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Honda Corporate Update - 2017 Autumn

Accord

Business Status

Other Topics

Automobile Business Operations

Motorcycle Business Operations

Business Strategy

Honda Corporate Update

2030 Vision

2

Financial Highlights

70

80

90

100

110

120

130

183 203 199 178

177 192 182 171

461 280

153

501

7.9%

1.9%

4.2%

6.4%

2.9%

5.5%

6.6%

5.0%

3.4%

6.0%

5.0%

-1%

1%

3%

5%

7%

-200

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

FY2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(P)

PP & Others Finance Motorcycle Automobile O/P Margin

・Earthquake・Thai flood・Earthquake・Thai flood

2012

231

569

363

189

953

USD/JPY

544

￥109 forFY18

840823

670

IFRSUS GAAP

Profit Structure Profile over Past Decade and FY18 Forecast

・Airbag Inflator Issue

・Airbag Inflator Issue

・LehmanCrisis

・LehmanCrisis

Yen (billion)

745

503

* Forecast as of November1, 2017 3

*

4

FY18PreviousForecast

FY18RevisedForecast

ChangeFY18

PreviousForecast

FY18RevisedForecast

ChangeFY18

PreviousForecast

FY18RevisedForecast

Change

Japan 170 165 - 5 680 690 + 10 265 280 + 15North

America 315 315 - 1,920 1,920 - 3,010 3,010 -Europe 220 225 + 5 175 175 - 1,030 1,015 - 15

Asia 17,015 17,375 + 360 2,060 2,100 + 40 1,460 1,455 - 5Other

Regions 1,050 1,100 + 50 245 245 - 400 405 + 5Total 18,770 19,180 + 410 5,080 5,130 + 50 6,165 6,165 -

17,661 18,770 19,180 5,028 5,080 5,130 6,121 6,165 6,165

+ 410( + 2.2 %)

± 0( ± 0 %)

+ 50( + 1.0 %)

Forecast: Honda Group Unit Sales

Motorcycles Automobiles Power Products

Unit(Thousand)

FY17Results


FY18RevisedForecast

FY17Results


FY18RevisedForecast

FY17Results


FY18RevisedForecast

5

Operating profit - 95.7 ( - 11.4 % )

840.7745.0

+ 89.0- 11.0 - 54.0+ 75.0 - 57.0

Excluding currency effects and one time issue

Operating profit + 53.0 ( + 7.1 % )

- 84.0745.7 - 53.7798.7

FY18 Forecast: Change in Operating Profit

FY17Results

Operating margin6.0%

CurrencyEffects


Impact of pension

accounting treatment

Revenue,model mix,

etc.

Increase inSG&A Increase in

R&D Litigationsettlement

Yen (billion)



CostReduction,

etc.

FY18RevisedForecast

Change in the company’s shareholders’ return policy

6

【Purpose for the change】

Further improving the Company’s capital strategy

【Points of the change】

Goal: to maintain a shareholders’ return ratio of

approximately 30%

Goal: to realize a return ratio alone of approximately 30%

Acquisition of the Company’s own shares at a timing that it

deems optimal

With respect to the redistribution of profits to its shareholders, the Company’s basic policy is to determine such distributions after taking into account, among others, its retained earnings for future growth and consolidated earnings performance based on a long-term perspective.

Business Status

Other Topics



Business Strategy


2030 Vision


7

8

2030 Vision

9

2030 Vision

- Focus on three areas: Mobility, Robotics and Energy- Strive to further expand the joy of people by offering products and services- Strive to become No.1 in the areas of the environment and safety

10Utilize our corporate resources effectively and strengthen our business foundation.

2030 Vision

11

Further enhance inter-regional coordination and collaboration andincrease the efficiency of our operations from a global perspective.

2030 Vision

Global Models continue to be widely popular representingapprox. 70% of CY2016 global Honda unit sales

Global models: Accord, Civic, CR-V, Vezel/ HR-V and Fit/ Jazz

12

Accord- All-new Accord launched in October 2017 in N.A. to be followed by other markets

Civic- Underwent full model change in 2015 in N.A. and successfully launched in global market

- Shares commonized platform between sedan, coupe and hatchback

CR-V- All-new CR-V underwent full model change in 2016 in N.A.- Hybrid model will be launched initially in China

Vezel/ HR-V- Grew into strong model and became one of the global models since its launch in 2013

Accord

Civic

CR-V

Vezel/ HR-V

Fit/ Jazz

*Derivative models: City/Grace, Greiz and XR-V

Sharing of down-sized turbocharged engine at some trim levels

Focus onplatform and parts

commonality

Focus onplatform and parts

commonality

Accord 11% Civic

13%

CR-V 14%

Vezel11%

Fit10%

Derivative models

Other

5.0milCY2016

Global models: Direction of Model Development

2013 2014 2015 2016

Civic

CR-V

HR-V

Fit

Global Operation Reform• Concurrent development

in all six regions• Adoption of locally

optimized design

• Increase commonality of platform and parts (Civic, CR-V and Accord)

Further enhance electrification, autonomous driving and connectivity technologies.

Spearhead industry effort to realize a carbon-free and collision-free mobile society.

13

Accord

• Adopt Lead-Country Introduction Strategy(Clarification of model development leadership in each region and increase model development efficiency.)

• Discuss introduction of modular strategies

• Introduce advanced platforms to accommodate electrification of powertrains

14

Regional Models

Introduction of regional models has also been expanding in each region.

China: Brand differentiationbetween two Joint Ventures

North America: Light Truck models

Japan: Mini-vehiclesAsia: Meet demand in each country with affordable models

Crider UR-V

Avancier XR-V

Odyssey

Pilot

Ridgeline

BR-VMobilio

Brio Amaze

N-Box

N-One N-WGN

N-Box +

Guangqi Dongfeng

CR-V

RDX

■ Production Allocation

Indiana

OhioEast

LibertyPlant(ELP)

20172016

CR-V

MDX

Pilot

Shift

Civic

MDX

GlobalSource CivicExport to N.A.

Alabama

Pilot

Global Source

Civic

Ridgeline Odyssey

Odyssey

Ridgeline

Alabama

ProductionPlant

■ As of the end of 2017

Indiana

CR-V

Civic

MexicoEl Salto

CR-V

HR-V

Shift

Ohio(East Liberty)

RDX

CR-V

MDX

Model Allocation: North America

15

Split

Sedan(4D/5D) SUV MPV

D

Guangqi

Dongfeng

C

Guangqi

Dongfeng

B

Guangqi

Dongfeng

By utilizing common platforms and strengthening local procurement and R&D functions, successive launch of cost competitive models being realized.

Accord

JadeCrider

Odyssey

Spirior

Gienia

Segment

Fit City Vezel

XR-V

CR-V (July 2017)

Elysion

Greiz

UR-V(Mar 2017)

Civic

Avancier

Regional Models: China

16

Two joint ventures offer different model types

consistent with their respective brand image

Identify and prioritize core technologies and strengths (ex. “powertrain”, “packaging”) to be developed in-house and strategically partner with external specialists for other technologies.

