Honda Information Meeting 2013 Spring Honda FY2011...

1

Honda FY2011 Rating Review

1

Honda Information Meeting 2013 Spring

2014 Acura MDX

2


Current Honda Business

FY13ｂ Q2 Financial Highlights

Motorcycle Business

Automobile Business


Business Strategy

Honda Information Meeting

3

Profit structure and Strong Recovery in FY13

Profit Structure, Strong Recoveries and FY14 Forecast

O/P margin

5.5%

2.9%

6.5%

4.2%

1.9%

7.9%7.7%

8.8%

7.3%

-200

0

200

400

600

800

1,000

1,200

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14(P)

(billion)

-2%

0%

2%

4%

6%

8%

10%

12%

AutomobileAutomobile

MotorcycleMotorcycle

FinanceFinance

FY12

Honda achieved a strong recovery from the Earthquake and Thai flood in FY13

USD/JPY

・Earthquake・Flood

(Billion)

・ Lehmanshock

4

FY13

Honda Business Update

Yen (billions)

FY14(P)(as of Apr. 26)

Top-line growth andcost reduction

approx.

152

SG&AExpenses

Unit Sales 4.0 → 4.4 mil(10% increase)

Strong unit sales growth and favorable FOREX effects will contribute toincrease in OP despite increase in expenditures for future growth

Operating income

780Operating income544

FOREXEffects

approx.248

approx.248

approx.- 47

approx.- 47

Expenses forfuture growth

Volume / Mix Cost Reduction

approx.- 117approx.- 117

R&DExpenses

5



FY13 Q2 Financial Highlights

Motorcycle business

Automobile Business


Business Strategy


6

Earth Dreams Technology

Fit/JazzHybrid

CR-Z

Fit Shuttle Hybrid Acura ILX Hybrid

Three-MotorSports Hybrid SH-AWD system for Acura models

INTEGRATEDMOTORASSIST

Accord Hybrid

Enhance Hybrid Line-upEnhance Hybrid Line-up

2013

Fit series

Plug-in Hybrid

2010 2011 2012

Intelligent Dual-Clutch Drive (i-DCD)One-Motor Hybrid system

Sports Hybrid IntelligentMulti-Mode Drive (i-MMD)

Two-Motor hybrid systemmid-to-large sized vehicles

NSX

Jan 2013

Freed / Spike Hybrid Civic Hybrid

Fit City

RLX

2013

1,000 1,000 1,000 1,000

1,630 1,720 1,920 1,920

300 300300 300

625 675

945

870890

8901,010

150150

150

1,065

150

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

2012 2013 2014 2015

Global Automobile Production Capacity

4,575 4,7355,205

New plant in Mexicostarts-up in 2014New plant in Mexicostarts-up in 2014

(Unit : 1,000)

Start-up of Yorii Plant

+200k

+470+470

Japan

NorthAmerica

Europe

Asia

China

Other

Increase capacityin Dongfeng, ChinaIncrease capacityin Dongfeng, China

+20k

+160+160

+α +α +α +α

Increase capacityin Guanqi ChinaIncrease capacityin Guanqi China

+120k

Increase capacity at Alabama and Indiana plant

Increase capacity at Alabama and Indiana plant

+90k

In Malaysia+50k

End of

+130kIn Indonesia

Capacity increase to 5.7 milGlobal capacity to increase to over 5.4 million units by end of 2015

In Thailand+20k

New plant in ThailandStarts-up in 2015New plant in ThailandStarts-up in 2015

In Thailand+120k

5,445+240+240

+120kIn India

2013 2014 2015

7

8

Focus on Compact VehiclesIndianaIndiana

AlabamaAlabama

Total Production Capacity Current 1.72mil → 1.92mil in 2014

Automobile Production in North America

OhioOhio

New plant start-up in the spring of 2014

with capacity of 200k units

MexicoMexico

More than 90% of the vehicles sold in the U.S. produced in North America

CanadaCanada

• Focused on Mid-size Vehicles• Plants to introduce

advanced technologies

Focus on Light Trucks

Focus on Small Vehicles

Created specifically to build small

vehicles from the Global Compact Series

Capacity: 680k (MAP 440k / ELP 240k)

Capacity: 390k Capacity: 250k

Capacity: 340k

Capacity: Existing 60k / New 200k

(Total 260k)

Will start to producenew Acura MDX in June

Fit

New Plant in Japan : Yorii

Honda Smart Ecological Paint (Yorii is the first plant to use this technology and it will be introduced to other new plants.

