Honda Information Meeting 2012 Spring Honda ... - global.honda · Global Automobile Production...

1

Honda FY2011 Rating Review

1

Honda Information Meeting 2012 Spring

New CR-V

2


Current Honda Business

FY12 Q4 Financial Highlights

Motorcycle Business

Automobile Business


Business Strategy

Honda Information Meeting

3

Honda Business After the Earthquake and Thailand Flood

Global ProductionUnits (thousand)

Production Recovery Following Supply-Chain Disruptions

131%142%

97%98%81%

47% 55%66%

91%66%

91%107%102%

49%

99%

0

100

200

300

400

500

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar-10%

10%

30%

50%

70%

90%

110%

130%

150%2011 YOY ('11 v.s. '10)

2011 2012

EarthquakeFlood

4

899 898 855 861547

772 830 1,001

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

FY11 1Q 2Q 3Q 4Q FY11 FY12 1Q 2Q 3Q 4Q FY12 FY13Forcast

Honda Business After the Earthquake and Thailand Flood

Global Sales

Units (thousand)

Production Recovery Following Supply-Chain Disruptions

4.3 mil （+38％）

4.3 mil （+38％）

Earthquake Flood

3.1mil3.5mil

5

Unit: thousands

Growth of global models has contributed to a boost in unit sales

Four global models

2,533thousand units

global model ratio58%

Annual global salesCY2000

CY2011

3,095thousand units

Well-sequenced model changes of core global models

New Civic FY 2012

New Accord FY 2013

Fit/JazzCivic

75%

CivicAccordFit/Jazz/CityCR-V

502

525

744535

New CR-V FY 2012

0

100

200

300

400

500

600

700

1997 1999 2001 2003 2005 2007 2009 2011

Other

China

As ia

Europe

N/A

Japan

CR-V historical sales by region

CR-V

To be launched in Europe and Asia

The number of CR-V customers has expanded globally with each newmodel generation. The 4th generation model is already highly popular in the U.S. and China.

1st generation 2nd generation 3rd generation

Accord

Honda Automobile Business

To be launched in the U.S. in the fall of this year

Launch of 4th generation

6

FY12

Honda Business Update

Yen (billions)

FY13(as of Apr. 27)

Top-line growth andcost reduction

approx.

424R&D cost increase

Sales units 3.1 → 4.3 mil(38% increase)

Strong recovery of operating profit for FY13

approx.-35

approx.-35

Operating income

620Operating income231

7

6.0%

2.9%

7.9%

6.4%

4.2%

1.9%

7.7%8.8%

7.3%7.4%

9.1%9.0%

6.2%6.9%

-200

0

200

400

600

800

1,000

1,200

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY13

(billion)

-2%

0%

2%

4%

6%

8%

10%

12%

Profit structure and Strong Recovery in FY13

AutosAutos

MotorcycleMotorcycle

FINCOFINCO

O/P margin

•Earthquake•Flood•Earthquake•Flood

FY12

70

80

90

100

110

120

130

140

USD/JPY

140130

120

110

100

90

80

Despite the continued negative impact of the strong yen, Honda forecasts a strong recovery in FY13

Honda Business Update

PowerProducts

8




Motorcycle business

Automobile Business


Business Strategy


9

0

1,000

2,000

3,000

4,000

588

1,323

158

837

3,108202

710

1,740

230

1,310

4,300310

585

1,458

198

1,021

3,529

267


Honda forecasts record-high sales of 4.3 mil units in FY13

Japan

Europe

OtherRegions

Asia

NorthAmerica

-Regain top-selling position in segment as inventory recovers

-Regain top-selling position in segment as inventory recovers

Main Drivers for North American GrowthMain Drivers for North American GrowthMain Drivers for North American Growth

Civic

CR-V

-Top sales in the CUV segment (note: achieved record sales for anyquarter in March – over 30,000 units)

-Top sales in the CUV segment (note: achieved record sales for anyquarter in March – over 30,000 units)

Accord (Coupe)

-Fully remodeled Accord launch in the fall with all-new power train

-Fully remodeled Accord launch in the fall with all-new power train

New 2.4L Direct Injection + CVT

RDX ILX RLX

-Strengthen Acura model line-up-Strengthen Acura model line-up

FY11 FY12 FY13Forecast

Unit(thousand)

10

Honda FY2011 Rating ReviewHonda Automobile Business in the U.S.

