Consolidated Financial Results
For the Second Quarter of the Fiscal Year Ending March 31, 2015
(Japan GAAP)
October 31, 2014
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: Kazunori Yamafuji, General Manager of Administration Department Phone +81-3-6447-8825
Scheduled date of submitting Quarterly Report: November 10, 2014
Scheduled date for dividend payment: December 4, 2014
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 Second Quarter of Fiscal Year 2015 (April 1, 2014 to September 30, 2014)(1)Consolidated Results of Operations(for six-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

Operating income

Ordinary income

Net income

2nd Quarter of
1,310,236
16.4%
185,66223.2%
175,951
20.3% 113,019
13.2%
FY2015
2nd Quarter of
1,125,638
25.3%
150,702248.4%
146,224
222.9%
99,811 146.8%
FY2014
Note: Comprehensive income 2nd Quarter of FY2015: 135,256 million yen (12.0%) 2nd Quarter of FY2014: 120,811
million yen (294.9%)
Net income
per share, basic (Yen)
2nd Quarter of
FY2015
2nd Quarter of
FY2014

Net income per share,
diluted (Yen)

144.82－

127.90－(2) Consolidated Financial Position
Total assets(Unit: Millions of yen, except for per share figures)
Shareholders’ equity to
Net assets
total assets (%)

2nd Quarter of
FY2015

1,986,822

880,938

44.0%

FY2014

1,888,363

770,071

40.5%

Reference: Shareholders’ equity As of September 30, 2014: 873,948 million yen As of March 31, 2014: 765,544 million yen

2. Dividends
Cash dividends per share (yen)Year-end
Annual
1st Quarter
2nd Quarter
3rd Quarter－－
FY 2014
20.00
33.00
53.00
FY 2015
31.00－
FY 2015 (Forecast)
31.00
62.00
Note: Revision of the forecasts in the second quarter of the fiscal year ending March 31, 2015: Yes

3. Projection of Consolidated Results for Fiscal Year 2015 (April 1, 2014 to March 31, 2015)(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

2,780,000

15.4%

Operating income

Ordinary income

382,000

370,000

17.0%

17.7%

Net income
241,000

16.6%

Net income pershare,basic(Yen)308.82

Note: Revision of the forecasts at the timing of announcement of the results of second quarter of the fiscal year ending March 31, 2015:
Yes4. Others(1) Changes of significant subsidiaries in the second quarter of fiscal year 2015

: No

(Transfer of subsidiaries resulting in changes in the scope of consolidation)

Application of specific accounting for preparing the quarterly consolidated financial : Yes
statements(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly
consolidated financial statements(2)[1] Changes due to revisions of accounting standards[2] Changes due to other reasons[3] Changes of estimation due to accounting issues[4] Restatements

: Yes
: No
: No
: No

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

As of September 30,2014:

782,865,873 shares

As of March 31,2014:

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

As of September 30,2014:

2,480,003 shares

As of March 31,2014:

2,477,430 shares[3] Average number of shares( for six-month period ）2nd Quarter of FY2015:

780,387,394 shares

2nd Quarter of FY2014:

780,411,630 shares(including treasury stock)*The status of the implementation of the second quarterly review
The second 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) Explanation about Future Forecasts such as Projections for the Current Fiscal Year" on page 4.

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

2. Notes on Summary Information(Others) ..................................................................................... 4(1) Application of specific accounting for preparing the quarterly consolidated financial statements ...................4(2) Changes in Accounting Policy ..................................................................................................................................4

3. Quarterly Consolidated Financial Statements ............................................................................. 5(1) Quarterly Consolidated Balance Sheet....................................................................................................................5(2) Quarterly Consolidated Statements of (Comprehensive) Income.........................................................................7
Quarterly Consolidated Statements of Income(for six-month period) ...................................................................7
Quarterly Consolidated Statements of Comprehensive Income(for six-month period)........................................8(3) Quarterly Consolidated Statements of Cash Flows................................................................................................9(4) Note to Quarterly Consolidated Financial Statements......................................................................................... 11(Notes on Premise of Going Concern) ..................................................................................................................... 11(Notes on Significant Changes in the Amount of Shareholders’ Equity).............................................................. 11(Segment Information).............................................................................................................................................. 11( Significant Subsequent Event) ............................................................................................................................... 11-1-

