Consolidated Financial Results
for the second Quarter of the Fiscal Year Ending March 31, 2009
October 31, 2008

URL

: Fuji Heavy Industries Ltd.
: http://www.fhi.co.jp/english/ir/

Representative
Contact for Inquiries: Ikuo Mori, President and CEO: Kazuto Sakamoto, General Manager of Administration Department Phone +81-3-3347-2005

Company Name

(Tokyo Stock Exchange First Section, Code No.: 7270)

Scheduled date to file quarterly report : November 12, 2008

Payment of dividends: Scheduled for December 1, 2008

(All amounts have been rounded off to the nearest million yen, unless otherwise specified)

1. Consolidated results for The second quarter of fiscal year 2009
(from April 1, 2008 to September 30, 2008)(1) Consolidated operating results (cumulative)
Net sales(Unit: Millions of yen, except for per share figures)

Operating income

Ordinary income

Net income

2nd Quarter of FY2009

744,201-

18,346-18,184

-

4,396

-

2nd Quarter of FY2008

708,817

1.5%

18,905

4.3%

14,162

2.0%

7,832

(32.5%)Net income per share,
basic (Yen)

Net income per share,
diluted (Yen)

2nd Quarter of FY2009

5.91

5.91

2nd Quarter of FY2008

10.91

10.90

Note: Percentage figures in the net sales, operating income, ordinary income and net income columns represent the changes from the same
second quarter period of previous fiscal year

(2) Consolidated financial position(Unit: Millions of yen, except for per share figures)

Total assets

Net assets

Shareholders’ equity tototal assets (%)

As of September 30, 2008

1,251,933

500,94139.9%

641.55

As of March 31, 2008

1,296,388

494,42338.1%

687.02

Note: Shareholders’ equity

As of September 30, 2008:

499,897 million yen

As of March 31, 2008:

Net assets per share(Yen)

493,397 million yen

2. Dividends
Cash dividends per share (yen)
1st Quarter

2nd Quarter

3rd Quarter

Year-end

Annual

FY 2008

-

4.50

-

4.50

9.00

FY 2009

-

4.50

9.00
FY 2009 (Forecast)
4.50
Note: Revision of the forecasts in the second quarter of the fiscal year ending March 31, 2009: No

3. Projection of consolidated results for fiscal year 2009 (from April 1, 2008 to March 31, 2009)(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

Ordinary income

Net income

Net income pershare, basic (Yen)

1.8%(49.6%)(56.0%)(45.9%)
Full year
1,600,000
23,00020,00010,00012.83
Note: Revision of the forecasts at the timing of announcement of the results of second quarter of the fiscal year ending March 31, 2009: No

1

4. Others(1) Changes of significant subsidiaries in the second quarter of fiscal year
2009

: No

(Transfer of subsidiaries resulting in changes in the scope of consolidation)(2) Application of simple accounting as well as specific accounting for
preparing the quarterly consolidated financial statements: Yes

Note: Please refer to the section of "4. Others" of [Qualitative Information, Financial Statements etc.] on page 6.

(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
: Yes

Note: Please refer to the section of "4. Others" of [Qualitative Information, Financial Statements etc.] on page 6.

(4) Number of outstanding shares (Common Stock)[1] Number of outstanding shares(including treasury stock)[2] Number of treasury stock[3] Average number of shares(1st half period, 6 months )As of September 30, 2008: 782,865,873 shares

As of March 31, 2008:

782,865,873 shares

As of September 30, 2008:

3,669,150 shares

As of March 31, 2008:

64,698,395 shares

2nd Quarter of FY2009 :744,314,787shares

2nd Quarter of FY 2008 :