* Mono-zukuri: The art of making things Koto-zukuri: New experiences drawn from the art of making things

2030 Vision

(technology/manufacturing expertise) (innovative business solutions)

17

2030 Vision

GM: Collaborate on production of Next-Generation Fuel Cell stackHITACHI: Establish JV for the development, manufacture and sale of motors for electric vehiclesYAMAHA: Collaboration in the area of small-sized scooters in the Japanese market

JP: Collaboration toward the establishment of local charging station infrastructureGrab: Collaboration in the area of motorcycle sharing servicesWaymo: Technical collaboration for fully autonomous automobile driving technology 18

2030 Vision

19

Honda Business Status

Other Topics



Business Strategy


2030 Vision


20

Roadmap for Environmental Technologies

2010 2020 2030

DI engineCVT / DCT

Turbo engine

2000

(CO

2(g/

km)

0

Global expansion

Global expansion

Technologies to increase electrical

efficiency

Technologies to increase thermal

efficiency

ZEROemissions technology

21

2015

Clarity BEV (2017)

Clarity PHEV(2017)

Clarity Fuel Cell(2016)

New FCV

Accord PHEV(2013)

FCX Clarity(2008)

FCX(2002)

Developments related to expansion of electrified vehicles- Established Electric Vehicle Development Division in Oct 2016- Launch of Clarity BEV and Clarity PHEV in N.A.(2017) and Japan (2018).- Introduced CR-V Hybrid model in 2017 in China (world premier)- Introduction of China-exclusive BEV model and Acura CDX Hybrid in 2018- Dedicated EV models based on Urban EV Concept will be launched

in Europe (2019) and Japan (2020).

Strive to electrify two-thirds of all vehicles we sell globally by 2030

ＺNew BEVin China

CR-V HEV(2017)

Urban EV Concept

Roadmap for Environmental Technologies: Clarity Series

- The Clarity Fuel Cell, only five-passenger FCV sedan in the industry, launched in Japan in March 2016 and in U.S. in December 2016, respectively

- Clarity Plug-in Hybrid, which earned a class-leading 47-mile EV driving range rating and340-mile extended range rating, will be launched in the U.S.(2017) and in Japan (2018).

“3-in-1” Clarity series provides unparalleled electric drive choice with premium midsize sedan capability and three advanced electrified powertrains

in a single vehicle platform to address cost and manufacturability

PHEV: Benefits of both Hybrids and BEVs

BEV:Affordable model for daily use

FCV: Supreme environmental technology

22

Toward realization of a collision-free mobile society

Expanding adoption of Honda SENSINGJapan: Make Honda SENSEING standard equipment on all new models to be introducedNorth America/ China/ Europe/ Other regions: Expanding application to all-new models

* For Acura vehicles, called “Acura Watch”

23

Automated Driving Vision

Serve people worldwide with the joy and freedom of collision-free mobility

Realizecollision-free society(zero human error)

Provide freedom of mobilityfor everyone

whenever it is needed

Create freedomof time and space, make

traveling enjoyable

24

- Strive to realize automated lane-changing function which enables the vehicle to drive in multiple lanes without any command from the driver on highways in 2020

- Strive to achieve the technological establishment of “level 4” automated driving for use in personal cars by around 2025

Automated Driving Roadmap

✔

✔

25

1,066 1,066 1,066 816

1,923 1,923 1,9231,923

200 200 200 200

1,080 930 930 930

1,080+50

1,080+50

1,200+50 1,200

+50

151 151 151 151

Mar '16 Apr '17 Plan '19 Plan '22

5,550

as of

Japan

NorthAmerica

Europe

Asia

China

Other

5,400-150

(Export only)

Global Production Capacity

(Export only)(Export only)

5,270

Thailand -150

FY2017

Unit(thousand)

26

China Dongfeng

+120

Plan

(Export only)

5,520+120 -250

Japan Saitama

-250

Plan

China

Europe

Capacity increase to 5.7 milEstablish stable production structure leveraging regional capacity + mutual parts/model sharing

North America

South AmericaAsia

Japan

1.06 mil<Export>

Global Models& Electrified models 1.92 mil

200,000

Primarily Civic 5D production

150,000

1.13 mil

<Export> Acura, L/T models,

Accord & CR-V

930,000

<Export> • Strengthen mutual parts/model

sharing within Asia• Export to Africa

<Export> Leverage local cost benefit for

next markets (Africa)

Middle East and Africa

Jazz

Electrified models

CR-V

Accord & L/T models

Acura

10-20%for Other regions

80-90% for Local markets

Total Capacity

approx. 5.4 mil units(Since April 2017)

City

■ Utilization Image

Civic 5D

1,000

CR-V , HR-V(plan)

Civic(option)

Flexible Global Production Infrastructure

(Units)

Clarity Series

27

Civic 5D

Automobile Operations by Regions

10,430 11,588

12,777 14,491

15,600 16,522

17,479 17,550

0

5,000

10,000

15,000

20,000

CY09 10 11 12 13 14 15 16

Passenger CarsLight Trucks

1,151 1,259

1,147

1,423 1,525 1,541 1,587 1,638

0

500

1,000

1,500

2,000

CY09 10 11 12 13 14 15 16

AcuraHonda Passenger CarsHonda Light Trucks

4,880 4,601 4,753 5,211

5,692 5,297

4,937 5,078

0

2,500

5,000

7,500

FY10 11 12 13 14 15 16 17

Registered vehiclesMini vehicles

662 608 601

717

848 788

704 711

0

250

500

750

1,000

FY10 11 12 13 14 15 16 17

Registered vehiclesMini vehicles

28

<Industry>

<Honda>

United States Japan<Industry>

<Honda>

Unit(thousands)

Source: Autodata

Source: Honda

Source: MUMSS

Source: Honda

Increase production capacity of light truck models to meet industry demand

Improve capacity utilization through exporting global models


29

<Industry>

<Honda>

China

<Honda>

Europe (EU+EFTA)

14,508 13,743 13,542

12,452 12,240 12,913

14,095 15,132

0

5,000

10,000

15,000

20,000

CY09 10 11 12 13 14 15 16

256

187 150 141 140 133 132

159

0

100

200

300

400

CY09 10 11 12 13 14 15 16

10,331

13,757 14,473 15,495 17,929

19,701 21,146

24,378

0

10,000

20,000

30,000

CY09 10 11 12 13 14 15 16

Minivan SUVMPV Sedan

580 652 622 599

757 793

1,010

1,256

0

500

1,000

1,500

CY09 10 11 12 13 14 15 16

Acura SUVMPV Sedan

Unit(thousands)

(excluding commercial vehicles)

(EU and EFTA)

(excluding commercial vehicles)

※2008-2014 Wholesale2015-2016 Retail

<Industry>

Source: ACEA / Honda

Source: ACEA / Honda Source: Honda

Source: Honda

U.K. has been designated to serve asglobal supply base of the Civic Series. Further expand sister models strategy.