1. Qualitative Information on Quarterly financial Results(1) Explanation about Operating Performance
Consolidated net sales for the first half of the current fiscal year increased ¥184.6 billion (16.4%) fromthe same period of the previous fiscal year to ¥1,310.2 billion mainly due to higher automobile unit sales
and higher sales revenues owing to foreign exchange rate fluctuations.
Regarding the profit, operating income increased ¥35.0 billion (23.2%) from the same period of theprevious fiscal year to ¥185.7 billion and ordinary income increased ¥29.7 billion (20.3%) from the same
period of the previous fiscal year to ¥176.0 billion, reflecting the higher sales. Net income for the period
increased ¥13.2 billion (13.2%) from the same period of the previous fiscal year to ¥113.0 billion.
[Results by Business Segment]
Results for the current consolidated first half period by business segment are as described below.
[1] Automobile Division
In Japan, unit sales of Subaru passenger cars decreased 5 thousand (8.6%) units compared with thesame period of the previous fiscal year to 56 thousand units, while unit sales of minicars decreased 11
thousand (41.1%) units compared with the same period of the previous fiscal year to 15 thousand units,
and total unit sales decreased 16 thousand (18.1%) units compared with the same period of the previous
fiscal year to 72 thousand units, although contributions to unit sales came from the Levorg launched inJune. The lower unit sales reflect the reverse effect that followed the rush of last-minute purchases
ahead of the consumption tax rate increase at the end of the previous fiscal year and the situation where
higher sales of existing car models were recorded in the same period of the previous fiscal year owing
to the launch of new models.
Overseas total unit sales increased 55 thousand (17.9%) units compared with the same period of theprevious fiscal to 360 thousand units. In addition to favorable conditions surrounding sales of theForester in North America, the key market of FHI, contributions to higher unit sales came from the allnew WRX as well as the all-new Legacy and Outback introduced in North America.
By region, sales in North America increased 44 thousand (19.5%) units from the same period of theprevious fiscal year to 272 thousand units, sales in Europe including Russia increased 2 thousand(9.4%) units from the same period of the previous fiscal year to 24 thousand units, sales in Australia
decreased 2 thousand (9.3%) units from the same period of the previous fiscal year to 19 thousand
units, sales in China increased 10 thousand (51.5%) units from the same period of the previous fiscal
year to 29 thousand units, and sales in other regions increased 1 thousand (3.5%) units from the same
period of the previous fiscal year to 16 thousand units.
As a result, combined unit sales in Japan and overseas markets amounted to 432 thousand units, anincrease of 39 thousand (9.9%) units from the same period of previous fiscal year.
Affected also by currency fluctuations, overall net sales increased ¥175.3 billion (16.7%) from thesame period of the previous fiscal year to ¥1,228.0 billion, and segment income increased ¥36.2 billion(25.5%) from the same period of the previous fiscal year to ¥178.5 billion.
[2] Aerospace Division
Deliveries to the Japan Ministry of Defense saw sales fall below the level of the same period of theprevious fiscal year mainly due to the decrease of mass production of the patrol aircraft P-1. On theother hand, sales to the commercial sector rose compared with the same period of the previous fiscal
year due to higher sales of Boeing 787 aircraft.
As a result, overall net sales increased ¥10.3 billion (19.3%) compared with the same period of theprevious fiscal year to ¥63.8 billion. Segment income decreased ¥1.0 billion (14.3%) compared withthe same period of the previous fiscal year to ¥5.9 billion.

