Tokyo Motor Show 2009 Investors Conference · ... 2009 Tokyo Motor Show 2009 Investors Conference ... Subaru Named the Only Manufacture with 2009 IIHS Top ... 2008/1～9 2009/1～9

0http://www.fhi.co.jp/english/ir/index.html

October 19, 2009

Tokyo Motor Show 2009 Investors Conference

FUJI HEAVY INDUSTRIES LTD.President & CEO Ikuo Mori


Five Major Challenges

To grow the level of employee competence

and so enhance the organization

To provide a distinctiveSubaru experience

for drivers and passengers

To also grow through the business alliance

with Toyota

To strengthen competitiveness

in quality and cost

To increase sales globally

With the philosophy of “Customers come first”

at its core!


Ⅰ. To provide A Distinctive Subaru Experience

<Direction of Product Development>Integrate the Pleasure of Driving and Environmental Responsibility

Subaru Driving PerformanceComfort & Safety

Environmental FriendlinessSignificant improvement of

fuel efficiency

Integrate

To Provide A Fascinating Subaru Distinctive ValueWe pursue;Driving pleasure that every customer can feelReliability that every customer can feelFunctions that every customer can appreciateEnhanced environmental friendlinessIntelligent and sporty design that fully expresses Subaru value


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

Environmental Friendliness of Subaru

Subaru Plug-in STELLASUBARU BOXER DIESEL


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

< Product Roadmap >

2006 2011～

Core Models (Further Globalize)

Subcompact (Europe & Japan）

Subcompact (Multi Market)

Multi Passenger Vehicle

Minicars

-Autumn 2007 Justy launched in Europe -November 2008 DEX launched in Japanprovided by Daihatsu on an OEM basis

Model for Environmental Strategy

June 2008 Exiga launched in Japan

September 2009 Dias launched Following models will be provided by Daihatsu on an OEM basis

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



2006 2011～

Boxer E/G Chassis

Diesel Engine

Eco-friendly Power units

Next Gen. ADA※

< Technology Roadmap >

Introduce new chassis in sequence-Introduce SI-chassis (Subaru DC3)for Impreza, Forester and Legacy FMC

Introduce in European market- March 2008 Legacy & Outback- October 2008 Forester- December 2008 ImprezaFS for other markets

Introduce new technology - July 2009 Electric Vehicle

(Plug-in STELLA)- R&D of Hybrid system

Launched in Japan- deployed on Legacy named “Eyesight”

*Active Driving Assist (Advanced Pre-Crash Safety/ Technology)

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



EU: New Legacy achieved top 5-Star ratings in Euro NCAP Safety TestUS: 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

Safety


1.SUBARU HYBRID TOURER CONCEPT1.SUBARU HYBRID TOURER CONCEPT [ Concept Car ][ 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

Ⅰ. To provide A Distinctive Subaru Experience- Exhibition of the Tokyo Motor Show 2009 -


NextNext--generation power unit systemgeneration power unit system••SubaruSubaru’’s renowned Symmetrical AWD with s renowned Symmetrical AWD with HorizontallyHorizontally--Opposed engineOpposed engine••Hybrid system that further enhances Hybrid system that further enhances distinctive Subaru experiencedistinctive Subaru experience••HighlyHighly--balanced environmental friendliness balanced environmental friendliness and driving performanceand driving performance

Subaru has improved both fuel efficiency and Subaru has improved both fuel efficiency and driving performance due to an integration of a direct driving performance due to an integration of a direct fuelfuel--injection system, Lineartronic (CVT) and new injection system, Lineartronic (CVT) and new hybrid system with maintaining of Subaruhybrid system with maintaining of Subaru’’s core s core technology such as Horizontallytechnology such as Horizontally--Opposed turbo Opposed turbo engine and Symmetrical AWDengine and Symmetrical AWD


HorizontallyHorizontally--Opposed Opposed direct fueldirect fuel--injection turbo injection turbo

gasoline enginegasoline engine

LineartronicLineartronicSymmetrical Symmetrical

AllAll--Wheel Wheel Drive withDrive with

2 motor assist2 motor assist

Technology of Diesel engineTechnology of Diesel engine& Turbo Engine& Turbo Engine

TechnologyTechnologyof CVTof CVT DevelopmentalDevelopmental

power ofpower ofEV & HEVEV & HEV

EvolutionEvolution

EvolutionEvolutionEvolutionEvolution



Hybrid systemHybrid system2.0-liter Horizontally-Opposed direct fuel-

injection turbo gasoline engine Motor

generator

Lineartronic

Lithium-ion battery

Rear motor




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

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


Hybrid systemHybrid system



EyeSight + (plus)EyeSight + (plus)

Detect a invisible car by Detect a invisible car by communication communication technologytechnology--------------

Assist the collision Assist the collision prevention by braking prevention by braking

synchronized with synchronized with a stereo camera!a stereo camera!