718,223,780shares

Proper use of forecasts of business results (disclaimer), and other special information
1. The above projections are made based on available information and assumptions as of October 31,
2008, and are subject to the uncertainties of future operations. Therefore, actual results could differ
materially from those anticipated.
About the assumptions used for the above projections, please refer to page 4, “3. Qualitative Information
on Projection for Fiscal 2009 (From April 1, 2008 to March 31, 2009)” of [Qualitative Information,
Financial Statements etc.] for more details.
The forecasts of net sales, operating income, ordinary income and net income are not revised at thesecond quarter of fiscal 2009, excluding the per share net income revision by the change of the numberof stocks.
2. From the current consolidated fiscal year, the Company has adopted “Accounting Standard forquarterly financial statements” (ASBJ Statement No.12) and “Implementation Guidance for accounting
standards for quarterly financial statements” (ASBJ Guidance No.14).
Moreover, the quarterly consolidated financial statements are made in accordance with rules forquarterly consolidated financial statements.

2

[Qualitative Information, Financial Statements, etc.]
1. Qualitative Information on Consolidated Operating Performance(1) Earnings Performance
Net sales of the first half of the fiscal year 2009, in spite of foreign exchange loss from a strong yen, included anincreased overseas sales volume in the Automobile Division resulting in a ¥35.4 billion increase over the same
period of the previous fiscal year, to a total of ¥744.2 billion.
Operating income was down ¥0.6 billion over the same period of the previous fiscal year to ¥18.3 billion.
Though the oversea sales volume in the Automobile Division increased SG&A and other expenses and loss on
currency exchange due to strong yen offset this profit. However, ordinary income increased ¥4.0 billion over thesame period of the previous fiscal year to ¥18.2 billion owing to the gains on forward exchange contracts. Net
income was down ¥3.4 billion from the same period of the previous fiscal year to ¥4.4 billion due to the increaseof tax expense.
(2) Results by Business Segment
The performance by each business segment of the first half of the fiscal year 2009 is as described below.
(Automobile Division)
The number of domestic passenger cars sold was 36 thousand (a one thousand unit or 3.5% increase from thesame period of the previous fiscal year), due to strong sales of the new "Forester" models (which underwent a
full model change in December, 2007) and the brand new seven-passenger "Exiga" was introduced in June.
On the other hand, the number of domestic Minicars sold was 58 thousand (a decrease of 6 thousand units or
9.8% from the same period of the previous fiscal year)
As a result, the sales in Japan were 94 thousand (a 5 thousand or 5.1% decrease from the same period of theprevious fiscal year).
In the North American market, the sales volume reached 91 thousand (an increase of 1 thousand units or 0.8%
over the same period of the previous fiscal year), which showed the steady growth due to the effectiveness of
new models such as the "Forester" despite the decrease in total demand of the market.
In Europe, amidst a deteriorating market due to factors such as a recessionary economy, a sudden increase in fuelprices, and tightening CO2 regulations, sales of the "Legacy and Outback", introduced in March of this year
equipped with the world's first Boxer Diesel engine for passenger vehicle and new "Forester" models continued
on a positive trend. Sales in Russia have also remained strong with a sales volume of 50 thousand (an 11
thousand unit or 29.8% increase over the same period of the previous fiscal year).
Also, in Australia, sales volume increased to 21 thousand (a one thousand unit or 5.0% increase over the same
period of the previous fiscal year).
As a result, the total number of overseas sales was 188 thousand (a 16 thousand unit or 9.3% increase over thesame period of the previous fiscal year) with strong contributions from the increase in units exported to China,
and Latin America where sales are buoyant.
The combined sales volume for Japan and overseas markets amounted to 282 thousand, an increase of 11
thousand (4.0%) over the same period of the previous fiscal year, and the overall net sales was up ¥33.7 billion
over the same period of the previous fiscal year to ¥675.1 billion. In addition, operating income was up ¥1.9
billion to ¥15.1 billion.
(Industrial Products Division)
Although engine sales in Europe and Southeast Asia were steady, total demand in the Japanese market forelectrical machinery engines has declined and this, together with reduced sales in the North American market ofengines equipped to power generators, has resulted in overall net sales that were down ¥1.3 billion from the same
period of the previous fiscal year to ¥20.5 billion. In addition, operating income was down ¥1.1 billion f to a lossof ¥0.3 billion.

