the previous fiscal year to ¥856.2 billion due to a reduction in domestic
sales volume and losses on currency exchange generated by the strong yen. Operating income was down
¥50.0 billion from the previous fiscal year to operating loss of ¥15.8 billion.

(North America)
Due to a decrease in sales for the "Legacy" and the "Tribeca" at SOA (Subaru of America, Inc.), a
wholly-owned subsidiary in the United States, net sales were down ¥70.9 billion, or 11.5% from theprevious fiscal year to ¥546.9 billion. Operating income was down ¥8.5 billion from the previous fiscal year4

to operating loss of ¥2.0 billion.
(Other Regions)Due to a decrease in sales at Subaru Europe N.V./S.A., a subsidiary in the European Union, net sales were
down ¥10.8 billion, or 20.2% from the previous fiscal year to ¥42.7 billion. However, operating income wasup ¥0.5 billion, or 37.9% over the previous fiscal year to ¥1.9 billion, due to reduction of SG&A and otherexpenses.
(2) Forecast for fiscal 2009
Due to the increasingly bleak conditions of the domestic automobile market and the worldwide slowing
economy triggered by the financial crisis, the sluggish demand for cars is expected to continue and future
currency exchange movement is uncertain. Against this backdrop, the outlook for this fiscal year is asfollows (based on a currency exchange of $1 = ¥95 and €1 = ¥125):(Consolidated forecast for the whole fiscal year)
Net sales¥1,320 billion
Operating income(¥35.0 billion)
Ordinary income(¥40.0 billion)
Net income(¥55.0 billion)(down 8.7% year-on-year)( - % year-on-year)( - % year-on-year)( - % year-on-year)

2. Analysis of Financial Results(1) Assets, liabilities, and net assets
Total assets were ¥1,165.4 billion, which was a decrease of ¥131.0 billion from the previous fiscal year.
This was mainly due to loss on currency exchange when assessing the assets of overseas subsidiaries.
Liabilities were ¥770.7 billion, which was a decrease of ¥31.3 billion from the previous fiscal year. Thiswas mainly due to decreases in notes and accounts payable-trade.
Net assets, including minority interests, were ¥394.7 billion, which was a decrease of ¥99.7 billion fromthe previous fiscal year. This was mainly due to a decrease in retained earnings mainly by recognizing net
loss for the current term.
(2) Cash flow
Cash and cash equivalents (hereinafter cash) at the end of the fiscal year under review was amounted to¥96.5 billion.
(Net cash provided by operating activities)
Net cash provided by operating activities decreased to ¥26.9 billion. This was mainly due to depreciation
and amortization expenses of ¥74.0 billion, a decrease in notes and accounts payable-trade of ¥73.2 billion,
and recording loss before income taxes and minority interests of ¥21.5 billion.

(Net cash provided by investing activities)
Net cash provided by investing activities decreased to ¥72.4 billion. This was mainly due to ¥57.6 billion
used for the purchase of property, plant and equipment (net of revenue from sales) and ¥8.6 billion used forthe purchase of investment securities (net figures with proceeds from purchase).
(Net cash provided by financing activities)
Net cash provided by financing activities increased to ¥80.4 billion. This was mainly due to ¥51.5 billion
for a net increase in short-term loans payable and ¥31.1 billion in proceeds from sales of treasury stock (netfigures with expenditures for purchases).

5

3. Basic Policy Regarding the Distribution of Profits
FHI views the return of profits to shareholders as an important issue for management and follows a basic
policy of maintaining stable long-term dividends while taking comprehensive consideration of such factors
as its earnings performance and its dividend payout ratio. Although we had set the interim dividends at¥4.50, we deeply regret that consideration for overall conditions, such as the downturn in earnings
performance due to abrupt changes in business environment and an expected continuation of the severebusiness environment, has led to the decision to suspend payment of dividends for the end of the current
term under review as well as for interim dividends for the following term. A decision regarding the payment
of dividends for the end of the following term has not yet been made.

6

2.

Condition of the FHI GroupAs of March 31, 2009 the FHI Group consisted of Fuji Heavy Industries Ltd., 99 subsidiaries, and 10
affiliated companies primarily engaged in four operations related to the Automobile Division, Industrial
Products Division, Aerospace Division and Other Businesses, producing a wide range of products.
The flow chart below illustrates the relationship that each subsidiary and affiliate maintains with the parent
company.
Toyota Motor Corporation

Consigned production

DAIHATU MOTOR CO.,LTD

Flow of products and parts / components
Flow of services

OEM(Domestic, manufacturing)
Consolidated subsidiaries
Ichitan Co., Ltd.
Kiryu Industrial Ltd.
Fuji Machinery Co., Ltd.
Equity method subsidiaries
Subaru Customize Works Co., Ltd.
(Overseas, manufacturing)
Consolidated subsidiaries
Subaru of Indiana Automotive Inc.
Unconsolidated subsidiaries: 1 company(Domestic, manufacturing and sales)
Unconsolidated subsidiaries: 2 companies(Overseas, manufacturing and sales)
Other affiliated companies: 1 company(Domestic, sales)
Consolidated subsidiaries
Tokyo Subaru Inc.
Osaka Subaru Inc.
Nagoya Subaru Car Co.
Other Subaru dealerships: 31 companies
Subaru Auto Accessory Co., Ltd.
Subaru UI Co., Ltd.
Unconsolidated subsidiaries: 8 companies(Overseas, sales)
Consolidated subsidiaries
Subaru of America, Inc.
Subaru Canada, Inc.
Subaru Europe N.V./S.A.
Other: 2 companies
Equity method subsidiaries
Subaru of China, Inc.
Equity method affiliated companies
Subaru of Taiwan Co., Ltd.
Unconsolidated subsidiaries: 2 companies
Other affiliated companies: 2 companies

Automobiles(Domestic, services, etc.)
Consolidated subsidiaries
Fuji Techno Service Co., Ltd.
Subaru Logistics Co., Ltd.
Subaru Tecnica International Inc..
Subaru Finance Co., Ltd.
Equity method subsidiaries
TUG International Co., Ltd.
Subaru Intelligent Service Ltd.
Equity method affiliated companies
Higashi-ohgishima Logistics
Unconsolidated subsidiaries: 3 companies
Other affiliated companies: 1 company(Overseas, services, etc.)
Consolidated subsidiaries
Fuji Heavy Industries U.S.A. Inc.
Subaru Research & Development Inc.
Other: 9 companies
Unconsolidated subsidiaries: 1 company
Other affiliated companies: 1 company
Fuji Heavy Industries Ltd.

Customers(Overseas, manufacturing)
Consolidated subsidiaries
Robin Manufacturing U.S.A., Inc.

Industrial Products(Domestic, manufacturing and sales)
Other affiliated companies: 1 company(Overseas, manufacturing and sales)
Equity method subsidiaries
Changzhou Fuji Changchai Robin
Gasoline Engine Co., LTD.

(Domestic, sales)
Consolidated subsidiaries
Fuji Industrial Products Sales Co., Ltd.
(Overseas, sales)
Consolidated subsidiaries
Robin America Inc.
Equity method subsidiaries
Robin Europe ＧＭＢＨ
F.H.I.(Singapore)PTE..LTD(Domestic, services, etc.)
Equity method subsidiaries
Robin Service Co., Ltd(Domestic, manufacturing and sales)
Consolidated subsidiaries
Yusoki Kogyo K.K.
Aerospace(Domestic, manufacturing)
Other affiliated companies: 1 company(Domestic, services, etc.)
Equity method subsidiaries
Fuji Aerospace Corporation.
Fuji Aerospace Technology Co., LTD.

(Domestic, services, etc.)
Equity method subsidiaries
Fuji Aircraft Maintenance Co., Ltd(Domestic, sales)
Equity method subsidiaries
Fuji Special Purpose Vehicle Co., Ltd.
Daiwa Shoko K.K.
(Overseas, manufacturing and sales)
Other affiliated companies: 1 company

Other(Domestic, services, etc.)
Consolidated subsidiaries
Subaru Living Service Co., Ltd.
Subaru System Service Co., Ltd.
Subaru Kosan Co., Ltd.