••Detect a invisible information such as a car, Detect a invisible information such as a car, pedestrian with vehiclepedestrian with vehicle--toto--vehicle and roadvehicle and road--toto--vehicle communication technologyvehicle communication technology••Enhanced collision prevention management Enhanced collision prevention management system system

NextNext--generation driver assistance system provides improved safety andgeneration driver assistance system provides improved safety and peacepeace--ofof--mind for passengers, and represents a major evolution in collisimind for passengers, and represents a major evolution in collision detection on detection performanceperformance

Information of road and other carsInformation of road and other cars( Concerted infrastructure )( Concerted infrastructure )

Communication technology

DSRC Optical beacon

GPS Road-to-vehicle /

vehicle-to-vehicle

Information of a stereo camera (autonomous sensor)Information of a stereo camera (autonomous sensor)

1.SUBARU HYBRID TOURER CONCEPT1.SUBARU HYBRID TOURER CONCEPT [ Concept Car ][ Concept Car ]EyeSight + (plus)EyeSight + (plus)



2.Plug2.Plug--in STELLA feat. BEAMS [ Display Model ]in STELLA feat. BEAMS [ Display Model ]

••Collaboration between EV as a suitable mobility for environmentaCollaboration between EV as a suitable mobility for environmentally lly friendly city driving and BEAMS that leads generation at any tifriendly city driving and BEAMS that leads generation at any timeme

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



••Coming the days of EV is depicted by soft illustrationComing the days of EV is depicted by soft illustration

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

••The green color of wheels image balmy grassland The green color of wheels image balmy grassland

2.Plug2.Plug--in STELLA feat. BEAMS [ Display Model ]in STELLA feat. BEAMS [ Display Model ]



3. IMPREZA WRX STI CARBON3. IMPREZA WRX STI CARBON [ Display Model ][ Display Model ]

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

••Using a carbon material in the roof to enhance further driving pUsing a carbon material in the roof to enhance further driving performanceerformance

••Special specification for both interior and exterior offer driviSpecial specification for both interior and exterior offer driving excitement ng excitement and pride of ownershipand pride of ownership



ExteriorExterior••Using a carbon material in the roof to achieve both a significanUsing a carbon material in the roof to achieve both a significant weight t weight reduction and a lower center of gravity of the vehiclereduction and a lower center of gravity of the vehicle••DarkDark--tone hightone high--luster paint for BBS aluminum wheel luster paint for BBS aluminum wheel

InteriorInterior••The suede fabric used for dashboard, meter visor, door trim, etcThe suede fabric used for dashboard, meter visor, door trim, etc. and . and equipped seats of spec C version made by RECARO equipped seats of spec C version made by RECARO

3. IMPREZA WRX STI CARBON3. IMPREZA WRX STI CARBON [ Display Model ][ Display Model ]



•U.S. is the most important marketIntroduce vehicles suitable for marketStrengthen the sales network

•Australia, Europe are also important marketIntroduce boxer diesel engine carsExpand sales network

•China, Russia and other emerging countries are growing market

Expand sales furtherEnhance brand value

•Japan is our mother marketImprove profitability by focusing on the passenger car salesStrengthen urban outlets

Ⅱ．To Increase Sales Globally


Retail Sales of United States


CY2007 CY2008 CY2009(Plan)

Jan.-Sep.2008

Jan.-Sep.2009

YoY(%)

Legacy 79,555 66,878 76,000 52,885 55,321

37,360

60,441

5,299

158,421

Total Demand YoY 97.5% 82.0% - - - 72.6

104.6

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

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

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

Total(YoY)

187,208(93.3%)

187,699(100.3%)

203,000(108.2%) 143,789 110.2

Jul. 2009 sales ： 21,839 units (+34.2%YoY) New record for a monthAug. 2009 sales ： 28,683 units (+51.5%YoY) New record for a monthSep. 2009 sales ： 14,593 units (+0.7%YoY)


0

50,000

100,000

150,000

200,000

250,000

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

Legacy Impreza Forester Tribeca

Retail Sales of United States



Motor Trend Sport/Utility of the Year2009 Forester 2010 Outback

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)


Products strategy in U.S.