Yorii Plant

Start production in July 2013

Dedicated to the production of small-sized vehicles

Capacity : 250k units / year

Yorii Plant will employ a number of innovative technologies and begin production as a world-leading energy-saving plant.

• Reduction of the amount of paint materials• 40% reduction in the number of processes• 40% reduction of the amount of CO2 emitted during painting process

3-coat/2-bake(Honda Smart Ecological Paint)

Example of Innovative Technologies

A highly-functional painting technology that eliminates a middle coating process from a commonly used 4-coat/3-bake auto body painting process to realize a 3-coat/2-bake water-based painting process.

Image of test painting

4-coat/3-bake(Conventional painting process)

This new technology enables Honda to reduce the cost of paint materials, processing cost and equipment cost.

9

Automobile Production Strategy in Asia

India

Malaysia

Thailand

Indonesia

Vietnam 10kPhilippines 15k

Taiwan 30k

Pakistan 50k

Expand capacity in conjunction with Fit / Brio Series introduction Launch small diesel engine in the Indian market (2013~) Strengthen complementary regional production network

Production Capacity 625k 1,065k (end of 2015)

(2014~)

(2014~)

Freed

Jazz (HEV)

MPV

Accord

Civic

Fit seriesFit series

Fit

City URBAN SUV CONCEPT

MPV(with 3rd-row seat)Brio Brio Amaze

Brio seriesBrio series

120k280k

50k

70k

240k 420k

100k

200k

MPV

Confidential

10

+

Global Model

Asian Model

Amaze, the new family sedan which was introduced on April 11th, has received a tremendous response with many orders.

4,852

2,252Mar Apr

AmazeWhole Sales (Units)

Small DieselEngine

Small DieselEngine

India(2013~)

1.5L

Amaze

Concept MCRIDER(Jun 2013)

JADE(Sep 2013)

Acura Concept SUV-X(by 2016)

New Models to be launched in China

Acura RLX(Jun 2013)

CY2013 2014～

Plan local production of a mass-production model based on this concept vehicle for Chinese market

Sales Plan

2012(Act)

2013(Plan)

601750(thousand units)

New Model Launch ScheduleNew Model Launch ScheduleNew Model Launch Schedule

+25%

New-value MPV concept model

• Plan for 750k units sales in 2013 by introducing new models.

• For the Honda brand, the introduction of more than 10 new and full-model-change models, including the above, is scheduled during the 3-year period from 2013 to 2015

• Acura is planning to begin local production in China in approximately three years.

New-value passenger moverMiddle-class sedan

Strengthen Acura line-up

RDX 3.0L

ILX 2.0L

MDX

11

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Unit: thousands

Others

Accord

Civic

CR-V

Fit/Jazz/City

Unit Sales of Honda’s Global 4 Pillar Models

“Global 4” pillar models form core of competitiveness and efficiency

Honda Automobile Business

70%

CY2012610

660

760652

Total 3,818thousand units

Global 4 ratio

12

13

- Forward Collision Warning (FCW)- Lane Departure Warning (LDW)- LaneWatch blind spot display

Class-leading fuel economy and Fun of driving Innovative safety technology

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Oct Nov Dec Jan Feb Mar

Sales up by 38% yoy in 6 months since launch (units)

Accord

FY13

FY12

-Earth Dreams 2.4L DOHC L4 DI engine with new CVT or 6MT

-3.5L SOHC V6 engine with VCM (Variable Cylinder Management system), 6AT

-Two-motor gasoline-electric plug-in hybrid system January 2013

-Two-motor gasoline-electric hybrid system June 2013 (Japan), within 2013 in the US

Accord PHEV

0

10,000

20,000

30,000

40,000

Jan 12 Feb Mar April May Jun July Aug Sep Oct Nov Dec Jan 13 Feb Mar Apr

14

Civic

Jan 2012

Introduce New Diesel engine

Lightweight (industry top-class)Reduces CO2 output by over 15% (95g/km)

1.6L New Dieselfrom 2013

U.S.U.S.U.S.

