2009 Investors Conference October 19, 2009

FUJI HEAVY INDUSTRIES LTD. President & CEO Ikuo Mori http://www.fhi.co.jp/english/ir/index.html 0 Five Major Challenges

To grow the level of employee competence To provide a distinctive and so enhance experience the organization for drivers and passengers

With the philosophy of “Customers come first” at its core! To also grow through the business alliance To increase with sales globally

To strengthen competitiveness in quality and cost

http://www.fhi.co.jp/english/ir/index.html 1 Ⅰ. To provide A Distinctive Subaru Experience

Integrate the Pleasure of Driving and Environmental Responsibility

Integrate

Subaru Driving Performance Environmental Friendliness Comfort & Safety Significant improvement of fuel efficiency To Provide A Fascinating Subaru Distinctive Value We pursue; Driving pleasure that every customer can feel Reliability that every customer can feel Functions that every customer can appreciate Enhanced environmental friendliness Intelligent and sporty design that fully expresses Subaru value http://www.fhi.co.jp/english/ir/index.html 2 Environmental Friendliness of Subaru

Environmental friendliness and improvement of fuel efficiency •Gasoline engine : Improve fuel economy and reduced emission gas •Diesel engine : Reduce CO2 and meet market needs •Electric vehicle : Zero emission vehicle

SUBARU BOXER DIESEL Subaru Plug-in STELLA http://www.fhi.co.jp/english/ir/index.html 3 Ⅰ. To provide A Distinctive Subaru Experience

¾Ensure Subaru product appeal to customers across world markets ¾By competing for customers in the most tough market, Japan, product and technology will be improved < Product Roadmap >

One more Full Model Change annually 2006 2011~ -June 2007 Impreza FMC -October 2007 Impreza WRX STI FMC -December 2007 Forester FMC -May 2009 Legacy FMC Core Models -2011 Sporty Compact Car will launch (Further Globalize) (Joint Development Car with Toyota)

-Autumn 2007 Justy launched in Europe Subcompact -November 2008 DEX launched in Japan (Europe & Japan) provided by Daihatsu on an OEM basis Subcompact (Multi Market) Model for Environmental Strategy

Multi Passenger Vehicle June 2008 Exiga launched in Japan

Minicars September 2009 Dias launched Following models will be provided by Daihatsu on an OEM basis http://www.fhi.co.jp/english/ir/index.html 4 Ⅰ. To provide A Distinctive Subaru Experience

¾Ensure Subaru product appeal to customers across world markets ¾By competing for customers in the most tough market, Japan, product and technology will be improved

< Technology Roadmap >

2006 2011~ Introduce new chassis in sequence -Introduce SI-chassis (Subaru DC3) for Impreza, Forester and Legacy FMC Boxer E/G Chassis

Introduce in European market - March 2008 Legacy & Outback Diesel Engine - October 2008 Forester - December 2008 Impreza FS for other markets

Eco-friendly Power Introduce new technology units - July 2009 Electric Vehicle (Plug-in STELLA) - R&D of Hybrid system

Next Gen. ADA※ Launched in Japan - deployed on Legacy named “Eyesight” *Active Driving Assist (Advanced Pre-Crash Safety/ Technology) http://www.fhi.co.jp/english/ir/index.html 5 Safety

EU: New Legacy achieved top 5-Star ratings in Euro NCAP Safety Test US: Subaru Named the Only Manufacture with 2009 IIHS Top Safety Picks for all the current model lineup (Legacy, Outback, Impreza, Forester and Tribeca) Australia: New Legacy & Outback were awarded a top 5-star rating in occupant safety by ANCAP http://www.fhi.co.jp/english/ir/index.html 6 Ⅰ. To provide A Distinctive Subaru Experience - Exhibition of the Tokyo Motor Show 2009 -

1.SUBARU HYBRID TOURER CONCEPT [ Concept Car ]

•Subaru’s vision of future grand touring car that provides a luxurious and comfortable cabin in any environment

•Condensed Subaru’s DNA developed core technology of Symmetrical All-Wheel Drive (AWD)

•Achieved high level handling agility, riding comfort and superior safety performance