-2-[3] Industrial Products Division
Net sales decreased ¥0.9 billion (6.0%) compared with the same period of the previous fiscal year to¥14.8 billion due to lower sales of vehicle engines to Polaris Industries as well as lower sales of power
generators and pumps for overseas markets.
Segment income decreased ¥0.04 billion (22.3%) compared with the same period of the previous
fiscal year to ¥0.1 billion.
[4] Other Businesses
Net sales decreased ¥0.1 billion (3.2%) compared with the same period of the previous fiscal year to¥3.6 billion. Segment income decreased ¥0.3 billion (22.3%) compared with the same period of theprevious fiscal year to ¥0.9 billion.
(2) Explanation about Financial Position[1] Assets, Liabilities, and Net Assets
Total assets at the end of the first half of the current fiscal year were ¥1,986.8 billion, an increase of¥98.5 billion from the end of the previous fiscal year. Main factors included a ¥23.7 billion increase incombined funds on hand comprised of cash, deposits, and short-term investment securities for shortterm fund management, a ¥21.0 billion increase in merchandise and finished goods, and a ¥39.6 billion
increase in property, plant, and equipment.
Total liabilities decreased ¥12.4 billion compared with the end of the previous fiscal year to ¥1,105.9
billion. Main factors included a ¥40.2 billion increase in trade accounts payable comprised of notes andaccounts payable-trade and electronically recorded obligations, a ¥13.4 billion decrease in short-termloans payable, and a ¥66.9 billion decrease in income taxes payable.
Net assets increased ¥110.9 billion compared with the end of the previous fiscal year to ¥880.9
billion. Main factors included a ¥88.6 billion increase in retained earnings from net income recognized
for the period.
[2] Cash Flows
Cash and cash equivalents at the end of the first half of the current fiscal year (hereinafter “Cash”)
totaled ¥575.8 billion.
(Net cash provided by operating activities)
Net cash provided by operating activities was ¥134.7 billion (net cash provided in the same
consolidated cumulative period of the previous fiscal year was ¥157.9 billion). Main factors included¥174.7 billion in income before income taxes and minority interests, a ¥34.6 billion decrease in notes
and accounts receivable-trade, a ¥21.9 billion increase in inventories, a ¥37.8 billion increase in notes
and accounts payable-trade, and ¥123.9 billion in income taxes paid.
(Net cash used in investment activities)
Net cash used in investing activities was ¥63.7 billion (net cash used in the same consolidated
cumulative period of the previous fiscal year was ¥38.1 billion). Main factors included ¥55.3 billion in
expenditures for the purchase of property, plant and equipment as well as intangible assets (net basis
against proceeds from sales of property, plant and equipment).
(Net cash used in financing activities)
Net cash used in financing activities was ¥62.7 billion (net cash used in the same consolidated
cumulative period of the previous fiscal year was ¥24.3 billion). Main factors included a ¥12.2 billion
decrease in short-term loans payable, ¥20.2 billion in repayment of long-term loans payable (net basis
against proceeds from long-term loans payable), and ¥25.7 billion in expenditures for cash dividends
paid.

-3-

(3) Explanation about Future Forecasts such as Projections for the Current Fiscal Year
FHI has revised upward the performance projection for the fiscal year ending March 31, 2015 which
was released at the timing of consolidated financial results announcement on May 9, 2014, as statedbelow. Despite lower automobile unit sales and higher R&D expenses, enhanced earnings are expected
mainly due to foreign-exchange effects, reduction in costs, and lower SG&A expenses.
Projections of full-year consolidated business results of the current fiscal year are based on assumed
foreign exchange rates of ¥104/US$ (previously ¥100/US$) and ¥137/EUR (previously ¥135/EUR).
Consolidated Results Forecast for the Fiscal Year Ending March 2015 (April 1, 2014 to March 31, 2015)

Previous projection (A)¥ million
2,720,000

Operating
Income¥ million
340,000

Revised projection (B)2,780,000

382,000

Change in amount (B-A)