<Industry>

30

<Honda>

Brazil

<Honda>

Asia

3,390

4,493 4,796 5,696 5,748 5,477 5,464 5,478

0

4,000

8,000

CY09 10 11 12 13 14 15 16

Malaysia ThailandIndonesia PhilippinesIndia

252 297

227

356

474 524

587 578

0

250

500

750

CY09 10 11 12 13 14 15 16

Malaysia ThailandIndonesia PhilippinesIndia

3,008 3,329 3,426

3,634 3,580 3,333

2,481 1,989

0

2,500

5,000

CY09 10 11 12 13 14 15 16

126 126

93

135 139 138 153

123

0

100

200

CY09 10 11 12 13 14 15 16

Unit(thousands)

<Industry>

Source: HondaSource: Honda

Source: Honda Source: ANFAVEA

(Five main market in Asia)* India: excluding commercial

vehicles and pickups

(Main market in Other Region)* excluding trucks

Introduce new models to meet specific market needs in each Asian market.

Improve Forex toughness by increasing local procurement and localization of development.

Sep

Sep

Sep

Automobile New Model Introductions (global models only)

31

Civic CY2015 CY2016 CY2017

North America

Sedan

Coupe

Hatchback

Type R

Japan

Sedan

Hatchback

Type R

Europe

Sedan

Hatchback

Type R

Asia Sedan

China Sedan

Brazil Sedan

November

March

September

June

Sep

April

April

March

August

March~

CR-V CY2015 CY2016 CY2017North

America Gas

Asia Gas

ChinaGas

HEV

December

July

March~

Civic Sedan

Civic Hatchback

Civic Type R

CR-V

Civic has already been launched in most regions.CR-V is currently being introduced in many regions as well.

To be launched

Automobile New Model Introductions (main models only)

* Please note that “To be launched” models reflect the current plan and is subject to change.Also, photos are from currently available sources and are not actual specification models.

UR-V: China

Mar Apr May Jun Jul Aug Sep

WR-V: Brazil, India

Odyssey: N.A. N-Box: Japan

Clarity PHEV: U.S., Japan

Accord: N.A.

Clarity BEV: U.S.

Oct

Already Launched in 2017

32

Business Status

Other Topics



Business Strategy


2030 Vision

33


0

4,000

8,000

12,000

16,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

151 100 59 139 143 110 177 192 182 171

9.7%7.1% 5.2%

10.8% 10.6%8.2%

10.5% 10.4% 10.1% 9.9%

0

50

100

150

200

250

300

FY08 09 10 11 12 13 14 15 16 17

Honda Global Unit Sales

*excluding sales by Hero Honda

*Operating profit and margin until FY13 are based on US GAAP while FY14 and after are based on IFRS

Operating Profit and Margin

Overview of Motorcycle Business

Honda M/C Business = High Profitability + Stability + Growth Potential

Yen (billion)

Unit(thousand)

34

Mega ModelsAnnual sales of each of these “Mega Models” has grown to approximately 3 million units. By leveraging the scale merit of this sales volume we will further enhance the efficiency of our parts procurement activities.

Overview of Motorcycle Business

17.66FY2017

mil

Light Motorcycle110/125cc

ACTIVA 110cc1.9 mil

2.4 milScooter 110cc

3.6mil

Cub 110/125cc

2.3 mil

35

Indonesia

Malaysia

Thailand

VietnamIndia

PakistanChina

Japan

Bangladesh

Brazil

Argentine

PeruNigeria

Kenya

ItalyU.S.A

(ATV, S×S)Mexico

Philippines

27%

India17.7 mil

69%

Vietnam3.1 mil

74%

Indonesia5.9 mil

71%Brazil1.0 mil

79%

Thailand1.7 mil

21%U.S.A (MC+ATV)

0.7 mil

47%

0.4 mil

16%Europe0.9 mil

Motorcycle productionat 35 plants in 21 countries

Motorcycle productionat 35 plants in 21 countries

Annual Production Capacity in India

5.8mil in 2016 6.4mil in 2017

*Market share excluding 50cc

Motorcycle Market Size and Honda Share (CY2016)

36

Thailand

Vietnam

Indonesia

India

Number of motorcycles units in operationPopulation

1,292

255

91

6840%

33%

25%

8%

Significant growth expected

Motorcycle Market Penetration in Asia (millions)Source: Honda & IMF

0.2mil

Growth in Motorcycle Popularity

Next Markets Growing Markets Mature Markets

1,000

2,000

3,000

4,000

(USD)

India17.7 mil

Indonesia5.9mil

ThailandThailand

VietnamVietnam1.4mil

Pakistan

1mil

Philippines

Bangladesh0.8mil

Myanmar

GDP per capita 1.7mil

3.1mil

(CY2016)

0.2mil

0.4mil

Kenya

0.1mil

Nigeria

37

18%

82%

In CY201132%

68%

In CY2016

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2010 2011 2012 2013 2014 2015 2016

Motorcycle Market Share Trend in India

■ Scooter Unit Sales of Honda / Competitors and Honda Share in Scooter Market

SC SC

MCMC

■ Fast Growing Segment Scooter / Motorcycle Sales Ratio (Industry)

0%

10%

20%

30%

40%

50%

60%

70%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2010 2011 2012 2013 2014 2015 2016

Competitors (Unit)

Honda (Unit)

Honda Share(%)

Honda

Honda has gained the No.2 market share position.

India

Company C

Company A

Company B

Company D

Hero Honda

(Wholesale)

38

1.6 1.6 1.6 1.6 1.6

1.2 1.2 1.2 1.2 1.2

1.2 1.8 1.8 1.8 2.4

1.21.2

CY13 CY14 CY15 CY16 CY17

Expanded annual production capacity to 6.4 mil.

1st

2nd

3rd4.0mil

4.6mil

6.4mil

4.6mil

Capacity Expansion

4th

Manesar

Rajasthan

Karnataka

Gujarat

3rd

2nd

4th

1st

Product Line-up

110cc AT-ScooterActiva

110cc AT-ScooterDio

110cc MotorcycleDream Yuga

125cc MotorcycleCB Shine

India Motorcycle Operations

5.8mil

39

47% 48% 48% 51% 52%

0%

10%

20%

30%

40%

50%

60%

70%

0

500

1,000

1,500

2,000

FY13 14 15 16 17

Others

Honda

Share

0% 1% 1%

9%12%

0%

10%

20%

30%

40%

50%

60%

70%

0

500

1,000

1,500

2,000

FY13 14 15 16 17

Others

Honda

Share

0% 0%4% 5% 6%

0%

10%

20%

30%

40%

50%

60%

70%

0

250

500

750

1,000

FY13 14 15 16 17

Others

Honda

Share

Honda Business Strategy

Motorcycle Business Operations in Next Markets

CD70

< Pakistan >・Local production capacity was increased to 1.35 million

units in 2016・Increase dealer network and number of service shops・Expand model line-up by strengthening the

competitiveness of core 70cc models as well as introducing larger sized 125cc to 150cc models

< Myanmar >・Expand model Line-up・Expand dealership network

< Bangladesh＞・Construct new plant (100k units in 2018 and 200k units in 2021) ・Expand dealership network・Cost reductions through increase in local procurement

Unit(thousands)

Unit(thousands)

Unit(thousands)

40

MyanmarPakistan

Bangladesh

41

Electrification in Motorcycle and Mobile Battery

Introduce PCX ELECTRIC / PCX HYBRID in the Asia region including Japan (2018).

