Consolidated Financial Results
For the First Quarter of the Fiscal Year Ending March 31, 2017
(Japan GAAP)
August 3, 2016
Company Name
: Fuji Heavy Industries Ltd. (Tokyo Stock Exchange First Section, Code No.7270)
URL: http://www.fhi.co.jp/english/ir/
Representative: Yasuyuki Yoshinaga, President and CEO
Contact for Inquiries : Katsuo Saitou, General Manager of Administration Department Phone +81-3-6447-8225
Scheduled date of submitting Quarterly Report: August 5, 2016
Scheduled date for dividend payment: －Quarterly earnings supplementary explanatory documents: Yes
Holding of quarterly financial results meeting: Yes(for investment analysts and institutional investors)(All amounts have been rounded off to the nearest million yen, unless otherwise specified)

1. Consolidated Results for the First Quarter of Fiscal Year 2017 (April 1, 2016 to June 30, 2016)(1) Consolidated Results of Operations(for three-month period)(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)

Net sales
1st Quarter of
FY2017
1st Quarter of
FY2016

Operating income

Ordinary income

Net income
attributable toowners of parent

769,3780.5%

101,540(24.3)%

118,795(8.7)%

78,866(6.3)%

765,266

29.0%

134,21070.5%

130,053

61.4%

84,18461.1%

Note: Comprehensive income 1st Quarter of FY2017: 46,105 million yen (Minus51.4%) 1st Quarter of FY2016: 94,934 million
yen (75.9%)

Net income
Net income per share,per share, basic (Yen)diluted (Yen)
1st Quarter of
FY2017
1st Quarter of
FY2016101.06－107.88－(2) Consolidated Financial Position
Total assets(Unit: Millions of yen, except for per share figures)
Shareholders’equity to
Net assets
total assets (%)

1st Quarter of
FY20172,524,411

1,339,192

52.8%

FY20162,592,410

1,349,411

51.8%

Reference: Shareholders’ equity

As of June 30, 2016: 1,333,784 million yen

As of March 31, 2016: 1,343,732 million yen

2. Dividends
Cash dividends per share (yen)
1st Quarter 2nd Quarter 3rd Quarter Year-end
FY 2016－

FY 2017－

FY 2016 (Forecast)

Annual

72.00

－

72.00

144.00

72.00

－

72.00

144.00Note: Revision of the forecasts in the first quarter of the fiscal year ending March 31, 2017: No

3. Projection of Consolidated Results for Fiscal Year 2017 (April 1, 2016 to March 31, 2017)(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)

Net sales
1st half

1,553,500

Full year 3,190,000

Net income
Net income per
attributable to owners share, basic(Yen)of parent

Operating income

Ordinary income(3.0)%

204,000 (28.4)%

214,000 (24.9)%

148,000 (23.4)%

189.65(1.3)

400,000 (29.3)

410,000 (28.9)

285,000 (34.7)

365.21

Note: Revision of the forecasts at the timing of announcement of the results of first quarter of the fiscal year ending March 31,
2017: Yes

4. Others(1) Changes of significant subsidiaries in the first quarter of fiscal year 2017

: No

(2) Application of specific accounting for preparing the quarterly consolidated financial statements : Yes(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly
consolidated financial statements[1] Changes due to revisions of accounting standards: Yes[2] Changes due to other reasons: No[3] Changes of estimation due to accounting issues: No[4] Restatements: No(4) Number of outstanding shares (Common Stock)[1] Number of outstanding shares
As of June 30,2016:(including treasury stock)[2] Number of treasury stock
As of June 30,2016:[3] Average number of shares
1st Quarter of FY2017:(for three-month period)

782,865,873 shares As of March 31,2016:

782,865,873 shares

2,488,095 shares As of March 31,2016:

2,487,843 shares

780,377,869 shares 1st Quarter of FY2016:

780,381,967 shares*The status of the implementation of the first quarterly review
The first quarterly review is now conducted on the basis of the Financial Instruments and Exchange Act on thedate for the release of this quarterly report.
*Proper use of projection of operating results, and other information
The above performance projections were made based on the information available as of the date when thisdocument was released. Therefore, actual results may differ considerably due to various factors that might occur
in the future.
For assumptions and other information on which the performance projections were based, please refer to"(3) Explanation about Future Forecasts such as Projections for the Current Fiscal Year" on page 5.

