Consolidated Financial Results
For the Second Quarter of the Fiscal Year Ending March 31, 2017
(Japan GAAP)
November 2, 2016
Company Name
: Fuji Heavy Industries Ltd. (Tokyo Stock Exchange First Section, Code No.7270)
URL: http://www.fhi.co.jp/english/ir/
Representative: Yasuyuki Yoshinaga, President and CEO
Contact for Inquiries : Katsuo Saitou, General Manager of Administration Department Phone +81-3-6447-8825
Scheduled date of submitting Quarterly Report: November 9, 2016
Scheduled date for dividend payment: December 1, 2016
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 2017 (April 1, 2016 to September 30, 2016)(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
attributable toowners of parent

2nd Quarter of
1,577,652(1.5)%
208,525 (26.9)%
227,772 (20.1)%
163,837 (15.2)%
FY2017
2nd Quarter of
1,601,475
22.2%
285,09753.6%
285,02262.0%
193,204
70.9%
FY2016
Note: Comprehensive income 2nd Quarter of FY2017: 121,133 million yen (Minus36.5%) 2nd Quarter of FY2016:
190,654 million yen (41.0%)
Net income
Net income per share,per share, basic (Yen)diluted (Yen)
2nd Quarter of
FY2017
2nd Quarter of
FY2016211.00－247.58－(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
FY20172,560,049

1,361,577

53.0%

FY20162,592,410

1,349,411

51.8%

Reference: Shareholders'equity As of September 30, 2016: 1,356,059 million yen As of March 31, 2016: 1,343,732
million yen

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

72.00

FY 2017

－

72.00

－

72.00

Annual
144.00FY 2017 (Forecast)
72.00
144.00－Note: Revision of the forecasts in the first quarter of the fiscal year ending March 31, 2017: No

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

Net sales
Full year 3,180,000(1.6)

Operating income

Ordinary income

373,000 (34.1)

397,000 (31.2)

Net income
Net income per
attributable to owners share,basic(Yen)of parent
278,000 (36.3)

359.94

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

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

: No

(2) Application of specific accounting for preparing the quarterly consolidated financial statements : Yes(3) Changes in accounting policies, procedures and methods of presentation for preparing the quarterly
consolidated financial statements[1] Changes due to revisions of accounting standards: Yes[2] Changes due to other reasons: No[3] Changes of estimation due to accounting issues: No[4] Restatements: No(4) Number of outstanding shares (Common Stock)[1] Number of outstanding shares
As of Septembder 30,2016: 769,175,873 shares As of March 31,2016: 782,865,873 shares(including treasury stock)[2] Number of treasury stock
As of Septembder 30,2016: 2,488,907 shares As of March 31,2016:
2,487,843 shares[3] Average number of shares
2nd Quarter of FY2017:
776,466,176 shares 2nd Quarter of FY2016: 780,381,283 shares(for six-month period)*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 thedate for the release of this quarterly report.
*Proper use of projection of operating results, and other information
The above performance projections were made based on the information available as of the date when thisdocument was released. Therefore, actual results may differ considerably due to various factors that might occur
in the future.
For assumptions and other information on which the performance projections were based, please refer to“(3) Explanation about Future Forecasts such as Projections for the Current Fiscal Year" on page 5.

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

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

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

1. Qualitative Information on Quarterly Financial Results(1) Explanation about Operating Performance
Consolidated net sales for the second quarter of the current fiscal year decreased ¥23.8 billion (1.5%)
from the same period of the previous fiscal year to ¥1,577.7 billion mainly due to a decrease in sales
revenues owing to foreign exchange rate fluctuations despite higher automobile unit sales.
Regarding the profit, operating income decreased ¥76.6 billion (26.9%) from the same period of theprevious fiscal year to ¥208.5 billion, as the effect of foreign exchange rate fluctuations, despite higher
automobile unit sales and progress with reduction in costs absorbing increases in miscellaneous
expenditure, mainly for quality-related expenses attributable to airbag inflators, and R&D expenses.
Ordinary income decreased ¥57.3 billion (20.1%) from the same period of the previous fiscal year to¥227.8 billion. Net income attributable to owners of the parent decreased ¥29.4 billion (15.2%) fromthe same period of the previous fiscal year to ¥163.8 billion.
(In Japanese yen in million except for profit ratio and percentage change from the previous period)
Quarterly Net Income
Foreign
Net Sales
Operating Income
Ordinary Income Attributable to Owners
Exchange Rateof the Parent
2nd Quarter of FYE 2017
1,577,652
208,525
227,772
163,837¥107/US$
Profit Margin
13.2%
14.4%
10.4%
¥120/EUR
2nd Quarter of FYE 2016
1,601,475
285,097
285,022
193,204¥122/US$
Profit Margin
17.8%
17.8%
12.1%
¥135/EUR
Change(23,823)(76,572)(57,250)(29,367)
Percentage change(1.5)%(26.9)%(20.1)%(15.2)%[Results by Business Segment]
Results for the current consolidated second quarter period by business segment are as described below.
Net Sales(In Japanese yen in million and percentage change from the previous period)
Segment Income (loss)