3

(Aerospace Division)
Factors such as the delivery of an unmanned system for the Japan Ministry of Defense, and an increase in thenumber of deliveries of main wings for the private-sector small business jet "Eclipse 500" and the medium
business jet "H4000" contributed to an increase in overall net sales of ¥2.0 billion over the same period of theprevious fiscal year to ¥42.3 billion. However, operating income was down ¥1.0 billion to ¥2.1 billion due to theloss on currency exchange from a strong yen.
(Other Businesses)
Taking two subsidiaries as consolidated companies and other factors, net sales was up ¥0.9 billion from the same
period of the previous fiscal year to ¥6.2 billion. In addition, operating income was also up ¥0.5 billion from thesame period of the previous fiscal year to ¥1.1 billion.
(3) Results by Geographic Region
The performance by each geographic region segment of the first half of the fiscal year 2009 is as described
below.
(Japan)Due to an increase in units exported to the regions including Russia and China, net sales was up ¥53.5 billion
from the same period of the previous fiscal year to ¥463.7 billion. However, operating income was down ¥6.0
billion to ¥12.8 billion mainly due to foreign exchange losses from a strong yen.
(North America)
Owing to factors such as foreign exchange losses from a strong yen in our local subsidiaries, net sales was down
¥19.0 billion from the same period of the previous fiscal year to ¥254.8 billion. However, operating income
increased by ¥4.2 billion to ¥3.3 billion, due to decrease of SG&A expenses and others.
(Other Regions)
In Europe, net sales was up ¥0.9 billion over the same period of the previous fiscal year to ¥25.7 billion thanks to
the increase of sales volume by Subaru Europe N.V./S.A. Operating income was also up ¥0.4 billion to ¥1.0
billion.
* The figures for the same period of the previous fiscal year under "Qualitative Information on Consolidated
Operating Performance" are provided for reference only.
2. Qualitative Information on Consolidated Financial Results
Total assets at the end of the second quarterly period were ¥1,251.9 billion, a ¥ 44.5 billion decrease from theend of the previous fiscal year, and liabilities were down to ¥751.0 billion, a ¥51.0 billion decrease from the endof the previous fiscal year. In addition, net assets were ¥500.9 billion, a ¥6.5 billion increase from the end of theprevious fiscal year.
3. Qualitative Information on Projection for Fiscal 2009 (From April 1, 2008 to March 31 2009)
As described above, net sales, operating income, ordinary income, and net income of the first half of this fiscal
year all surpassed the previous projections. However, the Company has to consider the negative impact from thecurrent economy situation such as volatility in currency exchange rate and the slowdown of new car sales
demand resulting from the worsening real economy though the urgent actions for global credit crunch are craved.
In light of the fact that current market conditions, changing suddenly from one day to the next, make it rather
difficult to predict the accurate outlook, the Company has decided to remain the Forecast of Consolidated Resultsfor FY 2009 announced on April 28, 2008, taking into account with the risks of deterioration in corporate
earnings from this October onwards.
4

