Consolidated Financial Results
For the Third Quarter of the Fiscal Year Ending March 31, 2011
February 4, 2011
Company Name
: Fuji Heavy Industries Ltd. (Tokyo Stock Exchange First Section, Code No.: 7270)
URL: http://www.fhi.co.jp/english/ir/
Representative: Ikuo Mori, President and CEO
Contact for Inquiries: Toshimasa Nakamura, General Manager of Administration Department Phone +81-3-3347-2005
Scheduled date of submitting Quarterly Report: February 10, 2011:
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 Third Quarter of Fiscal Year 2011(April 1, 2010 to December 31, 2010)(1)Consolidated Results of Operations(In Japanese yen rounded to million, except for per share figures, percentage figures indicate a change from the previous fiscal year / period)

Net sales
3rd Quarter of
FY2011
3rd Quarter of
FY2010Operating income

Ordinary income

Net income (loss)

1,174,628

16.1%

73,482―

74,777―58,407―

1,012,074(8.6%)

3,880(60.9%)

1,799(80.0%)(15,218)―

Net income (loss)
per share, basic (Yen)
3rd Quarter of
FY2011
3rd Quarter of
FY2010Net income per share,
diluted (Yen)

74.95

―

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

Total assets

Net assets

3rd Quarter of
FY2011

1,179,336

419,23635.4%

536.02FY20101,231,367

381,89330.9%

488.58

Note: Shareholders’ equity As of December 31, 2010: 417,932 million yen As of March 31, 2010: 380,587 million yen

2. Dividends
Cash dividends per share (yen)
1st Quarter
2nd Quarter
3rd Quarter
Year-end
Annual
FY 2010
0.00
0.00
0.0
―
―
FY 2011
4.50―
FY 2011 (Forecast)
4.50
9.00
―
Note: Revision of the forecasts in the third quarter of the fiscal year ending March 31, 2011:No

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

Net sales
Full year

1,600,000

12.0%

Operating income

Ordinary income

85,00084,000210.8%

275.7%Net
income63,000Net income pershare,basic(Yen)
―

80.84

Note: Revision of the forecasts at the timing of announcement of the results of second quarter of the fiscal year ending March 31,
2011:Yes4. Others (For detail, please refer to "2. Others" on page 5)(1) Changes of significant subsidiaries in the third quarter of fiscal year 2011

: No

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

: Yes
: No

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

As of December 31,2010:

782,865,873 shares

As of March 31,2010:

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

As of December 31,2010:

3,166,228 shares

As of March 31,2010:

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

3rd Quarter of FY2011:

779,322,263 shares(including treasury stock)

3rd Quarter of FY2010: 779,159,524 shares*The status of the implementation of the second quarterly review
The third quarterly review is now conducted on the basis of the Financial Instruments and Exchange Act on
the date for the release of this quarterly report.
*Proper use of projection of operating results, and other information
The above performance projections were made based on the information available as of the date when thisdocument was released. Therefore, actual results may differ considerably due to various factors that mightoccur in the future.
For assumptions and other information on which the performance projections were based, please refer to “(3)Qualitative Information on Consolidated Operating Results Forecast” on page 4.

Index of the attachments
1. Qualitative Information on Quarterly Consolidated Operating Results, etc ································································· 2(1) Qualitative Information on Consolidated Operating Performance ···································································· 2(2) Qualitative Information on Consolidated Financial Position ················································································ 3(3) Qualitative Information on Projection for Current Fiscal Year ············································································ 4
2. Others ·················································································································································································· 5(1) Changes of significant subsidiaries in the second quarter of fiscal year 2011 ····················································· 5(2) Application of simple accounting as well as specific accounting for preparing the quarterly
consolidated financial statements ··························································································································· 5(3) Changes in accounting policies, procedures and methods of presentation for preparing thequarterly consolidated financial statements ············································································································ 5
3. Quarterly Consolidated Financial Statements ················································································································ 7(1) Quarterly Consolidated Balance Sheets ················································································································ 7(2) Quarterly Consolidated Statements of Income ······································································································· 9(3) Quarterly Consolidated Statements of Cash Flows ······························································································· 10(4) Notes on Premise of Going Concern ····················································································································· 11(5) Segment Information ··············································································································································· 12(6) Notes on Significant Changes in the Amount of Shareholders’ Equity ···························································· 14(7) Explanatory Note ··················································································································································· 14