2005 2006 2007 2008 2009/9

276 281

191

472

134

606

78%

395

182

458

142

2010(Plan)

Exclusive 240 272 275

600

76%

290

Separate Showroom 156 164 175 170

Total 396 436 450 460

Dual Dealerships 192 165 150 165

Grand total 588 601 600 625

Exclusive & SeparatePercentage (%)

67% 73% 75%

398

74%

Subaru “signature facility” showroom 330 371 394 435

Marketing strategy in U.S.



Jan.- Dec.2007

Jan.- Dec.2008 (a)

Jan.- Jul.2009 (b)

increase/decrease

(b-a)U.S. 1.2%

0.4%0.8%0.3%

Florida 0.3% 0.4% 0.6% +0.2%

New York 2.0% 2.4% 3.0% +0.6%

Georgia 0.3% 0.4% 0.8% +0.4%1.8%

2.4%

1.4%

1.4% 1.9% +0.5%Sunbelt 0.5% 0.7% +0.2%California 0.9% 1.4% +0.5%Texas 0.3% 0.5% +0.2%

Snowbelt 2.1% 2.8% +0.7%

Pennsylvania 2.9% 3.5% +0.6%

New Jersey 1.8% 2.4% +0.6%

Market share in U.S.

Marketing strategy in U.S.



Marketing strategy in U.S. - New Structure



Sep. 2009 sales： 2,544 unitsMake a new record for a month and an accumulated total


Retail Sales of Canada

CY2007 CY2008 CY2009 Jan.-Sep.2008

Jan.-Sep.2009

YoY(%)

Legacy 4,920 4,090 3,800 3,304 2,594

6,876

6,472

446

16,388

Total Demand YoY 102.4% 98.9% - - - 85.7

78.5

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

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

Tribeca 801 925 500 706 63.2

Total(YoY)

16,504(101.9%)

19,892(120.5%)

21,000(105.6%) 15,106 108.5


0

5,000

10,000

15,000

20,000

25,000

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



Retail Sales of Canada


New Legacy sales started in September

Retail Sales of Australia


CY2007 CY2008 CY2009(Plan)

Jan.-Sep.2008

Jan.-Sep.2009

YoY(%)

Legacy 13,780 10,811 9,752 8,741 5,635

9,775

10,779

1,036

Exiga - - 200 - - -

Total Demand YoY 109.1% 96.4% - - - 86.9

27,225

64.5

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

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

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

Total(YoY)

38,445(102.5%)

38,492(100.1%)

35,000(90.9%) 29,905 91.0


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

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

Legacy Impreza Forester Tribeca Exiga

Retail Sales of Australia



Situations are different for each countryNew Legacy has just launched in September.

Retail Sales of Europe ( Excluding Russia )


CY2007 CY2008 CY2009(Plan)

Jan.-Sep.2008

Jan.-Sep.2009

YoY(%)

Legacy 14,933 16,667 13,146 13,009 8,418

7,998

12,698

265

Justy 5,324 7,741 4,705 6,017 5,444 90.5

Total Demand YoY 102.7% 92.3% - - - 89.0*

34,823

64.7

Impreza 16,225 13,784 12,049 11,128 71.9

Forester 18,404 21,630 18,730 13,803 92.0

Tribeca 2,655 1,760 553 1,258 21.1

Total(YoY)

57,541(90.2%)

61,582(107.0%)

49,183(79.9%) 45,215 77.0

*Jan to Aug


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

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

Legacy Impreza Forester Tribeca Justy

Retail Sales of Europe ( Excluding Russia )



Struggling for sales and inventory adjustment

Retail Sales of Russia


CY2007 CY2008 CY2009(Plan)

Jan.-Sep.2008

Jan.-Sep.2009

YoY(%)

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

2,353

3,127

504

6,902

Total Demand YoY 131.3% 115.7% - - - 48.8*

33.9

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

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

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

Total(YoY)

15,803(203.5%)

22,006(139.3%)

10,000(45.4%) 16,585 41.6

*Jan to Aug


0

5,000

10,000

15,000

20,000

25,000

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


Retail Sales of Russia



0

10,000

20,000

30,000

40,000

2005 2006 2007 2008 2009


Ⅱ．To Increase Sales GloballyAutomobile unit sales by models

after reentry in China


Jul. 2009 sales ： 3,041 units (+73.3%YoY) New record for a monthAug. 2009 sales ： 3,492 units (+109.0%YoY) New record for a monthSep. 2009 sales ： 3,749 units (+119.6%YoY) New record for a month

New Legacy sales started in September

Retail Sales of China


CY2007 CY2008 CY2009(Plan)