EuropeEuropeEurope AsiaAsiaAsia

New Civic launch in Asia including China

Thailand (May)

2011

Indonesia (Jun)

Taiwan (Jun)

Vietnam (Jul)

Pakistan (Sep)

Malaysia (Jul)

2012

China (Oct )

approx.

170K unitsapprox.

170K units

Annual Civic Sales in Asia

・No.1 in segment sales CY2012

0

10,000

20,000

30,000

40,000

Jan11

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan12

Feb Mar April May Jun July Aug Sep Oct Nov Dec Jan13

Feb Mar Apr

15

CR-Vがすごいという絵

AsiaAsiaAsia

Thailand (Sep)

2012

Indonesia (Sep)

Australia (Oct)

Vietnam

Philippine

Malaysia

New CR-V launch in Asia including China

Sep 2012

New 1.6L Diesel

Autumn 2013

EuropeEuropeEuropeNew CR-V and New Diesel in Europe

CR-V

approx.

240K unitsapprox.

240K units

China (March)

Annual CR-V Sales in Asia

InventoryDay’s supply

( Sales unit )

60 days

・Setting YOY monthly records* despite low inventory levels・No.1 in segment sales CY2012

U.S.U.S.U.S.

FMC

***** **

** *

16

Fit / Jazz / City

All-new Global Compact Series (Fit series) will be introduced starting in 2013

Roll-out of Fit (Jazz), City and a new small SUV model within 2 years

FitCity

Next generation Fit Next generation Next generation Fit Fit

Fit / Jazz / City historical sales by region

0

200,000

400,000

600,000

800,000

1,000,000

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

1st generation 2nd generation

Overseas

Japan

3rd

Japan2013～

North America2014～

17

Global Operation Reform

Global operation reform to be implemented beginning with all-new Fit series

Dedicating new plants to small-sized vehicles

Concurrent development in all six regions

Japan, North America, South America, Europe, China, Asia

Concurrent development in all six regions

Japan, North America, South America, Europe, China, Asia

Improvement ofproduction efficiency

Improvement ofproduction efficiency

Adoption of locallyoptimized designAdoption of locallyoptimized design

Respond to the voice of local customersUtilize more local suppliers

Introduction of the same model in all regionsSimultaneous large volume production Significant cost reduction through global sourcing

•Yorii Plant in Japan ( July 2013 )•Mexico factory ( Spring 2014 )

18




Motorcycle Business

Automobile business


Business Strategy


19

Honda’s Share and Market Size in CY2012

62%

58%

Brazil1.6 million

India

Thailand2.1 million

Vietnam3.1 million

Indonesia

13.8million

7.0million

76%

18%

80%

20

1.6 1.6 1.6 1.6

0.6 1.2 1.2 1.2

1.2

2011 2012 2013 2014(P)

Manesar

Rajasthan

Bangalore

1st

2nd

3rd

Expansion Plan

3rd plant

2nd plant

1st plant

Annual Capacity : 2.2 mil → 4 mil

Motorcycle Production Capacity Expansion in IndiaOver

2.2mil2.8mil

4.0mil

110cc

AT-Scooter

Activa

Product Line-upProduct LineProduct Line--upup

Dream Yuga

(Apr 2012)

Expand capacity to meet growing demand Introduce new 110cc models

Starting with Dream Yuga and Dream Neo,Honda will introduce new 110cc models

Improve fuel economy of scooter models

Future Honda GrowthFuture Honda GrowthFuture Honda Growth

Dream Neo

(Apr 2013)

Honda introduced new 110cc Motorcycle into Indian Market

(in progress)

Honda Motorcycle Business in Indonesia Confidential

2009

Total270

2012

Total409

2013(P)1%

29%

–Sales target and FI (Fuel Injection) ratio of the motorcycle sales in Indonesia

BEAT-Fi

4th plant will start operation in 2014 with annual production capacity of 1.1 million units

Spacy FI

1.0 1.0

1.0 1.0

2.4 2.2

1.1

2012 2014(P)

5.3mil

4.4mil

1st

2nd

3rd

4th

–Capacity Expansion Apply FI to all models which will be sold in Indonesia by end of 2013

21

22




Motorcycle business

Automobile business


Business strategy


ChangeFY13FY12

+ 4.3%(+ 4.3%)

6,071(6,071)