11. Qualitative Information on Quarterly Consolidated Operating Results, etc.
(1) Qualitative Information on Consolidated Operating Performance
Consolidated net sales for the third quarter of the current fiscal year were up ¥162.6 billion (16.1%) overthe same period of the previous fiscal year to ¥1,174.6 billion thanks mainly to favorable automobile sales inoverseas markets, despite the foreign exchange loss from the strong yen.
Regarding the profit, reflecting the rise in net sales, operating income went up ¥69.6 billion to ¥73.5 billion,
ordinary income up ¥73 billion to ¥74.8 billion, and net income up ¥73.6 billion to ¥58.4 billion over thesame period of the previous fiscal year.
[Results by Business Segment]
Results for the current consolidated third quarter period (nine months) by business segment are as described below.

[1] Automobile Division
In Japan, main models were enhanced that the advanced driving assist system “EyeSight (ver. 2)” installedon the Legacy in May and a “New-generation boxer engine” introduced on the Forester in October alongsideminor facelift on both models. Moreover, the product line-up was further widened in November with thelaunch of the Trezia, a new type of compact car. In spite of these efforts, however, with demand falling off
after the end of eco-car subsidies, passenger car sales were down 4 hundred (0.8%) units over the same periodof the previous fiscal year to 50 thousand units.
On the other hand, minicars sales were down 3 hundred (0.5%) units over the same period of the previous
fiscal year to 68 thousand units, despite efforts at bolstering unit sales with the launch of the Lucra and Pleoin April.
As a result, total sales in Japan market were down 7 hundred (0.6%) units over the same period of theprevious fiscal year to 118 thousand units.
Overseas, unit sales increased in all regions compared with the same period of the previous fiscal year
thanks mainly to sales expansion of the Legacy.
By region, sales increased 48 thousand (27.1%) units over the same period of the previous fiscal year to
227 thousand units in North America market driven by favorable sales centered on the Legacy, reflecting
sales growth ahead of overall demand growth.
The sales increased 10 thousand (30.0%) units over the same period of the previous fiscal year to 45
thousand units in China driven by robust sales of Legacy, amid continuing overall demand growth.
Although the sales environment came under pressure from the strong yen and the termination of
government-sponsored scrapping incentives in some markets, sales in Europe including Russia were up 16
thousand (56.8%) units over the same period of the previous fiscal year to 43 thousand units with the signs ofan overall demand recovery in Russia helped by the start of government incentives.
In Australia, sales were up 8 thousand (31.7%) units over the same period of the previous fiscal year to 33
thousand units driven by the strong sales of the Impreza and Forester.
In other regions, sales increased 9 thousand (71.8%) units over the same period of the previous fiscal year
to 22 thousand units.
As a result, the sales in overseas markets were up 91 thousand (32.8%) units over the same period of theprevious fiscal year to 370 thousand units.
The combined sales volume for Japan and overseas markets amounted to 488 thousand units, an increaseof 91 thousand (22.8%) units over the same period of previous fiscal year, and overall net sales were up¥164.5 billion (17.8%) over the same period of the previous fiscal year to ¥186.3 billion. Segment income
was also up ¥70.6 billion over the same period of the previous fiscal year to ¥71.9 billion.
[2] Aerospace Division
Sales declined from the same period of the previous fiscal year, despite the sales launch of “P-1”
fixed-wing patrol aircraft to Japan Ministry of Defense, mainly due to the end of contracts for prototyping“Forward Field Observation System”.
In the commercial sector, rising sales of the Boeing 787 were eclipsed by lower sales of existing models
such as Boeing 777 and the impact of the stronger yen, and sales declined compared with the same period of
the previous fiscal year.
As a result, overall net sales were down ¥9.4 billion (14.8%) over the same period of the previous fiscal
year to ¥54.2 billion, with segment loss of ¥0.3 billion down ¥2.4 billion from operating income of the same2