•New powertrain combined Subaru’s first direct fuel-injection turbo engine, Lineartronic (CVT) and hybrid system http://www.fhi.co.jp/english/ir/index.html 7 Ⅰ. To provide A Distinctive Subaru Experience - Exhibition of the Tokyo Motor Show 2009 -

1.SUBARU HYBRID TOURER CONCEPT [ Concept Car ]

Subaru has improved both fuel efficiency and driving performance due to an integration of a direct Technology of Diesel engine fuel-injection system, Lineartronic (CVT) and new & Turbo Engine hybrid system with maintaining of Subaru’s core Evolution technology such as Horizontally-Opposed turbo Evolution engine and Symmetrical AWD Horizontally-Opposed direct fuel-injection turbo Next-generation power unit system gasoline engine

•Subaru’s renowned Symmetrical AWD with Symmetrical Horizontally-Opposed engine All-Wheel Lineartronic •Hybrid system that further enhances Drive with 2 motor assist distinctive Subaru experience Evolution Evolution •Highly-balanced environmental friendliness Technology Developmental and driving performance of CVT power of EV & HEV http://www.fhi.co.jp/english/ir/index.html 8 Ⅰ. To provide A Distinctive Subaru Experience - Exhibition of the Tokyo Motor Show 2009 -

1.SUBARU HYBRID TOURER CONCEPT [ Concept Car ] 2.0-liter Horizontally- Hybrid system Opposed direct fuel- injection turbo gasoline engine Motor generator

Lithium-ion battery

Lineartronic Rear motor

http://www.fhi.co.jp/english/ir/index.html 9 Ⅰ. To provide A Distinctive Subaru Experience - Exhibition of the Tokyo Motor Show 2009 -

1.SUBARU HYBRID TOURER CONCEPT [ Concept Car ] Hybrid system

Two motor system features a power/drive motor in the front and a drive motor in the rear

•Extremely low speeds : AWD drive by the rear motor and excess driving force will be utilized for generation and charge of electric power at front motor •During normal driving : drive mainly powered by the front engine •During acceleration : drive powered by the engine + rear motor assist •During hill-climb driving : front motor also assists the front axle drive •During deceleration : front and rear motor regulates a 4-wheel regenerative brake controls, and implement a non-idling function that stops the engine when the car comes to a halt reduces unnecessary fuel consumption

http://www.fhi.co.jp/english/ir/index.html 10 Ⅰ. To provide A Distinctive Subaru Experience - Exhibition of the Tokyo Motor Show 2009 -

1.SUBARU HYBRID TOURER CONCEPT [ Concept Car ] EyeSightEyeSight ++ (plus)(plus)

Assist the collision prevention by braking synchronized with a stereo camera!

Detect a invisible car by communication technology------http://www.fhi.co.jp/english/ir/index.html 11 Ⅰ. To provide A Distinctive Subaru Experience - Exhibition of the Tokyo Motor Show 2009 -

1.SUBARU HYBRID TOURER CONCEPT [ Concept Car ] EyeSightEyeSight ++ (plus)(plus) Next-generation driver assistance system provides improved safety and peace-of- mind for passengers, and represents a major evolution in collision detection performance Information of road and other cars •Detect a invisible information such as a car, ( Concerted infrastructure ) pedestrian with vehicle-to-vehicle and road-to- Communication technology vehicle communication technology •Enhanced collision prevention management system Road-to-vehicle / DSRC Optical GPS vehicle-to- beacon vehicle Information of a stereo camera (autonomous sensor)

http://www.fhi.co.jp/english/ir/index.html 12 Ⅰ. To provide A Distinctive Subaru Experience - Exhibition of the Tokyo Motor Show 2009 -

2.Plug-in STELLA feat. BEAMS [ Display Model ] •Collaboration between EV as a suitable mobility for environmentally friendly city driving and BEAMS that leads generation at any time

•To make people feel more familiar to this model, we designed exterior to express familiarity with a playful design by BEAMS and also to provide environmental friendliness (Zero emission) at a high level by electric vehicle

http://www.fhi.co.jp/english/ir/index.html 13 Ⅰ. To provide A Distinctive Subaru Experience - Exhibition of the Tokyo Motor Show 2009 -

2.Plug-in STELLA feat. BEAMS [ Display Model ]

•Coming the days of EV is depicted by soft illustration

•We put an image of a four-leaf clover, a symbol of peace, in the exterior to show our desire that people will continue to live safely in peace of mind