(Domestic, services, etc.)
Consolidated subsidiaries
Fuji Houren Co., Ltd
Unconsolidated subsidiaries: 1 company

7

3. Management Policies
1. Basic management policies
As there has been no significant change from the details announced in the Consolidated Interim Financial
Results for Fiscal year ended March 2007 (released on October 31, 2006), the disclosure of this part isomitted.
The relevant consolidated interim financial results can be seen at the following URL.
(FHI website)
http://www.fhi.co.jp/english/ir/report/fr_archive.html(Tokyo Stock Exchange website (Information search page of listed companies))
http://www.tse.or.jp/tseHpFront/HPLCDS0101E.do?method=init&callJorEFlg=1
2. Medium-to-long term management strategies
As there has been no significant change from the details announced in the Consolidated Financial Resultsfor Fiscal year ended March 2007 (released on April 27, 2007), the disclosure of this part is omitted.
The aforesaid Consolidated Financial Results for Fiscal 2006 are available on our website at the following
URL.
(Fuji Heavy Industries company website)
http://www.fhi.co.jp/english/ir/report/fr_archive.html(Tokyo Stock Exchange website (for the search of information on listed companies))
http://www.tse.or.jp/tseHpFront/HPLCDS0101E.do?method=init&callJorEFlg=1
3. Issues that must be addressed
Although the speed of the economic downturn is slowing gradually as a result of economic measures
implemented by governments around the world, we recognize that a rapid recovery will be difficult. Current
conditions make it extremely difficult to return to profitability in fiscal year ending March 2010.
Under these conditions, FHI will take the following future actions.
(Implementation of emergency measures)
FHI is implementing the following emergency measures in response to the rapid downturn in the businessenvironment.
(1) We are starting a review of capital expenditure plans, with consideration for urgency and the
maximization of investment effects, and working toward a reduction of more than 20% in existing plans.
(2) We are performing zero-based reviews of all expenses, and striving to make reductions.
・In addition to giving up bonuses by directors of the board and reducing compensation for
directors, SVP and VP by 10%, we are also implementing salary cuts for managers.
・We are accelerating a transition plan for integrating distributors in Japan, in order toreduce fixed costs throughout the group by streamlining sales and administrative work.
・In addition, we are streamlining all operations, striving to limit expenses, and downsizing ourorganization.
(3) In order to respond to rapid changes in demand for automobiles, we are implementing prompt inventory
corrections and production adjustments.
(New product launches and experimental research and development based on the mid-term management
plan)
FHI is taking the following actions based on the mid-term management plan, for the future improvements
in business performance.
FHI plans to make a full-model change to the Legacy, its flagship car model, for launch in the Japanesemarket in May of this year. This new model Legacy will be sequentially released to the rest of the world andwill maximize sales toward business recovery.
8In addition, in this year which is referred to as "the first year of electric cars", we plan to launch the
Plug-In Stella in summer (for corporations and government and other public offices), with a plan to provide
approximately 170 units to mainly the Tokyo metropolitan area. In the future, we, FHI will continue topromote electric cars familiarized and enlightened, and then strive to reduce the burden that automobiles
place on the environment.
On the other hand, regarding experimental research and development for the future, we will move
forward with the development of electric cars and other environmental technologies, while also being
actively involved in the development of safety technology. FHI is a participant in Advanced Safety Vehicle(ASV) Propulsion Program promoted by the Ministry of Land, Infrastructure, Transport, and Tourism, and ispursuing technological developments and the practical application of safe driving support systems to prevent
traffic accidents. In the future, we will continue to actively pursue these technological developments while
streamlining them further.
(Alliance with the Toyota Group)
In order to improve the certainty of our efforts in our mid-term management plan (for the four years fromfiscal 2008 to fiscal 2011), with the keywords "customers come first", on April 10, 2008, FHI strengthened
an alliance in development and production with Toyota Motor Corporation (hereinafter Toyota) andDaihatsu Motor Co., Ltd. (hereinafter Daihatsu), and agreed to utilize the technological capabilities of eachcompany to build both a new product lineup and a development and production system.
The specific details of the agreement are provided below. Although some items are subject to review, we
are making steady progress while responding to drastic changes in circumstances. We will maintain awin-win relationship with the Toyota Group, while making maximum effort to overcome these adverse
circumstances.
(1) OEM supply from Daihatsu to FHI
OEM supply for minicars from Daihatsu, scheduled to start during the latter half of this year, isproceeding according to plan. Following the start of this OEM supply, we will sequentially switch over foreach car model in order.
(2) OEM supply for compact cars from Toyota to FHI
Deliberations regarding OEM supply for compact cars from Toyota are also proceeding as scheduled.
(3) Joint development of compact FR sporty car
Joint development of compact FR sporty car with Toyota is currently proceeding smoothly, and we aremaking enhancements of engine performance and environmental features, beyond the original concept.
(4) Renewal of existing plant
In order to reduce capital expenditure, we will reconsider the construction of new plants for the
production of joint development car, and renew the existing plant, instead. Production facilities will be
updated in the order according to need.
(Reform of domestic sales structure)
FHI further focused its "customers come first" efforts, the cornerstone of its mid-term management plan,
while moving forward with the transition toward an integrated system of distributors in Japan. It started in
October 2008, beginning with the Kinki and Kyushu regions, in order to utilize alliance with Toyota groupto build a domestic sales structure that is appropriate for the development of new products for Subaru cars.
After assessing the severe business environment for distributors, such as the sluggish automobile market
caused by a business slowdown following last year’s global financial crisis and the response to sophisticatedand diversified customer needs, we have determined that it was necessary to quickly implement regional
business activities while simultaneously establishing a rational management system. Therefore, we
accelerated the schedule for complete transition to the new structure from the original target of autumn 2009
to April 2009.
Specifically, the transition to the integrated system was performed in four regions (Tohoku,
Koshinetsu/Hokuriku, Tokai, and Chugoku/Shikoku) on April 1, 2009. As a result, Subaru distributors
9shifted from a 46-company structure (as of April 1, 2008) to a 22-company structure.
We will pursue the efforts outlined here while continuing to adhere to the themes of our mid-term
management plan, such as "To provide a distinctive Subaru experience for drivers and passengers", "To
increase sales globally", and "To strengthen competitiveness in quality and cost", to move forward with ourplans with even greater speed.

104. Consolidated Financial Statements(1)Consolidated balance sheets(Unit: Million of yen)
FY2008(as of March 31, 2008)
Amount

FY2009(as of March 31, 2009)
AmountASSETSⅠ Current assets
Cash and deposits
Notes and accounts receivable-trade
Lease investment assets
Short-term investment securities
Inventories
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
Lease assets, net
Construction in progress
Other, net
Total property, plant and equipment
2. Intangible assets
Goodwill
Other
Total intangible assets
3. Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

11

67,05396,017
32,775
261,00926,48678,32962,504(1,346)
622,827

78,151
82,352
27,074
11,439128,645
96,42534,24915,91859,43453,845(1,509)586,023

124,342
113,876
181,974
47,906
10,16133,449511,708

123,403108,077
183,741
20,765
12,287
19,786
468,059

18,50012,972
31,472

13,972
13,972

70,107
3,736
27,25632,369(3,087)130,381673,561
1,296,388

51,8383,334
10,70237,428(5,925)97,377579,408
1,165,431

(Unit: Million of yen)
FY2008(as of March 31, 2008)
Amount

FY2009(as of March 31, 2009)
AmountLIABILITIESⅠ Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
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
Provision for loss on guarantees
Other
Total noncurrent liabilities
Total liabilities

229,780
165,886
6,000
30,0008,091
61,954
15,50722,56358,261
598,042

148,015
225,149
24,00021,956
2,062
50,52414,141
17,934760
56,707561,248

60,00042,661
40,993774
745
58,75060,00050,583
7,448
36,997702
745
52,989203,923
801,965

209,464
770,712

153,795
160,098
227,789(40,538)
501,144

153,795
160,071
126,593(2,086)438,373

13,716(21,463)(7,747)
1,026

3,002
(47,429)(44,427)
773

494,423
1,296,388

394,719
1,165,431

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
Total net assets
Total liabilities and net assets

12(2)Consolidated statements of income
FY2008(April 1, 2007
to March 31, 2008)
Amount
1,572,346
1,217,662
354,684
309,004

Ⅰ Net sales
Ⅱ Cost of sales
Gross profit
Ⅲ Selling, general and administrative expenses
Operating income (loss)(Unit: Million of yen)
FY2009(April 1, 2008
to March 31, 2009)
Amount1,445,790
1,164,564
281,226
287,029

45,680(5,803)

Ⅳ Non-operating income
Interest and dividends income
Interest income
Dividends income
Equity in earnings of affiliates
Real estate rent
Foreign exchange gains
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

5,503
501
4,921
4,104
15,029

2,663
1,080
926
586
7,769
1,779
14,803

4,063
4,740
110
6,359
15,272

3,315
5,296
4,989
13,600Ordinary income (loss)

45,437(4,600)