2nd Quarter 2nd Quarter
Changeof FYE 2016 of FYE 2017

Percentagechange2nd Quarter 2nd Quarterof FYE 2016 of FYE 2017

ChangeAutomobile Div.
1,505,721
1,492,380 (13,341)(0.9)%
273,170
203,296 (69,874)
Aerospace Div.
73,48566,766(6,719)(9.1)%
9,647
3,599(6,048)Ind. Prod. Div.
18,49014,635(3,855)(20.8)%
607
(293)
(900)
Other
3,779
3,871
92
2.4%
1,348
1,470
122
Adjustment
325
453
128
－
－
－
－
Total
1,601,475
1,577,652
23,823(1.5)%
285,097
208,525 (76,572)
Notes:
1. Net sales are sales to outside customers.
2. Adjustment to segment income (loss) refers to elimination of intersegment transactions.

Percentagechange(25.6)%(62.7)%
－
9.1%
39.4%
(26.9)%[1] Automobile Division
Regarding registered cars in Japan, unit sales increased 3 thousand units (5.3%) compared with thesame period of the previous fiscal year to 52 thousand units as a result of strong sales of the Forester andother models, despite a decrease in sales of Levorg. On the other hand, unit sales of minicars decreased 1
thousand units (6.8%) compared with the same period of the previous fiscal year to 16 thousand units dueto the effect of higher taxes on minicars since the previous year and other factors. As a result of thesefactors, total unit sales in Japan increased 2 thousand units (2.3%) compared with the same period of theprevious fiscal year to 68 thousand units.
Overseas total unit sales increased 38 thousand units (9.4%) compared with the same period of theprevious fiscal year to 444 thousand units mainly due to favorable conditions surrounding sales of the
Outback and other models in North America, the key market of FHI.

―2―

By region, sales in North America increased 39 thousand units (12.2%) from the same period of theprevious fiscal year to 355 thousand units, sales in Europe including Russia decreased 1 thousand units(3.9%) from the same period of the previous fiscal year to 22 thousand units, sales in Australia decreased
1 thousand units (2.5%) from the same period of the previous fiscal year to 22 thousand units, sales in
China increased 1 thousand units (6.2%) from the same period of the previous fiscal year to 22 thousand
units, and sales in other regions remained the same compared with the same period of the previous fiscal
year at 22 thousand units.
As a result, combined unit sales in Japan and overseas markets amounted to 512 thousand units, anincrease of 40 thousand units (8.4%) from the same period of the previous fiscal year and a record highfor the consolidated cumulative second quarter. Despite this increase, overall net sales decreased ¥13.3
billion (0.9%) from the same period of the previous fiscal year to ¥1,492.4 billion owing to foreignexchange rate fluctuations. Segment income, affected also by currency fluctuations and increases in
miscellaneous expenditure, mainly for quality-related expenses attributable to airbag inflators, and R&D
expenses, decreased ¥69.9 billion (25.6%) from the same period of the previous fiscal year to ¥203.3
billion.
Consolidated unit sales in the second quarter of the current fiscal year are shown in the table below.
(Units in thousands and percentage change from the previous period)