•The green color of wheels image balmy grassland

http://www.fhi.co.jp/english/ir/index.html 14 Ⅰ. To provide A Distinctive Subaru Experience - Exhibition of the Tokyo Motor Show 2009 -

3. IMPREZA WRX STI CARBON [ Display Model ]

•IMPREZA WRX STI A-Line has been highly praised for its distinctive driving performance

•Using a carbon material in the roof to enhance further driving performance •Special specification for both interior and exterior offer driving excitement and pride of ownership

http://www.fhi.co.jp/english/ir/index.html 15 Ⅰ. To provide A Distinctive Subaru Experience - Exhibition of the Tokyo Motor Show 2009 -

3. IMPREZA WRX STI CARBON [ Display Model ] Exterior •Using a carbon material in the roof to achieve both a significant weight reduction and a lower center of gravity of the vehicle •Dark-tone high-luster paint for BBS aluminum wheel Interior •The suede fabric used for dashboard, meter visor, door trim, etc. and equipped seats of spec C version made by RECARO

http://www.fhi.co.jp/english/ir/index.html 16 Ⅱ.To Increase Sales Globally

•U.S. is the most important market Introduce vehicles suitable for market Strengthen the sales network •Australia, Europe are also important market Introduce boxer diesel engine cars Expand sales network •China, Russia and other emerging countries are growing market Expand sales further Enhance brand value •Japan is our mother market Improve profitability by focusing on the passenger car sales Strengthen urban outlets http://www.fhi.co.jp/english/ir/index.html 17 Ⅱ.To Increase Sales Globally

Retail Sales of United States

CY2009 Jan.-Sep. Jan.-Sep. YoY CY2007 CY2008 (Plan) 2008 2009 (%) Legacy 79,555 66,878 76,000 52,885 55,321 104.6

Impreza 46,329 49,098 45,000 37,142 37,360 100.6

Forester 44,534 60,748 76,000 44,695 60,441 135.2

Tribeca 16,790 10,975 6,000 9,067 5,299 58.4

Total 187,208 187,699 203,000 143,789 158,421 110.2 (YoY) (93.3%) (100.3%) (108.2%) Total Demand YoY 97.5% 82.0% - - - 72.6

Jul. 2009 sales : 21,839 units (+34.2%YoY) New record for a month Aug. 2009 sales : 28,683 units (+51.5%YoY) New record for a month Sep. 2009 sales : 14,593 units (+0.7%YoY) http://www.fhi.co.jp/english/ir/index.html 18 Ⅱ.To Increase Sales Globally

Retail Sales of United States

250,000

200,000

150,000

100,000

50,000

0 CY2007 CY2008 CY2009(Plan) 2008/1~9 2009/1~9

Legacy Impreza Forester Tribeca http://www.fhi.co.jp/english/ir/index.html 19 Ⅱ.To Increase Sales Globally

Products strategy in U.S.

Motor Trend Sport/Utility of the Year 2009 Forester 2010 Outback

http://www.fhi.co.jp/english/ir/index.html 20 Ⅱ.To Increase Sales Globally

Products strategy in U.S. Subaru named the only manufacture with 2009 IIHS Top Safety Picks for all the current model lineup (Legacy, Outback, Impreza, Forester and Tribeca)

http://www.fhi.co.jp/english/ir/index.html 21 Ⅱ.To Increase Sales Globally

Marketing strategy in U.S.

2010 2005 2006 2007 2008 2009/9 (Plan)

Exclusive 240 272 275 276 281 290

Separate Showroom 156 164 175 182 191 170

Total 396 436 450 458 472 460

Dual Dealerships 192 165 150 142 134 165

Grand total 588 601 600 600 606 625

Exclusive & Separate 67% 73% 75% 76% 78% 74% Percentage (%)

Subaru “signature facility” showroom 330 371 394 398 395 435 http://www.fhi.co.jp/english/ir/index.html 22 Ⅱ.To Increase Sales Globally

Marketing strategy in U.S.

Market share in U.S.