Index of the attachments
1. Qualitative Information on Quarterly Financial Results.............................................................2(1) Explanation about Operating Performance ............................................................................................2(2) Explanation about Financial Position......................................................................................................4(3) Explanation about Future Forecasts such as Projections for the Current Fiscal Year .......................5

2. Notes on Summary Information .....................................................................................................6(1) Application of specific accounting for preparing the quarterly consolidated financial statements ...6
(2) Changes in Accounting Policy ..................................................................................................................6(3) Additional Information .............................................................................................................................6

3. Quarterly Consolidated Financial Statements ..............................................................................7(1) Quarterly Consolidated Balance Sheet....................................................................................................7(2) Quarterly Consolidated Statements of (Comprehensive) Income .........................................................9
Quarterly Consolidated Statements of Income(for three-month period)................................................9
Quarterly Consolidated Statements of Comprehensive Income(for three-month period) ..................10(3) Quarterly Consolidated Statements of Cash Flows ..............................................................................11(4) Note to Quarterly Consolidated Financial Statements.........................................................................12(Notes on Premise of Going Concern) ......................................................................................................12(Notes on Significant Changes in the Amount of Shareholders’Equity) ...............................................12(Segment Information) ..............................................................................................................................12(Significant Subsequent Event).................................................................................................................12―1―

1. Qualitative Information on Quarterly Financial Results(1) Explanation about Operating Performance
Consolidated net sales for the first quarter of the current fiscal year increased ¥4.1 billion (0.5%) fromthe same period of the previous fiscal year to ¥769.4 billion mainly due to higher automobile unit sales
despite a decrease in sales revenues owing to foreign exchange rate fluctuations.
Regarding the profit, operating income decreased ¥32.7 billion (24.3%) from the same period of theprevious fiscal year to ¥101.5 billion, as the effects of foreign exchange rate fluctuations plus increases
in miscellaneous expenditure, mainly for quality-related expenses attributable to airbag inflators, andexperimentation and research expenses, despite higher automobile unit sales and progress with reduction
in costs. Ordinary income decreased ¥11.3 billion (8.7%) from the same period of the previous fiscal
year to ¥118.8 billion. Net income attributable to owners of the parent decreased ¥5.3 billion (6.3%)
from the same period of the previous fiscal year to ¥78.9 billion.

1st Quarter of FYE 2017
Profit Margin
1st Quarter of FYE 2016
Profit Margin
ChangePercentage change(In Japanese yen in million except for profit ratio and change from the previous period)
Quarterly Net Income
Foreign
Net Sales Operating Income
Ordinary Income Attributable to Owners
Exchange Rateof the Parent
769,378
101,540
118,795
78,866¥111/US$
13.2%
15.4%
10.3%
¥124/EUR
765,266
134,210130,053
84,184¥120/US$
17.5%
17.0%
11.0%
¥132/EUR
4,112(32,670)(11,258)(5,318)0.5%(24.3) %(8.7) %
(6.3) %

[Results by Business Segment]
Results for the current consolidated first quarter period by business segment are as described below.
Net Sales
1st Quarter of 1st Quarter of
FYE 2016
FYE 2017(In Japanese yen in million and percentage change from the previous period)
Segment Income (loss)
ChangePercentage 1st Quarter of 1st Quarter ofchangeFYE 2016
FYE 2017

Automobile Div.
718,841
724,474
5,633
0.8%
128,782
99,319Aerospace Div.
35,77435,217(557)(1.6) %
4,384
1,676
Ind. Prod. Div.
8,965
7,967
(998)
(11.1) %
213
(297)
Other
1,686
1,720
34
2.0%
659
641
Adjustment
172
201
－
－
－
－
Total
765,266
769,378
4,112
0.5%
134,210
101,540
Notes:
1. Net sales are sales to outside customers.
2. Adjustment to segment income (loss) refers to elimination of intersegment transaction.