60,000¥ million
215,000

370,000

241,000

308.8242,00040,00040,000

－

2.2

12.4

12.1

12.1

－

2,408,129

326,489

314,437

206,616264.76Percentage change (%)(Supplemental information)
Actual results of the previous fiscal year
(April 1, 2013 to March 31, 2014)

Ordinary
Income¥ million
330,000

Net Income
per ShareYen
275.50Net Sales

Net Income

2. Notes on Summary Information(Others)(1) Application of 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
by reasonably estimated annual effective tax rate. This annual tax rate was reasonably estimated after
applying the deferred tax accounting to the annual income before income taxes and minority interests.
"Income taxes-deferred" was included in "Total income taxes".
(2) Changes in Accounting Policy
The Company has applied Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May
17, 2012 (hereinafter, the “Statement No.26”)) and Guidance on Accounting Standard for Retirement
Benefits (ASBJ Guidance No. 25, May 17, 2012 (hereinafter, the “Guidance No.25”)) from the firstquarter of fiscal year 2015 in accordance with the article 35 of the Statement No.26 and the article 67 of
the Guidance No.25.
The Company has reviewed the method of calculating retirement benefit obligations and current service
costs and has changed the method of attributing expected benefits to periods from a straight-line basis to abenefit formula basis, and the method of determination of discount rate from the method using discountrate based on the average remaining service period for employees to the method using a single weighted
average discount rate reflecting the expected payment periods and the amounts for each expected
payment period.
In accordance with the article 37 of the Statement No.26, the effect of changes in the calculation
method of retirement benefit obligations and current service costs has been recognized in retained
earnings at the beginning of the first quarter of fiscal year 2015.
The effect of application of the Statement No.26 and the Guidance No.25 is not material.

-4-3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Unit: Millions of yen)
FY2014
2nd Quarter of FY2015(as of March 31, 2014) (as of September 30, 2014)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 operatingleases, 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-5-351,125
181,646
23,633
233,766
159,536
51,65933,00864,214
122,681
53,375(862)
1,273,781

262,227
144,174
24,061
346,352
180,583
52,321
38,07764,993
129,392
68,753(1,359)1,309,574

114,810
113,519
175,808

124,667
123,774
176,272

11,512

14,581

24,116
21,048460,813

21,22339,879500,396

14,712
14,712

15,41015,41076,788
1,222
18,332
76,312(33,597)
139,057
614,582
1,888,363

92,985668
15,81985,063(33,093)
161,442
677,248
1,986,822

(Unit: Millions of yen)
FY2014
2nd Quarter of FY2015(as of March 31, 2014) (as of September 30, 2014)
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
Provision for loss on transfer of business
Other
Total current liabilities
Ⅱ Noncurrent liabilities
Bonds payable
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-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Remeasurements of other postretirement
benefits of foreign consolidated subsidiaries
Total accumulated other comprehensive
incomeMinority interests
Total net assets
Total liabilities and net assets-6-

279,926
67,63759,19342,557
4,060
110,426
91,921
20,44639,494
1,032
2,128
114,088
832,908

312,866
74,87545,78240,65955
43,551
96,936
20,903
44,660532
1,992
138,104
820,915

10,000
153,8449,827
504
22,85288,357285,384
1,118,292

10,000135,691
10,445342
21,565
106,926
284,969
1,105,884

153,795
160,071483,910(1,395)796,381

153,795
160,071572,548(1,403)885,011

10,62915,161(26,661)(13,886)(12,787)(12,460)

(919)

(977)

(30,837)(11,063)4,527
770,071
1,888,363

6,990
880,938
1,986,822

(2) Quarterly Consolidated Statements of (Comprehensive) Income
Quarterly Consolidated Statements of Income(for six-month period)

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
Real estate rent
Gain on valuation of derivatives
Other
Total non-operating income
Ⅴ Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on valuation of derivatives
Other
Total non-operating expenses
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 and minority interests
Total Income taxes
Income before minority interests
Minority interests in income
Net income-7-(Unit: Millions of yen)
FY2014FY2015(April 1, 2013 to(April 1,2014 toSeptember 30, 2013)
September 30, 2014)
1,125,638
1,310,236
812,243929,651
313,395
380,585
162,693
194,923
150,702
185,662
806
578
121
－
270
10,906824
13,505