For future expansion of electric motorcycles/scooters: - Utilizing electric commuters, which feature a detachable mobile battery is

under consideration (in collaboration with the Japan Post Co., Ltd.)

- E-KIZUNA project with Saitama-city and Yamaha Motor Co., Ltd. is conducting an experiment involving electric motorcycles and replacement of batteries. EV motorcycle sharing scheme also under consideration.

Removable mobile battery pack and recharging station

PCX Electric Honda Mobile Power Pack

Honda Mobile Power Pack Exchanger Concept

Business Status

Other Topics



Business Strategy


2030 Vision


42

Transition to the Company with Audit and Supervisory Committee

- For faster decision making, transfer of authority to Executive Council from Board of Directors to resolve most matters

- Board of Directors will focus more on discussions of mid to long term business strategies, as well as strengthening of oversight function

✔

43

HondaJet

Advanced Technologies

- Natural laminar Flow Wings and NoseOutstanding flight speed and fuel efficiency

- Over-the-Wing Mounted EnginesFaster flight speed, greater fuel efficiency, and more spacious cabin

- United States (Dec. 2015)- Mexico (Mar. 2016)- Europe (May. 2016)- Canada (Jun. 2017)- Brazil (Aug. 2017)

Certification Received

Sales Units- Delivered 54 units by the end of Sept. 2017- HondaJet ranks as Most-delivered Jet in itscategory during first half of 2017.

44

- Over-The-Wing Engine Mount (OTWEM) ConfigurationWave drag reduction, maximized fuselage space

- Natural Laminar Flow (NLF) TechnologyAerodynamic drag reduction

- Composite FuselageLight-weight structure

- Advanced CockpitMinimized pilot workload, intuitive operation

The HondaJet is the world’s most advanced light jet. The aircraft is the fastest, highest-flying, most fuel-efficient, and achieves most comfortable cabin in its class.

Business Status

Other Topics



Business Strategy


2030 Vision


45

0

100

200

300

400

0

200

400

0

1,000

2,000

3,000

0

2,000

4,000

6,000

8,000

46

0

2,000

4,000

6,000

0

500

1,000

1,500

2,0006,6911,798 1,807 2,728 2,589 6,734.6

7,489.2 494.9

422.15,873 351.7381.3

incl. Pensionimpact

84.0（profit）incl.

litigation settlement 53.7（loss）

Consolidated Unit Sales Sales Revenue / Operating Profit / Profit for the Period

Motorcycles Sales Revenue Operating ProfitProfit for the Period

attributable to owners of the parent

Outline of FY18 Six Months Results Summary (Consolidated)

Results SummaryOperating profit was 422.1 billion yen, a 14.7% decrease compared to the same period last year. Excluding FOREX effects, the multi-district class action litigation settlement and the reverse impact of the pension accounting treatment during the same period last year, robust motorcycle sales, cost reduction efforts and other factors resulted in a real term profit increase of 53.1 billion yen.Profit for the quarter attributable to owners of the parent increased 381.3 billion yen, an 8.4% increase compared to the same period a year ago, due to an increase in share of profit of investments accounted for using the equity method.

Yen (billion)

Unit(Thousand)

47

FY17Six Months

FY18Six Months Change FY17

Six MonthsFY18

Six Months Change FY17Six Months

FY18Six Months Change

Japan 62 84 + 22 302 324 + 22 146 138 - 8North

America 149 163 + 14 989 933 - 56 1,291 1,141 - 150Europe 120 134 + 14 90 85 - 5 390 406 + 16

Asia 8,010 9,023 + 1,013 935 1,093 + 158 736 741 + 5Other

Regions 549 533 - 16 115 124 + 9 165 163 - 2Total 8,890 9,937 + 1,047 2,431 2,559 + 128 2,728 2,589 - 139

8,8909,937

2,431 2,559 2,728 2,589

+ 1,047( + 11.8 %)

+ 128( + 5.3 %)

- 139( - 5.1 %)

Honda Group Unit sales include those of Honda, its subsidiaries and affliates which are acounted for using the equity method (mainly wholesale basis).

Honda Group Unit Sales <FY18 Six Months>

Motorcycles AutomobilesPower

ProductsUnit

(Thousand)

FY17Six Months

FY17Six Months

FY17Six Months

FY18Six Months

FY18Six Months

FY18Six Months

48

・N-Box series was the best-selling modelin Japan in fiscal first half - 94 thousand units sold making it the best-selling model in

Japan, even including registered vehicles-The new edition, launched in September generated over52 thousand unit orders in first month on the market

・New Civic launched （Sept.）

・Expansion of Honda SENSING as standard equipment across all trim levels- starting with N-Box followed by Shuttle (Sept.)

and Step WGN models (Sept.)

N-BOX

Industry Demand：

Unit Sales ：2,482

333(107.6%)(103.6%)

322 333

+ 3.6 %

Japan Retail

（Source：Japan Automobile Dealers Association）

Main Market (Automobiles – Japan)

Unit (Thousand)

FY17Six Months

FY18Six Months

Unit (Thousand)

Vs. FY17

49

Industry Demand：

Unit Sales ：8,842

866(98.1%)(99.5%)

871 866

- 0.5 %

U.S Retail

・Despite decrease in industry demand,Honda’s retail sales were on par with the same period last year.-Strong sales of Civic, HR-V and Acura RDX

・Production of the brand-new Accordbegan（Sept.）

・Enhancing Honda’s supply network for light truck models

-Production of Acura MDX was shifted from Alabama plant to East Liberty Plant in Ohio（May）

Acura RDX

Civic Hatchback

（Source：Autodata）

FY17Six Months

Main Market (Automobiles – U.S.)

Unit (Thousand)

FY18Six Months

Unit (Thousand) vs. FY17

50

Industry Demand *：Unit Sales ：

13,218729

(103.5%)(118.9%)

613

729

+ 18.9 %

China

・729 thousand unit salesin fiscal first half is the highest in history-Strong sales of Civic, UR-V and Avancier

・ CR-V Sports Hybrid model launched (Sept.)

・Announced joint development of EVs forthe Chinese market with a local IT company named Neusoft (Sept.)

*Industry demand is wholesale basis

Retail

CR-V

Avancier

Main Market (Automobiles – China)


（source：China Association of Automobile Manufactures）

Unit (Thousand)

FY17Six Months

FY18Six Months

51

“Line-off ceremony” of the Number 4thline at the 3rd plant

Industry Demand ：Unit Sales ：

10,5043,146

( 110.2%)( 117.7%)

2,673

3,146

+ 17.7 %

India Wholesale・Sales surpass pace of overall market for

fiscal first half(vs. FY17 :117.7%)

-Strong sales of scooters such as Activa and DIO

・Expantion of production at Number 4th lineof the Number 3rd plant in Narsapura,Karnataka-Honda’s overall motorcycle production capacity in India increased to 6.4 million units

Main Market (Motorcycle – India)


（Source：Honda）

Unit (Thousand)

FY17Six Months

FY18Six Months

52

・ Selected as a component of the Dow Jones Sustainability World Index （Sept.）

・ Announced evolution of automobile production system to further enhance Mono-zukuri (the art of makingthings/manufacturing) in Japan- To produce new technologies such as for the electrification of vehicles,

automobile production at the Sayama Plant and Yorii Plant will beconsolidated at the Yorii Plant by the fiscal year ending March 31, 2022