1,480
1,502
1,539
548
83
5,152

357
673
845
837
1,156
3,868

5,489
13,17420
18,68331,906
14,536(1,148)13,388
37

3,809
1,045
468
1,072
2,640
2,901
8,850
20,785(21,517)
6,637
41,961
48,598(182)

18,481(69,933)

Ⅵ Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Gain on prior period adjustment
Gain on revision of retirement benefit plan
Gain on sale of loans receivable
Other
Total extraordinary income
Ⅶ Extraordinary loss
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Provision of allowance for doubtful accounts
Provision for loss on construction contracts
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income (loss)
Net income (loss)
13

(3)Consolidated statement of changes in net assets(Unit: Million of yen)
FY2009FY2008(April 1, 2008
(April 1, 2007
to March 31, 2008) to March 31, 2009)
Shareholders' equity
Capital stock
Balance at the end of previous period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes of items during the period
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Effect of changes in accounting policies applied to foreign subsidiaries
Changes of items during the period
Dividends from surplus
Net income (loss)
Disposal of treasury stock
Change of scope of consolidation
Change of scope of equity method
Other
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Effect of changes in accounting policies applied to foreign subsidiaries
Changes of items during the period
Dividends from surplus
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Change of scope of equity method
Other
Total changes of items during the period
Balance at the end of current period

14

153,795
153,795

153,795
153,795

160,104

160,098(6)(6)
160,098(27)(27)
160,071

214,831-

227,789(12,115)(6,468)18,481
402
543
12,958
227,789(6,742)(69,933)(7,309)(43)
72(5,126)(89,081)
126,593(40,511)(40,538)

(60)
33
(27)
(40,538)(50)
38,50238,452(2,086)488,219-

501,144(12,115)(6,468)18,481
(60)
27
402
543
12,925501,144(6,742)(69,933)(50)
31,166(43)
72(5,126)(50,656)
438,373

(Unit: Million of yen)
FY2008FY2009(April 1, 2007
(April 1, 2008
to March 31, 2008) to March 31, 2009)
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
22,182
13,716
Changes of items during the period
Net changes of items other than shareholders' equity(8,466)(10,714)
Total changes of items during the period(8,466)(10,714)
Balance at the end of current period
13,716
3,002
Revaluation reserve for land
Balance at the end of previous period
290
Changes of items during the period
Net changes of items other than shareholders' equity(290)
Total changes of items during the period(290)
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period(16,687)(21,463)
Changes of items during the period
Net changes of items other than shareholders' equity(4,776)(25,966)
Total changes of items during the period(4,776)(25,966)
Balance at the end of current period(21,463)(47,429)
Total valuation and translation adjustments
Balance at the end of previous period
5,785(7,747)
Changes of items during the period
Net changes of items other than shareholders' equity(13,532)(36,680)
Total changes of items during the period(13,532)(36,680)
Balance at the end of current period(7,747)(44,427)
Minority interests
Balance at the end of previous period
1,699
1,026
Changes of items during the period
Net changes of items other than shareholders' equity
(673)
(253)
Total changes of items during the period
(673)
(253)
Balance at the end of current period
1,026
773
Total net assets
Balance at the end of previous period
495,703494,423
Effect of changes in accounting policies applied to foreign subsidiaries(12,115)
Changes of items during the period
Dividends from surplus(6,468)(6,742)
Net income (loss)
18,481(69,933)
Purchase of treasury stock
(60)
(50)
Disposal of treasury stock27
31,166
Change of scope of consolidation
402(43)
Change of scope of equity method
72
Other
543
(5,126)
Net changes of items other than shareholders' equity(14,205)(36,933)
Total changes of items during the period(1,280)(87,589)
Balance at the end of current period
494,423
394,719
Note: “Effect of changes in accounting policies applied to foreign subsidiaries” was related to amortization of
goodwill that had not amortized up to the prior financial year.
The breakdown of “Other” in “Retained earnings” were as follows.
Comprehensive income of foreign subsidiaries
Impact of fiscal closing date changes of foreign subsidiaries
15

FY2008543-(Unit: Million of yen)
FY200952(5,178)

(4) Consolidated statements of cash flows(Unit: Million of yen)
FY2008FY2009(April 1, 2007
(April 1, 2008
to March 31, 2008) to March 31, 2009)

ⅠNet cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in provision for retirement benefits
Interest and dividends income
Interest expenses
Loss (gain) on valuation of derivatives
Equity in (earnings) losses of affiliates
Loss (gain) on sales and retirement of noncurrent assets
Loss (gain) on sales and valuation of investment securities
Loss (gain) on sales of loans receivable
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Decrease (increase) in lease investment assets
Decrease (increase) in operating loans receivable
Decrease (increase) in leased assets
Increase (decrease) in deposits received
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
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
Proceeds from sales of property, plant and equipment
Purchase of property for lease
Proceeds from sale of leased assets
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments for investments in capital
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities

16

31,90687,164
13,174(500)(1,236)(4,136)(5,503)
4,063(4,811)(501)
4,009(1,502)(548)
460(45,633)
44,205(11,111)
7,633
117,133
5,864(4,135)(11,475)
107,387(21,517)74,036
1,045
2,956(2,037)(533)
760(5,053)(3,743)
3,315
5,296
(926)
3,452
867
5,938
(18,717)(73,159)(1,539)9,127(417)(4,757)
12,819(12,787)
3,738(3,062)(14,781)(26,892)(4,700)6,020(59,430)
2,384(60,048)
57,734(2,782)(18,032)
15,911(108,620)
128,476(1,833)(44,920)(2,265)
5,326(58,415)830(2,713)(20,433)
11,848(1,548)(64,188)
60,155(982)(72,385)

(Unit: Million of yen)
FY2009FY2008(April 1, 2007
(April 1, 2008
to March 31, 2008) to March 31, 2009)

Ⅲ Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Increase (decrease) in commercial papers
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Purchase of treasury stock
Proceeds from sales of treasury stock
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
from change of scope of consolidation
Increase (decrease) by change in accounting period of consolidated
subsidiaries
Ⅷ Cash and cash equivalents at end of period(5)Notes on premise of going concern
Not Applicable17(15,972)(5,000)
3,100(10,735)(10,000)(60)
27(6,470)(45,110)(1,968)15,38999,06051,51718,00037,063(20,500)(30,000)(50)
31,166(6,744)(3)
80,449(15,614)(34,442)
114,649

200

2,045

-

14,263

114,649

96,515

6. Basis for Preparation of Consolidated Financial Statements and Significant Accounting Policies(1) Scope of Consolidation[1] Number of consolidated subsidiaries: 68
The names of the main consolidated subsidiaries were omitted because they are described in “2. Conditionof the FHI group.”
Since the beginning of fiscal 2009, the current consolidated fiscal year, as a result of our reevaluation of
their significance to the consolidated financial statements, Subaru Tecnica International Inc. and six othercompanies have been newly included in the scope of consolidation. In addition, the number ofconsolidated subsidiaries decreased because Matsumoto Subaru Motors Co. was merged into Shin
Nagano Subaru Inc., and the name of the remaining company was changed to Subaru Shinsyu, Inc. during
the third quarter of fiscal 2009.
[2] Name of non-consolidated subsidiaries
The main non-consolidated subsidiary
Subaru of China LTD.
(2) Application of the Equity Method
Number of equity method non-consolidated subsidiaries: 13
The names of equity method non-consolidated subsidiaries were omitted because they are described in “2.
Condition of the FHI group.”
In addition, the financial significance of Subaru of China LTD. (“SOC”; old name: Subaru of China Inc.)
has increased, so the Company has applied the equity method to SOC.
As a result of our reevaluation of their significance to the consolidated financial statements, Subaru
Tecnica International Inc. and six other companies were changed from equity-method companies toconsolidated subsidiaries.
(3) Fiscal Year-End of Consolidated Subsidiaries
The fiscal year-end of domestic consolidated subsidiaries and main foreign subsidiaries is the same as that ofthe parent company, while the fiscal year-end of the seven consolidated foreign subsidiaries is December 31.
The operating results of those subsidiaries, whose fiscal year-end is different from that of the parent company,
are consolidated by using the financial statements as of each subsidiary’s respective fiscal year-end, and thenecessary adjustments are made in consolidation if there is any significant transaction between January 1 andMarch 31.
(4) Accounting Policies[1] Valuation standards and methods of accounting for significant assets
Appraisal of inventories
Inventories for the purpose of regular sales
Carried out using the moving-average cost method (Book value on the consolidated balance sheet ismeasured based on the lower of cost or market value)[2] Depreciation method for material depreciable assets
Property, plant and equipment (excluding Leased assets)
The Company and domestic consolidated subsidiaries are mainly using the constant percentage
method.
(However, the straight-line method is used for plants and buildings (excluding accessory equipment)
acquired on or after April 1, 1998.)
Foreign subsidiaries are using the straight-line method under local accounting standards.
In addition, the main useful life is as follows.
Buildings and structures
8–50 years
Machinery, equipment and vehicles
2–12 years
Leased assets
Leased assets obtained by transfer of title through finance lease transaction
Leased assets by transfer of title finance lease are depreciated by a method that is identical to thatapplied to assets owned by the Company.
18