period of the previous fiscal year

[3] Industrial Products Division
With demand recovering steadily since the start of the year and market inventories at all-time lows, unit
sales of engines increased centered on civil engineering and electrical machinery applications in the domestic
market, and overseas unit sales of engines also substantially increased in the respective markets mainly inNorth America, Europe, Russia and Middle Eastern countries.
As a result, net sales were up ¥5.4 billion (31.0%) over the same period of the previous fiscal year to ¥22.9
billion, with segment income up ¥2.1 billion over the same period of the previous fiscal year to ¥0.1 billion.
[4] Other Businesses
Net sales were up ¥2 billion (22.5%) over the same period of the previous fiscal year to ¥11.1 billion
because of the increased unit sales of wind power generation systems. Segment income was also up ¥0.1
billion (7.1%) over the same period of the previous fiscal year to ¥1.8 billion.
Note: “Segment income” and “Segment loss” in section [Results by Business Segment] correspond to “Operating income”
and “Operating loss”, respectively, which were used until last fiscal year.

(2) Qualitative Information on Consolidated Financial Position[1] Assets, Liabilities, and Net Assets
Total assets at the end of the third quarter consolidated accounting period of the current fiscal year was¥1,179.3 billion, reflecting a ¥52 billion decline over the end of the previous fiscal year. This was mainly due
to a ¥20.7 billion increase in inventories and a ¥21.1 billion decline in property, plant and equipment, as wellas ¥22.5 billion lower notes and accounts receivable–trade and a ¥19.7 billion drop in cash and deposits.
Total liabilities were down ¥89.4 billion over the end of the previous fiscal year to ¥760.1 billion. This was
mainly due to the redemption of ¥20 billion in bonds payable and a ¥52.1 billion fall in short-term loans
payable.
Net assets were up ¥37.3 billion over the end of the previous fiscal year to ¥419.2 billion. This was mainly
due to a ¥54.8 billion increase in retained earning as the same amount of net income for the period posted
despite a ¥18.8 billion drop in the foreign currency translation adjustment due to the stronger yen.
[2] Cash Flows
Cash and cash equivalents at the end of the third quarter consolidated cumulative period of the current
fiscal year (hereinafter “Cash”) totaled ¥166.3 billion.
(Net cash provided by operating activities)

Net cash from operating activities was ¥77.9 billion (compared with ¥107.9 billion provided by operating
activities in the same period of the previous fiscal year). Main factor was ¥72.3 billion in income before
income taxes and minority interests.
(Net cash used in investment activities)

Net cash used in investment activities was ¥38.3 billion (compared with ¥48.2 billion used in investment
activities in the same period of the previous fiscal year). Main factor was ¥31 billion net outlay for property,
plant and equipment purchases (net basis against proceeds from sales of property, plant and equipment).
(Net cash used in financing activities)

Net cash used in financing activities was ¥52.4 billion (compared with ¥2 billion provided by financing
activities in the same period of the previous fiscal year). Main factors were ¥24.1 billion in proceeds fromlong-term loans payable (net basis against repayment of long-term loans payable), ¥20.0 billion in redemptionof bonds, and ¥52.1 billion net decrease in short-term loans payable.