ChangePercentagechange(29,463)(2,708)
(510)
(18)
29
(32,670)(22.9) %(61.8) %－(2.7) %
16.9%
(24.3) %[1] Automobile Division
Regarding registered cars in Japan, unit sales increased 5 thousand units (23.4%) compared with the same
period of the previous fiscal year to 25 thousand units as a result of strong sales of the Forester and Impreza,
which were partially improved in October 2015. On the other hand, unit sales of minicars decreased 1
thousand units (18.3%) compared with the same period of the previous fiscal year to 7 thousand units due tothe effect of higher taxes on minicars since the previous year and other factors. As a result of these factors,
total unit sales in Japan increased 3 thousand units (11.3%) compared with the same period of the previous
fiscal year to 31 thousand units.
Overseas total unit sales increased 17 thousand units (8.5%) compared with the same period of theprevious fiscal year to 214 thousand units mainly due to favorable conditions surrounding sales of the
Outback and Crosstrek in North America, the key market of FHI.

―2―

By region, sales in North America increased 16 thousand units (10.5%) from the same period of theprevious fiscal year to 170 thousand units, sales in Europe including Russia increased 1 thousand units (6.3%)
from the same period of the previous fiscal year to 11 thousand units, sales in Australia increased 1 thousand
units (6.6%) from the same period of the previous fiscal year to 12 thousand units, sales in China decreased 1
thousand units (5.7%) from the same period of the previous fiscal year to 10 thousand units, and sales inother regions remained the same compared with the same period of the previous fiscal year at 11 thousand
units.
As a result, combined unit sales in Japan and overseas markets amounted to 245 thousand units, an increaseof 20 thousand units (8.9%) from the same period of the previous fiscal year. Overall net sales increased ¥5.6
billion (0.8%) from the same period of the previous fiscal year to ¥724.5 billion, and segment income, affectedalso by currency fluctuations and quality-related expenses attributable to airbag inflators, decreased ¥29.5
billion (22.9%) from the same period of the previous fiscal year to ¥99.3 billion.
Consolidated unit sales in the first quarter of the current fiscal year are shown in the table below.
(Units in thousands and percentage change from the previous period)

Total in Japan
Registered cars
Minicars
Total overseas
North America
Russia/Europe
Australia
China
Other regions
Grand total

1st Quarter of
FYE 2016

1st Quarter of
FYE 2017

28
20
8
197
154
10
11
10
12
225

31
25
7
214
170
11
12
10
11
245

PercentagechangeChange
3
5
(1)
17
16
1
1
(1)
(0)
20

11.3%
23.4%
(18.3) %
8.5%
10.5%
6.3%
6.6%
(5.7) %
(0.8) %
8.9%

[2] Aerospace Division
Deliveries to the Japan Ministry of Defense saw sales rise compared with the level of the same periodof the previous fiscal year mainly with an increase in production of the transport aircraft C-2.
Sales to the commercial sector fell compared with the same period of the previous fiscal year owing toeffects from foreign exchange rate fluctuations despite an increase in production of Boeing 787 aircraft.
As a result, overall net sales decreased ¥0.6 billion (1.6%) compared with the same period of theprevious fiscal year to ¥35.2 billion. Segment income decreased ¥2.7 billion (61.8%) compared with thesame period of the previous fiscal year to ¥1.7 billion.
[3] Industrial Products Division
Net sales decreased ¥1.0 billion (11.1%) compared with the same period of the previous fiscal year to ¥8.0
billion with a decrease in sales of engines for leisure vehicles to North America despite an increase in sales ofgeneral-purpose engines to North America. Segment income decreased ¥0.5 billion compared with the same
period of the previous fiscal year, generating a loss of ¥0.3 billion.
[4] Other Businesses
Net sales remained the same compared with the same period of the previous fiscal year at ¥1.7 billion.
Segment income also remained the same compared with the same period of the previous fiscal year at ¥0.6
billion.