・ 100 Million-Unit Cumulative Global Production Milestonefor Super Cub Series （Oct.）-Production of Super Cub 110 began at Yamato Plantin Saitama in August,1958

-Currently produced at 16 plants in 15 countries and sold in more than 160 countries

-Selected for the first time as a component of “Dow Jones Sustainability World Index ”, which benchmarks for socially responsible companies

-Selected for 3rd cumulative year as a component of “Dow Jones Sustainability Asia/Pacific Index”,which targets companies in Asia/Pacific

Yorii Plant

Super Cub 110commemorationmodel

News Topics

- Within the Yorii Plant, a function to create, standardize and globallyshare new automotive production technologies, including electrification, to beestablished

Financial ResultsSix Month Results

FY17 FY18 Change

Sales revenue 6,734.6 7,489.2 + 11.2%

Operating profit 494.9 422.1 - 14.7%

Operating margin 7.3% 5.6% - 1.7pt

Share of profit of investmentsaccounted for using the equity method 67.0 135.2 + 101.6%

Profit before income taxes 559.0 577.6 + 3.3%

Profit for the periodattributable to owners of the parent 351.7 381.3 + 8.4%

*1Earnings per share attributable to owners of the parent 195.19 211.59 + 16.40

53

US Dollar 105 111 Yen down by6 yen

FY18 Six Months Financial Results (Consolidated)

(Yen)

For *1, please refer to footnote on page 43Market average rates (Yen)

Yen (billion)

0

500

1,000

1,500

0

1,000

2,000

3,000

4,000

0

200

400

600

800

1,000

0

500

1,000

1,500

0

200

400

600

800

1,000

1,200

1,400

0

1,000

2,000

3,000

4,000

5,000

6,000

Honda Group Unit Sales

2Q Results (3 Months)

FY17 FY18 Change

Motorcycles 4,538 5,238 + 15.4%

Automobiles 1,218 1,292 + 6.1%

Power Products 1,240 1,258 + 1.5%

ConsolidatedUnit Sales

2Q Results (3 Months)

FY17 FY18 Change

Motorcycles 3,042 3,446 + 13.3%

Automobiles 890 907 + 1.9%

Power Products 1,240 1,258 + 1.5%

（Thousand）

4,5385,238 1,218 1,292

1,240 1,258

3,0423,446 890 907

1,240 1,258

Honda Group Unit Sales- Increase in motorcycle unit sales due mainly to sales growth in India, Indonesia and Vietnam. - Increase in automobile unit sales due mainly to sales growth in China and Japan despite a decline

in sales in North America

FY18 2nd Quarter Unit Sales

(Thousand)

Honda Group Unit Sales FY17 FY18

Unit (Thousand)

Motorcycles Automobiles Power ProductsUnit

(Thousand)


Consolidated Unit Sales

54

98.26 96.55 - 1.71

7.7%7.0%

5.9%

3.7%7.3%

4.1%

0%

2%

4%

6%

8%

10%

1Q 2Q 3Q 4Q

FY17FY18

0

100

200

300

1Q 2Q 3Q 4Q

FY17FY18

Earnings per shareattributable to owners of the parent

Financial Results2Q Results (3 Months)

FY17 FY18 Change

Sales revenue 3,262.9 3,776.1 + 15.7%

Operating profit 228.0 152.9 - 32.9%

Operating margin 7.0% 4.1% - 2.9ptShare of profit of investmentsaccounted for using the equity method

39.8 82.2 + 106.4%

Profit before income taxes 270.5 242.6 - 10.3%Profit for the periodattributable to owners of the parent 177.0 174.0 - 1.7%

US Dollar 102 111 Yen down by 9 yen

266.8228.0

207.6

138.1

(excl. pension impact 4.4%)

*1

269.2

152.9

Financial SummarySales revenue increased by 15.7% primarily due to sales increases in all business operations and positive foreign currency translation effects.

Operating profit decreased by 32.9% due primarily to the multi-discrict class action litigation settlement and the impact of the pension accounting treatment during the same period last year, despite the positiveimpact from revenue and model mix and a decline in SG&A expenses.

FY18 2nd Quarter Financial Results (Consolidated)

Yen (billion)

(Yen)

Market average rates (Yen) For *1, please refer to the footnote on page 43

Operating Profit Yen (billion)Operating Margin

(excl. litigation settlement 5.5%)

55

4,352 4,538 4,523 4,248 4,699 5,238

0

1,000

2,000

3,000

4,000

5,000

6,000

Japan 29 33 49 45 42 42North

America 78 71 68 77 80 83Europe 72 48 31 66 81 53

Asia 3,885 4,125 4,115 3,812 4,219 4,804Other

Regions 288 261 260 248 277 256Total 4,352 4,538 4,523 4,248 4,699 5,238

+ 700( + 15.4 % )

＜Asia＞・Increased sales in India, Indonesia and Vietnam＜North America＞・ Increased sales of GROM125 and other sports

motorcycles ・ Positive effect of Rebel 500 new model introduction

Rebel 500 (U.S.)

56

Motorcycles - Honda Group Unit Sales(Motorcycles, All-Terrain Vehicles, Side-by-Side etc.)

Unit (Thousand)

1Q 2Q 3Q 4Q 1Q 2QFY17 FY18

1,213 1,218 1,312 1,285 1,267 1,292

0

500

1,000

1,500

1Q 2Q 3Q 4Q 1Q 2QFY17 FY18

Japan 146 156 170 196 157 167North

America 510 479 510 471 481 452Europe 45 45 43 51 42 43

Asia 453 482 527 502 523 570Other

Regions 59 56 62 65 64 60Total 1,213 1,218 1,312 1,285 1,267 1,292

＜Asia＞・ China:increased sales of Civic and Avancier＜Japan＞・ Increased sales of Freed and N-Box＜North America＞・ Decreased sales in the sedan segment

+ 74( + 6.1 % )

Freed(Japan)

Automobiles - Honda Group Unit Sales

Unit (Thousand)

57

1,488 1,240 1,175

2,218 1,331 1,258

0

500

1,000

1,500

2,000

2,500

1Q 2Q 3Q 4Q 1Q 2QFY17 FY18

Japan 59 87 54 101 59 79North

America 769 522 521 1,165 596 545Europe 225 165 190 455 240 166

Asia 360 376 311 383 362 379Other

Regions 75 90 99 114 74 89Total 1,488 1,240 1,175 2,218 1,331 1,258

＜North America＞・Increased sales of generators in the U.S.＜Japan＞・ Decreased sales of OEM engines

+ 18( + 1.5 % )

EU2000i(generator)

Power Products - Honda Group Unit Sales

Unit (Thousand)

58

59

+ 524.9 - 290.8 - 165.7 + 32.12,002.5 2,102.9

Net Change + 100.4 Free cash flow+ 234.0

Net Cash1,524.8

+ 503.1 - 277.7- 154.5 - 141.31,666.8 1,596.4

Net Change - 70.4Free cash flow

+ 225.4

Net Cash1,179.9

Net Cash1,171.5

Cash Flows of Non-financial Services Businesses

FY17 Six Months

Cash & Cash equivalentsat beginning of FY17

Cash flows fromoperating activities

Cash flows from investing activities Cash flows from

financing activities Effect of exchange rate changes

Profit before income taxes + 461.9Share of profit of investment accounted for using the equity method - 67.0Depreciation* + 326.7Other - 218.4