3(3) Qualitative Information on Projection for Current Fiscal Year
The previous projection of fiscal year ending March 2011 is revised as described below. This revision takes
into account our expectations for favorable automobile sales mostly in North America relative to previous
estimates as well as expectations of an improved sales mix and operating cost reductions such as for SG&A
expenses.
The revised projection of the current fiscal year is based on assumed foreign exchange rates of¥86/US$(unchanged from the previous announcement) and ¥114/EUR(¥113 at the previous announcement).
Also, the outlook for the fourth quarter of the current fiscal year is based on assumed foreign exchange ratesof ¥83/US$ and ¥110/EUR.
(Full-Year of the Fiscal Year Ending March 2011)
Net sales
Previous projection (A)Revised projection (B)Change in amount (B-A)
Percentage change (%)(Supplemental information)
Actual results of the previous
fiscal year
(Fiscal Year Ended March 31,
2010)

Operating
IncomeOrdinary
IncomeNet Income

Net Income per
Share¥ million¥ million¥ million¥ million¥

1,590,000
1,600,000
10,0000.6

70,00085,00015,00021.4

68,00084,00016,00023.5

50,00063,00013,000
26.0

64.15
80.84

1,428,690

27,35022,361(16,450)(21.11)4

2. Others(1) Changes of significant subsidiaries in the third quarter of fiscal year 2011
(Transfer of subsidiaries resulting in changes in the scope of consolidation)
Not Applicable(2) Application of simple accounting as well as specific accounting for preparing the quarterly consolidated
financial statements[Specific accounting for preparing the quarterly consolidated financial statements](Income taxes)
Income tax expense was calculated as multiplying income before income taxes and minority interests byreasonably estimated annual effective tax rate. This annual tax rate was reasonably estimated after applying thedeferred tax accounting to the annual income before income taxes and minority interests which included theamounts of this third quarter period ended December 31, 2010.
“Income taxes-deferred” was included in “Total income taxes”.
(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly
consolidated financial statements[Changes in significant matters forming the basis of preparing the quarterly consolidated financial statements](Changes in accounting policies)
Application of accounting standard for Asset Retirement Obligations
From the first quarter of fiscal year 2011, the Company has adopted Accounting Standard for Asset
Retirement Obligations (ASBJ Statement No.18, March 31, 2008) and its Implementation Guidance on
Accounting Standard for Asset Retirement Obligations (ASBJ Guidance No.21, March 31, 2008).
This impact of this adoption on profit and loss was insignificant.
Application of accounting standard for Business Combinations and others
From the second quarter of fiscal year 2011, the Company has adopted Accounting Standard for Business
Combinations (ASBJ Statement No.21, December 26, 2008), Accounting Standard for Consolidated Financial
Statements (ASBJ Statement No.22, December 26, 2008), Partial amendments to Accounting Standard for
Research and Development Costs (ASBJ Statement No.23, December 26, 2008), the Revised AccountingStandard for Business Divestitures (ASBJ Statement No.7, December 26, 2008), the Revised AccountingStandard for Equity Method of Accounting for Investments (ASBJ Statement No.16, December 26, 2008), andthe Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard forBusiness Divestitures (ASBJ Guidance No.10, December 26, 2008).
[Changes in Presentation of Financial Statements](Quarterly Consolidated Statements of Income)On the basis of "Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22,
December 26)", the Company has adopted "Cabinet Office Ordinance Parcially Revising Regulation on
Terminology, Forms and Presentation of Financial Statements (Cabinet Office Ordinance No.5, March 24)".
Therefore "Income before minority interests" is included in the quarterly Consolidated Statements of income forthe third quarter of fiscal year 2011.
“Gain on sales of investment securities” was included in “Other” of “Extraordinary income” in the third
quarter of fiscal 2010. However it is presented separately because of its increased materiality in the second
quarter of fiscal 2011. In addition, “Gain on sales of investment securities” included in “Other” in the third
quarter of fiscal 2010 was 123 million yen.
“Reversal of allowance for doubtful accounts” was included in “Other” of “Extraordinary income” in the third
quarter of fiscal 2010. However it is presented separately because of its increased materiality from the firstquarter of fiscal 2011. In addition, “Reversal of allowance for doubtful accounts” included in “Other” in thethird quarter of fiscal 2010 was 95 million yen.
5

(Quarterly Consolidated Statements of cash flows)“Increase (Decrease) in provision for product warranties” was included in “Other” of “Net cash provided by(used in) operating activities” in the third quarter of fiscal 2010. However it is presented separately because of
its increased materiality in the first quarter of fiscal 2011. In addition, “Increase (Decrease) in provision for
product warranties” included in “Other” in the third quarter of fiscal 2010 was overdrawn 784 million yen.