―3―

(2) Explanation about Financial Position[1] Assets, Liabilities, and Net Assets
Total assets at the end of the first quarter of the current fiscal year were ¥2,524.4 billion, a decrease of ¥68.0
billion from the end of the previous fiscal year. Main factors included a ¥64.0 billion decrease in combined
funds on hand comprised of cash, deposits, and investment securities, a ¥16.6 billion decrease in merchandiseand finished goods, and a ¥19.5 billion increase in property, plant and equipment.
Total liabilities decreased ¥57.8 billion compared with the end of the previous fiscal year to ¥1,185.2 billion.
Main factors included a ¥13.8 billion increase in short-term debt and a ¥69.5 billion decrease in income taxes
payable and other liabilities.
Net assets decreased ¥10.2 billion compared with the end of the previous fiscal year to ¥1,339.2 billion.
Main factors included a ¥22.7 billion increase in retained earnings and a ¥32.0 billion decrease in foreign
currency translation adjustments.
[2] Cash Flows
Cash and cash equivalents at the end of the first quarter of the current fiscal year (hereinafter “Cash”)
totaled ¥746.0 billion.
(Net cash provided by operating activities)
Net cash provided by operating activities was ¥62.1 billion (net cash provided in the same consolidated
cumulative period of the previous fiscal year was ¥109.7 billion). Main factors included ¥117.8 billion inincome before income taxes and minority interests, ¥18.1 billion decrease in trade payables, and ¥104.2
billion in income taxes paid.
(Net cash used in investment activities)
Net cash used in investing activities was ¥64.7 billion (net cash used in the same consolidated cumulative
period of the previous fiscal year was ¥32.8 billion). Main factors included ¥10.0 billion in expenditures forthe purchase of investment securities (net basis against proceeds from sales of investment securities), ¥25.9
billion in expenditures for the purchase of property, plant and equipment (net basis against proceeds fromsales of property, plant and equipment), and ¥14.7 billion in payments of loans receivable (net basis against
proceeds from collection of loans receivable).
(Net cash used in financing activities)
Net cash used in financing activities was ¥61.0 billion (net cash used in the same consolidated cumulative
period of the previous fiscal year was ¥38.5 billion). Main factors included a ¥14.4 billion increase in shortterm loans payable, ¥8.3 billion in repayment of long-term loans payable (net basis against proceeds fromlong-term loans payable), ¥10.0 billion in redemption of bonds, and ¥54.8 billion in expenditures for cash
dividends paid.

―4―(3) Explanation about Future Forecasts such as Projections for the Current Fiscal Year
FHI has revised second quarter (cumulative) and full year consolidated performance projections for the
fiscal year ending March 31, 2017, which were released at the timing of consolidated financial results
announcement on May 12, 2016, as stated below, in consideration of factors such as the effects expectedfrom foreign exchange rate fluctuations and higher miscellaneous expenditure, mainly for quality-related
expenses attributable to airbag inflators.
Projections of second quarter (cumulative) consolidated business results of the current fiscal year are
based on assumed foreign exchange rates of ¥107/US$ (previously ¥105/US$) and ¥122/EUR (previously¥120/EUR).
Projections of full-year consolidated business results of the current fiscal year are based on assumed
foreign exchange rates of ¥106/US$ (previously ¥105/US$) and ¥121/EUR (previously ¥120/EUR).
Consolidated Results Forecast for the Second Quarter (Cumulative) of FYE 2017 (April 1, 2016 to September
30, 2016)

Previous projection (A)¥ million
1,533,500¥ million
210,000

Quarterly Net Income
Attributable to
Owners of the Parent¥ million¥ million
214,000
148,000

Revised projection (B)1,553,500

204,000

214,000

148,000

189.65

Change in amount (B-A)

20,000(6,000)

±0

±0

±0.00

Percentage change (%)