(Consolidated forecast for the whole fiscal year)
Net sales
Operating income
Ordinary income
Net income¥1,600 billion¥23 billion¥20 billion¥10 billion(up 1.8% year-on-year)(down 49.6% year-on-year)(down 56.0% year-on-year)(down 45.9% year-on-year)54. Others(1)Changes of significant subsidiaries in the second quarter of fiscal year 2009
(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[Application of simple accounting]
Not Applicable[specific accounting for preparing the quarterly consolidated financial statements](Income taxes)
Income tax expenses is calculated as multiplying income before income taxes and minority interestby reasonably estimated annual effective tax rate. This annual tax rate is reasonably estimated after
applying the differed tax to the annual income before income taxes and minority interest which
includes the amounts of this second quarter results ended September 30, 2008.
"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
From the current consolidated fiscal year, the Company has adopted “Accounting Standard forquarterly financial statements” (ASBJ Statement No.12) and “Implementation Guidance foraccounting standards for quarterly financial statements” (ASBJ Guidance No.14).
Moreover, the quarterly consolidated financial statements are made in accordance with rules forquarterly consolidated financial statements.
Changes in the standard and method for evaluation of material assets[Appraisal of inventories]
Inventories for the purpose of usual sales have been stated mainly using the moving average cost
method. As the Accounting Standard for Measurement of Inventories (ASBJ Statement No. 9) isapplied from the first quarter period, the Company mainly and continuously employs the moving
average cost method (for the value stated on the balance sheet, the lower of cost or market value
method).
This change resulted in a decrease in operating income, ordinary income and income before income
taxes and minority interests of 819 million yen in this first half period.
The impacts of this change on operating income for segment information are as follows.
[1]Business segment information
Automobiles: 723 million yen
Industrial products: 77 million yen
The impacts of this change on other business segments were insignificant.
[2]Geographical segment
Japan: 819 million yen[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 lease transactions. However, since the first quarter period, as “Accounting Standard forLease Transactions” (ASBJ Statement No. 13), and “Guidance on Accounting Standard for Lease
Transactions” (ASBJ Guidance No. 16) is applicable, the accounting
6treatment for finance lease transactions not involving the transfer of ownership rights is followed tothe method for usual sales transactions. The impacts of this change are increase on operating income,ordinary income and income before income taxes and minority interests of 3,210 million yen
respectively.
The impact of this change on operating income given to segment information in this first half period
is as follows.
[1]Business segment information
Automobiles: 3,210 million yen[2]Geographical segment
Japan: 3,210 million yen[Change in recognition of sales or interest revenue on credit]
From the first quarter period, the Company’s financial subsidiary has changed the recognition ofsales or interest revenue on credit from the equal installment method to the seven-eight allocation
method. The reason of this change is that it could manage the interest revenue strictly by improving
the credit system and reflect the result more accurately.
The impact of this change on net sales, operating income and ordinary income in this first half period
is insignificant. However this impact on income before income taxes and minority interests is 1,095
million yen increase.
[Provision for loss on construction contracts]
From the current consolidated fiscal year, the Company has taken "provision for loss on contracts" in order tocover the loss on undelivered construction of aerospace business which occurs reliably and could be reasonably
estimated. The reason is that its estimated loss has become more significant, reflect it accurately on the financial
statements and disclose it timely on quarterly basis.
The impact of this change is increase on operating income and ordinary income of 966 million yen
respectively in this first half period. However, this impact on income before income taxes andminority interests is 1,935 million yen decrease.
The impact of this change on other business segments is insignificant.
[1]Business segment information
Aerospace: 966 million yen[2]Geographical segment
Japan: 966 million yen[Practical solution on unification of accounting policies applied to foreign subsidiaries forconsolidated financial statements]
From the first quarter of the current consolidated fiscal year, 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 income before income taxes and minority
interests is insignificant.
The impact of this change on shareholders' equity refers to the section of [(5) Notes on significant
changes in the amount of shareholders’ equity] on page 13.
[Changes in the scope of consolidation ]From the first quarter of the current consolidated fiscal year, as a result of our reevaluation of theirsignificance to the consolidated financial statements, newly scope of consolidation includes Subaru
Tecnica International Inc. and 6 other companies.

7

[Changes in the application of the equity method]
From the first quarter of the current consolidated fiscal year, Subaru of China LTD. (“SOC”, old
name: Subaru of China Inc.) enhances its finance significance, so the Company has applied theequity method to SOC.
As a result of our reevaluation of their significance to the consolidated financial statements, Subaru
Tecnica International Inc. and 6 other companies are transferred from equity method companies toconsolidated subsidiaries.