6

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Unit: Millions of yen)
3rd Quarter of FY2011(as of December 31, 2010)

FY2010(as of March 31, 2010)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
Deferred tax assets
Other
Allowance for investment loss
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

7

148,930
81,05623,1908,175
110,856
62,47843,976
13,35273,672
44,427(1,670)608,442

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

119,631
83,588178,313
10,698
14,577
21,584428,391

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

12,14012,14011,99911,99967,4502,716
64,649(16)(4,436)130,363
570,894
1,179,336

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

(Unit: Millions of yen)
3rd Quarter of FY2011(as of December 31, 2010)

FY2010(as of March 31, 2010)

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

206,926
90,04915,27320,0104,751
44,838
8,049
21,1693,353
51,196465,614217,051
142,121
13,91220,0102,873
56,244
15,34819,9991,399
66,104555,061

24,085
168,518
13,472
34,955540
52,916294,486
760,100

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

153,795
160,071
164,978(1,723)477,121

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

11,174(70,363)(59,189)
1,304

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

NET ASSETS
I

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

419,236
1,179,336

Total net assets
Total liabilities and net assets8(2) Quarterly Consolidated Statements of Income
FY2010(April 1, 2009
to December 31, 2009)
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
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
Other
Total non-operating expenses

1,012,074
824,730
187,344
183,464

1,174,628
917,073
257,555
184,073

3,880

73,482

650
550
1,224
435
241
17
899
4,016

816
558
2,570
406
－
4,048
1,428
9,826

3,691
2,406
6,097

3,608
2,483
2,440
8,531

1,799

74,777

156

535
504
313
627
11
1,990

－

Ordinary income
VI Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Reversal of allowance for doubtful accounts
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 prior periods adjustment
Loss on abandonment of inventories
Loss on adjustment for changes of accounting standard
for asset retirement obligation
Loss on reconstruction of office building
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Total income taxes
Income before minority interests
Minority interests in income (loss)
Net income (loss)

9(Unit: Millions of yen)
FY2011(April 1, 2010
to December 31, 2010)

－
－
294

218
668
2,007
3,162
－
1,191

839
835
1,347
－

－

372

－

(58)

657
441
4,491
72,276
13,78158,49588(15,218)

58,407471
6,831(4,364)
10,912－

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
FY2010FY2011(April 1, 2009
(April 1, 2010
to December 31, to December 31,
2009)
2010)
I

Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests(4,364)

72,276

Depreciation and amortization

49,88941,676

Impairment loss

3,162

835

Increase (decrease) in provision for bonuses(6,087)(7,299)

－

2,836

1,159

1,954

891

(57)

Interest and dividends income(1,200)(1,374)

Interest expenses

3,691

3,608

Loss (gain) on valuation of derivatives(17)(4,048)Equity in (earnings) losses of affiliates(1,224)(2,570)Loss (gain) on sales and retirement of noncurrent assets

1,851

304

Decrease (increase) in notes and accounts receivable-trade(3,055)20,996

Decrease (increase) in inventories

15,279(33,357)

Increase (decrease) in notes and accounts payable-trade51,266(6,933)

141

4,307

Decrease (increase) in operating loans receivable(5,740)2,505

Decrease (increase) in vehicles and equipment on operating leases(1,365)

3,787

Increase (decrease) in deposits received

2,093(6,436)

Other, net

6,755(4,342)

Subtotal

113,125

88,668Interest and dividends income received

1,200

1,374

Interest expenses paid

(3,887)(3,616)

Income taxes (paid) refund(2,570)(8,500)Net cash provided by (used in) operating activities

107,868

77,926

Purchase of short-term investment securities(282)(1,927)

Proceeds from sales of short-term investment securities

864

2,891

(43,764)(32,151)