1.3

(2.9)

±0.0

±0.0

±0.0

1,601,475

285,097

285,022

193,204

247.58Operating
IncomeNet Sales(Supplemental information)
Actual results of the second
quarter of FYE 2016 (April 1,2015 to September 30, 2015)

Ordinary
IncomeQuarterly Net
Income per
Share
Yen
189.65

Consolidated Results Forecast for FYE 2017 (April 1, 2016 to March 31, 2017)

Previous projection (A)¥ million
3,170,000¥ million
420,000

Net Income
Net Income per
Attributable to
Share
Owners of the Parent¥ million¥ million
Yen
420,000
293,000
375.46

Revised projection (B)3,190,000

400,000

410,000

285,000

365.21

Change in amount (B-A)

20,000(20,000)(10,000)(8,000)(10.25)Percentage change (%)

0.6

(4.8)

(2.4)

(2.7)

(2.7)

3,232,258

565,589

576,972

436,654559.54

Operating
IncomeNet Sales(Supplemental information)
Actual results of FYE 2016
(April 1, 2015 to March 31,
2016)

―5―

Ordinary
Income2. Notes on Summary Information(1) Application of specific accounting for preparing the quarterly consolidated financial statements
Income tax expense was calculated as multiplying income before income taxes by reasonably estimatedannual effective tax rate. This annual tax rate was reasonably estimated after applying the deferred tax
accounting to the annual income before income taxes. "Income taxes-deferred" was included in "Total income
taxes".
(2) Changes in Accounting Policy
Based on amendments in the Corporation Tax Act, "Practical Solution on a change in depreciation method
due to Tax Reform 2016"(PITF No.32 issued on June 17, 2016) issued by Accounting Standards Board ofJapan (ASBJ) was applied from the first quarter of the fiscal year ending March 2017.
FHI group changed depreciation method for facilities attached to buildings and for structures acquired on orafter April 1, 2016 from the declining-balance method to the straight-line method. Since the impact of thechange is immaterial, notes for the change was omitted.
(3) Additional Information
FHI group applied "Revised Implementation Guidance on Recoverability of Deferred Tax Assets" issued by
ASBJ from the first quarter of the fiscal year ending March 2017.

―6―

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Unit: Millions of yen)
FY2016(as of March 31, 2016)
ASSETSⅠ Current assets
Cash and deposits
Notes and accounts receivable-trade
Lease investment assets
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Ⅱ Noncurrent assets
1. Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Vehicles and equipment on operating leases, net
Construction in progress
Other, net
Total property, plant and equipment
2. Intangible assets
Other
Total intangible assets
3. Investments and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets―7―

1st Quarter of FY2017(as of June 30, 2016)

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

514,535
128,122
20,573429,605
176,097
50,513
34,79382,886
166,798
103,091(595)
1,706,418

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

163,456
146,744
183,044
17,22845,67635,971
592,119

20,98920,98920,664
20,664

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

102,583920
17,60387,547(3,443)
205,210
817,9932,524,411

(Unit: Millions of yen)
FY2016(as of March 31, 2016)
LIABILITIESⅠ Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for product warranties
Provision for loss on construction contracts
Other
Total current liabilities
Ⅱ Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Ⅰ Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Ⅱ Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Remeasurements of other postretirement
benefits of foreign consolidated subsidiaries
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets―8―

1st Quarter of FY2017(as of June 30, 2016)

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

302,171
92,75347,01665,030－30,755
144,737
35,43450,005755
181,589
950,245

93,03018,769478
18,586
152,641
283,504
1,242,999

53,401
16,428446
18,941
145,758
234,974
1,185,219

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

153,795
160,071
1,071,666(1,403)
1,384,129

11,344(13,415)(12,808)

9,835(45,392)(12,167)(2,869)(2,621)(17,748)
5,679
1,349,411
2,592,410(50,345)
5,408
1,339,192
2,524,411