Jan.- Dec. Jan.- Dec. Jan.- Jul. increase/ decrease 2007 2008 (a) 2009 (b) (b-a) U.S. 1.2% 1.4% 1.9% +0.5% Sunbelt 0.4% 0.5% 0.7% +0.2% California 0.8% 0.9% 1.4% +0.5% Texas 0.3% 0.3% 0.5% +0.2% Florida 0.3% 0.4% 0.6% +0.2% Georgia 0.3% 0.4% 0.8% +0.4% Snowbelt 1.8% 2.1% 2.8% +0.7% New York 2.0% 2.4% 3.0% +0.6% Pennsylvania 2.4% 2.9% 3.5% +0.6% New Jersey 1.4% 1.8% 2.4% +0.6% http://www.fhi.co.jp/english/ir/index.html 23 Ⅱ.To Increase Sales Globally

Marketing strategy in U.S. - New Structure

http://www.fhi.co.jp/english/ir/index.html 24 Ⅱ.To Increase Sales Globally

Retail Sales of Canada

Jan.-Sep. Jan.-Sep. YoY CY2007 CY2008 CY2009 2008 2009 (%) Legacy 4,920 4,090 3,800 3,304 2,594 78.5

Impreza 7,480 8,555 8,500 6,405 6,876 107.4

Forester 3,303 6,322 8,200 4,691 6,472 138.0

Tribeca 801 925 500 706 446 63.2

Total 16,504 19,892 21,000 15,106 16,388 108.5 (YoY) (101.9%) (120.5%) (105.6%) Total Demand YoY 102.4% 98.9% - - - 85.7

Sep. 2009 sales: 2,544 units Make a new record for a month and an accumulated total http://www.fhi.co.jp/english/ir/index.html 25 Ⅱ.To Increase Sales Globally

Retail Sales of Canada

25,000

20,000

15,000

10,000

5,000

0 CY2007 CY2008 CY2009(Plan) 2008/1~9 2009/1~9

Legacy Impreza Forester Tribeca http://www.fhi.co.jp/english/ir/index.html 26 Ⅱ.To Increase Sales Globally

Retail Sales of Australia

CY2009 Jan.-Sep. Jan.-Sep. YoY CY2007 CY2008 (Plan) 2008 2009 (%) Legacy 13,780 10,811 9,752 8,741 5,635 64.5

Impreza 10,853 11,607 11,072 9,026 9,775 108.3

Forester 12,554 14,423 12,923 10,832 10,779 99.5

Tribeca 1,258 1,651 1,053 1,306 1,036 79.3

Exiga --200---

Total 38,445 38,492 35,000 29,905 27,225 91.0 (YoY) (102.5%) (100.1%) (90.9%) Total Demand YoY 109.1% 96.4% - - - 86.9

New Legacy sales started in September http://www.fhi.co.jp/english/ir/index.html 27 Ⅱ.To Increase Sales Globally

Retail Sales of Australia

45,000

40,000 35,000 30,000

25,000 20,000 15,000

10,000 5,000 0 CY2007 CY2008 CY2009(Plan) 2008/1~9 2009/1~9

Legacy Impreza Forester Tribeca Exiga http://www.fhi.co.jp/english/ir/index.html 28 Ⅱ.To Increase Sales Globally

Retail Sales of Europe ( Excluding Russia )

CY2009 Jan.-Sep. Jan.-Sep. YoY CY2007 CY2008 (Plan) 2008 2009 (%) Legacy 14,933 16,667 13,146 13,009 8,418 64.7 Impreza 16,225 13,784 12,049 11,128 7,998 71.9 Forester 18,404 21,630 18,730 13,803 12,698 92.0 Tribeca 2,655 1,760 553 1,258 265 21.1 Justy 5,324 7,741 4,705 6,017 5,444 90.5

Total 57,541 61,582 49,183 45,215 34,823 77.0 (YoY) (90.2%) (107.0%) (79.9%) Total Demand YoY 102.7% 92.3% - - - 89.0* *Jan to Aug Situations are different for each country New Legacy has just launched in September. http://www.fhi.co.jp/english/ir/index.html 29 Ⅱ.To Increase Sales Globally

Retail Sales of Europe ( Excluding Russia )

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0 CY2007 CY2008 CY2009(Plan) 2008/1~6 2009/1~6

Legacy Impreza Forester Tribeca Justy http://www.fhi.co.jp/english/ir/index.html 30 Ⅱ.To Increase Sales Globally