1,019
470
237
3,890
272
－
1,475
7,363

1,342
14,834－
1,807
17,983
146,224

1,553－
13,661
1,860
17,074
175,951

146
117
61
324

435
421
392
1,248

1,010
236
1,246
145,30245,404
99,89887
99,811

1,650
861
2,511
174,688
58,962
115,726
2,707
113,019

Quarterly Consolidated Statements of Comprehensive Income(for six-month period)(Unit: Millions of yen)
FY2014FY2015(April 1, 2013 to(April 1,2014 toSeptember 30, 2013) September 30, 2014)
Income before minority interests
99,898
115,726
Other comprehensive income
Valuation difference on available-for-sale securities
12,021
4,532
Foreign currency translation adjustment
8,798
13,431Remeasurements of defined benefit plans
1,426－
Remeasurements of other postretirement benefits of(58)－
foreign consolidated subsidiaries
Share of other comprehensive income of associates
94
199
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to minority interests-8-

20,913
120,811

19,530135,256

120,724

132,793

87

2,463

(3) Quarterly Consolidated Statements of Cash Flows(Unit: Millions of yen)
FY2014FY2015(April 1, 2013 to(April 1,2014 toSeptember 30, 2013) September 30, 2014)
Ⅰ Net cash provided by (used in) operating activities
Income before income taxes and minority interests

145,302174,688

Depreciation and amortization

29,722

31,52714(6)Interest and dividends income(1,384)(1,489)Interest expenses

1,342

1,553

864

1,215

(10,494)(7,716)

Decrease (increase) in notes and accounts receivable-trade

1,198

34,601

Decrease (increase) in inventories

18,080(21,925)

Increase (decrease) in notes and accounts payable-trade

2,436

37,821Other, net(13,216)

7,529

Subtotal

173,864

257,798

Interest and dividends income received

1,409

1,749

Interest expenses paid

(1,003)(887)

Income taxes paid

(16,331)(123,925)

Net cash provided by (used in) operating activities

157,939

134,735(443)(2,112)

Purchase of short-term investment securities(5,889)(9,624)

Proceeds from sales of short-term investment securities

10,966

9,766

Purchase of non-current assets(39,586)(55,654)681

332(15,644)(21,525)

9,753

13,418

Payments of loans receivable(30,869)(49,606)

Collection of loans receivable

33,24851,696

Other, net

(342)

(353)

(38,125)(63,662)(13,088)(12,233)

Proceeds from long-term loans payable

2,652

1,850

Repayment of long-term loans payable(5,292)(22,038)

Redemption of bonds(5)(4,005)

Cash dividends paid

(7,786)(25,721)

(733)

(548)

(24,252)(62,695)

Increase (decrease) in allowance for doubtful accounts

Loss (gain) on sales and retirement of noncurrent assets
Decrease (increase) in operating loans receivable

Ⅱ Net cash provided by (used in) investing activities
Net decrease (increase) in time deposits

Proceeds from sales of non-current assets
Purchase of investment securities
Proceeds from sales of investment securities

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

Other, net
Net cash provided by (used in) financing activities-9-

FY2014
FY2015(April 1, 2013 to(April 1,2014 toSeptember 30, 2013) September 30, 2014)

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- 10 -

5,884

9,549

101,446

17,927

328,947

557,870122－

430,515575,797

(4) Note to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
FY2015 (April 1, 2014 to September 30, 2014)
Not Applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
FY2015 (April 1, 2014 to September 30, 2014)
Not Applicable(Segment Information)
Information on sales and income(loss) by business segment reported
2nd Quarter of FY 2014 (April 1, 2013 to September 30, 2013)
Business segment reported
Automobiles Aerospace