Capital expenditures - 220.1Intangible assets -77.4Other +19.8

Dividends paid - 79.3Others - 75.2

Yen (billion)

Cash & Cash equivalentsat end of period

Cash flows fromoperating activities

Cash flows from investing activities

Profit before income taxes + 469.1Share of profit of investment accounted for using the equity method - 135.2Depreciation* + 349.9Other - 158.9

Capital expenditures - 236.0Intangible assets - 71.7Other + 16.8

Dividends paid - 86.5Others - 79.2

Net Cash1,627.9

Cash & Cash equivalentsat end of period

* Depreciation, amortization and impairment losses excluding equipment on operating leases

Cash flows from financing activities

Effect of exchange rate changes

Cash & Cash equivalentsat beginning of FY18

FY18 Six Months

270.5+ 23.2

- 16.1 + 22.6

+ 42.4 + 4.7

+ 11.4

Profit before Income Taxes - 27.9 ( - 10.3 % )

242.6

+ 21.4 - 84.0

LitigationSettlement

<Increase Factors>- Positive impact from sales

volume and model mix, etc<Decrease Factors>- Increased incentives, etc

Excluding currency effects, pension impactand litigation settlement + 39.9

Operating Profit - 75.1 ( - 32.9 % )

- 53.7

60

<Increase Factors>- Cost reduction efforts, etc.<Decrease Factors>- Raw material price increase,etc.

Impact ofPension

AccountingTreatment

-JPY / USD +17.0- USD / Others +7.0

(BRL, CAD, MXN)-JPY / Asian Currencies +11.5

(INR, THB, VND, CNY, IDR)-Others -12.9

Change in Profit before Income Taxes <FY18 2nd Qtr>

OperatingProfit

228.0

Revenue,model mix,

etc.

Decrease inSG&A

Increase inR&D

CurrencyEffects

Share of profit of investments

accounted for using the equity

method

OperatingProfit

152.9

Finance income and

finance costs

- Currency Effects -1.5- Interest rate swap

/currency swap +1.9- Others +4.2

Yen (billion)

FY17 2Q FY18 2Q

CostReduction,

etc.

Profit before Income Taxes + 18.5 ( + 3.3 % )

559.0 577.6+ 51.5 + 31.4 - 6.1 - 23.6 + 11.8

+ 68.1 + 23.2


- 84.0

- 53.7

61

<Increase Factors>- Cost reduction efforts, etc< Decrease Factors>- Raw material price increase,

etc.

-JPY / USD +22.0- USD / Others +3.5

(BRL, CAD, MXN)-JPY / Asian Currencies +14.0

(INR, THB, VND, CNY, IDR)-Others -27.7

Change in Profit before Income Taxes <FY18 Six Months>

Yen (billion)

OperatingProfit

494.9

FY17Six Months

Revenue,model mix,

etc.

CostReduction,

etc.


R&DCurrencyEffects

Impact of Pension

Accounting Treatment



method

Finance income and

finance costsLitigation

Settlement

Excluding currency effects, pension impactand litigation settlement + 53.1

- Currency Effects + 14.2 - Interest rate swap/currency swap

+ 3.5- Others + 5.3

OperatingProfit

422.1

FY18Six Months

31.159.5

41.8 38.1

78.8 68.5

7.2%

14.5%

10.0%8.4%

15.5%13.4%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

0

20

40

60

80

100

120

140

160

1Q 2Q 3Q 4Q 1Q 2QFY17 FY18

Honda GroupUnit Sales

(Consolidated Unit Sales)

4,352(2,831)

4,538(3,042)

4,523(2,675)

4,248(2,689)

4,699(3,245)

5,238(3,446)

Sales Revenue 432.4 409.3 420.6 453.7 508.5 510.1

(excl. pension impact ：12.9%)

( + 15.1 % )

( + 24.6 % )+ 100.7 (Currency effect + 42.2)

FY17 FY181Q 2Q 3Q 4Q 1Q 2Q

＜Increase Factors＞・Positive impact from sales volume

and model mix, etc.＜Decrease Factors＞・The impact of the pension accounting

treatment, etc.

Motorcycle Business Sales Revenue /Operating Profit (Margin)

Yen (billion) Operating Profit

Operating Margin

Unit (Thousand)Yen (billion)

62

FY17 FY181Q 2Q 3Q 4Q 1Q 2Q

184.5131.8 129.8

54.9140.3

39.2

7.3% 5.5%5.0%

2.0%5.3% 1.5%

-40%

-30%

-20%

-10%

0%

10%

20%

0

100

200

300

400

500



1,213(908)

1,218(890)

1,312(925)

1,285(960)

1,267(900)

1,292(907)

Sales Revenue 2,536.1 2,377.4 2,596.4 2,746.7 2,624.5 2,693.0

( - 70.2 % )

( + 13.3 % )+ 315.6 (Currency effect + 180.4)

1Q 2Q 3Q 4Q 1Q 2QFY17 FY18

(excl. litigation settlement ：3.4%)

＜Increase Factors＞・Decrease in SG&A expenses, etc.＜Decrease Factors＞・The impact of the pension accounting

treatment・The multi-district class action

litigation settlement, etc.

Automobile Business Sales Revenue/Operating Profit (Margin)


Yen (billion) Operating Profit

Operating Margin

(excl. pension impact ：2.4%)

63

1Q 2Q 3Q 4Q 1Q 2QFY17 FY18

FY17 FY181Q 2Q 3Q 4Q 1Q 2Q

0.5

-1.0

-6.3 -2.7

0.1 - 2.0 0.7%

-1.4%

-7.9%

-2.4%

0.2%

-2.3%

-10%

-5%

0%

5%

10%

-10.0

-7.5

-5.0

-2.5

0.0

2.5

5.0

7.5

10.0

*

Operating profitfromaircraft and aircraft engines

- 8.8 - 10.6 - 12.3 - 12.0 - 8.5 - 13.6

(For reference)

(excl. pension impact ：- 4.4%)



1,488(1,488)

1,240(1,240)

1,175(1,175)

2,218(2,218)

1,331(1,331)

1,258(1,258)

Sales Revenue 80.9 73.5 80.3 114.8 83.1 87.8( + 19.3 % )

+ 14.2 (Currency effect + 5.2)*Honda Group Unit Sales and Consolidated Unit Sales include only power product units

＜Increase Factors＞・Positive impact from sales volume and model mix, etc.

＜Decrease Factors＞・The impact of the pension accounting treatment ・Increased expenses in other businesses operations etc.

