（Nov. 8, 2005）
Fuji Heavy Industries Ltd.

<Reference for the First Half of FY2006(Apr. 2005 to Sep. 2005)
Consolidated Financial Results>

(in 100 millions of yen)
(in thousands of units)
  RESULTS
1st HALF of FY2005
Apr. 2004 to
Sep. 2004		 RESULTS
1st HALF of FY2006

Apr. 2005 to
Sep. 2005		 RESULTS
FY2005

Apr. 2004 to
Mar. 2005		 FORECAST
FY2006

Apr. 2005 to
Mar. 2006		 FORECAST
FY2006
(May 2005)
Apr. 2005 to
Mar.2006
Net Sales
Domestic
Overseas		 6,908
3,050
3,858		 6,671
2,955
3,716		 (3.4) %
(3.1) %
(3.7) %		 14,465
6,271
8,194		 14,800
6,230
8,570		 2.3 %
(0.6) %
4.6 %		 14,700
6,472
8,228
Margin Percentage
Operating Income
2.2 %
155
2.6 %
174		 12.3 %
2.9 %
420
2.6 %
390		 (7.2) %
2.1%
310
Margin Percentage
Ordinary Income
2.2 %
151
2.0 %
135		 (10.2) %
3.0 %
436
2.0%
290		 (33.4) %
1.8 %
270
Margin Percentage
Net Income
1.2 %
83
1.2 %
80		 (3.8) %
1.3 %
182
0.8 %
120		 (34.2) %
1.0 %
150
Factors of Change
in Operating Income		   Gain factors
Decrease in R&D expenses
Reduction in cost
Decrease of expenses
and others
Foreign exchange
62
59

51
2

Loss factors
Decrease in sales mix 155
  Gain factors
Reduction in cost
Decrease in R&D expenses
Decrease of expenses
and others
Foreign exchange		 113

40

27
12

Loss factors
Decrease in sales mix 222
Gain factors
Reduction in cost 110

Loss factors
Decrease in sales mix
Foreign exchange
Increase in R&D
expenses
Increase of expenses
and others		 92
86

25

17
Foreign Exchange Rate YEN/US$ 110 109 108 108 105
Capital Investment 405 324 853 630 670
Depreciation and Amortization 255 270 511 570 580
R&D Expenses 278 216 530 490 555
Interest bearing debt 4,055 3,981 4,122 4,100 4,100
Performance of Operation   Net Sales to decrease
Net Income to decrease		   Net Sales to increase
Net Income to decrease
Best Net Sales		  
Domestic Sales
Small Cars
Minicars		 124
50
73		 114
48
66		 (7.9) %
(4.2) %
(10.4) %		 254
104
150		 237
103
134		 6.7 %
(0.7) %
(10.8) %		 251
107
143
Overseas Sales
North America
Europe
Other		 152
94
31
27		 150
88
31
31		 (0.9) %
(6.1) %
0.1 %
15.7 %		 328
210
61
57		 336
213
62
61		 2.6 %
1.1 %
2.4 %
8.4 %		 331
219
58
54
Units Total 275 264 (4.0) % 582 573 (1.4) % 582
SIA Isuzu SUVｓ 12 0  - 13 0 - 0

* Figures of Total Sales are the sum of retail sales units of the Japanese subsidiary dealers,
wholesale units of the overseas subsidiary distributors, and wholesale units of FHI to other distributors/dearlers.
* Exchange rate is the non-consolidated base of Fuji Heavy Industries Ltd..

copyright (c) FUJI HEAVY INDUSTRIES Ltd. 2007 All Rights Reserved.