<Japan>
During the first half of the current fiscal year, the product lineup was enhanced by the advanced driving assist system "EyeSight (ver. 2)" installed on the Legacy/Outback and introducing the Lucra and Pleo into its lineup of minicars. In addition to this, eco-car subsidies also supported sales. As a result, car sales during the first half of the current fiscal year were firm surpassing sales of the same period of previous fiscal year. On the other hand, sales were deteriorated during the second half of the current fiscal year compared with the same period of the previous fiscal year. Although the product lineup was further strengthened by incorporating the "New-generation boxer engine" into the Forester and introducing the new-model compact car Trezia, sales were negatively impacted by both the end of the eco-car subsidies and the damage of the Great East Japan Earthquake. As a result, sales of passenger cars were down 7 thousand (9.3%) units over the previous fiscal year to 68 thousand units and sales of minicars were also down 6 thousand (6.5%) units to 90 thousand units, therefore, the total sales in Japan were down 13 thousand (7.7%) units to 158 thousand units.

<Overseas>
Car sales increased during the first half of the fiscal year boosted by firm sales of the Legacy/Outback in all regions, such as North America and China. Even though impacted by the damage from the earthquake, sales also rose during the second half of the fiscal year as the Legacy/Outback continued to drive sales overseas, particularly in North America. As a result, overseas sales were up 107 thousand (27.4%) units over the previous fiscal year to 499 thousand units. By region, sales in North America were up 57 thousand (22.9%) units over the previous fiscal year to 307 thousand units, sales in China were up 13 thousand (27.5%) units to 62 thousand units, sales in Europe including Russia were up 21 thousand (53.1%) units to 60 thousand units, sales in Australia were up 6 thousand (17.6%) units to 41 thousand units, and sales in other areas were up 10 thousand (52.1%) units to 293 thousand units.

As a result, total car sales for both Japan and overseas increased 94 thousand (16.7%) units over the previous fiscal year to 657 thousand units. The net sales for the overall Automobile Division were up ¥157.8 billion (12.2%) over the previous fiscal year to ¥1,452.2 billion, and segment income was up ¥58.7 billion (270.2%) over the previous fiscal year to ¥80.4 billion.

Sales of products to the Ministry of Defense declined from the previous fiscal year because of such as the end of contracts for prototyping of "Forward Field Observation System". On the other hand, sales of commercial sector increased from the previous fiscal year in spite of the foreign exchange loss due to the strong yen as sales for the Boeing 787 rose although the sales of Boeing 777 were declined. As a result, overall net sales were down ¥10.4 billion (11.2%) over the previous fiscal year to ¥82.8 billion, and segment income was down ¥2.6 billion (53.1%) over the previous fiscal year to ¥2.3 billion.

In Japan, engine sales, particularly for both civil engineering and construction and electric machinery, rose as demand continued to recover since the beginning of the year and market inventories bottomed out. Furthermore, overseas engine sales grew rapidly, particularly in North America, Europe (including Russia), and the Middle Eastern countries. As a result, net sales were up ¥6.1 billion (25.7%) over the previous fiscal year to ¥30.1 billion, and segment loss was ¥0.1 billion, which was ¥2.4 billion less than for the previous fiscal year.

Net sales were down ¥1.6 billion (9.5%) over the previous fiscal year to ¥15.5 billion because sanitation truck sales fell and delivery of large-scale wind-power generation systems declined as overall weak demand, and segment income was down ¥1.1 billion (42.9%) over the previous fiscal year to ¥1.5 billion.