Proceeds from sales of property, plant and equipment

1,361

1,153

Purchase of intangible assets(1,808)(2,016)

Purchase of investment securities(9,010)(15,370)

Proceeds from sales of investment securities

3,977

12,277

Payments of loans receivable(36,291)(61,659)

Collection of loans receivable

37,36861,226

Other, net(590)(2,687)(48,175)(38,263)

Increase (decrease) in provision for product warranties
Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in provision for retirement benefits

Decrease (increase) in lease investment assets

II Net cash provided by (used in) investing activities

Purchase of property, plant and equipment

Net cash provided by (used in) investing activities

10

(Millions of yen)
FY2010FY2011(April 1, 2009
(April 1, 2010
to December 31, to December 31,
2009)
2010)
III Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable(54,179)(52,059)

Increase (decrease) in commercial papers(24,000)－

Proceeds from long-term loans payable

90,07358,878

Repayments of long-term loans payable(13,178)(34,765)

4,000－

Redemption of bonds－(20,005)

Cash dividends paid－

(3,478)Other, net

(763)

(979)

Net cash provided by (used in) financing activities

1,953(52,408)

IV Effect of exchange rate change on cash and cash equivalents(2,445)(12,457)

V Net increase (decrease) in cash and cash equivalents

59,201(25,202)

VI Cash and cash equivalents at beginning of period

96,515

191,466226－

155,942

166,264

Proceeds from issuance of bonds

VII Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
VIII Cash and cash equivalents at end of period(4) Notes on Premise of Going Concern
Not Applicable11(5) Segment Information[Business Segment Information]
3rd Quarter of FY 2010 (April 1, 2009 to December 31, 2009)
Automobiles Aerospace

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

921,827
1,712
923,539
1,320(Unit: Millions of yen)
Other

Total

17,482
49
17,531(2,038)

9,090
8,802
17,892
1,683

1,012,074
10,563
1,022,637
3,045

63,675―63,6752,080[Geographic Segment Information]
3rd Quarter of FY 2010 (April 1, 2009 to December 31,2009)

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

Consolidated net sales
Percentage of overseas net sales
over consolidated sales―(10,563)(10,563)835

1,012,074―
1,012,074
3,880(Unit: Millions of yen)

Japan

North
America

Other

Total

571,108
211,779
782,887(12,095)

416,589
1,738
418,327
22,537

24,377433
24,810162

1,012,074
213,950
1,226,024
10,604[Overseas Net Sales]
3rd Quarter of FY 2010 (April 1, 2009 to December 31, 2009)
Overseas net sales

Elimination
Consolidated
and
total
corporate

Industrial
products

Elimination Consolidated
total
and corporate―(213,950)(213,950)(6,724)

1,012,074―
1,012,074
3,880

Asia

(Unit: Millions of yen)
Other
Total

60,782

71,16869,318649,721

―

―

―

―

1,012,074

44.3%

6.0%

7.0%

6.9%

64.2%

North America

Europe448,45312

(Additional information)
From the first quarter of fiscal 2011, the Company has adopted "Revised Accounting Standard forDisclosures about Segments of an Enterprise and Related Information" (ASBJ Statement No.17, March 27,2009) and Implementation Guidance on Accounting Standard for Disclosures about Segments of an Enterpriseand Related Information" (ASBJ Guidance No.20, March 21, 2008).
1.Outline of business segment
The business segments the Company reports are the business units for which the Company is able to obtainrespective financial information separately in order for the Board of Directors to conduct periodic investigation
to determine distribution of management resources and evaluate their business result.
The Company places Automobile at the center of the whole businesses, and introduces an internal company
system into Aerospace, Industrial Products and Eco technology divisions. This framework makes clearer the
responsibility of each division and accelerates business execution. The Company manages the subsidiaries on
the basis of this classification. Therefore the business segments consist of Automobile, Aerospace, Industrial
products, Eco technology, and Other which does not belong to any division.
As for Eco technology division, the Company includes it into "Other" because it does not satisfy thequantitative standard for the business segments reported. As a result, business segments reported are
Automobile, Aerospace, and Industrial products.
Automobile segment manufactures vehicles and related products. Aerospace segment manufactures aircrafts,
parts of space-related devices. Industrial products segment manufactures Robin engines and related products.
2.Information on sales and income(loss) by business segment reported
3rd Quarter of FY 2011 (April 1, 2010 to December 31, 2010)
Business segment reported