Leased assets obtained by finance leases which do not transfer ownership title
For finance leases which do not transfer ownership title, depreciation or amortization expense iscalculated based on the straight-line method over the leased period and the residual value is zero.
In addition, finance lease transactions which do not transfer ownership on or before March 31,2008,
are recorded based on the same method as used for regular rental transactions.
[3] Standards for recognition of reserves
Provision for loss on construction contracts
The Company has taken a “provision for loss on contracts” in order to cover against loss on theconstruction of undelivered aerospace business which would possibly occur and could be reasonably
estimated.
[4] Other
Basis of revenue and expense recognition
Basis of revenue recognition for finance lease transactions
The Company is using a method that records “sales” and “cost of sales” on the effective date of thelease contract.
Other than those items reported above, the disclosure of information is omitted because any change after
submission of the Securities Report (June 26, 2008) is not significant.

197. Change in the Basis for Preparation of Consolidated Financial Statements and Significant
Accounting Policies(1) Changes in the Scope of Consolidation and Application of the Equity Method
As of the end of fiscal 2009, the number of consolidated subsidiaries and affiliated investees accounted forunder the equity method was 68 and 15, respectively. As a result of our reevaluation of their significanceto the consolidated financial statements, the following changes in the scope of consolidation andapplication of the equity method have been made during fiscal 2009:
Scope of Consolidation
Added
Since the beginning of fiscal 2009, the current consolidated fiscal year, as a result of our reevaluation of
their significance to the consolidated financial statements, the new scope of consolidation includes Subaru
Tecnica International Inc. and six other companies.
EliminatedMatsumoto Subaru Motors Co.
Application of the Equity Method
Added
From the first quarter of the current consolidated fiscal year, the financial significance of Subaru of China,
LTD. (“SOC”; old name: Subaru of China Inc.) has grown, so the Company has applied the equity method
to SOC.
EliminatedSince the beginning of the current consolidated fiscal year, fiscal 2009, as a result of our reevaluation of
their significance to the consolidated financial statements, the new scope of consolidation includes Subaru
Tecnica International Inc. and six other companies.
(2) Fiscal Year Change of Consolidated Subsidiaries
Until the fiscal year ended March 31, 2008, since the difference between the fiscal year-end of the parent
company and that of 19 consolidated subsidiaries was within three months, the operating results of thosesubsidiaries were consolidated by using the financial statements as of each subsidiary’s respective fiscal
year-end, and the necessary adjustments were made in consolidation to reflect any significant transactions
from January 1 to March 31.
The accounting date for the fiscal year-end of 12 consolidated subsidiaries was changed to March 31, 2009 inorder to make the disclosures of the consolidated financial statements more meaningful by unifying the fiscal
year.
Consolidated subsidiaries whose fiscal closing date has been changed･Subaru of America, Inc. and nine consolidated subsidiaries･Subaru of Indiana Automotive, Inc. and one consolidated subsidiary(3) Accounting Policies[1] Valuation standards and methods of significant assets
Appraisal of inventories
Inventories for the purpose of regular sales have been stated mainly using the moving-average cost
method. As the Accounting Standard for Measurement of Inventories (ASBJ Statement No. 9) has been
applied since the beginning of the current consolidated fiscal year, the Company has mainly employed themoving-average cost method (for the value stated on the balance sheet, the lower of cost or market value
method).
This change resulted in an increase in operating loss, ordinary loss and loss before income taxes andminority interests of 3,220 million yen in the year ended March 31, 2009.
The impact of this change on segment information is explained in the relevant portion of these documents.

20[2] Standards for recognition of reserves
Provision for loss on construction contracts
Since the beginning of the current consolidated fiscal year, the Company has taken “provision for loss oncontracts” in order to cover the loss on construction of undelivered aerospace business which would
possibly occur and could be reasonably estimated. The reason for this is that its estimated loss has become
more significant, so the Company reflected it accurately in the financial statements and disclosed it in atimely manner as of the end of fiscal 2009.
This change resulted in a decrease in operating loss and ordinary loss of 433 million yen, and an increasein loss before income taxes and minority interests of 2,468 million yen in the year ended March 31, 2009.
The impact of this change on segment information is explained in the relevant portion of these
documents.
[3] Change in recognition of sales or interest revenue on credit
Since the beginning of the current consolidated fiscal year, the Company’s financial subsidiary has changed
the recognition of sales or interest revenue on credit from the equal installment method to the seven-eight
allocation method. The reason for this change is that it could manage the interest revenue strictly by
improving the credit system and reflecting the results more accurately.
The impact of this change on net sales, operating loss and ordinary loss in the year ended March 31, 2009
was insignificant. However the impact on loss before income taxes and minority interests was a 1,043
million yen decrease.
[4] Accounting for lease transactions
Previously, the Company and its domestic consolidated subsidiaries applied the accounting treatment for
finance lease transactions not involving the transfer of ownership rights to the method for operating leasetransactions. However, since the beginning of the current consolidated fiscal year, as “Accounting Standard
for Lease Transactions” (ASBJ Statement No. 13), and “Guidance on Accounting Standard for Lease
Transactions” (ASBJ Guidance No. 16) have been applied, the accounting treatment for finance leasetransactions not involving the transfer of ownership rights is followed using the method for regular sales
transactions.
In addition, finance lease transactions which do not transfer ownership before the application of the revised“Accounting Standard for Lease Transactions” is followed use the method for regular rental transactions.
This change resulted in a decrease in operating loss, ordinary loss and loss before income taxes andminority interests of 2,513 million yen in the year ended March 31, 2009.
The impact of this change on segment information is explained in the relevant portion of these documents.
For the reasons listed above, this change resulted in an increase in “lease investment assets” of “Current
assets” of 27,074 million yen, and a decrease in “lease assets, net” of “Property, plant and equipment” of
27,074 million yen, on the consolidated balance sheets.
Moreover, the Company applies the disclosure model that the Japan Leasing Association created forleasing companies, and Cash Flow from finance lease transactions of captive finance companies and sales
on credit were reclassified from “Net cash provided by (used in) investing activities” to “Net cash providedby (used in) operating activities.”
Net cash provided by (used in) operating activities
Decrease (increase) in lease investment assets
Decrease (increase) in operating loans receivable
Decrease (increase) in leased assets
Total

21

(Unit: Million of yen)
(1,539)
9,127
(417)
7,171

(4) Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements
Since the beginning of the current consolidated fiscal year, fiscal 2009, the Company has adopted “Practical
Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial statements” (the Practical Issues Task Force No.18) and made the necessary revisions to its
consolidated accounts.
The impact of this change on profit and loss was insignificant.
For the impact of this change on shareholders' equity, refer to “(3)Statement of changes in net assets” onpage 14.
(Additional information)
Alteration of service life of fixed assets
The Company and its domestic consolidated subsidiaries revised the service life of fixed assets (machinery) inaccordance with the enacted revisions to the tax depreciation schedules.
This change resulted in an increase in operating loss of 1,595 million yen and an increase in ordinary loss of
1,609 million yen and resulted in an increase in loss before income taxes and minority interest of 1,609
million yen in the fiscal year ended March 31,2009.
The impact of this change on segment information is explained in the relevant portion of these documents.