【Additional information】(Alteration of service life of fixed assets)
The Company and domestic consolidated subsidiaries revised service life of fixed assets
machineries to the enacted revisions to the tax depreciation schedules.
This change resulted in a decrease in operating income of 714 million yen, and a decrease inboth ordinary income and income before income taxes and minority interest of 718 millions yen
in this first half period.
The impact of this change on operating income given to segment information is as follows.
[1]Business segment information
Automobiles: 650 million yen
Aerospace: 61 million yen
The impact of this change on other business segments is insignificant.
[2]Geographical segment
Japan: 714 million yen

85. Quarterly Consolidated Financial Statements(1)Quarterly consolidated balance sheets(Unit: Millions of yen)

2nd Quarter of FY2009

FY2008(as of September 30, 2008)(as of March 31, 2008)

AmountAmountASSETSI 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

61,75892,895
26,13325,586135,683
101,939
38,88523,63369,73951,549(1,393)
626,407

67,05396,017
32,775133,175
100,133
27,701
26,48678,32962,504(1,346)
622,827

123,335
111,829
182,02133,062
17,062
25,316492,625

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

4,107
10,852
14,95918,50012,972
31,47260,174
4,015
23,21033,620(3,077)
117,942625,526
1,251,933

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

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

9

(Unit: Millions of yen)

2nd Quarter of FY2009

FY2008(as of September 30, 2008)(as of March 31, 2008)

AmountAmountLIABILITIESI Current liabilities

213,040
175,047
10,0002,626
53,94916,52520,748
1,935
65,369559,239229,780
165,886
6,000
30,0008,091
61,954
15,50722,56358,261
598,042

60,00031,85242,255674
745
56,22760,00042,661
40,993774
745
58,750191,753
750,992

203,923
801,965

153,795
160,071
209,381(2,092)
521,155

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

Minority interests

10,449(31,707)(21,258)
1,044

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

Total net assets

500,941

494,4231,251,933

1,296,388

Notes and accounts payable-trade
Short-term loans payable
Commercial papers
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
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for loss on guarantees
Other
Total noncurrent liabilities

Total liabilities
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

Total liabilities and net assets

10(2)Quarterly consolidated statements of income(Unit: Millions of yen)

2nd Quarter of FY2009(from April 1, 2008 to September 30, 2008)

Amount744,201
577,025
167,176
148,830

I Net sales
II Cost of sales
Gross profit
III Selling, general and administrative expenses

Operating income

18,346

IV Non-operating income

1,546
483
298
151
305
494
1,001

Interest income
Dividends income
Real estate rent
Gain on valuation of derivatives
Foreign exchange gains
Equity in earnings of affiliates
Other

4,278

Total non-operating income
V Non-operating expenses

Total non-operating expenses

1,696
649
2,095
4,440

Ordinary income

18,184

Interest expenses
Loss on valuation of derivatives
Other

VI Extraordinary income

169
654
285
1,113
2,221

Gain on sales of noncurrent assets
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

Minority interests in income

2,134
961
2,901
55
6,051
14,354
9,917
41

Net income

4,396

Impairment loss
Provision for loss on construction contracts
Other
Total extraordinary losses
Income before income taxes and minority interests
Total income taxes

Note: Other 1,113 million yen in VI Extraordinary income includes 1,001 million yen, the impact of "Change in recognition of sales orinterest revenue on credit" from the equal installment method to the seven-eight allocation method.

From the current consolidated fiscal year, the Company has adopted “Accounting Standard for quarterly financial statements” (ASBJ Statement
No.12) and “Implementation Guidance for accounting standards for quarterly financial statements” (ASBJ Guidance No.14). Moreover, thequarterly consolidated financial statements are made in accordance with rules for quarterly consolidated financial statements.
11(3) Notes on premise of going concern
Not Applicable(4) Segment Information[Business segment information]
The second quarter of fiscal year 2009 (from April 1, 2008 to September 30, 2008)(Unit: Millions of yen)
Elimination Consolidated
and corporate
total

Automobiles

Industrial
products

Aerospace

Other

Total

675,145

20,51842,2976,241

744,201

Net sales(1) Outside customer(2) Inter-segment-744,201

1,485

7

-

6,410

7,902

(7,902)-

Total sales

676,630

20,52542,297

12,651

752,103(7,902)744,201

Operating income (loss)

15,129

(337)