Jan.-Sep.2008

Jan.-Sep.2009

YoY(%)

Legacy 2,769 2,317 3,600 1,833 1,436

435

20,568

943

23,382

Total Demand YoY 120.4% 106.7% - - - 141.5*

78.3

Impreza 271 927 500 692 62.9

Forester 5,450 14,398 29,000 9,235 222.7

Tribeca 741 1,368 900 1,133 83.2

Total(YoY)

9,231(164.8%)

19,010(205.9%)

34,000(178.9%) 12,893 181.4

*Jan to Aug


Subarushowroom in

Beijing


Marketing strategy in China

2007 2008 2009 (Plan)

No. of dealers 61 81 1063S showroom Percentage (%) 84% 95% 100%

3S showroom : having a combination of sales, service and spare parts facilities


Commercial film (CF) of New Legacy – back ground

Marketing strategy in China


•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.


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

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



Retail Sales of Japan ( fiscal year )


FYE 2008 FYE 2009FYE 2010

(Plan)Apr.-Sep.FYE 2009

Apr.-Sep.FYE 2010

YoY(%)

Legacy 35,277 22,719 34,000 12,609 16,54710,2095,1323,891

DEX - 2,353 3,900 - 1,093 -Passenger cars Total 87,196 77,353 79,000 40,910 36,872 -

YoY(Total Demand YoY)

99.2%(97.9%)

88.7%(85.0%) - 100.6%

(99.0%)90.1%

(94.6%) -

Total Demand YoY 93.3% 95.0% - - - 84.5

Minicar 135,043 111,840 92,500 59,799 46,263 77.4

83,135

131.2Impreza 33,617 22,216 19,500 10,956 93.2Forester 18,302 17,852 12,700 9,531 53.8Exiga - 12,213 8,900 7,814 49.8

Total(YoY)

222,239(90.5%)

189,193(85.1%)

171,500(90.6%) 100,709 82.5


0

50,000

100,000

150,000

200,000

250,000

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

Legacy Impreza Forester Exiga Dex Minicars

Retail Sales of Japan ( fiscal year )



< Tohoku area >Head office : Miyagi Pref.Integrate Miyagi, Aomori, Iwate, Akita, Yamagata and Fukushima

< Tokai area >Head office : Aichi Pref.Integrate Aichi, Gifu and Mie

< Koshinetsu-Hokuriku area >Head office : Niigata Pref.Integrate Niigata, Nagano, Yamanashi and Hokuriku

<Chugoku-Shikoku area >Head office : Hiroshima Pref.Integrate Hiroshima, Sanin, Okayama, Yamaguchi, Higashi-Shikoku and Shikoku

< Kinki area >Head office : OsakaIntegrate Osaka, Kyoto, Shiga and Hyogo

< Kyusyu area >Head office : Fukuoka Pref.Integrate Fukuoka, Nishi-Kyusyu, Kumamoto, Oita, Minami-Kyusyu and Shin-Okinawa


Integration of distributors in Japan


TSRTSR(Total cost (Total cost Structure Structure

Revolution)Revolution)

Ⅲ. Strengthen competitiveness in quality and cost

1) More than 100 thousand yen cost reduction per

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

PreviousModel

Cost

NewModel

Cost

1) 100 thousand yen cost reduction per unit2) 30% reduction of tooling and development cost

Increase material costRare material price raise

Upgrade of spec

TSRTSR--VCVC(maximize Value for Competitiveness / (maximize Value for Competitiveness /

Customers)Customers)


Ⅳ. Growth through the business alliance with Toyota

Keep WIN-WIN Relationship

•Daihatsu supplies “Coo” compact car on an OEM basislaunched “DEX” on November 13, 2008

•Daihatsu starts to supply minicars on an OEM basislaunched “Dias” on September 3, 2009 and other models will be followedSubaru terminates own R&D and production of minicars sequentially

•Toyota will provide a compact car on an OEM basisNo change

•Joint development car (Compact FR sporty car)No change on basic plan1. Upgrade environmental friendliness and driving performance2. Renewal current plant instead of building a new plant by reexamining

capex plan, upgrade the production facilities sequentially


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 sizeTo fulfill its Corporate Social Responsibility

To provide Compelling and Distinctive products in response to change in the social environment

Management Vision

Documents

Tokyo Motor Show 2009 Investors Conference · ... 2009 Tokyo Motor Show 2009 Investors Conference ... Subaru Named the Only Manufacture with 2009 IIHS Top ... 2008/1～9 2009/1～9