Acura is poised to take off

Acura line up all refreshed within 24months, Brand Halo NSX is coming within 3yrs

Renewed focus on its core brand values, supported by series of technologiesthat provide unique synergy between the vehicle and its driver

(May 2012) (Apr 2012)

(Early 2013)

11

Capacity: 390k

Model AllocationNew CR-V production from 2012MDX to shift to Alabama in 2013

CanadaCanada

Capacity: 200k

Production IncreaseIndiana factory started 2nd shift from October 2011

IndianaIndiana

Model AllocationMDX to be shifted from Canada in 2013

Capacity: 300k → 340k

AlabamaAlabama

Total Production Capacity Current 1.63mil → 1.87mil in 2014

Automobile Production in North America

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

OhioOhio

Capacity ExpansionNew plant start-up in 2014

with capacity of 200k units

Capacity: Existing 60k / New 200k

MexicoMexico

(Total 260k)

More than 90% of the vehicles sold in the U.S. will be produced in North America from 2012

12

0

1,000

2,000

3,000

4,000

588

1,323

158

837

3,108202

710

1,740

230

1,310

4,300310

585

1,458

198

1,021

3,529

267



Japan

Europe

OtherRegions

Asia

NorthAmerica

Main Drivers for Asian GrowthMain Drivers for Asian GrowthMain Drivers for Asian Growth


China FY11 652 k FY12 622 k FY 13 750 k

Asia FY11 369 k FY12 215 k FY 13 560 k

Increase sales with fully remodeled and new vehicles such as Civic, CR-V, Crosstour 2.4L and CIIMO

Increase sales with fully remodeled and new vehicles such as Civic, CR-V, Crosstour 2.4L and CIIMO

Civic (Oct 11) CR-V (Mar 12) CIIMO (Apr 12)Crosstour 2.4L (Apr 12)

Unit(thousand)

Factories in Asia back to normal production by AprilFactories in Asia back to normal production by April

(8,000 sales orders in April）

Increase sales of BRIO in Thailand, India and Indonesia

Increase sales of BRIO in Thailand, India and Indonesia

- approx. 190 k units of production lost in FY12 due to flood

Introduction of fully remodeled Civic and CR-V in AsiaIntroduction of fully remodeled Civic and CR-V in Asiaincl China 652 incl

China 622

incl China 750

13

WDHAC (Dongfeng Honda)( 240k 360k in 2013)

GHAC (Guangqi Honda)( 480k 600k in 2014)

50 50

50

600480480

480

360

360340240

50

2011 2012 2013 2014

(thousand units)

Honda Dealer Network Expansion Plan

470 478 483

320 36034 40

291

45

2010 2011 2012

838888

-No.1: Guangqi Honda-No.2: Dongfeng Honda

770870 890

J.D. Power and Associates Asia Pacific 2011 China Customer Service Index Study

1,010

WDHAC

GHAC

WDHAC

GHAC

Acura

Capacity Expansion Plan

Annual Capacity : 770k → More than 1.0 mil in 2014

China: Expansion and Highest Customer Satisfaction

795

CHAC (Honda export factory)( 50k )

CHAC

14

0

1,000

2,000

3,000

4,000

588

1,323

158

837

3,108202

710

1,740

230

1,310

4,300310

585

1,458

198

1,021

3,529

267



Japan

Europe

OtherRegions

Asia

NorthAmerica


Unit(thousand)

Main Drivers for Japan GrowthMain Drivers for Japan GrowthMain Drivers for Japan Growth

356

165

FY12 FY13

Mini vehicles Sales increase

+116%

Unit(thousands)

N Box : 100 thousand cumulative orders in 5 months N Box : 100 thousand cumulative orders in 5 months

Launched Dec 2011

Top sales in mini-segment in AprilTop sales in mini-segment in April

Launch derivative models from same platform- enhance product line-up efficiency

Summer 2012Fall 2012

15




Motorcycle business

Automobile Business


Business Strategy

- Production Capacity


16

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

1,630 1,630 1,670 1,870

300 300 300300

535 535 535655

770 870 890

1010150 150 150

150

0

1,000

2,000

3,000

4,000

5,000

2011 2012 2013 2014

Global Automobile Production Capacity

4,385 4,485 4,5454,985

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

Increase capacity in AlabamaIncrease capacity in Alabama

(Unit : 1,000)