(2) Quarterly Consolidated Statements of (Comprehensive) Income
Quarterly Consolidated Statements of Income(for three-month period)(Unit: Millions of yen)
FY2016(April 1, 2015 toJune 30, 2015)
Ⅰ Net sales
Ⅱ Cost of sales
Gross profit
Ⅲ Selling, general and administrative expenses
Operating income
Ⅳ Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Foreign exchange gains
Gain on valuation of derivatives
Other
Total non-operating income
Ⅴ Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary income
Ⅵ Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Other
Total extraordinary income
Ⅶ Extraordinary loss
Loss on sales and retirement of noncurrent assets
Other
Total extraordinary losses
Income before income taxes
Total Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent―9―

FY2017(April 1,2016 toJune 30, 2016)

765,266
523,609
241,657
107,447
134,210769,378555,084
214,294
112,754
101,540

714
615
173
－
－
337
1,839

763
360
－
5,808
11,323389
18,643

695
－
3,570
1,075
656
5,996
130,053

477
62
－
－
849
1,388
118,795

45
50
177
272

15
52
6
73

1,155
35
1,190
129,135
44,30984,826642
84,184

1,026
41
1,067
117,801
38,74479,057
191
78,866

Quarterly Consolidated Statements of Comprehensive Income(for three-month period)(Unit: Millions of yen)
FY2016(April 1, 2015 toJune 30, 2015)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Remeasurements of other postretirement benefits offoreign consolidated subsidiaries
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―10―

FY2017(April 1,2016 toJune 30, 2016)84,826

79,057

2,827
6,734
599

(1,509)(32,250)
641

(71)

248

19

(82)

10,10894,934(32,952)
46,105

94,270664

46,269(164)

(3) Quarterly Consolidated Statements of Cash Flows(Unit: Millions of yen)
FY2016(April 1, 2015 toJune 30,2015)
Ⅰ Net cash provided by (used in) operating activities
Income (loss) before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Loss (gain) on sales and retirement of noncurrent assets
Loss (gain) on sales and valuation of investment securities
Decrease (increase) in operating loans receivable
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, 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
Net decrease (increase) in time deposits
Purchase of short-term investment securities
Proceeds from sales of short-term investment securities
Purchase of non-current assets
Proceeds from sales of non-current assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Ⅲ Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Cash dividends paid
Dividends paid to non-controlling interests
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
Ⅷ Cash and cash equivalents at end of period―11―

FY2017(April 1, 2016 toJune 30,2016)

129,135
17,453(43)(1,329)
695
1,110
(15)
(1,076)
37,113
8,250(26,310)
2,713
167,696
1,293(812)(58,438)
109,739

117,801
17,848(12)(1,123)
477
1,011
(11)
(1,275)
9,898(2,058)(18,075)
41,199165,680
1,116(574)(104,171)
62,051(8,039)(2,337)
3,743(23,943)317(13,889)
8,922(26,417)
29,022(191)(32,812)(10,731)(21,957)
11,958(26,471)612(8,498)5,165(39,334)
24,627(34)(64,663)

5,442
2,800
(18,419)－(28,066)－(289)(38,532)
3,732
42,127612,085

14,3602,200(10,494)(10,000)(54,829)(1,944)(274)(60,981)(19,822)(83,415)
829,461(127)－

654,085

746,046(4) Note to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
FY2017 (April 1, 2016 to June 30, 2016)
Not Applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
FY2017 (April 1, 2016 to June 30, 2016)
Not Applicable(Segment Information)
Information on sales and income(loss) by business segment reported
1st Quarter of FY 2016 (April 1, 2015 to June 30, 2015)(Unit: Millions of yen)

Business segment reported
Automobiles Aerospace
Net sales(1) Outside customers(2) Inter-segment
Total sales
Operating income

718,841973
719,814
128,782

35,774－35,774
4,384

Industrial
products
8,965
53
9,018
213

SubTotal
763,580
1,026
764,606
133,379

Other
*1

1,686
3,608
5,294
659

Total

765,266
4,634
769,900
134,038

Consolidated
Adjustment
Statement of*2
income *3－(4,634)(4,634)
172

765,266－
765,266
134,210

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

1st Quarter of FY 2017 (April 1, 2016 to June 30, 2016)
Business segment reported
Automobiles Aerospace
Net sales(1) Outside customers(2) Inter-segment
Total sales
Operating income(loss)

