Presentation of Business Results
for the 3rd Quarter of FYE 2007

Fuji Heavy Industries Ltd.
February 2, 2007
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A Summary ofBusiness Results

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9 months : Automobile Sales (consolidated)(Thousand Units)

Actual Results
9 months
FYE March 2006

Actual Results
9 months
FYE March 2007

Changes

Minicar

69.1
95.1

55.8
104.5

- 13.3+9.4

Domestic Total

164.1

160.3

- 3.9

U.S.

Others134.511.7
47.4
27.9
23.0

130.0
10.8
52.1
28.9
24.1

- 4.4
- 0.9
+4.7
+1.0
+1.2

Overseas Total

244.4

245.9

+1.5

Grand Total

408.5

406.2

- 2.3

Passenger Car

CanadaEurope
Australia（U.S. and Canada figures are on the calendar year basis from January
January to Sept.）
Sept.）
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9 months : Consolidated Statements of Income(100 million yen)

Actual Results
9 months
FYE March 2006

Actual Results
9 months
FYE March 2007

Changes

Net Sales

10,39510,587+192

Domestic

4,281
6,114

4,177
6,411

- 104+296

376
312
128

358
302
247

- 18- 10+119¥111/$¥116/$+ ¥6/$

Overseas
Operating Income
Ordinary Income
Net Income
FHI Exchange
Rate

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9 months : Analysis of Increase and Decrease in
Operating Income Changes (Consolidated)(100 million yen)
Reduction in fixedmanufacturingcosts

If adding theamount ofconsolidation
adjustments(402)
Amortization ofConsolidation
Adjustments

261460111
Gain oncurrency
exchange

Decreaseof SG&A
expensesand others

Reductionin cost ofmaterials▲42
Increaseof R&D
Expenses▲16115358

Japan: Deterioration ofsales volume & mixture
Overseas: Deteriorationof sales mixture- 1.8 billion

Operating income
for the 9 months ofFYE March 2006

(372)

Amortizationof Negative
Goodwill

Deteriorationof salesvolume &mixture andothers

FHI:34
SIA:26
Net of raw
material cost
increase

376

If adding theamount ofNegative
Goodwill

Operating income
for the 9 months ofFYE March 2007
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9 months : Net Sales by Business Segment(consolidated)(100 million yen)
Actual Results
9 months
FYE March 2006

Actual Results
9 months
FYE March 2007

Changes

Automobile

9,400

9,459

+0.6%

Aerospace

521655+25.9%

Industrial
Products

380

383

+0.7%

Other

94

90

- 4.0%

10,395

10,587+1.9%

Percentage of Total
Sales

Industrial
Products
3.6%
Aerospace
6.2%

Other
0.9%

Automobile
89.3%

Total

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9 months : Net Sales by Geographic Area
(consolidated)(100 million yen)
Actual Results
9 months
FYE March 2006

Actual Results
9 months
FYE March 2007

Changes

Japan

6,369

6,387+0.3%

North
America

3,907

3,975+1.7%

Other

119

226

+90.6%

10,395

10,587+1.9%

Percentage of Total
Sales
North
America
37.5%

Other
2.1%

Japan
60.3%

Total

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Operating Results of Subsidiaries in U.S.
SOA
(Jan. to Sept.)(million US$)
Actual results
Actual results
Changes
9 months of CY 2005 9 months of CY 2006

$3,267$3,080- 187Operating Loss

- 24- 65- 41

Net Loss- 11- 42- 31

143.2

148.3

+5.1

Net Sales

Retail Sales(Thousand units)

SIA(Jan. to Sept.)
Net Sales
Operating Income / LossNet Income / Loss
Production

Actual results
Actual results
Changes
9 months of CY 2005 9 months of CY 2006

$1,792$1,572

- 220

- 26

15+41- 161*
89.2

481.7+165- 7.5(Thousand Units)*The extraordinary loss was offset by the consolidated adjustment account in the FYE 2005.
(U.S. Subsidiaries were consolidated on calendar year basis)
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4Analysis of NonNon-Operating Income and Expense(100 million yen)
Actual Results
9 months
FYE March 2006

Actual Results
9 months
FYE March 2007

ChangesNon-operating Income

96

96+0

Amortization of Negative Goodwill

26

16- 10

Offset by SIA operating loss, etc.
(Account name change)

32

40+8

Increase of gain on revaluationof derivatives +6, etc

Non-operating Expense

160

152-8

Loss on revaluation of derivatives

471- 46

Decrease of loss on revaluationof derivatives

Other89

121+31

Increase of FOREX loss 23, etc.

Net

- 64

- 56+8(Consolidation Adjustments)

Other

FOREX effects

Actual Results
9 months
FYE March 2006

Actual Results
9 months
FYE March 2007

Changes- 448+53

Net of gain and loss onrevaluation of Derivatives
Net of FOREX gain and loss

- 54

- 77

- 23

Total

- 98

- 68

+30
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Analysis of Extraordinary Gains and Losses(100 million yen)
Actual Results
Actual Results
Changes
9 months
9 months
FYE March 2006 FYE March 2007

+45+59 Sales of land of affiliate company, etc

Gain on sale of fixed assets

61610565

Gain on sale of investment
securities

530- 53

Prior period adjustment−

15+15 joint development project

Gain on transfer of thesubstitutional portion of theemployees’ pension fund−24+24 consolidated subsidiaries

171
174633- 124
Loss of sales of land of affiliate+16 company, etc.