Operating Profit

Operating Margin

Yen (billion)

Power Product & Other Businesses Sales Revenue/Operating Profit (Margin)


64

FY17 FY181Q ２Ｑ３Ｑ４Ｑ１Ｑ２Ｑ

50.537.7 42.3 47.7 49.8 47.2

10.8%8.5% 9.3% 9.2% 9.2% 8.8%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

0

20

40

60

80

100

120

Total Assets of Finance

Subsidiaries8,538.3 8,440.3 9,643.3 9,437.0 9,494.4 9,688.7

Sales Revenue 467.9 446.3 455.7 521.1 539.6 539.5( + 20.9 % )

+ 93.1 (Currency effect + 37.0)

1Q 2Q 3Q 4Q １Ｑ２Ｑ

FY17 FY18

( + 25.1 % )

<Increase Factors>Increased in operationg lease revenues,etc.

Financial Services BusinessTotal Assets/Sales Revenue/Operating Profit (Margin)

Operating Profit

Operating Margin

Yen (billion)

Yen (billion)

65

Motorcycle Business

Automobile Business

Power Product and Other

BusinessesFinancial Services

BusinessFY17

Six MonthsFY18

Six MonthsFY17

Six MonthsFY18

Six MonthsFY17

Six MonthsFY18

Six MonthsFY17

Six MonthsFY18

Six MonthsHonda Group

Unit Sales(Consolidated Unit Sales)

8,890 9,937 2,431 2,559 2,728 2,589 －－(5,873) (6,691) (1,798) (1,807) (2,728) (2,589) (－) (－)

Sales Revenue 841.7 1,018.6 4,913.5 5,317.6 154.4 170.9 914.3 1,079.2

-50

0

50

100

150

200

250

300

350

+ 62.5 % + 9.9 %

(6.4 %)

(-0.3 %) (9.7 %)(-1.1 %) (9.0 %)(3.4 %)

(14.5 %)

- 43.2 %

66

(10.8 %)

FY17Six Months

FY18Six Months

FY17Six Months

FY18Six Months

FY17Six Months

FY18Six Months

FY17Six Months

FY18Six Months

90.7147.3

316.3

179.5- 0.5 - 1.8 88.3 97.1

Sales Revenue/Operating Profit (Margin) by Business Segment <FY18 Six Months >


Operating Profit : Yen (billion) Operating Margin : (%)

85.8

38.10.1

91.2

13.434.3

- 0.6 2.5

110.3

12.0

-20

0

20

40

60

80

100

120

Japan North America Europe Asia Other

RegionsFY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18

2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q

Sales Revenue 977.5 1,058.2 1,839.2 2,067.9 161.0 208.9 831.2 1,094.2 173.6 202.6

FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY182Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q

+ 20.8 % - 10.6 %- 60.0 %

67

incl. pension impact

84.0（profit）

incl. litigation settlement 53.7（loss）

Sales Revenue/Operating Profit by Geographical Segment <FY18 2nd Qtr>

Operating Profit: Yen (billion)

Yen (billion)

Japan North America Europe Asia Other

RegionsFY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18

Six Months Six Months Six Months Six Months Six Months Six Months Six Months Six Months Six Months Six Months

Sales Revenue 1,883.2 2,083.2 3,908.0 4,198.1 344.0 422.2 1,662.5 2,075.9 346.5 406.5

66.0

209.3

1.3

181.6

27.755.8100.9

9.1

208.1

26.7

-50

0

50

100

150

200

250

- 15.4 % - 51.8 % + 14.6 % - 3.7 %

68

Sales Revenue/Operating Profit (Margin) by Geographical Segment <FY18 Six Months>

Yen (billion)

Operating Profit: Yen (billion)

incl. pension impact

84.0（profit）

incl. litigation settlement 53.7（loss）

FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18Six Months Six Months Six Months Six Months Six Months Six Months Six Months Six Months Six Months Six Months

1Q 2Q 3Q 4Q 1Q 2QFY17 FY18

27.239.8 49.1 48.5 52.9

82.2

0

20

40

60

80

100

From Asia 39.3 36.2 40.8 43.8 46.3 57.9

+ 42.4( + 106.4% )

Share of Profit of InvestmentsAccounted for Using the Equity Method

Yen (billion)

Yen (billion)

69

70


FY18RevisedForecast

ChangeFY18

PreviousForecast

FY18RevisedForecast

ChangeFY18

PreviousForecast

FY18RevisedForecast

Change

Japan 170 165 - 5 680 690 + 10 265 280 + 15North

America 315 315 - 1,920 1,920 - 3,010 3,010 -Europe 220 225 + 5 175 175 - 1,030 1,015 - 15

Asia 17,015 17,375 + 360 2,060 2,100 + 40 1,460 1,455 - 5Other

Regions 1,050 1,100 + 50 245 245 - 400 405 + 5Total 18,770 19,180 + 410 5,080 5,130 + 50 6,165 6,165 -

17,661 18,770 19,180 5,028 5,080 5,130 6,121 6,165 6,165

+ 410( + 2.2 %)

± 0( ± 0 %)

+ 50( + 1.0 %)

Forecast: Honda Group Unit Sales


Unit(Thousand)

FY17Results


FY18RevisedForecast

FY17Results


FY18RevisedForecast

FY17Results


FY18RevisedForecast

71


FY18RevisedForecast

ChangeFY18

PreviousForecast

FY18RevisedForecast

ChangeFY18

PreviousForecast

FY18RevisedForecast

Change

Japan 170 165 - 5 615 620 + 5 265 280 + 15North

America 315 315 - 1,920 1,920 - 3,010 3,010 -Europe 220 225 + 5 175 175 - 1,030 1,015 - 15

Asia 10,465 10,815 + 350 730 730 - 1,460 1,455 - 5Other

Regions 1,050 1,100 + 50 245 245 - 400 405 + 5Total 12,220 12,620 + 400 3,685 3,690 + 5 6,165 6,165 -

11,23712,220 12,620

3,683 3,685 3,690 6,121 6,165 6,165

+ 400( + 3.3 %)

± 0( ± 0 %)

+ 5( + 0.1 %)

Forecast: Consolidated Unit Sales

AutomobilesMotorcycles Power Products

FY17Results


FY18RevisedForecast

FY17Results


FY18RevisedForecast

FY17Results


FY18RevisedForecast

Unit(Thousand)

Earnings per shareattributable to owners of the parent 342.10 326.26 - 15.84 + 23.87

FY17Results

FY18Forecast

Change Change from previous forecastAmount %

Sales revenue 13,999.2 15,050.0 + 1,050.8 + 7.5% + 550.0

Operating profit 840.7 745.0 - 95.7 - 11.4% + 20.0

Operating margin 6.0% 5.0% - 1.0pt -

Share of profit of investments accounted for using the equity method

164.7 205.0 + 40.2 + 24.4% + 25.0

Profit before income taxes 1,006.9 955.0 - 51.9 - 5.2% + 55.0

Profit for the yearattributable to owners of the parent

616.5 585.0 - 31.5 - 5.1% + 40.0

US Dollar 108 109 (1H 111 /

3Q 110 / 4Q 105 )Yen down by 1 yen Yen down

by 2 yen

*1

FY18 Financial Forecasts (Consolidated)Yen (billion)

Market average rates (Yen)

(Yen)

For *1, please refer to the footnote on page 43

72

73

Profit before Income Taxes - 51.9 ( - 5.2 % )

1,006.9 955.0+ 89.0

+ 75.0 - 57.0- 54.0

- 11.0+ 40.2 + 3.5


- 53.7

LitigationSettlement

- 84.0

FY18 Forecast: Change in Profit before Income Taxes

Yen (billion)

OperatingProfit

840.7

Revenue,model mix,

etc.