5,819(5,819)

+ 29.2%(+ 37.3%)

4,014(3,408)

3,108 (2,482)

+ 2.9%(+ 9.9%)

15,494(9,510)

15,061(8,650)

Twelve Months

approx.1,802,298,000 shares


+ 86.37203.71117.34

ChangeFY13FY12

Twelve Months

- 17.6 %82.7100.4

+ 73.6%367.1211.4

+ 89.9%488.8 257.4

+ 135.5%544.8231.3

+ 24.3%9,877.97,948.0

108 108

Yen downby 5 yen8479

ChangeFY13FY12Honda Group Unit Sales(Consolidated Unit Sales)

- 2.3%(- 2.3%)

1,963(1,963)

2,010(2,010)

Power Products

+ 1.1%(+ 8.5%)

1,033(902)

1,022 (831)

Automobiles

- 4.9%(+ 0.3%)

3,962(2,490)

4,164(2,483)

Motorcycles

4Q Results (Three Months)



Note : Shares which are based on calculation of EPS

+2.3142.0339.72EPS attributable toHonda Motor Co., Ltd.(Yen)

ChangeFY13FY12

4Q Results (Three Months)Financial results

- 60.7 %13.033.2 Equity in income of affiliates

+ 5.8%75.7 71.5 Net income attributable to Honda Motor Co., Ltd.

+ 5.4%98.0 93.0 Income before income taxes

+ 21.4%135.9 111.9 Operating income

+ 14.1%2,744.92,405.0 Net sales & other operating revenue

Yen downby 18 yen122104Euro

Yen downby 13 yen9380US Dollar

（thousand）

Yen （billion）

(weighted average number of shares outstanding )Average Rates (Yen) (weighted average number of shares outstanding )

Outline of FY13 4th Quarter Financial Results (Consolidated)

23

Income before Income taxes + 5.0 （ + 5.4 % ）

93.0 98.0- 32.2

+ 15.0 - 8.0- 8.1

+ 57.4

+ 20.4 - 39.4

Operating Income + 24.0 （ + 21.4 % ）Other Income & Expenses

- 18.9

Change in Income before Income Taxes <FY13 4th Quarter>Yen

(billion)

OperatingIncome

111.9

OperatingIncome135.9

FY12 4Q FY13 4Q*Please refer to Exhibit 1 regarding currency effects

<Decrease Factors>- Increased selling expenses due to

sales increase- Advertisement expenses, etc.

Revenue, model mix, etc.

Cost Reduction, etc.

Increase in SG&A

Increase in R&D Currency Effects

Unrealized gains andlosses related to

derivative instruments(Exhibit 2)

Other

- Currency effects due to difference between average sales rates and transaction rates - 30.4- Other - 8.9

24

Income before Income taxes + 231.4（ + 89.9 % ）

488.8+ 293.4

+ 166.6 - 141.9

- 40.4 + 35.8 - 36.8- 45.0

Operating Income + 313.4（ + 135.5 % ）Other Income & Expenses

- 81.9

257.4

Change in Income before Income Taxes <FY13 Twelve Months >

FY12Twelve Months

FY13Twelve Months

OperatingIncome

231.3

OperatingIncome544.8

*Please refer to Exhibit 1 regarding currency effects

Yen (billion)

<Increase Factors>-Increase in unit sales and model mix, etc.<Decrease Factors>- Increased sales incentives, etc.

<Increase Factors>- Decreased fixed cost per unit due to increased production

- Cost reduction efforts, etc.

<Decrease Factors>- Increased selling expenses due to

sales increase - Advertisement expenses, etc.

- Currency effects due to difference between average sales rates and transaction rates - 49.4- Other + 4.3

Revenue, model mix, etc.