22

(Changes in Presentation of Financial Statements)[Consolidated balance sheets]
1.“Inventories” in fiscal 2008 is presented separately in “Merchandise and finished goods,” “Work in process”
and “Raw materials and supplies” in fiscal 2009. In addition, “Merchandise and finished goods,” “Work inprocess” and “Raw materials and supplies” included in “Inventories” in fiscal year 2008 were as follows.
Merchandise and finished goods
133,175 million yen
Work in process
100,133 million yen
Raw materials and supplies
27,701 million yen
2. “Goodwill” which was presented separately in fiscal 2008 is included in “Other” in fiscal 2009 because of its
decreased materiality. In addition, “goodwill” included in “Other” in fiscal year 2008 was 3,623 million yen.
3. For the improvement of comparability in the consolidated financial statements, along with the XBRL
introduction into EDINET, “Short-term loans payable” in fiscal 2008 is presented separately in “Short-termloans payable” and “Current portion of long-term loans payable” in fiscal 2009. In addition, “Short-term loans
payable” and “Current portion of long-term loans payable” included in “Short-term loans payable” in fiscal
2008 were as follows.
Short-term loans payable
144,625 million yen
Current portion of long-term loans payable
21,261 million yen[Consolidated statements of income]1.For improvement of comparability in the consolidated financial statements, along with the XBRL introduction
into EDINET, “Interest and dividends income” in fiscal 2008 is presented separately in “Interest income” and“Dividends income” in fiscal 2009. In addition, “Interest income” and “Dividends income” included in “Interestand dividends income” in fiscal 2008 were as follows.
Interest income
4,365 million yen
Dividends income
1,138 million yen
2. “Real estate rent” was included in “Other” of “Total non-operating income” in fiscal 2008.However, “Realestate rent” was presented separately for reasons similar to those listed in 1., above. In addition, “Real estate
rent,” included in “Other” in fiscal 2008, was 919 million yen.
3. “Loss on sales of investment securities” and “Loss on valuation of investment securities” were included in“Other” of “Extraordinary loss” in fiscal 2008. However, “Loss on sales of investment securities” and “Loss on
valuation of investment securities” is presented separately because of its increased materiality in fiscal 2009. In
addition, “Loss on sales of investment securities” included in “Other” in fiscal 2008 was 2 million yen, and“Loss on valuation of investment securities” included in “Other” in fiscal 2008 was 18 million yen.
[Consolidated statements of cash flows]
1.In fiscal 2008, “Other non-operating expenses (income)” and “Other extraordinary loss (income)” in “Net
cash provided by (used in) operating activities” was presented in the same way as in the consolidated statements
of income. For improvement of comparability in the consolidated financial statements, along with the XBRL
introduction into EDINET, the net amount of profit and loss has been presented from fiscal 2009. The net
amount of profit and loss in fiscal 2008 was as follows.
(Unit: Million of yen)
Gain on valuation of derivatives(4,921)
Loss on valuation of derivatives
110
Loss (gain) on valuation of derivatives(4,811)Gain on sales of noncurrent assets(1,480)Loss on retirement of noncurrent assets
5,489
Loss (gain) on sales and retirement of noncurrent assets
4,009

23

2. “Payments for investments in capital” was included in “Other” of “Net cash provided by (used in) investing
activities” in fiscal 2008. However, “Payments for investments in capital” is presented separately because of its
increased materiality in fiscal 2009. In addition, “Payments for investments in capital” included in “Other” infiscal 2008 was overdrawn 930 million yen.

8. Notes to Consolidated Financial Statements(Consolidated Balance Sheets)
FY 2008

FY 2009

Accumulated depreciation for property, plant andequipment
752,311 million yen

24

Accumulated depreciation for property, plant andequipment
739,586 million yen

(Consolidated Statements of income)
FY 2008
1.Research and development cost included in generaland administrative expenses and cost of sales

FY 2009
1.Research and development cost included in general andadministrative expenses and cost of sales

52,020 million yen

42,831 million yen

2. Extraordinary income and losses

2. Extraordinary income and losses(1)Gain on prior period adjustment(1)

Gain on prior period adjustment represents a gain on
reversal of certain expenses due to revision to theestimated expense related to a change in the medical
insurance system of a foreign subsidiary and thesettlement of a tariff rate issue on imported parts.

Not Applicable(2)(2)Other (Extraordinary income)Not Applicable

1,001 million yen of “Other” in “Extraordinary income”
represents the impact of “Change in recognition of sales
or interest revenue on credit” from the equal installment
method to the seven-eight allocation method.

(3)Impairment loss(3)Impairment loss

The Company recorded an impairment loss with regard
to the following asset groups.

The Company recorded an impairment loss with regard
to the following asset groups.

Use

Location

Category
Buildings,
Gunma
Production facility
machinery
Prefecture
and other
Yamagata Buildings andAssets forPrefecture and 2 structures,dealership businessother location land and other
Hokkaido and 3 Machinery,
Idle assets
other location land and other
The assets on which impairment was recognized aregrouped as follows: The production facilities aregrouped by product line; the operating assets fordealership are grouped by each company; and the idle
assets are grouped on a property by property basis.
The impairment loss by each category of property,
plant and equipment was as follows:
Account
Buildings and structures
Machinery
Land
Other
Total

Use

Location
Category
NaganoAssets for dealership Prefecture and Buildings andbusiness
Shimaneland and otherPrefecture
Idle assets

Hokkaido and 3other location

Buildings andstructures,and landThe assets on which impairment was recognized aregrouped as follows: The operating assets for dealershipare grouped by each company, and the idle assets aregrouped on a property by property basis.

The impairment loss by each category of property, plantand equipment was as follows:

Amount3,092 million yen
8,619 million yen
789 million yen
674 million yen
13,174 million yen

Account
Buildings and structures
Land
Other
Total

25

Amount
288 million yen
706 million yen
51 million yen
1,045 million yen

(4)(4) Loss on valuation of investment securities and other
Not Applicable

Eclipse Aviation Corporation (“Eclipse”), a trading
partner of FHI, had filed an application under Chapter 11of the United States Bankruptcy Code on November 25,
2008. However, their creditors submitted a motion for an
order converting the Chapter 11 Bankruptcy cases tocases under Chapter 7 on February 24, 2009, and thiswas granted with the selection of a trustee on March 5,
2009. Therefore, the Company has recorded an
extraordinary loss (as follows) because the Company will
incur uncollectible receivables or the delayed collectionof receivables and damage to assets that the Company
holds for or in Eclipse Aviation Corporation.
Loss on valuation of
investment securities
Provision of allowance for
doubtful accounts
Other(Loss on valuation of
inventories)(5)521 million yen
2,640 million yen
5,737 million yen(5)Other
Not Applicable

The main breakdown of “Other,” 8,850 million yen, was
as follows.
[1] “Loss on valuation of inventories” that is noted in theabove-mentioned (4).
5,737 million yen[2] Loss on the withdrawal from the FIA World Rally
Championship (WRC)3,030 million yen(6)(6)Income taxes-deferred
Not Applicable

A reversal of deferred tax assets of 39,408 million yen,which had been posted, was made, carefully considering
their possible realization.

26

(Consolidated Statement of Changes in Net Assets)

FY 2009 (April 1, 2008 to March 31, 2009)
1.Class of outstanding shares or total number of outstanding shares and class of treasury stock or number oftreasury stock
End of FY 2008
Number of shares

FY 2009
Number ofincremental shares

FY 2009
Number of
decreased shares

End of FY 2009
Number of shares

Outstanding shares
Common shares
782,865,873
782,865,873
Total
782,865,873
782,865,873
Treasury stock
Common shares
64,698,395
109,264
61,125,343
3,682,316
Total
64,698,395
109,264
61,125,343
3,682,316
Note: Shares of decreased treasury stock in fiscal 2009 include 61 million shares of transferred treasury stock to
Toyota Motor Corporation.
2.Dividends
Dividends paid
Resolution
Annual meeting ofshareholders
June 25,2008
Annual meeting ofshareholders
October 31,2008

Class ofsharesAmount ofCash dividends
dividends paid
per share(million yen)
(yen)

Base date

Date of entry
into force

Commonshares3,234

4.5

March 31,2008

June 26,2008

Commonshares3,508

4.5

September 30,2008

December
1,2008

3.Other
The Company transferred treasury stock to Toyota Motor Corporation on July 14, 2008.
(number of shares: 61 million shares; sales value: 31,110 million yen)
As a result, there was a 38,424 million yen decrease in the treasury stock, and the loss on the sale of treasury
stocks were divided into a 25 million yen decrease in capital surplus and 7,289 million yen decrease inretained earnings.
FY 2008 (April 1, 2007 to March 31, 2008)
The disclosure of information is omitted because the need for such disclosure is not considered to besignificant for the purpose of this release.
(Omission of Disclosures in This Release)
The disclosure of the following footnote information is omitted because the need for such disclosure is notconsidered to be significant for the purpose of this release:
Notes to Consolidated Statements of Cash Flows
Lease transactions
Transactions with related parties
Income taxes
Securities and investments
Derivative transactions
Accrued pension and severance benefits
Stock options, etc.
Business Combination
27

(Segment Information)(1) Business segment Information
FY 2009 (April 1, 2008 to March 31, 2009)
Automobiles