Industrial
products

SubTotal(Unit: Millions of yen)
Other
*1

Total

Consolidated
Adjustment
Statement of*2
income *3

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

1,052,692

53,536

15,685

1,121,913

3,725

1,125,638－

1,125,638

1,630

－

303

1,933

6,476

8,409

(8,409)－1,054,322

53,536

15,988

1,123,846

10,201

1,134,047(8,409)1,125,638

142,272

6,894

166

149,332

1,126

150,458244

150,702

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.
2nd Quarter of FY 2015 (April 1, 2014 to September 30, 2014)(Unit: Millions of yen)

Business segment reported
Automobiles Aerospace

Industrial
products

SubTotal

Other
*1

Total

Consolidated
Adjustment
Statement of*2
income *3

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

1,228,033

63,84814,751

1,306,632

3,604

1,310,236－

1,310,236

1,941

－

129

2,070

7,684

9,754

(9,754)－

1,229,974

63,84814,8801,308,702

11,2881,319,990(9,754)

1,310,236

178,495

5,911

129

184,535

875

185,410

252

185,662

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- 11 -

October 31, 2014
Fuji Heavy Industries Ltd.

< Reference for the 1st Half of FYE2015 Consolidated Financial Results >(Yen in 100 Millions, Units in Thousands)
RESULTSFORECASTS

FYE2015 1st Half

FYE2014

FYE2015 Full YearPREVIOUSFORECASTS
FYE2015

2014.4.1－9.30'13.4-'14.3

2014.4.1－2015.3.31'14.4-'15.3

RESULTSRESULTSFYE2014 1H
2013. 4-9

ChangeNet sales
Japan
Overseas

Operating income
Profit margin (%)

Ordinary income
Profit margin (%)

Net income
Profit margin (%)

JPY/US$
JPY/EUR

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

16.4

24,08127,800

3,719

15.4

27,200

3,306
7,951
1,507

2,928
10,174
1,857

(378)
2,224
350

(11.4)
28.0
23.2

6,721
17,361
3,265

6,582
21,218
3,820

(138)
3,857
555

(2.1)
22.2
17.0

7,032
20,168
3,400

13.6

13.7

297

20.3

3,144

3,700

556

17.7

3,300

13.1

13.3

132

13.2

2,066

2,410

344

16.6

2,150

13.4

14.2

1,462

1,760

13.0

13.4

998

1,130

8.9

98/US$
129/EUR
273
260
299
2,918

8.6

8.6

Improvements onmodel mix, etc
Gain on currency
exchange
Cost reduction
effort, etc
Increase in SG&A
exp, etc
Increase in R&D
exp
102/US$
139/EUR

452
215
50
(302)
(65)
100/US$
133/EUR
685
549
601
2,697

597
277
363
2,322

182
126
55
643
478
47
45
74
825
813
650
164

Automobile

10,527

12,280

1,753

16.7

22,466

North America
EuropeChina
Other

Unit sales total
Production units total
Japan
U.S.

Aerospace

535

638

103

19.3

1,244

Industrial Products

157

148

(9)

(6.0)

298

Other

37

36

(1)

(3.2)

73

Automobile

1,423

1,785

362

25.5

3,090

Aerospace

69

59

(10)

(14.3)

141

2

1

(0)

(22.3)

6

11

9

(3)

(22.3)

21

Operating income byIndustrial Products
business segment
Other

7.9

855
412
109
(582)
(239)
100/US$
135/EUR
1,200
660
740
2,400

1,200
660
840
2,200

- Full-year record unit sales, net sales
and all profits(18.1)(8.6)(41.1)
17.9
19.5
9.4
51.5
(4.0)
9.9
11.7
10.9
14.6

Minicars

8.7

Improvements onmodel mix, etc
Gain on currency
exchange
Cost reduction
effort, etc
Increase in SG&A
exp, etc
Increase in R&D
exp
104/US$
137/EUR- 1st-half record unit sales, net sales
and all profits

(16)
(5)
(11)
55
44
2
10
(1)
39
46
34
12

Unit sales (Overseas)

12.1- Net sales and all profits to increasefor 3rd straight yr.

