Consolidated Statements of Income FUJI HEAVY INDUSTRIES LTD. AND CONSOLIDATED SUBSIDIARIES Years ended March 31, 2003, 2002 and 2001 Thousands of Millions Millions Millions U.S. dollars of yen of yen of yen (Note 1) 2003 2002 2001 2003 Net sales ¥1,372,337 ¥1,362,493 ¥1,311,887 $11,417,113 Cost of sales 1,011,582 992,950 978,841 8,415,824 Gross profit 360,755 369,543 333,046 3,001,289 Selling, general and administrative expenses  (Note 15) 293,234 281,063 251,373 2,439,551 Operating income 67,521 88,480 81,673 561,738 Other income (expenses): Interest and dividend income 1,855 2,868 3,663 15,433 Interest expenses (2,941) (3,499) (4,623) (24,468) Gain (loss) on sale of securities (994) 0 2,815 (8,270) Loss on devaluation of inventories (1,400) 92 — (11,647) Foreign exchange losses (1,538) (4,996) (3,027) (12,795) Environmental cost (2,013) — — (16,747) Loss on devaluation of securities (3,884) (8,970) (487) (32,313) Loss on sale or disposal of property, plant and equipment, net (4,822) (3,670) (2,551) (40,116) Loss on liquidation of affiliated companies (Note 16) — (6,880) — — Loss on discontinued operations (Note 16) 1,882 — — 15,657 Full amortization of net pension and  severance obligation at transition — — (44,520) — Other, net (2,932) (7,197) (11,652) (24,393) (20,551) (32,344) (60,382) (170,973) Income before income taxes and minority interest 46,970 56,136 21,291 390,765 Income taxes  (Note 13): Current 20,359 38,325 25,814 169,376 Reversal of prior year’s accrued income taxes (2,973) — — (24,734) Deferred (3,810) (10,042) (25,631) (31,697) 13,576 28,283 183 112,945 Income before minority interest 33,394 27,853 21,108 277,820 Minority interest in consolidated subsidiaries 90 2,430 1,520 749 Net income ¥ 33,484 ¥ 30,283 ¥ 22,628 $ 278,569 U.S. dollars Yen Yen Yen (Note 1) Per share data  (Note 2): Net income—Basic ¥44.84 ¥40.74 ¥30.44 $0.37 —Diluted 42.91 38.83 29.06 0.36 Cash dividends 9.00 9.00 9.00 0.07 The accompanying notes are an integral part of these statements. 28 FUJI HEAVY INDUSTRIES LTD.