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

2nd Quarter of
FYE 2016

2nd Quarter of
FYE 2017

67
50
17
406
317
23
23
20
22
472

68
52
16
444
355
22
22
22
22
512

Change
2
3
(1)
38
39
(1)
(1)
1
(0)
40

Percentagechange
2.3%
5.3%(6.8)%
9.4%
12.2%(3.9)%(2.5)%
6.2%(0.8)%
8.4%[2] Aerospace Division
Deliveries to the Japan Ministry of Defense saw sales decline compared with the level of the same
period of the previous fiscal year mainly with a decrease in helicopter production.
Sales to the commercial sector fell compared with the same period of the previous fiscal year owing toeffects from foreign exchange rate fluctuations despite an increase in production of Boeing 787 aircraft.
As a result, overall net sales decreased ¥6.7 billion (9.1%) compared with the same period of theprevious fiscal year to ¥66.8 billion. Segment income decreased ¥6.0 billion (62.7%) compared with thesame period of the previous fiscal year to ¥3.6 billion.
[3] Industrial Products Division
Net sales decreased ¥3.9 billion (20.8%) compared with the same period of the previous fiscal year to¥14.6 billion with a decrease in sales of engines for leisure vehicles to North America. Segment loss
increased ¥0.9 billion compared with the same period of the previous fiscal year, generating a loss of¥0.3 billion.
[4] Other Businesses
Net sales increased ¥0.1 billion (2.4%) compared with the same period of the previous fiscal year to¥3.9 billion. Segment income also increased ¥0.1 billion (9.1%) compared with the same period of theprevious fiscal year to ¥1.5 billion.

―3―(2) Explanation about Financial Position[1] Assets, Liabilities, and Net Assets
Total assets at the end of the second quarter of the current fiscal year were ¥2,560.0 billion, a decreaseof ¥32.4 billion from the end of the previous fiscal year. Main factors included a ¥21.3 billion decrease incombined funds on hand comprised of cash, deposits, and investment securities, a ¥20.9 billion decrease
in investment securities, and a ¥31.8 billion increase in property, plant and equipment.
Total liabilities decreased ¥44.5 billion compared with the end of the previous fiscal year to ¥1,198.5
billion. Main factors included a ¥15.7 billion decrease in accounts payable with accounts payable-tradeand electronically recorded monetary obligations, a ¥57.5 billion decrease in income taxes payable, and a¥34.2 billion increase in accrued expenses, and other liabilities.
Net assets increased ¥12.2 billion compared with the end of the previous fiscal year to ¥1,361.6 billion.
Main factors included a ¥60.6 billion increase in retained earnings and a ¥38.8 billion decrease in foreign
currency translation adjustments.
[2] Cash Flows
Cash and cash equivalents (hereinafter “Cash”) at the end of the second quarter of the current fiscal
year totaled ¥776.7 billion.
(Net cash provided by operating activities)
Net cash provided by operating activities was ¥198.4 billion (net cash provided in the same
consolidated cumulative period of the previous fiscal year was ¥282.9 billion). Main factors included¥235.6 billion in income before income taxes, ¥41.7 billion increase in accrued expenses, and ¥119.0
billion in income taxes paid.
(Net cash used in investment activities)
Net cash used in investing activities was ¥109.0 billion (net cash used in the same consolidated
cumulative period of the previous fiscal year was ¥96.9 billion). Main factors included ¥20.2 billion in
expenditures for the purchase of marketable securities (net basis against proceeds from sales ofmarketable securities), ¥66.9 billion in expenditures for the purchase of property, plant and equipment(net basis against proceeds from sales of property, plant and equipment), ¥11.4 billion in proceeds fromsales of investment securities (net basis against expenditures for the purchase of investment securities),and ¥15.2 billion in payments of loans receivable (net basis against proceeds from collection of loans
receivable).
(Net cash used in financing activities)
Net cash used in financing activities was ¥116.7 billion (net cash used in the same consolidated
cumulative period of the previous fiscal year was ¥39.5 billion). Main factors included a ¥52.7 billion in
expenditures for the purchase of treasury stock and ¥56.1 billion in expenditures for cash dividends paid.