72
56
15
360
272
24
29
35
432
436
344
92

Passenger Cars

12.5

- Net sales and all profits increased for3rd straight yr.

87
62
26
305
228
22
19
37
393
390
310
80

Unit sales (Japan)

%

1,846

Performance description

Net sales bybusiness segment

Change13,102

Change Factors
in Operating income

Exchange rates%

11,256

167
126
41
743
554
55
60
74
909
914
705
209

(15)
0
(15)
99
76
8
15
1
84
101
55
46

(8.3)
(0.3)
(26.5)
15.4
15.9
16.1
33.9
0.7
10.2
12.4
8.4
28.1

195
144
51
721
531
60
57
74
916
910
702
209

Elimination &
2
3
0
3.3
6
Corporate* Exchange Rates are the rates used for FHI's non-consolidated sales recording.
* Unit Sales include retail sales of Japanese consolidated dealers, wholesale sales of overseas consolidated distributors, and deliveries from FHI to non-consolidated
distributors/dealers.
* Production in Japan includes production of the 86/FR-S 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 Half Financial Results for FYE2015
Tokyo, October 31, 2014 - Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today announced its consolidated
financial results for the first half of fiscal year ending March 31, 2015.

< FYE2015 1st Half Results: Consolidated Net Sales >Subaru’s Japan sales fell 18.1% from a year ago to 72,000 units due to the prolonged effects of the consumption tax hike, posting adecrease in both passenger car and mini car sales. Overseas sales rose 17.9% to 360,000 units, driven by continued high demand for
the Forester together with strong sales of the WRX series as well as the all-new Legacy and Outback that were launched in North
America ahead of other markets in the world. In total, Subaru’s global sales increased 9.9% to 432,000 units.
FHI’s consolidated net sales rose 16.4% to 1310.2 billion yen due to unit sales growth, foreign exchange gains and other factors.

< FYE2015 1st Half Results: Consolidated Profit and Loss >As increases in SG&A and R&D expenses were covered by unit sales growth, exchange rate gains, cost reduction progress and otherfactors, operating income rose 23.2% to 185.7 billion yen while ordinary income grew 20.3% to 176 billion yen and net income
increased 13.2% to 113 billion yen.
(*1)
Global unit sales, overseas unit sales, net sales and all profit figures posted all-time records for the first half period.

< FYE2015 Full-Year Forecasts >Full-year projections are revised upward to net sales at 2,780 billion yen, operating income at 382 billion yen, ordinary income at 370
billion yen and net income at 241 billion yen. While there are changes from the previous projections to be incorporated such as anincrease in R&D spending to enhance product competitiveness for the company’s sustainable growth as well as a decrease in unit
sales mainly in Japan, those factors are projected to be covered by revised currency rate assumptions, SG&A reduction efforts, further
progress on cost reduction, and so on.
(*2)
Global unit sales, overseas unit sales, net sales and all profit figures are projected to reach all-time highs in FHI history.
Currency rate assumptions: 104 yen/US$, 137 yen/euro
Based on the consolidated financial results for the first half and consolidated financial forecasts for the full year, FHI will raise the interim
and year-end dividends from the previous projection each by 3 yen to 31 yen per share. Accordingly, the annual dividend for FYE2015
will be 62 yen per share, an increase of 6 yen from the previous year.
< Previous Forecasts for FYE2015 (Announced on July 31, 2014) >Net sales: 2,720 billion yen
Operating income: 340 billion yen
Ordinary income: 330 billion yen
Net income: 215 billion yen
Currency rate assumptions: 100 yen/US$, 135 yen/euro*1: Since fiscal year ended March 2001 - the year FHI started half-year consolidated financial reporting*2: Since fiscal year ended March 1986 - the year FHI started full-year consolidated financial reporting

Forward-looking statements in this document including financial and other forecasts are based on the information available at the timeof the announcement and are subject to various risks and uncertainties that could cause actual results to vary materially.
###