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

Total

Automobiles Aerospace

Industrial
products

1,086,340
1,843
1,088,183

54,245―54,24522,908 1,163,493 11,135 1,174,628
5
1,848 9,781
11,62922,913 1,165,341 20,916 1,186,257

71,876(327)

111

SubTotal

Other*1(Unit: Millions of yen)

71,6601,802

73,462

Consolidated
Adjustment Statement of*2
income*3―(11,629)(11,629)

1,174,628―
1,174,628

20

73,482

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

13(6) Notes on Significant Changes in the Amount of Shareholders’ Equity
Not Applicable(7) Explanatory Note
(Consolidated Statement of income)[3rd Quarter of FY 2010 (April 1, 2009 to December 31, 2009)](Extraordinary loss)
1) After assessing the severe business environment for domestic distributors, such as the sluggish
automobile market caused by a business slowdown, and the response to sophisticated and diversified
customer needs, we have determined that it was necessary to quickly implement regional business activities
while simultaneously establishing a rational management system. Therefore, the transition to the integrated
system was performed from Subaru distributors sequentially after October, 2008. As a part of therationalization,the company is performing restructuring of dealership network in Japan gradually.
And related to dealerships which the Company has closed (or, has decided to close) by the end of third
quarter fiscal 2010, it recorded an extraordinary loss in this fiscal year as follows.
Loss on sales and retirement of noncurrent assets
Impairment loss
Other
Total

233
556
200
989

million yen
million yen
million yen
million yen

2) The Company recorded an impairment loss with regard to the following asset groups in the third quarterof the fiscal 2010. (Impairment loss related to restructuring of dealership network in Japan above-mentioned
1 is included)
Use
Assets for dealership business
Idle assets

Location
Nagasaki Prefectureand 2 other location
Osaka Prefectureand 5 other location

Category
Buildings and structures,
land and other
Buildings and structures,and landThe assets on which impairment was recognized are grouped as follows:
The operating assets for dealership are grouped by each company, and the idle assets are grouped on aproperty by property basis.
The impairment loss by each category of property, plant and equipment was as follows:
Account
Buildings and structures,net
Machinery, equipment and vehicles,net
Land
Other
Total

Amount
1,898 million yen
96 million yen
1,143 million yen
25 million yen
3,162 million yen

3) Loss on abandonment of inventories
The Company conducted a review of business field in the industrial products segment in the third quarter ofthe fiscal 2010. As a result, the Company abandoned obsolete inventories and recorded an extraordinary
loss of 1,191 million yen in the third quarter of the fiscal 2010.

14

(Income taxes)
For companies that recorded a net loss before income taxes and minority interests in the nine month periodof the fiscal 2010, a reduction of income tax expenses via a valuation allowance were not applied.
As a result, “Total income taxes” was larger than “Loss before income taxes and minority interests” for theperiod under review.
[3rd Quarter of FY 2011 (April 1, 2010 to December 31, 2010)](Extraordinary loss)
1) The Company recorded an impairment loss with regard to the following asset groups in the third quarterof the fiscal 2011.
Use
Idle assets

Location
Tokyo Metropolitan
Government
and 10 other location

Category
Buildings and structures,land, and other

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,net
Land
Other
Total

Amount79 million yen
754 million yen
2 million yen
835 million yen

2) Loss on prior periods adjustment(1,347 million yen) is the adjustment of cost of sales in prior years.
3) In relation to the reconstruction of Ebisu Subaru Building, following extraordinary losses are recorded.
Contents
Estimation of dismantlement cost
Temporary depreciation cost
Total

Amount
334 million yen
323 million yen
657 million yen

15

(Feb.4,2011)
Fuji Heavy Industries Ltd.