―4―(3) Explanation about Future Forecasts such as Projections for the Current Fiscal Year
FHI has revised full year consolidated performance projections for the fiscal year ending March 31,
2017, which were released at the timing of consolidated financial results announcement on August 3,
2016, as stated below, in consideration of factors such as the effects expected from foreign exchange rate
fluctuations and higher miscellaneous expenditure.
Projections of full-year consolidated business results of the current fiscal year are based on assumed
foreign exchange rates of ¥104/US$ (previously ¥106/US$) and ¥115/EUR (previously ¥121/EUR).
Exchange rate assumptions for the second half of the current fiscal year are ¥100/US$ and ¥110/EUR.
Consolidated Results Forecast for the FYE 2017 (April 1, 2016 to March 31, 2017)

Previous projection (A)¥ million
3,190,000¥ million
400,000

Net Income
Net Income per
Attributable to
Share
Owners of the Parent¥ million¥ million
Yen
410,000
285,000
365.21

Revised projection (B)3,180,000

373,000

397,000

278,000

359.94

Change in amount (B-A)(10,000)(27,000)(13,000)(7,000)(5.27)

Percentage change (%)(0.3)%(6.8)%(3.2)%(2.5)%(1.4)%(Supplemental information)
Actual results of FYE 2016
(April 1, 2015 to March 31,
2016)

3,232,258

565,589

576,972

436,654559.54

Net Sales

Operating
Income―5―Ordinary
Income2. Notes on Summary Information(1) Application of specific accounting for preparing the quarterly consolidated financial statements
Income tax expense was calculated as multiplying income before income taxes by reasonably estimatedannual effective tax rate. This annual tax rate was reasonably estimated after applying the deferred tax
accounting to the annual income before income taxes. "Income taxes-deferred" was included in "Total income
taxes".
(2) Changes in Accounting Policy
Based on amendments in the Corporation Tax Act, "Practical Solution on a change in depreciation method
due to Tax Reform 2016"(PITF No.32 issued on June 17, 2016) issued by Accounting Standards Board ofJapan (ASBJ) was applied from the first quarter of the fiscal year ending March 2017.
FHI group changed depreciation method for facilities attached to buildings and for structures acquired on orafter April 1, 2016 from the declining-balance method to the straight-line method. Since the impact of thechange is immaterial, notes for the change was omitted.
(3) Additional Information
FHI group applied "Revised Implementation Guidance on Recoverability of Deferred Tax Assets" issued by
ASBJ from the first quarter of the fiscal year ending March 2017.

―6―

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

2nd Quarter of FY2017(as of September 30, 2016)

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

531,298
129,790
19,775455,528
172,620
50,518
41,101
79,294
164,853
89,565(586)
1,733,756

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

166,782
161,069
183,861
15,78333,76843,159604,422

20,98920,98922,34822,348109,804
1,774
16,33990,205(3,427)
214,695
808,317
2,592,410

88,953483
19,075
94,418(3,406)
199,523826,2932,560,049

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

2nd Quarter of FY2017(as of September 30, 2016)

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

314,760
87,62342,36064,212－42,758
166,951
24,01750,624201
165,315
958,82193,03018,769478
18,586
152,641
283,504
1,242,999

54,872
17,087490
18,900148,302239,651
1,198,472

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

153,795
160,165
1,109,664(7,168)1,416,456

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

5,887(52,180)(11,530)(2,869)(2,574)(17,748)
5,679
1,349,411
2,592,410(60,397)
5,518
1,361,577
2,560,049

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

FY2017(April 1,2016 to
September 30, 2016)

1,601,475
1,087,212
514,263
229,166
285,097

1,577,652
1,126,735
450,917242,392
208,525

1,489
762
374
－
257
9,920
458
13,2601,490
445－
22,316260－
335
24,846

1,368
－
9,606
－
2,361
13,335
285,022

974
155
－
1,857
2,613
5,599
227,772

99
218
204
521

290
9,918
11
10,219

2,252
192
2,444
283,099
91,164
191,935(1,269)193,204

2,066
347
2,413
235,578
70,921
164,657
820
163,837

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

FY2017(April 1,2016 to
September 30, 2016)

191,935

164,657(2,114)(1,000)1,201(5,457)(39,926)
1,278

10

295

622

286

(1,281)
190,654(43,524)
121,133

191,768(1,114)

121,188(55)

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

FY2017(April 1, 2016 to
September 30,2016)

283,099
35,748(142)(2,251)
1,368
2,153
(160)
140
19,965
35,119(795)(11,775)(10,612)351,857
2,734(1,410)(70,322)282,859