181and properties of domestic- 17 Land
Subaru dealerships, etc.

−

9+9 Dissolution of JV79−- 79 the Voluntary Retirement Program56−- 56 with Saab Automobile AB, etc.

Extraordinary Gains

Extraordinary Losses
Loss on sale and disposal ofproperty, plant and equipment
Impairment loss on property,plantand equipment

Loss on liquidation of affiliatecompanies
Additional retirement
payments
Loss on termination of a joint
development projects

Reversal of loss on termination of theTermination of the joint development

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5Consolidated Balance Sheets(100 million yen)

Total Assets

As ofAs ofMarch 31, 2006

Dec. 31, 2006

Changes

13,484

13,257

- 227

6,192
7,292
643*

6,057
7,201629

- 135
- 92
- 14

3,741
4,655

3,721
−

- 19−

- 415
34.5%

−
−

−

−

4,890

−

−
−
0.80

- 405
36.7%
0.76

−
−
- 0.04Current Assets
Fixed Assets
Leased assets
Interest Bearing Debt
Shareholders’ Equity
Less treasury stock, at cost
Shareholders’ Equity to Total Assets
Net assets**
Less treasury stock, at cost
Shareholders’ Equity to Total Assets
D/E ratio−*“Leased Assets” in Fixed Assets has been described separately from this FY2007, whereas in FY2006 “Leased Assets” was forreference.
**In accordance with the enforcement of Corporate Law since May 1, 2006, “Shareholders’ Equity” was changed to “Net assets.”
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103rd Quarter : Automobile Sales (consolidated)(Thousand Units)

Actual Results
3Q
FYE March 2006

Actual Results
3Q
FYE March 2007

Changes

Minicar

20.8
29.5

16.3
32.1

- 4.5
+2.6

Domestic Total

50.3

48.4

- 1.9

Others

53.4
4.5
16.7
9.8
9.5

48.8
2.7
19.8
9.3
8.5

- 4.6
- 1.8
+3.0
- 0.5
- 1.0Overseas Total

93.9

89.1

- 4.8

Grand Total

144.2

137.5

- 6.7

Passenger Car

U.S.
CanadaEurope
Australia（U.S, and Canada figures are on the calendar year basis from Jul. to Sept.）
Sept.）

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3rd Quarter : Consolidated Statements of Income(100 million yen)

Actual Results
3Q
FYE March 2007

Actual Results
3Q
FYE March 2006

Changes

Net Sales

3,724

3,601

- 123

Domestic

1,326
2,398

1,313
2,288

- 13- 111

202
177
49176
163
131

- 25
- 13+82¥114/$¥118/$+ ¥3/$

Overseas
Operating Income
Ordinary Income
Net Income
FHI Exchange Rate

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3rd Quarter : Analysis of Increase and Decrease in
Operating Income Changes (Consolidated)
If adding theamortization ofconsolidation
adjustments▲729(211)
Amortization ofConsolidation
Adjustments

9(100 million yen)

Decrease of selling expenses
Reduction in fixed manufacturing costs

2427
Gain oncurrency
exchange

Reductionin cost ofmaterials

Decreaseof SG&Aexpensesand others

202

Increaseof R&D
Expenses▲98(181)

Amortizationof Negative
Goodwill

5

Deterioration ofsales volume &mixture andothers

FHI:18
SIA: 6
Net of raw
material cost
increase

If adding theamortizationof Negative
GoodwillJapan: Deterioration ofsales volume
Overseas: Deterioration ofsales volume & mixture

176- 2.5 billion
Operating income
3Q FYE March 2006

Operating income
3Q FYE March 2007
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Outlook for the TermEnding March 2007

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14Full Year: Operating Plan (consolidated basis)(100 million yen)

Actual Results
FYE March 2006

Plan
FYE March 2007

Net Sales

14,76415,000+236

Domestic
Overseas

6,041
8,722

5,800
9,200- 241+478

Operating Income

583468156500
420300

- 83
- 48
+144

¥112/$¥115/$+¥3/$

Ordinary Income
Net Income
FHI Exchange Rate

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

Actual results
CY 2005

PlanCY 2006

Changes$4,687$4,417- 270Operating Loss

- 19-8+11Net Loss-4-40

194.0

200.0+6.0

Net Sales

Retail Sales(Thousand units)

SIA(Jan. to Dec.)
Net Sales
Operating Income / LossNet Income / Loss
Production

Actual results
CY 2005

PlanCY 2006

Changes$2,602$2,327

- 275

- 22

21+43- 169*119.0

7110.4+175- 8.6(Thousand Units)*The extraordinary loss was offset by the consolidated adjustment account in the FYE 2005.
(U.S. Subsidiaries are consolidated on calendar year basis)
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