724,474
1,191
725,665
99,31935,217－35,217
1,676

Industrial
products
7,967
54
8,021
(297)

SubTotal
767,658
1,245
768,903
100,698

Other
*1

1,720
5,152
6,872
641

Total

769,3786,397
775,775
101,339

Consolidated
Adjustment
Statement of*2
income *3－(6,397)(6,397)201

769,378－
769,378
101,540

Note: *1. Other means the category which is not included into any business segment reported. It consists of realestate lease, etc.
*2. Adjustment of segment income refers to elimination of intersegment transaction.
*3. Operating income for segment is adjusted on operating income on the quarterly consolidated statements
of income.
(Significant Subsequent Event)Not Applicable―12―August 3, 2016
Fuji Heavy Industries Ltd.

< Reference for the 1st Quarter of FYE2017 Consolidated Financial Results >(Yen in 100 Millions, Units in Thousands)
FYE2016 Q1

RESULTSFYE2017 1st Qtr

FORECASTS
FYE2017 1st Half

FORECASTS
FYE2017 Full Year2015. 4-6

2016. 4-6

2016. 4-9

2016.4 - 2017.3

RESULTS

ChangeNet sales
Japan
Overseas

Operating income
Profit margin (%)

(480)

(3.0)

31,900

(423)

(1.3)

1,245
6,408
1,342

1,303
6,391
1,015

58
(17)
(327)

4.7
(0.3)
(24.3)

2,796
12,739
2,040

(56)
(424)
(811)

(2.0)
(3.2)
(28.4)

6,103
25,797
4,000

49
(472)
(1,656)0.8(1.8)(29.3)

(113)

(8.7)

2,140

(710)

(24.9)

4,100(1,670)(28.9)(1,517)(34.7)

Profit margin (%)

17.0

15.4

Net income attributable toProfit margin (%)
owners of parent

842

789

11.0

10.3

Change factors
in operating income

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

120/US$
132/EUR
171
154
185
2,011

Performance description

Consolidated unit sales (Japan)(6.3)

Improvements onmodel mix, etc
Cost reduction
effort, etc
Increase in SG&A
exp, etc
Loss on currency
exchange
Increase in R&D
exp
111/US$
124/EUR

303
105
(392)
(292)
(51)

8.9

Improvements onmodel mix, etc
Cost reduction
effort, etc
Loss on currency
exchange
Increase in SG&A
exp, etc
Increase in R&D
exp
107/US$
122/EUR

474
207
(742)
(653)
(97)

Improvements onmodel mix, etc
Cost reduction
effort, etc
Loss on currency
exchange
Increase in SG&A
exp, etc
Increase in R&D
exp
106/US$
121/EUR

999
320(1,586)(1,213)(176)- 5th consecutive year ofincrease in net sales.
- First decrease in operating
income and ordinary income in
5 years.
- First decrease in net income
attributable to owners of parent
in 4 years.
- 1st qtr records for net sales
and consolidated unit sales.

- Net sales and all profits todecrease for the first time in 5
years.

- Net sales and all profits todecrease for the first time in 5
years.

- Consolidated unit sales to post
a 1st half record.

- Consolidated unit sales to posta fiscal year record.

7,245

56

0.8

358

352

(6)

(1.6)

Industrial Products

90

80

(10)

(11.1)

Other

17

17

0

2.0

Automobile

1,288

993

(295)

(22.9)

Aerospace

44

17

(27)

(61.8)

Industrial Products

2

(3)

(5)

(239.4)

Other

7

6

(0)

(2.7)

Japan

2,850

1,600
800
1,200
1,650

7,188

Other

Consolidated unit sales total
Production units total(23.4)

840
350
560
1,650

Aerospace

China

(452)

368
159
236
1,654

U.S.