Ⅰ Sales and operating income
Net sales(1) Outside customers
1,316,305(2) Inter-segment
2,641
Total sales
1,318,946
Operating cost and expense 1,328,147
Operating income(9,201)Ⅱ Assets, depreciation expense,
impairment loss, and capital
expenditure
Assets910,250
Depreciation expense
66,395
Impairment loss
1,045
Capital expenditure
90,723(Unit: Million of yen)
Industrial
products

Aerospace

Other

Total

34,912
18
34,93036,573(1,643)80,872
1
80,87379,298
1,575

13,701
12,42026,121
23,0033,118

1,445,790
15,0801,460,870
1,467,021(6,151)(15,080)(15,080)(15,428)348

1,445,790
1,445,790
1,451,593(5,803)39,856
1,421
1,187

174,062
4,479
1,787

70,0891,741
1,480

1,194,257
74,036
1,045
95,177(28,826)(24)

1,165,431
74,036
1,045
95,153

FY 2008 (April 1, 2007 to March 31, 2008)
Automobiles

Elimination Consolidated
and corporate
total(Unit: Million of yen)
Industrial
products

Aerospace

Other

Total

Elimination Consolidated
and corporate
total

Ⅰ Sales and operating income
Net sales(1) Outside customers
1,421,179
40,67899,673
10,816 1,572,346- 1,572,346(2) Inter-segment
2,849
13
1
6,778
9,641
(9,641)
Total sales
1,424,028
40,691
99,674
17,594 1,581,987(9,641) 1,572,346
Operating cost and expense 1,386,887
40,032
95,232
15,069 1,537,220(10,554) 1,526,666
Operating income
37,141
659
4,442
2,525
44,767913
45,680Ⅱ Assets, depreciation expense,
impairment loss, and capital
expenditure
Assets
1,041,057
45,528172,41064,869 1,323,864(27,476) 1,296,388
Depreciation expense
79,575
1,527
4,250
1,812
87,16487,164
Impairment loss
13,174
13,174
13,174
Capital expenditure
114,245
858
3,142
624
118,869
118,869
Notes:
1.Definition of business segments:
Business segments are defined based on product line and market.
2.Main products each business segment:
Business segment
Main products
Automobiles
LEGACY, IMPREZA, FORESTER, EXIGA, TRIBECA, STELLA, R1, R2, PLEO,
SAMBER
Industrial products
Robin engines, power generators, pumps
Aerospace
Aircraft, parts of space-related devices
Other
Garbage collection vehicles, specialized vehicles, real estate lease
3.All operating costs and expenses are allocated to each business segment.
4.There is no corporate asset included in Corporate and elimination.
5.Change of accounting method[1] Accounting Standard for Measurement of Inventories
As described in (3)-[1] of “Changes in the Basis for Preparation of Consolidated Financial Statements andSignificant Accounting Policies,” since the beginning of the current fiscal year, fiscal 2009, the Company
and its domestic consolidated subsidiaries have applied the “Accounting Standard for Measurement of
Inventories” (ASBJ Statement No. 9).
This change resulted in an increase in operating loss of 3,061 million yen in “Automobiles” and an increase28

in operating loss of 146 million yen in “Industrial products” by the same amount for the 12-month period
ended March 31, 2009 compared with the corresponding amounts which would have been recorded if theprevious method had been followed.
In addition, the impact of this change on other business segments is insignificant.
[2] Provision for loss on construction contracts
As described in (3)-[2] of “Changes in the Basis for Preparation of Consolidated Financial Statements andSignificant Accounting Policies,” since the beginning of the current fiscal year, fiscal 2009,
the Company has adopted “provision for loss on contracts” in order to cover the loss on undelivered
construction of aerospace business which would occur and could be reasonably estimated.
The Company recorded 2,901 million yen of “Provision for loss on construction contracts” in the firstquarter of fiscal 2009 as “Extraordinary loss,” and a part of the provision corresponding to recognized sales
related to construction has been reclassified in cost of sales along with additional cost for construction since
the second quarter of fiscal year 2009.
This change resulted in an increase in operating income of 433 million yen in “Aerospace”—the sameamount for the 12-month period ended March 31, 2009 when compared with the corresponding amountwhich would have been recorded if the previous method had been followed.
[3] Change in recognition of sales or interest revenue on credit
As described in (3)-[3] of “Changes in the Basis for Preparation of Consolidated Financial Statements andSignificant Accounting Policies,” since the beginning of the current fiscal year, fiscal 2009, the Company’s
financial subsidiary has changed the recognition of sales or interest revenue on credit from the equal
installment method to the seven-eight allocation method.
The impact of this change on net sales and operating loss was insignificant.
[4] Accounting for lease transactions
As described in (3)-[4] of “Changes in the Basis for Preparation of Consolidated Financial Statements andSignificant Accounting Policies,” since the beginning of the current fiscal year, fiscal 2009, the Company
and its domestic consolidated subsidiaries has adopted “Accounting Standard for Lease Transactions”(ASBJ Statement No. 13), and “Guidance on Accounting Standard for Lease Transactions” (ASBJ GuidanceNo. 16).
This change resulted in a decrease in operating loss of 2,513 million yen in “Automobiles”—the sameamount for the 12-month period ended March 31, 2009 when compared with the corresponding amountwhich would have been recorded if the previous method had been followed.
[5] Practical solution on unification of accounting policies applied to foreign subsidiaries for consolidated
financial statements
As described in item (4) of “Changes in the Basis for Preparation of Consolidated Financial Statements andSignificant Accounting Policies,” since the beginning of the current fiscal year, fiscal 2009, the Company
has adopted “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial statements” (the Practical Issues Task Force No.18).
The impact of this change on profit and loss was insignificant.
[6] Alteration of service life of fixed assets
As described in “Additional information,” since the beginning of the current fiscal year, fiscal 2009, theCompany and domestic consolidated subsidiaries revised the service life of fixed assets (machinery) inaccordance with the enacted revisions to the tax depreciation schedules.
This change resulted in an increase in operating loss of 1,469 million yen in “Automobiles” and a decreasein operating income of 128 million yen in “Aerospace”—the same amount for the 12-month period ended
March 31, 2009 when compared with the corresponding amount which would have been recorded if theprevious method had been followed.
In addition, the impact of this change on other business segments is insignificant.

29

(2) Geographic segment information
FY 2009 (April 1, 2008 to March 31, 2009)

Ⅰ Sales and operating income
Net sales(1) Outside customers(2) Inter-segment
Total sales
Operating cost and expense
Operating income
Ⅱ Assets(Unit: Million of yen)

Japan

North
America

Other

Total

856,188
280,623
1,136,811
1,152,651(15,840)
872,342546,859
15,380562,239564,203(1,964)
297,801

42,743622
43,36541,432
1,933
13,116

1,445,790
296,625
1,742,415
1,758,286(15,871)
1,183,259

FY 2008 (April 1, 2007 to March 31, 2008)
Japan

Elimination Consolidated
and corporate
total(296,625)(296,625)(306,693)
10,068(17,828)

1,445,790
1,445,790
1,451,593(5,803)
1,165,431(Unit: Million of yen)North
America

Other

Ⅰ Sales and operating income
Net sales(1) Outside customers
901,091
617,718
53,537(2) Inter-segment
270,514
20,860501
Total sales
1,171,605
638,578
54,038Operating cost and expense 1,137,417
632,003
52,636
Operating income
34,1886,575
1,402
Ⅱ Assets
962,886
347,205
12,221
Notes:
1. Geographic areas are based on geographical proximity.
2. Principal countries or districts in each geographic area:
North America: United States and Canada
Other:
Europe3. All operating costs and expenses are allocated to each segment.
4. There is no corporate asset included in Corporate and elimination.
5. Change of accounting method

Total

1,572,346
291,875
1,864,221
1,822,056
42,165
1,322,312

Elimination Consolidated
and corporate
total(291,875)(291,875)(295,390)
3,515(25,924)

1,572,346
1,572,346
1,526,666
45,6801,296,388[1] Accounting standard for measurement of inventories
As described in (3)-[1] of “Changes in the Basis for Preparation of Consolidated Financial Statements andSignificant Accounting Policies,” since the beginning of the current fiscal year, fiscal 2009, the Company
and its domestic consolidated subsidiaries has applied the “Accounting Standard for Measurement of
Inventories” (ASBJ Statement No. 9).
This change resulted in an increase in operating loss of 3,220 million yen in Japan—the same amount forthe 12-month period ended March 31, 2009 when compared with the corresponding amounts which would
have been recorded if the previous method had been followed.
[2] Provision for loss on construction contracts
As described in (3)-[2] of “Changes in the Basis for Preparation of Consolidated Financial Statements andSignificant Accounting Policies,” since the beginning of the current fiscal year, fiscal 2009,
the Company has adopted “provision for loss on contracts” in order to cover the loss on undelivered
construction of aerospace business which would occur and could be reasonably estimated.
The Company recorded 2,901 million yen in “Provision for loss on construction contracts” in the firstquarter of fiscal 2009 as “Extraordinary loss,” and a part of the provision corresponding to recognized sales
related to the construction has been reclassified in cost of sales along with additional cost for construction
since the second quarter of fiscal 2009.
This change resulted in a decrease in operating loss of 433 million yen in Japan—the same amount for the30