Cost Reduction, etc.Increase in SG&A

Increase in R&D Currency Effects Unrealized gains andlosses related to

derivative instruments(Exhibit 2)

Other

25

26

Yen (billions)

Yen (billions)

Motorcycle Business

Automobile Business

=Operating Income

=Operating Margin

=Operating Income

=Operating Margin

Operations by Business Segment

30.0 29.1 48.1 44.9 38.9 25.8 32.8 36.8 25.4 22.8 25.2

(2.8)

25.246.331.152.730.337.031.1

28

5.6 9.3 15.8 31.3

6.7%7.4%

8.2%

10.6%9.2%8.5%

10.9%

13.6%13.6%

9.8%

8.4%

9.6%

-1.0%

7.4%

11.6%

9.7%7.9%

11.9%

8.3%8.5%

2.2%

3.4%

5.8%

9.6%

-10

10

30

50

70

FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q FY111Q

2Q 3Q 4Q FY121Q

2Q 3Q 4Q FY131Q

2Q 3Q 4Q-3%

2%

7%

12%

17%

22%

68

-76

7177

-17-29

37

101

45-39

86149

110

14

-21

24148 213 221 80 150 79 71

-275

3.6%3.7%2.1%

5.3%

2.4%

-1.2%-2.2%

-6.5%

-2.4%4.2%

6.3%

0.9%-1.4%

6.4%

9.0%

3.4%6.7%

9.0%

3.6%3.6%

-21.2%

5.0%

1.4%

8.2%

-300

-200

-100

0

100

200

300

FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q FY111Q

2Q 3Q 4Q FY121Q

2Q 3Q 4Q FY131Q

2Q 3Q 4Q-25%

-15%

-5%

5%

15%

25%

27

Yen (billions)

Yen (billions)

Power Product & Other Businesses

Financial Services Business

=Operating Income

=Operating Margin

*Honda Trading related out-of-period adjustment is not included

Operations by Business Segment

-2.1 -2.0 -7.4

0.10.1-2.2-2.3

-0.10.2

-2.0-0.3

-11.9

-2.8-0.9

0.25.12.26.97.9

-3.1-5.9 -4.6 -2.9

-0.4

-8.9%

0.1%0.1%-2.7%-3.3%

-3.2%

-0.2%0.4%

-2.8%

-0.5%

-3.7%

-0.4%

-15.0%

-3.5%

-0.9%

6.6%

0.2%

4.2%2.3%

6.9%

-8.1%-6.4%

-4.0%-2.8%

-20

0

20

FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q FY111Q

2Q 3Q 4Q FY121Q

2Q 3Q 4Q FY131Q

2Q 3Q 4Q-15%

-10%

-5%

0%

5%

10%

15%

47.4 44.6 39.6 53.6 42.8 37.5 35.9 40.8 38.2 38.1 40.918.09.424.328.731.322.929.334.2 47.246.8 47.1 53.6 54.6

26.4%

27.6%

28.7%27.4%

30.5%29.5%

33.2%

38.7%

28.8%

35.8%

32.0%

32.9%

13.1%

6.5%

14.9%

21.3%19.2%

22.1%

16.4%

26.4%

29.4%29.8%

34.8%

32.0%

0

20

40

60

80

FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q FY111Q

2Q 3Q 4Q FY121Q

2Q 3Q 4Q FY131Q

2Q 3Q 4Q0%

10%

20%

30%

40%

75.8 89.6 24.5 18.5 47.7 74.8 82.2 26.7 70.8 29.082.2

110.747.67.1 70.797.0 116.0156.3 63.1 94.5 22.5 70.0

-107.4

110.7

2.2%

5.7%

2.5%

6.8% 6.8%7.6%

10.8%

5.3%

0.7%

6.1%

9.5%

4.3%

6.3%7.5%

1.6%

5.7%

-15.7%

7.4%

7.0%

9.7%8.9%

2.5%2.5%

6.0%

-150

-100

-50

0

50

100

150

FY08

1Q

2Q 3Q 4QFY

09 1

Q

2Q 3Q 4QFY

10 1

Q

2Q 3Q 4QFY

11 1

Q

2Q 3Q 4QFY

12 1

Q

2Q 3Q 4QFY

13 1

Q

2Q 3Q 4Q

-18%

-14%

-10%

-6%

-2%

2%

6%

10%

14%

North America =Operating Income

=Operating Margin

60.9 30.0 40.7 46.612.5

-35.3-45.8 -41.2-21.814.620.253.2

-176.0

-64.3

40.937.92.356.273.360.6 -8.7

-4.6 -25.7

10.0

4.4%4.5%

3.2%

6.1%

1.2%

-4.8%-4.4%

-7.3%

-2.4%

1.7%

-1.0%

2.2%

5.8%

-23.8%

-6.0%

3.4%

6.0%

3.3%

0.2%

4.5%5.2%

-0.6%

-3.2%

1.2%

-200

-150

-100

-50

0

50

100

FY08

1Q

2Q 3Q 4QFY

09 1

Q

2Q 3Q 4QFY

10 1

Q

2Q 3Q 4QFY

11 1

Q

2Q 3Q 4QFY

12 1

Q

2Q 3Q 4QFY

13 1

Q

2Q 3Q 4Q

-24%

-18%

-12%

-6%

0%

6%

12%

Japan =Operating Income

=Operating Margin

Yen (billions)