R&D CurrencyEffects

Impact of Pension

Accounting Treatment



method

Finance income and

finance costs

OperatingProfit

745.0

- JPY / USD - USD / Others

(BRL, CAD, MXN)- JPY / Asian Currencies

(INR, THB, VND, CNY, IDR)- Others

+7.0+7.5

+9.5

- 35.0

FY18RevisedForecast

FY17Results

CostReduction,

etc.

74

900.0955.0

-+ 64.0 + 25.0-

Profit before Income Taxes + 55.0 ( + 6.1 % )

- 53.7+ 29.7 - 20.0 + 10.0

Excl. currency effects and litigation settlement

+ 9.7

Operating Profit + 20.0 ( + 2.8 % )

FY18 Forecast: Change in Profit before Income Taxes

Yen (billion)

OperatingProfit

725.0


Revenue,model mix,

etc.

Increase inSG&A R&D

CurrencyEffects

Litigationsettlement



method

Finance income and

finance costs

OperatingProfit

745.0

FY18RevisedForecast

- JPY / USD - USD / Others

(BRL, CAD, MXN)- JPY / Asian Currencies

(INR, THB, VND, CNY, IDR)- Others

+ 38.5+7.5

+ 13.5

+ 4.5

CostReduction,

etc.

75

FY18 Forecast: Capital Expenditures, Depreciation and R&D

0%

2%

4%

6%

8%

0

200

400

600

800

FY11 12 13 14 15 16 17 18P0%

2%

4%

6%

8%

0

200

400

600

800

FY11 12 13 14 15 16 170%

2%

4%

6%

8%

0

200

400

600

800

FY11 12 13 14 15 16 17 18P

Capital Expenditures Depreciation

Actual Amounts % against Sales

US GAAP IFRS US GAAP IFRS US GAAP IFRS

R&D Expenditures

* Capital expenditures as well as Depreciation and amotization n results and forecast aforementioned exclude investment in operating leases, finance leases and intangible assets.

** Research and development expenditures are research and development activity related costs incurred during the reporting period. In accordance with IFRS, a portion of research and development expenditures is recognized as an intangible asset and amortized over its estimated useful life. As such, this amount is not in conformity with "Research and development" on our Consolidated Statement of Income.Research and development expenditures aforementioned exclude decrease of 25.4 billion yen due to the impact of pension accounting treatment in FY17 2nd quarter.

【Acquisition of the Company’s Own Shares】

・Total number of shares to be acquired : Up to 24 million shares (shares of common stock)(1.3% of total number of issued shares (excluding treasury stock))

・Total amount of shares to be acquired : Up to 90 billion yen・Period of acquisition: Starting on November 2, 2017 and ending on January 31, 2018

・Method of acquisition: Market purchases on the Tokyo Stock Exchange

1.Purchases through the Tokyo Stock Exchange Trading Network Off-Auction OwnShare Repurchase Trading System (ToSTNeT-3)

2.Market purchases based on the discretionary investment contracts regardingacquisition of own shares

76

FY18 Shareholders’ return（Yen）

Dividend per Share FY17 FY18(Expectation)

change

1st Quarter End 22 24 + 22nd Quarter End 22 24 + 2 3rd Quarter End 24 ( 24 ) ( - )4th Quarter End 24 ( 24 ) ( - )

Fiscal Year 92 ( 96 ) ( + 4 )

97.4 108.1137.0 147.8 158.6 158.6 165.8 171.9

25

90

122.4108.1

137.0 147.8 158.6 158.6165.8

261.9

18.3%51.1%

37.3%

25.7%32.2%

46.0%

26.9%29.4%

0

100

200

300

400

500

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

77

FY11Actual

FY12Actual

FY13Actual

FY14Actual

FY15Actual

FY16Actual

FY17Actual

FY18（Estimated）

Dividend（Yen）

1st Quarter End 12 15 19 20 22 22 22 24

2ndQuarter End 12 15 19 20 22 22 22 24

3rd Quarter End 15 15 19 20 22 22 24 ( 24 )

4th Quarter End 15 15 19 22 22 22 24 ( 24 )

Fiscal Year 54 60 76 82 88 88 92 ( 96 )

Dividends ratio* 18.3% 51.1% 37.3% 25.7% 32.2% 46.0% 26.9% ( 29.4% )

Acquisition of the Company’s Own Shares 25.0 0 0 0 0 0 0 ( 90 )

（billionYen）

Acquisition of the Company’sOwn Shares

TotalDividend

DividendsRatio

Recent Shareholders’ Return Summary Trend

* US GAAP up to FY15 , IFRS from FY16

（billion）

Caution with Respect to Forward-Looking Statements:This slide contains forward-looking statements about the performance of Honda, which are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that Honda’s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda’s principal markets and fluctuation of foreign exchange rates, as well as other factors detailed from time to time.

Accounting standards: Our consolidated financial statements are prepared in conformity with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB)

Notice on the Factors for Increases and Decreases in Income:With respect to the discussion above of the change in Operating profit, management has identified the factors set forth below and used what it believes to be a reasonable method to analyze the respective changes in such factors. Each of these factors is explained below. Management has analyzed changes in these factors at the levels of the Company and its material consolidated subsidiaries.(1)“Currency effects” consist of translation adjustments, which come from the translation of the currency of foreign subsidiaries’ financial statements into Japanese Yen, and foreign currency adjustments, which result from foreign-currency-denominated sales, which, at the levels of the Company and those consolidated subsidiaries which have been analyzed, primarily relate to the following currencies: U.S. dollar, Canada dollar, Euro, GBP, BRL and Japanese Yen. (2) With respect to “Cost reduction, etc.”, management has analyzed cost reduction and effects of raw material cost fluctuations at the levels of the Company and its material foreign manufacturing subsidiaries in North America, Europe and other regions.(3) With respect to “Revenue, model mix, etc.”, management has analyzed changes in sales volume and in the mix of product models sold in major markets which have resulted inincreases/decreases in profit, as well as certain other reasons for increases/decreases in sales revenue and cost of sales.(4) With respect to “Selling, General and Administrative expenses”, management has analyzed reasons for an increase/decrease in selling, general and administrative expenses from the previous fiscal year net of currency translation effects.(5) With respect to “Research and Development expenses”, management has analyzed reasons for an increase/decrease in research and development expenses from the previous fiscal year net of currency translation effects.

Unit sales:Motorcycle BusinessHonda Group Unit Sales is the total unit sales of completed products, including motorcycles, ATVs, and Side-by-Side of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.Automobile BusinessHonda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries and sold through our consolidated subsidiaries are accounted for as operating leases in conformity with IFRS and are not included in consolidated sales revenue to the external customers in our Automobile business. Accordingly, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our Automobile business.Power Product BusinessesHonda Group Unit Sales is the total unit sales of completed power products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed power products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed power products of Honda and its consolidated subsidiaries. In Power Product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales since no affiliate and joint venture accounted for using the equity method was involved in the sale of Honda power products.

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