12-month period ended March 31, 2009 when compared with the corresponding amount which would havebeen recorded if the previous method had been followed.
[3] Change in recognition of sales or interest revenue on credit
As described in (3)-[3] of “Changes in the Basis for Preparation of Consolidated Financial Statements andSignificant Accounting Policies,” since the beginning of the current fiscal year, fiscal 2009, the Company’s
financial subsidiary has changed the recognition of sales or interest revenue on credit from the equal
installment method to the seven-eight allocation method.
The impact of this change on net sales and operating loss was insignificant.
[4] Accounting for lease transactions
As described in (3)-[4] of “Changes in the Basis for Preparation of Consolidated Financial Statements andSignificant Accounting Policies,” since the beginning of the current fiscal year, fiscal 2009, the Company
and its domestic consolidated subsidiaries has adopted “Accounting Standard for Lease Transactions”(ASBJ Statement No. 13) and “Guidance on Accounting Standard for Lease Transactions” (ASBJ GuidanceNo. 16).
This change resulted in a decrease in operating loss of 2,513 million yen in Japan—the same amount for the
12-month period ended March 31, 2009 when compared with the corresponding amount which would havebeen recorded if the previous method had been followed.
[5] Practical solution on unification of accounting policies applied to foreign subsidiaries for consolidated
financial statements
As described in (4) of “Changes in the Basis for Preparation of Consolidated Financial Statements andSignificant Accounting Policies,” since the beginning of the current fiscal year, fiscal 2009, the Company
has adopted “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial statements” (the Practical Issues Task Force No.18).
The impact of this change on profit and loss was insignificant.
[6] Alteration of service life of fixed assets
As described in “Additional information,” since the beginning of the current fiscal year, fiscal 2009, theCompany and domestic consolidated subsidiaries revised the service life of fixed assets (machinery) to theenacted revisions to the tax depreciation schedules.
This change resulted in an increase in operating loss of 1,595 million yen in Japan— the same amount forthe 12-month period ended March 31, 2009 when compared with the corresponding amount which would
have been recorded if the previous method had been followed.

31

(3) Overseas net sales
FY 2009 (April 1, 2008 to March 31, 2009)
North America

Europe(Unit: Million of yen)
Other
Total

582,979

168,520

186,777

Overseas net sales
Consolidated net sales

938,276
1,445,790

Percentage of overseas net sales over consolidated sales

40.3%

11.7%

FY 2008 (April 1, 2007 to March 31, 2008)

12.9%

64.9%

North America

Europe(Unit: Million of yen)
Other
Total

667,310

181,333

179,716

Overseas net sales
Consolidated net sales

1,028,359
1,572,346

Percentage of overseas net sales over consolidated sales

42.5%

11.5%

11.4%

65.4%

Notes:
1. Geographic areas are based on geographical proximity.
2. Principal countries or districts in each geographic area:
North America: United States and Canada
Europe: Germany, Switzerland, United Kingdom and Russia
Other: Australia
3. Overseas sales are sales outside of Japan by the Company and consolidated subsidiaries.

(Information per share)
FY 2008

FY 2009

Net assets per share (yen)Net income (loss) per share, basic (yen)Net income per share, diluted (yen)687.0225.73
25.73

505.59(91.97)-Weighted average number of common shares outstanding during the year (thousands)
Weighted average number of additional dilutive common shares due to stock options (thousands)

718,20842

760,413-(Subsequent Event)Not Applicable32

5. Non-consolidated Financial Statements(1)Non-consolidated balance sheets
FY2008(as of March 31, 2008)
Amount(Unit: Million of yen)
FY2009(as of March 31, 2009)
AmountASSETSⅠ Current assets

Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Short-term investment securities
Finished goods
Merchandise and finished goods
Work in process
Raw materials
Supplies
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Short-term loans receivable
Short-term loans receivable to subsidiaries and affiliates
Current portion of long-term loans receivable from subsidiaries and affiliates
Accounts receivable-otherConsumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Ⅱ Noncurrent assets
1. Property, plant and equipment
Buildings, net
Structures, net
Machinery and equipment, net
Aircraft, net
Vehicles, net
Tools, furniture and fixtures, net
Land
Lease assets, net
Construction in progress
Total property, plant and equipment
2. Intangible assets
Patent rightLeasehold right
Right of trademark
Software
Other
Total intangible assets
3. Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in capital
Investments in capital of subsidiaries and affiliates
Long-term loans receivable
Long-term loans receivable from employees
Long-term loans receivable from subsidiaries and affiliates
Claims provable in bankruptcy, claims provable in rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for investment loss
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

33

14,338
1,405
111,6082
33,672
96,384
16,665
1,515
10,3832,754
16,31385,30528,023
7,399(234)
425,532

24,857
1,202
96,81223,09092,87829,318
1,569
1,340
77,15820,90025,893
14,073
4,096(11,596)
401,590

50,813
6,778
68,1819
1,229
10,20889,512
7,029
233,759

50,7206,434
71,104
9
1,216
9,075
91,446248
1,778
232,030

79
11
5
9,865
370
10,330

63
11
4
7,783
568
8,429

41,362
143,564
8
1,983
5
118
26,0306,486
1,543
11,992
3,404(1,271)(14,889)
220,335

23,934140,362
8
2,022
5
114
8,130
9,348
1,794
3,129
(259)
(10,240)
178,347

464,424

418,806

889,956

820,396

FY2008(as of March 31, 2008)
Amount(Unit: Million of yen)
FY2009(as of March 31, 2009)
AmountLIABILITIESⅠ Current liabilities
Notes payable-trade
Accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of long-term loans payable
Current portion of bonds
Lease obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Unearned revenue
Provision for bonuses
Provision for directors' 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
Provision for loss on guarantees
Long-term accounts payable-other
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Ⅰ Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surpluses
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for reduction entry of land
General reserve
Retained earnings brought forward
Total earned surpluses
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

34

3,620
197,072
20,04630,00015,37129,015
5,126
4,145
1,024
186
10,249966,180
23322,153

2,066
144,661
62,75024,00013,86968
12,291
22,268
4,348
873
195
8,860
5,388
760
2,677
305,074

60,00022,217
23,847745
10,604
1,161
118,574

60,00039,698193
2,523
19,662745
11,091
1,147
135,059

440,727

440,133

153,795

153,795

160,07143
160,114160,071160,071

7,901

7,901

749
85,33568,944
162,929(40,504)
436,334

749
85,335(28,495)
65,490(2,051)
377,305

12,895
12,895449,229889,956

2,958
2,958
380,263820,396

(2)Non-consolidated statements of income(Unit: Million of yen)
FY2008FY2009(April 1, 2007
(April 1, 2008
to March 31, 2008) to March 31, 2009)
AmountAmount1,018,820
969,209843,069
861,081
175,751
108,128
149,921
132,674
25,830(24,546)

Ⅰ Net sales
Ⅱ Cost of sales
Gross profit
Ⅲ Selling, general and administrative expenses
Operating income (loss)
Ⅳ Non-operating income
Interest and dividends income
Interest income
Interest on securities
Dividends income
Real estate rent
Foreign exchange gains
Gain on valuation of derivatives
Other
Total non-operating income
Ⅴ Non-operating expenses
Interest expenses
Interest on bonds
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
Gain on sales of investment securities
Gain on revision of retirement benefit plan
Reversal of allowance for investment loss
Other
Total extraordinary income
Ⅶ Extraordinary loss
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Provision of allowance for doubtful accounts
Provision for loss on construction contracts
Provision of allowance for investment loss
Other
Total extraordinary losses
Income (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income (loss)

35

2,959
4,921
4,514
12,394

893
41
1,618
2,690
4,397
2,709
12,348

1,768
5,998
5,611
13,377
24,847

917
983
5,278
5,464
12,642(24,840)

1,025
1,652
0
2,677

278
1,610
653
1,271
444
4,256

3,945
10,940
2,418
4,885
1,271
23,4594,065
7,540(3,417)
4,123
(58)

2,493
337
666
3,253
5,874
2,901
259
8,834
24,617(45,201)
612
37,591
38,203(83,404)