235,578
37,920(58)(1,935)974
1,776(9,581)
1,226
5,264(14,917)(8,582)
41,73826,500315,903
2,492(1,031)(118,989)
198,375(28,085)(3,174)
6,422(56,310)523(24,174)
13,021(53,389)
56,041(7,773)(96,898)(11,774)(45,081)
24,894(67,629)715(20,382)
31,734(69,077)
53,903(6,269)(108,966)

5,933
3,860
(19,944)－(10)(28,827)－(554)(39,542)(1,383)145,036
612,085

12,3295,150(12,792)(10,000)(52,739)(56,105)(1,944)(560)(116,661)(25,521)(52,773)
829,461(127)－

756,994

776,688

(4) Note to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
FY2017 (April 1, 2016 to September 30, 2016)
Not Applicable(Notes on Significant Changes in the Amount of Shareholders’Equity)
FY2017 (April 1, 2016 to September 30, 2016)
Not Applicable(Segment Information)
Information on sales and income(loss) by business segment reported
2nd Quarter of FY 2016 (April 1, 2015 to September 30, 2015)
Business segment reported
Automobiles Aerospace
Net sales(1) Outside customers(2) Inter-segment
Total sales
Operating income

1,505,721
2,267
1,507,988
273,170

73,485－73,485
9,647

Industrial
products

SubTotal

18,490108
18,598607

1,597,696
2,375
1,600,071
283,424(Unit: Millions of yen)
Other
*1

3,779
7,776
11,555
1,348

Total

1,601,475
10,151
1,611,626
284,772

Consolidated
Adjustment
Statement of*2
income *3－(10,151)(10,151)325

1,601,475－
1,601,475
285,097

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

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

1,492,380
2,427
1,494,807
203,296

66,766－
66,766
3,599

Industrial
products

SubTotal

14,63595
14,730(293)

1,573,781
2,522
1,576,303
206,602

Other
*1

Total

3,871
11,96015,831
1,470

1,577,652
14,482
1,592,134
208,072

Consolidated
Adjustment
Statement of*2
income *3－(14,482)(14,482)453

1,577,652－
1,577,652
208,525

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

November 2, 2016
Fuji Heavy Industries Ltd.

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

RESULTSRESULTSFORECASTS

FYE2016 1H
2015. 4-9

FYE2017 1st Half

FYE2016'15.4-'16.3

FYE2017 Full Year2016. 4-9
ChangeNet sales
Japan
Overseas

Operating income
Profit margin (%)

Ordinary income

Change

%

(238)

(1.5)

32,32331,800

(523)

(1.6)

31,9002,852
13,1632,851

2,860
12,916
2,085

8

0.3
(1.9)

(931)

(3.5)

(766)

(26.9)

6,463
25,337
3,730

6.7

(246)

6,054
26,2695,656

409(1,926)(34.1)

6,103
25,797
4,000

17.8

13.2

17.5

11.7

2,850

2,278

3,970

(1,800)(31.2)

4,100(1,587)(36.3)

2,850

17.8

14.4

1,932

1,638

12.1

(573)

(20.1)

5,770
17.9

12.5

(294)

(15.2)

4,367

2,780

10.4

13.5

Improvements onmodel mix, etc
Cost reduction effort,
etc
Loss on currency
exchange
Increase in SG&A
exp, etc

Factors contributing tochange in operating income

Increase in R&D exp

12.5
12.9

8.7

8.9

Improvements onmodel mix, etc
Cost reduction effort,
etc
Loss on currency
exchange
Increase in SG&A
exp, etc

678
218
(817)
(774)

Increase in R&D exp

(71)

1,353
339
(1,965)(1,507)(146)

JPY/US$

122/US$

107/US$

121/US$

104/US$

106/US$

JPY/EUR

135/EUR

120/EUR

133/EUR

115/EUR

121/EUR

506

637
335
534
1,614

1,357

1,600
800
1,170
1,600

1,600

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

313
463
2,014

Performance description

Consolidated unit sales (Japan)

650
1,024
1,700

800
1,200
1,650

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

- Net sales and all profits to decrease
for first time in 5 years.

- First-half record for consolidated unit
sales.

- Full-year record for consolidated unit
sales.