Yen (billions)

Operations by Region

28

29

Europe

=Operating Income

=Operating Margin

Asia excluding Japan =Operating Income

=Operating Margin

Yen (billions)

Yen (billions)

-4.0

20.4

-6.1-3.8 -7.6

1.8-1.7-9.4

-8.7 -3.5-6.8

1.81.7

-7.6

10.3 16.7 5.8 18.6 11.2 8.3 1.1

-10.5

4.0

-3.0

9.9%

-2.5%

1.1%

-6.0%-5.2%

-3.8%

0.9%0.8%2.6%1.6%

4.2%3.1%

4.3% 2.4%

0.4%

-4.0%

-1.9%

-3.7%

2.1%

-6.3%

-0.9%

-4.0%

-2.8%-3.2%

-15

-5

5

15

25

FY08

1Q

2Q 3Q 4QFY

09 1

Q

2Q 3Q 4QFY

10 1

Q

2Q 3Q 4QFY

11 1

Q

2Q 3Q 4QFY

12 1

Q

2Q 3Q 4QFY

13 1

Q

2Q 3Q 4Q

-10%

-5%

0%

5%

10%

44.4 38.3 35.7 32.1 25.1 21.8 13.3 16.5 31.7 36.4 40.5 38.035.033.420.3 30.036.9 33.4 38.3 21.9 37.4 36.6 24.9 4.5

6.9%

5.7%

6.7%

6.2%

4.2%

8.8%

7.4%

6.3%

9.4% 9.3%

5.3%

8.6%8.0%

8.4%

6.5%

1.3%

8.5%

9.4%

7.0%

8.0%

6.8%

6.7%

5.4%

4.2%

0

10

20

30

40

50

60

70

FY08

1Q

2Q 3Q 4QFY

09 1

Q

2Q 3Q 4QFY

10 1

Q

2Q 3Q 4QFY

11 1

Q

2Q 3Q 4QFY

12 1

Q

2Q 3Q 4QFY

13 1

Q

2Q 3Q 4Q

0%

2%

4%

6%

8%

10%


20.4 15.6 13.1 15.7 23.0 12.5 5.6 12.2 10.5 2.6 10.220.2

17.49.9

-0.4

18.921.7 30.1 31.7 32.7 36.3 48.7 41.8 8.0

4.6%

2.6%

1.2%

4.6%

5.6%6.1%

9.4%

6.8%

5.0%

6.6%7.2%

4.4%

-0.3%

9.6%

11.2%10.4%

12.4%

11.3%

14.0% 13.8%

4.1%

8.4%

7.5%

8.6%

-10

0

10

20

30

40

50

60

70

FY08

1Q

2Q 3Q 4QFY

09 1

Q

2Q 3Q 4QFY

10 1

Q

2Q 3Q 4QFY

11 1

Q

2Q 3Q 4QFY

12 1

Q

2Q 3Q 4QFY

13 1

Q

2Q 3Q 4Q

-3%

0%

3%

6%

9%

12%

15%

Yen (billions)

Other Regions=Operating Income

=Operating Margin


30

Change

+ 212.8

+ 32.2

+ 291.1

+ 235.1

+ 2,222.0

amount

580.0

115.0

780.0

780.0

12,100.0

FY14Forecasts

+ 39.0%82.7Equity in income of affiliates

+ 58.0%

+ 59.5%

+ 43.2%

+ 22.5%

%

367.1Net income attributable to Honda Motor Co., Ltd.