<Reference for the 3rd Quarter of FY2011 (Apr. 1, 2010 to Dec. 31, 2010) Consolidated Financial Results>(in 100 millions of yen)

ACTUAL RESULTS

ACTUAL RESULTS

ACTUAL RESULTSFORECASTFORECAST(in thousands of units)

3rd Quarter of FY2010

3rd Quarter of FY2011

FY2010FY2011FY2011

Apr. 2009 to Dec. 2009

Apr. 2010 to Dec. 2010

Apr. 2009 to Mar. 2010

Apr. 2010 to Mar. 2011

Difference

Net Sales

Ratio

Difference(Nov. 2010)
Apr. 2010 to Mar. 2011

Ratio

10,121

11,746

1,626

16.1

14,287

16,000

1,713

12.0

15,900

Domestic

3,624

3,498

(125)

(3.5)

5,208

4,800

(408)

(7.8)

4,800

Overseas

6,497

8,248

1,751

26.9

9,079

11,200

2,121

23.4

11,100

39

735

696

1,793.9

274

850

577

210.8

700

1.9

5.3

730

4,056.6

224

840

616

275.7

680

1.6

5.3

736

―

(165)

630

795

―

―

3.9

Operating Income
Margin Percentage

Ordinary Income
Margin Percentage

Net Income/Loss

0.4

6.3

18

748

0.2

6.4

(152)

584

―

5.0

Margin Percentage

4.4

4.3

3.1

Change of operating income

Improvement of sales volume &mixture and others

810

Improvement of sales volume &mixture and others

by factors

Decrease of SG&A expenses and others

126

Reduction in cost

71

Reduction in cost

Exchange rates

YEN/US$YEN94/US$YEN/EURO

YEN133/EURO

Loss on currency exchange(263)

Increase of R&D expenses

(48)

500

851
88

Decrease of SG&A expenses and others

81

Loss on currency exchange(384)

Increase of R&D expenses(59)

YEN87/US$YEN93/US$YEN86/US$YEN86/US$YEN115/EUROYEN132/EUROYEN114/EUROYEN113/EURO

Capital expenditures

440

293

561

560

560

Depreciation and amortization

430

366

571

520

520

R&D expenses
Interest bearing debts

268

316

372

431

433

3,826

3,179

3,676

3,200

3,200

Performance of operation

Domestic sales
Passenger Cars

Net Sales to increase

Net Sales to increase

Net Income to increase

Net Income to increase

119

118

(1)

(0.6)

171

161

(11)

(6.2)

162

50

50

(0)

(0.8)

75

70

(5)

(6.5)

68

69

68

(0)

(0.5)

96

90

(6)

(6.0)

94

278

370

91

32.8

392

503

111

28.4

497

North America

179

227

48

27.1

250

307

57

22.8

302

Europe

28

43

16

56.8

39

61

22

56.1

59

China

35

45

10

30.0

49

64

15

29.9

63

Minicars

Overseas sales

OthersTotal sales

38

54

17

45.3

54

72

18

33.0

74

397

488

91

22.8

563

663

101

17.9

659

393

486

93

23.6

557

654

97

17.4

644

Domestic

326

365

39

12.0

453

487

34

7.5

478

U.S.

80.2

104

167

63

60.2

166

Production Units Total

67

121

54

Net sales

Automobile

9,218

10,863

1,645

17.8

12,945by business

Aerospace

637

542

(94)

(14.8)

932

Industrial Products

175

229

54

31.0

239

Other

91

111

20

22.5

171

Operating income

Automobile

13

719

706

5,345.2

217

by business

Aerospace

21

(3)

(24)

―

48

Industrial Products

(20)

1

21

―

(24)

Other

17

18

1

7.1

26

Elimination andCorporate

8

0

(8)

(97.6)

7

segment

segment* 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.