2,100

1,084

17,976370

18,346[Geographical segment information]
The second quarter of fiscal year 2009 (from April 1, 2008 to September 30, 2008)(Unit: Millions of yen)
Eliminationand corporate

Consolidated
total

744,201-

744,201

269

168,606(168,606)-

265,328

25,921

912,807(168,606)

744,201

3,306

1,038

17,098

1,248

18,346

Japan

North America

Other

Total

(1) Outside customer

463,702254,847

25,652(2) Inter-segment

157,856

10,481

Total sales

621,558

Operating income (loss)

12,754

Net sales[Overseas net sales]

The second quarter of fiscal year 2009 (from April 1, 2008 to September 30, 2008)(Unit: Millions of yen)
North America

Overseas net sales

273,615

Europe

Other

Total

111,467

98,946

484,028

Consolidated net sales
Percentage of overseas net sales
over consolidated sales (%)

744,201
36.8%

15.0%

12

13.2%

65.0%

(5) Notes on significant changes in the amount of shareholders’ equity
As noted in [Qualitative Information, Financial Statements, etc.] 4. Others (3) Change in accounting policies,
procedures and methods of presentation for preparing the quarterly consolidated financial statements on page 6,
from the first quarter period, the Company has adopted the practical solution on unification of accounting
policies applied to foreign subsidiaries for consolidated financial statements (PITF Practical Solution No. 18).
Accordingly, the retained earnings at the end of this first half decreased by 12,298 million yen compared to thebeginning of the year.
The major reason is to write off Goodwill of foreign subsidiaries which was not accepted to amortize.
In addition, FHI transferred the 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, 38,424 million yen decreases of the treasury stock, and 25 million yen of loss on sale of treasury
stocks is decrease the capital surplus, and 7,289 million yen is decrease the retained earnings.

【Subsequent Event】
Not Applicable

13<Reference for The second Quarter of Fiscal Year 2008 Consolidated Financial Results>(1)Consolidated quarterly statements of income(Unit: Millions of yen)
2nd Quarter of FY 2008
(from April 1, 2007 to September 30, 2007)

AmountI Net sales

708,817

II Cost of sales

538,442

Gross profit

170,375

III Selling, general and administrative expenses

151,470

Operating income

18,905

IV Non-operating income
Interest and dividend income

2,533

Gain on revaluation of derivatives

702

Equity income from affiliated companies

14

Other

2,206
Total non-operating income

5,455

V Non-operating expenses
Interest expenses

2,088

Foreign exchange losses

5,304

Loss on revaluation of derivatives

17

Other

2,789
Total non-operating expenses

10,198

Ordinary income

14,162

VI Extraordinary gains
Gain on sale of property, plant and equipment

1,024

Gain on sale of securities
Prior period adjustment
Gain on sale of loans receivable

1,412
1,567

Other

107

280

Total extraordinary gains

4,390

VII Extraordinary losses
Loss on sale and disposal of property, plant and equipment

1,207

Impairment loss on property, plant and equipment

1,593

Total extraordinary losses

2,800

Income before income taxes and minority interest
Total income taxes

15,752
7,926

Minority interest in loss of consolidated subsidiaries

6

Net income

7,832

14

(2) Segment Information[Business segment information]
The second quarter of fiscal year 2008 (from April 1, 2007 to September 30, 2007)(Unit: Millions of yen)

Automobiles

Industrial
products

Elimination Consolidated
and corporate
total

Aerospace

Other

Total

641,408

21,78240,321

5,306

708,817

Net sales(1) Outside customers(2) Inter-segment-

708,817

1,539

8

1

3,500

5,048

(5,048)-642,947

21,79040,3228,806

713,865(5,048)708,817

Operating cost and expense

629,737

21,00537,2358,250

696,227(6,315)689,912

Operating income (loss)

13,210

785

3,087

556

17,638

1,267

18,905

Total sales[Geographical segment information]
The second quarter of fiscal year 2008 (from April 1, 2007 to September 30, 2007)
Japan