(3)Non-consolidated statement of changes in net assets(Unit: Million of yen)
FY2008FY2009(April 1, 2007
(April 1, 2008
to March 31, 2008) to March 31, 2009)
Shareholders' equity
Capital stock
Balance at the end of previous period
Balance at the end of current period
Capital surplus
Legal capital surplus
Balance at the end of previous period
Balance at the end of current period
Other capital surplus
Balance at the end of previous period
Changes of items during the period
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total capital surplus
Balance at the end of previous period
Changes of items during the period
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Retained earnings
Legal retained earnings
Balance at the end of previous period
Balance at the end of current period
Other retained earnings
Reserve for reduction entry of land
Balance at the end of previous period
Changes of items during the period
Provision of reserve for reduction entry of land
Total changes of items during the period
Balance at the end of current period
General reserve
Balance at the end of previous period
Balance at the end of current period
Retained earnings brought forward
Balance at the end of previous period
Changes of items during the period
Provision of reserve for reduction entry of land
Dividends from surplus
Net income (loss)
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
36

153,795
153,795

153,795
153,795

160,071160,071160,071160,071

49

43

(6)
(6)
43

(43)
(43)
-

160,120

160,114(6)(6)
160,114(43)(43)
160,071

7,901
7,901

7,901
7,901

719

749

30
30
749

749

85,33585,33585,33585,33575,50068,944(30)(6,468)(58)(6,556)
68,944(6,742)(83,404)(7,293)(97,439)(28,495)

169,455

162,929(6,468)(58)(6,526)
162,929(6,742)(83,404)(7,293)(97,439)
65,490(Unit: Million of yen)
FY2008FY2009(April 1, 2007
(April 1, 2008
to March 31, 2008) to March 31, 2009)
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

37(40,477)(40,504)

(60)
33
(27)
(40,504)(50)
38,50338,453(2,051)

442,893436,334(6,468)
(58)
(60)
27
(6,559)436,334(6,742)(83,404)(50)
31,167(59,029)
377,305

21,13012,895(8,235)(8,235)
12,895(9,937)(9,937)
2,958

21,13012,895(8,235)(8,235)
12,895(9,937)(9,937)2,958

464,023

449,229(6,468)
(58)
(60)
27
(8,235)(14,794)449,229(6,742)(83,404)(50)
31,167(9,937)(68,966)
380,263(4) Notes on premise of going concern
Not Applicable(Changes in Presentation of Non-consolidated Financial Statements)[Non-consolidated Balance Sheets]
1. For improvement of comparability in the consolidated financial statements, along with the XBRL
introduction into EDINET, “Short-term loans receivable” in the preceding period is presented separately in“Short-term loans receivable to subsidiaries and affiliates” and “Current portion of long-term loans receivablefrom subsidiaries and affiliates” in the current period. In addition, “Short-term loans receivable to subsidiaries
and affiliates” and “Current portion of long-term loans receivable from subsidiaries and affiliates” included in“Short-term loans receivable” in preceding period were as follows.
Short-term loans receivable to subsidiaries and affiliates
Current portion of long-term loans receivable from subsidiaries and affiliates

66,905 million yen
18,400 million yen

2. For reasons similar to those listed in 1., above, “Accounts receivable—other” in the preceding period ispresented separately in “Accounts receivable—other” and “Consumption taxes receivable” in the current period.
In addition, “Accounts receivable—other” and "Consumption taxes receivable" included in "Accounts
receivable—other" in preceding period were as follows.
Accounts receivable－otherConsumption taxes receivable

15,978 million yen
12,045 million yen

3. For reasons similar to those listed in 1., above, “Short-term loans payable” in the preceding period ispresented separately in “Short-term loans payable” and “Current portion of long-term loans payable” in thecurrent period. In addition, “Short-term loans payable” and “Current portion of long-term loans payable”
included in “Short-term loans payable” in the preceding period were as follows.
Short-term loans payable
Current portion of long－term loans payable

17,540 million yen
2,506 million yen[Non-consolidated Statements of Income]1. For improvement of comparability in the consolidated financial statements, along with the XBRL
introduction into EDINET, “Interest and dividends income” in the preceding period is presented separately in“Interest income” and “Dividends income” in the current period. In addition, “Interest income” and “Dividends
income” included in “Interest and dividends income” in preceding period were as follows.
Interest income
Interest on securities
Dividends income

958 million yen
43 million yen
1,958 million yen

2. “Real estate rent” was included in “Other” of “Total non-operating income” in the preceding period.
However, “Real estate rent” is presented separately because reasons similar to those listed in 1., above. In
addition, “Real estate rent” included in “Other” in the preceding period was 2,760 million yen.
3. For reasons similar to those listed in 1., above, “Interest expenses” in the preceding period is presented
separately in “Interest expenses” and “Interest on bonds” in the current period. In addition, “Interest expenses”
and “Interest on bonds” included in “Interest expenses” in the preceding period were as follows.
Interest expenses
Interest on bonds

558 million yen
1,210 million yen

38

(MAY.8,2009)
Fuji Heavy Industries Ltd.

<Reference for FY2009 Consolidated Financial Results>(in 100 millions of yen)

RESULTS(in thousands of units)

FY2008RESULTS
FY2009Apr.2007 to Mar.2008

Apr.2008 to Mar.2009
Difference

FORECAST
FY2010
Apr.2009 to Mar.2010
Ratio

Difference

Ratio

Net Sales

15,723

14,458(1,266)(8.0)

13,200(1,258)Domestic
Overseas
Operating Income/Loss

5,440

5,075
9,383

(365)

(6.7)

0.5

(901)

(8.8)

5,100
8,100

25

10,284(1,283)(13.7)

(58)

(515)

(350)

(292)

-

(400)

(354)

-

(550)

149

-

Margin Percentage

457

Ordinary Income/Loss
Margin Percentage

-

(46)

454

(500)

-

(699)

185

(884)

-

92

Decrease of R&D expenses

by factors

Improvement of sales volume &mixture and others

YEN/US$YEN116/US$

YEN/EURO

YEN161/EURO

Capital expenditures

563

Depreciation and amortization

655
520
3,045

Interest bearing debt
Performance of operation

209

Domestic sales
Passenger Cars

78

Minicars

131
388

Overseas sales
North America

210

Europe86

Others92

Total sales

597

Production Units Total

599

Net salesby businesssegment

Operating income
by businesssegment

Net salesby geographic area

Japan

490

U.S

109

Automobile

14,212

Aerospace

997

Industrial Products

407

Others108

Automobile

371

Aerospace44

Industrial Products

7

Others25

Elimination andCorporate

9

Japan

9,011

North America

6,177

Others535

Operating income

Japan

342

by geographic area

North America

66

Others14

Elimination andCorporate35

3Reduction in cost, Net of raw
material price raise

218

Decrease of SG&A expenses and others

174
(411)

Loss on currency exchange(435)

Decrease of sales volume &mixture and others

Increase of SG&A expenses and others(143)

Loss on currency exchange

(271)

(32)

Increase of R&D expenses(2)

Reduction in cost, Net of raw
material price raise

R&D expenses

-

-

1.2

Change of operating income

Exchange rates

-

-

2.9

Net Income/Loss
Margin Percentage

-

-

2.9

(8.7)

YEN102/US$
YEN147/EURO
580
651
428
3,817
Net Sales to decrease
Net Income to decrease

YEN95/US$YEN125/EURO
590
590
430
4,000
Net Sales to decrease
Net Income to decrease

179
70
109
377
207
77
92
555
566
474
92

(30)

(14.3)(8)(10.2)(22)(16.8)

(11)

(2.9)

(3)

(1.5)

(9)

(9.9)

13,163
809
349
137
(92)
16
(16)
31
3
8,562
5,469
427
(158)
(20)
19
101

0

0.4

(41)

(6.9)

(33)

(5.6)

(16)

(3.2)

(18)

(16.1)(1049)

(7.4)

(188)

(18.9)(58)(14.2)

29(463)(20.0)

(29)

(7.7)

8

3.8

(22)

(28.2)(15)(16.3)

(47)

(8.5)

(76)

(13.4)(70)(14.7)(6)(6.8)(64.5)

23.5
(5.0)

(709)

(11.5)(108)(20.2)

(500)

-

(85)

-

5
66

4.6

(22)

-

(449)

(10.3)

3

26.7

6
(6)

(18)

-

(29)
(23)

160
73
87
348
215
56
77
508
490
404
85

37.9
-

* 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/dearlers.
* Exchange rate is the non-consolidated sales rate of FHI.