Honda investor 2010

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Created as a part of Presentation Assignment given in MBA Education.

Transcript of Honda investor 2010

Do you have a dream of owning a car?

The Opportunity

• 62 Million Automobiles were sold in 2009

• Over 700 Million cars on the road

• Huge Demand for Small Cars in Developing

nations

• Growth in Alternative Fuel Cars’ Market

About Honda

Founded in 1948 by Soichiro Honda

Headquarters at Tokyo, Japan

World’s Largest manufacturer of Motorcycles

Ranked 51st in Global Fortune 500

176,815 Employees in 29 Countries

The Principles

• “Respect for the Individual”

• “The Three Joys” –“The Joy of Buying”

“The Joy of Selling”

“The Joy of Creating”

Our Team

President andCEO: Takanobu Ito

Executive Vice President : Koichi Kondo

CEO (North America Operations) :Tetsuo Iwamura

CEO ( Europe, Middle East & Africa

Operations) : Shigeru Takagi

CEO Production Operations: Akio Hamada

CEO Motorcycle Operations:

Tatsuhiro Oyama

Our Businesses77%13%7%3%

Source: Honda Annual Report 2010

Net Sales per Business

Our Products

Our Competition

• Direct: Toyota, GM, Suzuki, Hyundai, Nissan etc.

• Indirect: Mass Transit i.e. Trains, Buses, Metro etc.

Operating Revenue

2006 2007 2008 2009 20100

20,000

40,000

60,000

80,000

100,000

120,000

140,000

84,168.0094,108.00

120,028.00

101,359.1091,814.80

Revenue

In M

illi

on D

olla

rs

Years ended March 31st

Source: NASDAQ Website

Net Income

2006 2007 2008 2009 20100.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

5,072.00 5,028.00

6,000.00

1,387.00

2,872.00

Net In-come

In M

illio

n D

olla

rs

Net Income (In million dollars)Ford: 2,717GM: -30,860Toyota: 2,241Daimler: -2,102Volkswagen: 1,300

Source: NASDAQ Website

Years ended March 31st

Profitability Ratios

2009 2010

Profit Margin 1.4% 3.1%

Asset Turnover .8 times .8 times

Return on Assets 1.2% 2.3%

Return on Equity 3.4% 6.2%

Source : advfn.com

Stock Market Information

• Closing Stock price on the NYSE was $35.41.

• Honda had a 12 month trading range going from $31.20 in September 2009, to $33.80 in September 2010.

• The dividends per share were $0.45.

Source : NASDAQ.com, Annual Report 2010

Stock Information

Number of Shares Authorized: 7,086,000,000 shares

Total Number of Shares Issued: 1,834,828,430 shares

Number of Shareholders: 209,149

Number of Shares per Trading Unit: 100 shares

Stock Exchange Listings Japan: Tokyo, Osaka stock exchanges

Overseas: New York, London stock

exchanges

Risk Factors

• Honda may be affected by market conditions

• Prices for products can be volatile

• Honda products is subject to environmental

policies

Preparing for the Future

• Research & Development

• Production & Sales Efficiency

• Product Quality

• Safety Technologies

• The Environment

• Continuing to Increase Society’s Trust in and

Understanding Toward Honda

For More Information

IR Office

Website: http://world.honda.com/investors/

JapanInvestor RelationsHonda Motor Co., Ltd.1-1, Minami-Aoyama 2-chome,Minato-ku, Tokyo 107-8556, JapanTEL: 81-(0)3-3423-1111 (Switchboard)

U.S.A.American Honda Motor Co., Inc.New York Office156 West 56th Street, 20th Floor,New York, NY 10019, U.S.ATEL: 1-212-707-9920

THANK YOU