Retail Sales of Russia

CY2009 Jan.-Sep. Jan.-Sep. YoY CY2007 CY2008 (Plan) 2008 2009 (%)

Legacy 3 ,979 3,353 1,451 2,709 918 33.9

Impreza 3,463 6,319 2,960 4,560 2,353 51.6

Forester 6,768 11,125 4,789 8,300 3,127 37.7

Tribeca 1,593 1,209 800 1,016 504 49.6

Total 15,803 22,006 10,000 16,585 6,902 41.6 (YoY) (203.5%) (139.3%) (45.4%) Total Demand YoY 131.3% 115.7% - - - 48.8* *Jan to Aug

Struggling for sales and inventory adjustment http://www.fhi.co.jp/english/ir/index.html 31 Ⅱ.To Increase Sales Globally

Retail Sales of Russia

25,000

20,000

15,000

10,000

5,000

0 CY2007 CY2008 CY2009(Plan) 2008/1~9 2009/1~9

Legacy Impreza Forester Tribeca http://www.fhi.co.jp/english/ir/index.html 32 Ⅱ.To Increase Sales Globally Automobile unit sales by models after reentry in China

40,000

30,000

20,000

10,000

0 2005 2006 2007 2008 2009

Legacy Impreza Forester Tribeca http://www.fhi.co.jp/english/ir/index.html 33 Ⅱ.To Increase Sales Globally

Retail Sales of China

CY2009 Jan.-Sep. Jan.-Sep. YoY CY2007 CY2008 (Plan) 2008 2009 (%) Legacy 2,769 2,317 3,600 1,833 1,436 78.3 Impreza 271 927 500 692 435 62.9 Forester 5,450 14,398 29,000 9,235 20,568 222.7 Tribeca 741 1,368 900 1,133 943 83.2

Total 9,231 19,010 34,000 12,893 23,382 181.4 (YoY) (164.8%) (205.9%) (178.9%) Total Demand YoY 120.4% 106.7% - - - 141.5* *Jan to Aug Jul. 2009 sales : 3,041 units (+73.3%YoY) New record for a month Aug. 2009 sales : 3,492 units (+109.0%YoY) New record for a month Sep. 2009 sales : 3,749 units (+119.6%YoY) New record for a month New Legacy sales started in September http://www.fhi.co.jp/english/ir/index.html 34 Ⅱ.To Increase Sales Globally

Marketing strategy in China

2007 2008 2009 (Plan) No. of dealers 61 81 106 3S showroom Percentage (%) 84% 95% 100% 3S showroom : having a combination of sales, service and spare parts facilities

Subaru showroom in Beijing

http://www.fhi.co.jp/english/ir/index.html 35 Ⅱ.To Increase Sales Globally

Marketing strategy in China Commercial film (CF) of New Legacy – back ground •Romantic comedy movie “非诚勿扰 ( if you are the one )” became a big hit in 2008. The box-office sales was the 2nd highest in China. Subaru of China (SOC) which is the local sales subsidiary, sponsored this movie. •SOC provided Subaru cars such as Forester and Outback to this movie. Subaru cars appears on the scene. In this movie, Outback’s running scene in Hokkaido was impressive for audience. •Mr. Ge You as the lead and Ms. Shu Qui as the lead’s lover have achieved name recognition in China. Further, Mr. Feng Xiaogang, director, is a movie maestro following Mr. Zhang Yimou who was a director of the Beijing Olympic Ceremony. •Due to this movie’s smash hit, Hokkaido traveling became a social phenomenon among the wealthy class. Prime Minister Aso expressed appreciation to the director in visiting China. (Apr. 29, 2009) •Mr. Ge You, he is a good looking guy, however has an image of honesty and seriousness as well as being a major actor. His image conforms to Subaru’s direction of products.

http://www.fhi.co.jp/english/ir/index.html 36 Ⅱ.To Increase Sales Globally

Marketing strategy in China Commercial film (CF) of New Legacy – contents

–The theme is a “marriage ceremony”. It gives an idea of sequel of the movie story –In China, people place emphasis on family ties and blood relationship, marriage ceremony is the most important event rather than in Japan –Story : As priest is late in arriving at the marriage ceremony, consequently, bride and groom come and pick priest up by Legacy –CF represents Legacy’s handling agility, riding comfort of rear seat and narrativity in 30 seconds CF

http://www.fhi.co.jp/english/ir/index.html 37 Ⅱ.To Increase Sales Globally

Retail Sales of Japan ( fiscal year )