North America

410,222

273,891(Unit: Millions of yen)
Eliminationand corporate

Consolidated
total

708,817-708,817

Other

Total

24,704

Net sales(1) Outside customers(2) Inter-segment

143,102

7,698

202

151,002(151,002)-

Total sales

553,324

281,589

24,906

859,819(151,002)

708,817

Operating cost and expense

534,582

282,438

24,275841,295(151,383)

689,912

Operating income (loss)

18,742(849)

631

18,524381

18,905[Overseas net sales]

The second quarter of fiscal year 2008 (from April 1, 2007 to September 30, 2007)
Overseas net sales(Unit: Millions of yen)

North America

Europe

Other

Total

296,756

80,17386,145463,074

Consolidated net sales
Percentage of overseas net sales over consolidated sales (%)

708,81741.9 %

15

11.3 %

12.1 %

65.3 %

<Reference for the First Half of FY2009(Apr. 2008 to Sep. 2008) Consolidated Financial Results>（Oct 31, 2008）

Fuji Heavy Industries Ltd.
(in 100 millions of yen)

ACTUAL RESULTS

ACTUAL RESULTS

ACTUAL RESULTSFORECASTFORECAST(in thousands of units)

1st HALF of FY2008

1st HALF of FY2009

FY2008FY2009FY2009(August 2008)

Apr. 2007 to Sep. 2007 Apr. 2008 to Sep. 2008

Apr. 2007 to Mar. 2008 Apr. 2008 to Mar. 2009

Apr. 2008 to Mar. 2009

Net Sales

7,088

7,442

5.0 %

15,72316,0001.8 %Domestic

2,457

2,602

5.9 %

5,440

5,600

2.9 %

5,600

Overseas

4,631

4,840

4.5 %

10,284

10,4001.1 %

10,400183(3.0) %

230

(49.6) %Margin Percentage

2.7%

Operating Income
Margin Percentage

2.0%

Ordinary Income
Margin Percentage

Net Income

2.5%
189

2.9%

2.9%

182

142
1.1%

28.4 %
1.2%

44

78

(43.9) %

1.4%
230

1.3%

1.3%

200

454

0.6%

Analysis ofincrease/decreasein operating income

1.4%
457

2.4%

16,000(56.0) %

200

0.6%

100

185

Gain factors

0.6%(45.9) %100

Gain factors

Gain factors
Improvement of sales volume &Improvement of sales volume &mixture and others

375

mixture and others

Improvement of sales volume &382 mixture and others

Decrease of R&D expenses

38

Decrease of R&D expenses

20

Loss factors

Loss factors

474

Loss factors

Foreign exchange

200

Foreign exchange

400 Foreign exchange

410

Increase of SG&A expenses and others

194

Increase of SG&A expenses and others

172 Increase of SG&A expenses and others

158

Reduction in cost &Net of raw material price raise

25

Reduction in cost &Net of raw material price raise

57 Net of raw material price raise

93

Increase of R&D expenses

40

Reduction in cost &Foreign Exchange Rate
YEN/US$

120

105

116

103

102

Capital Expenditures

279

317

563

620

700

Depreciation and Amortization

307

312

655

640

660

R&D Expenses

266

228

520

500

560

Interest bearing debt

3,168

2,769

3,045

2,800

3,045

Performance of Operation

Net Sales to increase

Net Sales to increase

Net Income to decrease

Net Income to decrease

Recorded high net sales

Recorded high net sales

Domestic Sales

99

94(5.1) %

209

201(3.7) %

Passenger Cars

35

36

3.5 %

78

83

6.9 %

98

Minicars

6458(9.8) %

131

118

(10.0) %115

Overseas Sales

172

188

9.3 %

388

415

6.9 %

423

North America

90

91

0.8 %

210

212

0.8 %

223

Europe3850

29.8 %

86

97

13.0 %

102

Others

44

48

8.9 %

92

105

15.0 %

99

Total sales units

271

282

4.0 %

597

616

3.2 %

636

* 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/dealers.
* Exchange rate is the non-consolidated base of Fuji Heavy Industries Ltd..

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