Europe

1,480

12.9

9.5

Automobile

North America

Operating income bybusiness segment

(53)

3
5
(1)
17
16
1
(1)
1
20
16
8
7

Minicars

12.5

13.8

31
25
7
214
170
11
10
23
245
245
179
65

Consolidated unit sales (Overseas)

Net sales bybusiness segment

13.1

28
20
8
197
154
10
10
23
225
229
171
58

Passenger Cars%

15,535

13.2

JPY/US$

Change0.5

1,188

JPY/EUR

%

41

17.5

Exchange rates

Change

7,694

1,301

Ordinary income

%

7,653

11.3
23.4
(18.3)
8.5
10.5
6.3
(5.7)
2.9
8.9
6.9
4.9
12.6

65
51
15
437
343
25
24
45
502
504
352
152

(1)
1
(2)
31
27
2
3
(1)
30
44
4
40

(2.1)
1.4
(12.6)
7.7
8.4
6.7
17.0
(1.4)
6.3
9.6
1.2
35.5

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

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

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

Elimination &
2
2
0
16.9
Corporate* Exchange Rates are the rates used for FHI's non-consolidated sales recording.
* Consolidated Unit Sales include retail sales of Japanese consolidated dealers, wholesale sales of overseas consolidated distributors, and deliveries from FHI to nonconsolidated distributors/dealers.
* Production in Japan includes production of the 86 models for Toyota.
< Forward-looking statements in this document are based on the information available at the time of the announcement and are subject to various risks and uncertainties
that could cause actual results to vary materially. >FHI Announces First Quarter Financial Results for FYE2017

Tokyo, August 3, 2016 – Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today announced its
consolidated financial results for the first quarter of fiscal year ending March 31, 2017.

< April-June 2016 Results: Consolidated Net Sales >Subaru’s consolidated global unit sales rose 8.9% to 245,000 units. Unit sales in Japan increased 11.3% to 31,000 units,
as growth in passenger car sales led by the Forester and Impreza offset a decline in mini vehicle sales. Overseas unit
sales grew 8.5% to 214,000 units, driven by strong sales of the Legacy, Outback, Impreza and Crosstrek*1 especially inNorth America.
Consolidated net sales increased 0.5% to 769.4 billion yen, with unit sales growth and foreign exchange rate losses
reflected.
Consolidated net sales, global unit sales, overseas unit sales, and North America unit sales posted record results for a
fiscal first quarter.*2< April-June 2016 Results: Consolidated Profit and Loss >Despite unit sales growth and cost reduction progress, operating income fell 24.3% to 101.5 billion yen due to foreignexchange rate losses and increased R&D and SG&A expenses. The increase in SG&A expenses was due mainly toquality-related costs associated with airbag inflators. Ordinary income decreased 8.7% to 118.8 billion yen and net
income attributable to owners of parent declined 6.3% to 78.9 billion yen.

< FYE2017 Forecasts >In view of foreign exchange rate fluctuations and quality-related expenses associated with airbag inflators, FHI revises its
full-year forecasts for the current fiscal year ending March 2017. The Company now forecasts net sales of 3,190 billion
yen, operating income of 400 billion yen, ordinary income of 410 billion yen, and net income attributable to owners ofparent of 285 billion yen.
Currency rate assumptions: 106 yen/US$, 121 yen/euroPrevious Forecasts for FYE2017 (Announced on May 12, 2016)
Net sales: 3,170 billion yen
Operating income: 420 billion yen
Ordinary income: 420 billion yen
Net income attributable to owners of parent: 293 billion yen
Currency rate assumptions: 105 yen/US$, 120 yen/euro*1 “Subaru XV” outside the North American market.
*2 Since fiscal year ended March 2004 - the year FHI started quarterly consolidated financial reporting.

Forward-looking statements in this document including financial and other forecasts are based on the information available atthe time of the announcement and are subject to various risks and uncertainties that could cause actual results to varymaterially.
###