488.8 Income before income taxes

544.8Operating income

9,877.9Net sales & other operating revenue

FY13Results

+ 118.10321.81203.71EPS attributable to Honda Motor Co., Ltd. (Yen)

120

95

Yen down by 12 yen

Yen down by 11 yen

108Euro

84US Dollar

FY14 Financial Forecasts (Consolidated)Yen (billion)

Note : Shares which EPS calculation is based on:

(weighted average number of shares outstanding )



(weighted average number of shares outstanding )Average Rates (Yen)

31

"Honda Group Unit Sales"

"Consolidated Unit Sales"

Guidance: Units Sales by Business Segment

0

2,000

4,000

6,000

8,000

0

1,000

2,000

3,000

4,000

5,000

0

5,000

10,000

15,000

20,000

13,035

1,813

15,494

692

1,731

171

1,122

4,014

2986,071

1,004

314

2,604

577

1,572

14,750

1,925

17,400

825

185

1,325

300

4,430

6,200

965

285

2,715

515

1,720

1,795

+ 416( + 10.4 % )

+ 1,906( + 12.3 % )

+ 129( + 2.1 % )

Motorcycles Automobiles Power ProductsUnit

(thousand)

OtherRegions

Asia

Europe

NorthAmerica

Japan

FY13 FY14Forecasts

FY13 FY14Forecasts

FY13 FY14Forecasts

217250179

235315175

0

2,000

4,000

6,000

8,000

0

3,000

6,000

9,000

12,000

0

1,000

2,000

3,000

4,000

217250179

7,051

1,813

9,510

685

1,731

171

523

3,408298

6,071

1,004

314

2,604

577

1,572

235315175

8,350

1,925

11,000

815

1,795

185

575

3,670300

6,200

965

285

2,715

515

1,720

+ 1,490( + 15.7 % )

+ 262( + 7.7 % )

+ 129( + 2.1 % )

Motorcycles Automobiles Power ProductsUnit

(thousand)

FY13 FY14Forecasts

FY13 FY14Forecasts

FY13 FY14Forecasts

OtherRegions

Asia

Europe

NorthAmerica

Japan

32

Income before Income taxes + 291.1（ + 59.5 % ）

488.8

780.0

+ 131.6+ 20.0 - 117.0

- 47.5

+ 248.0

+ 77.0 - 21.0

Operating Income + 235.1 （ + 43.2 % ）Other Income & Expenses

+ 55.9

Forecast: Change in Income before Income Taxes

Operating Income544.8FY13 FY14

Forecast

Operating Income780.0

Yen (billion)

Revenue,model mix,

etc.

Cost Reduction, etc.

increase in SG&A Increase

in R&DCurrency Effects

Unrealized gainsand losses related toderivative

instruments

Other

33

+ 69.8

+ 73.4

+ 106.4

Change

560.2

286.6

593.6

FY13Results

630.0

360.0

700.0

FY14Forecasts

R&D expenses

Depreciation andAmortization

Capitalexpenditures

*

*

Forecast: Capital Expenditures, Depreciation, R&D Expenses

* “Capital expenditures” in results and the forecast aforementioned exclude investment in operating leases, capital leases and acquisition of intangible assets.

* “Depreciation and amortization” in results and the forecast aforementioned exclude depreciation of investment in operating leases, capital leases and amortization of intangible assets.

Yen(billion)

34

Increase/Decrease from

FY12 Results

( + 16 )

( + 4 )

+ 4

+ 4

+ 4

60

15

15

15

15

FY12Results

( + 1 )

( + 1 )( 20 ) ( 19 )4th quarter End

( + 1 ) ( 20 )193rd quarter End

( 20 )191st quarter End ( + 1 )

( 20 )192nd quarter End

Increase/Decrease from FY13

( + 4 )( 76 )

FY13Results &Projection

Dividend per Share

( 80 )Fiscal Year

FY14Expectation

Dividend

(Yen)

( ) figures in parenthesis are expected results

35

3636

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 foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailed from time to time.

Accounting standards: Our consolidated financial standards are prepared in conformity with U.S. generally accepted accounting principles.

Notice on the Factors for Increases and Decreases in Income:With respect to the discussion above of the change in operating income, 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)“Foreign 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 and effects of raw material cost fluctuations”, 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 “changes in net sales and model mix”, management has analyzed changes in sales volume and in the mix of product models sold in major markets which have resulted in increases/decreases in profit, as well as certain other reasons for increases/decreases in net sales 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. 36

Honda Information Meeting 2013 Spring Honda FY2011...

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