67

68

2

2.3

145

159

13

9.1

156

Passenger Cars

50

52

3

5.3

112

123

11

10.2

119

Minicars

17

16

(1)

(6.8)

34

36

2

5.8

37

406

444

38

9.4

813

904

91

11.2

893

North America

317

355

39

12.2

630

714

84

13.3

696

Europe

23

22

(1)

(3.9)

48

47

(0)

(0.4)

50

China

20

22

1

6.2

44

45

0

0.3

49

Other

45

45

(1)

(1.7)

90

98

7

8.2

99

472

512

40

8.4

958

1,062

104

10.9

1,050

460

502

43

9.3

951

1,054

103

10.8

1,051

Japan

348

355

7

2.0

715

718

3

0.4

710

U.S.

112

148

36

32.0

236

336

100

42.3

341

Automobile

15,057

14,924

(133)

(0.9)

30,394

Aerospace

735

668

(67)

(9.1)

1,528

Industrial Products

185

146

(39)

(20.8)

326

Consolidated unit sales (Overseas)

Consolidated unit sales total
Production units total

38

39

1

2.4

75

Automobile

2,732

2,033

(699)

(25.6)

5,436

Aerospace

96

36

(60)

(62.7)

182

Other

Operating income bybusiness segment%

15,777

Profit margin (%)

Net sales bybusiness segment

FYE2017'16.4-'17.3

2016.4 - 2017.3

16,015

Net income attributable toProfit margin (%)
owners of parent

Exchange rates

PREVIOUSFORECASTS

RESULTS

Industrial Products

6

(3)

(9)

(148.3)

1

Other

13

15

1

9.1

29

Elimination &Corporate

3

5

1

39.4

8

* Exchange Rates are the rates used for FHI's non-consolidated sales recording.
* Consolidated Unit Sales include retail sales of Japanese consolidated dealers, wholesale sales of overseas consolidated distributors, and deliveries from FHI to nonconsolidated distributors/dealers.
* Production in Japan includes production of the 86 models for Toyota.
< Forward-looking statements in this document are based on the information available at the time of the announcement and are subject to various risks and uncertainties that
could cause actual results to vary materially. >FHI Announces First Half Financial Results for FYE2017
Tokyo, November 2, 2016 - 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, 2017.

< FYE2017 1st Half Results: Consolidated Net Sales >Subaru’s consolidated global unit sales rose 8.4% to 512,000 units. Unit sales in Japan increased 2.3% to 68,000 units,as passenger car sales growth led by the Forester offset a decline in mini vehicle sales. Overseas unit sales grew 9.4%
to 444,000 units, driven by continued strong sales of the Legacy and Outback in North America.
Consolidated net sales decreased 1.5% to 1,577.7 billion yen, as foreign exchange losses and other factors offset unit
sales growth.
Consolidated North American unit sales marked a first-half record for the 8th consecutive year. *1
Consolidated global unit sales and overseas unit sales posted first-half records for the 5th consecutive year.*1< FYE2017 1st Half Results: Consolidated Profit and Loss >While unit sales growth and cost reduction progress offset increases in R&D and SG&A expenses, operating income fell
26.9% to 208.5 billion yen due to foreign exchange losses. SG&A expenses were mainly quality-related costs associatedwith airbag inflators. Ordinary income decreased 20.1% to 227.8 billion yen and net income attributable to owners ofparent declined 15.2% to 163.8 billion yen.

< FYE2017 Full-Year Forecasts >Compared to the previous forecasts, unit sales are projected to increase further, offsetting a rise in SG&A expenses,
while foreign exchange losses are forecasted to increase. Reflecting these changes, full-year forecasts are revised to net
sales of 3,180 billion yen, operating income of 373 billion yen, ordinary income of 397 billion yen, and net income
attributable to owners of parent of 278 billion yen.
Consolidated unit sales in North America are projected to reach a record high for the 8th consecutive year.*2
Consolidated global unit sales and overseas unit sales are projected to post record highs for the 5th consecutive year.*2
Currency rate assumptions: 104 yen/US$, 115 yen/euroPrevious Forecasts for FYE2017 (Announced on August 3, 2016)
Net sales: 3,190 billion yen
Operating income: 400 billion yen
Ordinary income: 410 billion yen
Net income attributable to owners of parent: 285 billion yen
Currency rate assumptions: 106 yen/US$, 121 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 atthe time of the announcement and are subject to various risks and uncertainties that could cause actual results to varymaterially.
###