FYE 2010 Apr.-Sep. Apr.-Sep. YoY FYE 2008 FYE 2009 (Plan) FYE 2009 FYE 2010 (%) Legacy 35,277 22,719 34,000 12,609 16,547 131.2 Impreza 33,617 22,216 19,500 10,956 10,209 93.2 Forester 18,302 17,852 12,700 9,531 5,132 53.8 Exiga - 12,213 8,900 7,814 3,891 49.8 DEX - 2,353 3,900 - 1,093 - Passenger 87,196 77,353 79,000 40,910 36,872 - cars Total YoY 99.2% 88.7% 100.6% 90.1% (Total Demand - - (97.9%) (85.0%) (99.0%) (94.6%) YoY) Minicar 135,043 111,840 92,500 59,799 46,263 77.4 Total 222,239 189,193 171,500 100,709 83,135 82.5 (YoY) (90.5%) (85.1%) (90.6%) Total Demand YoY 93.3% 95.0% - - - 84.5 http://www.fhi.co.jp/english/ir/index.html 38 Ⅱ.To Increase Sales Globally

Retail Sales of Japan ( fiscal year )

250,000

200,000

150,000

100,000

50,000

0 FY2008 FY2009 FY2010(Plan) 2008/4~9 2009/4~9

Legacy Impreza Forester Exiga Dex Minicars http://www.fhi.co.jp/english/ir/index.html 39 Ⅱ.To Increase Sales Globally

Integration of distributors in Japan

< Koshinetsu-Hokuriku area > Head office : Niigata Pref. < Tohoku area > Integrate Niigata, Nagano, Yamanashi Head office : Miyagi Pref. and Hokuriku Integrate Miyagi, Aomori, Iwate, Akita, Yamagata and Fukushima Head office : Hiroshima Pref. Integrate Hiroshima, Sanin, < Tokai area > Okayama, Yamaguchi, Higashi-Shikoku and Shikoku Head office : Aichi Pref. Integrate Aichi, Gifu and Mie

< Kyusyu area > Head office : Fukuoka Pref. < Kinki area > Integrate Fukuoka, Head office : Osaka Nishi-Kyusyu, Kumamoto, Integrate Osaka, Kyoto, Oita, Minami-Kyusyu and Shiga and Hyogo Shin-Okinawa http://www.fhi.co.jp/english/ir/index.html 40 Ⅲ. Strengthen competitiveness in quality and cost

1) 100 thousand yen cost reduction per unit 2) 30% reduction of tooling and development cost TSR (Total cost Increase material cost Structure Rare material price raise Revolution) Upgrade of spec

Cost 1) More than 100 thousand yen cost reduction per Cost unit due to the environmental friendliness and the appreciation of yen 2) 30% reduction of tooling and development cost 3) New powertrain development cost reduction

TSR-VC (maximize(maximize Value for Competitiveness / Customers) Previous New Model Model http://www.fhi.co.jp/english/ir/index.html 41 Ⅳ. Growth through the business alliance with Toyota

Keep WIN-WIN Relationship

•Daihatsu supplies “Coo” compact car on an OEM basis launched “DEX” on November 13, 2008 •Daihatsu starts to supply minicars on an OEM basis launched “Dias” on September 3, 2009 and other models will be followed Subaru terminates own R&D and production of minicars sequentially •Toyota will provide a compact car on an OEM basis No change •Joint development car (Compact FR sporty car) No change on basic plan 1. Upgrade environmental friendliness and driving performance 2. Renewal current plant instead of building a new plant by reexamining capex plan, upgrade the production facilities sequentially http://www.fhi.co.jp/english/ir/index.html 42 Management Vision

In the long term “A compelling company with strong market presence”

Reinforce management base to achieve two important financial indices constantly; Operating Margin more than 8%, ROA more than 10% To pursue Quality rather than just size To fulfill its Corporate Social Responsibility To provide Compelling and Distinctive products in response to change in the social environment

http://www.fhi.co.jp/english/ir/index.html 43