Increase capacityin Dongfeng, ChinaIncrease capacityin Dongfeng, China

Start-up of Yorii Plant

Increase capacity in IndonesiaIncrease capacity in Indonesia

Increase capacityin Dongfeng, ChinaIncrease capacityin Dongfeng, China

+40k

+20k+100k

+200k

+120k

+440+440

Japan

NorthAmerica

Europe

Asia

China

Other+60+60+100+100

Increase capacityin Guanqi ChinaIncrease capacityin Guanqi China

+120k

+ α + α + α + α

17




Motorcycle business

Automobile Business


Business Strategy

- Core technologies


18


In 2011, Honda announced the next-generation technologies

Next-generation gasoline engines Next-generation CVTs All-new compact diesel engine New hybrid system Electric powertrain for EVs

Aim to achieve industry top-class fuel economy and fun-to-drive performance in every category within three years

19

Mini-vehicle

1.5L classengine

1.8L classengine

2.4L classengine

3.5L classV6 engine

Mini-vehicle

Compactvehicle

Mid-sizedvehicle

Honda will introduce new engines and new transmissions into all categories

2012 2013 ～CY2011

New 660ccNew 1.8-2.0L

DI + CVT

New 1.3-1.5LDI + CVT

N Box

New 2.4L Direct Injection + CVT

Accord (Coupe)

Wide range of new gasoline engines Wide range of new gasoline engines Wide range of new gasoline engines New CVT transmissions New CVT transmissions New CVT transmissions

Earth Dreams Technology

New 3.5L DI

RLX

20

Fit/JazzHybrid

CR-Z

Freed / Spike Hybrid

Fit Shuttle Hybrid

Next-generation IMAOne-Motor

Hybrid system

2010


2011

Acura ILX Hybrid

2012

Three-MotorSports Hybrid SH-AWD system for Acura models

Two-Motor hybrid system for

mid-to-large sized vehicles

INTEGRATEDMOTORASSIST

Accord Hybrid

NSX

Ａｃｃｏｒｄ Plug-in Hybrid

千

FY11 Q1 FY12 Q1Q2 Q3 Q4 Q2 Q3

Hybrid ratio in Japan

14%10%

25%22%

24%

29% 32% 31%

0%

5%

10%

15%

20%

25%

30%

35%

Enhance Hybrid Line-upEnhance Hybrid Line-up

Civic Hybrid

RLX

2013Q4

2013

2012

21

1.6L New Diesel Engine

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

CivicCivicEuropeEurope

Battery EV

Driving range: 123 miles or 210 km (JC08mode)92kw electric motor20kw lithium-ion batteryBattery fully recharges in less than 3 hours (240 volt)Equipped with 3 driving modes (SPORT, NORMAL, ECON)


Debut in Japan and the U.S. in the summer of 2012; prepare for production in China

CRCR--VV

•Start production in 2012•To be launched in spring 2013

22




Motorcycle Business

Automobile business


Business Strategy


23

Honda Brand Total Global Motorcycle Sales Unit (thousands)

Expansion of Motorcycle Business

(P)

HHML

Double-digit growth to continue in FY13

3,2393,247

4,507

5,269

9,333 9,72010,720 11,100

11,43513,062

15,0612,909

3,640

0

5,000

10,000

15,000

20,000

FY 2006 2007 2008 2009 2010 2011 2012 2013

More than 10%

Hero Honda

Honda

16,660

24

Production Capacity

Capacity in Asia to reach approx. 15 mil from current 12.1 mil

India IndonesiaVietnam

12.1approx.

15.0

Current 2013 ～

Unit (millions)

Total Capacity in ASEAN countries, India and Pakistan

2.84.0 4.2

5.3

2.0 2.5

+24%

+25%

+43%

+26%

Current 2013 ～ Current Current2013 ～ 2013 ～

25

Honda’s Current Share and Market Size in 2011

69%61%

52%

82%

14% Brazil2 million

India

Thailand2 million

Vietnam3 million

Indonesia

13million

8million

26

Unit (millions)

Motorcycle Demand in India

CY

India

India

Motorcycle Market Penetration

Taiw an

Thailand

Vietnam

Brazil

Indonesia

India

Number ofmotorcyclesPopulation

6.0%

20.8%

7.6%

29.6%

25.4%

62.4%

Significant Growth Expected

India-Population continues to increase-Current penetration: ONLY 6%

Huge Potential

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Forecast of Significant Increase in Demand

1,180

231

191

86

65

22 (millions)

27

1.6 1.6 1.6 1.6

0.6 1.2 1.2 1.2

1.2

2011 2012(P) 2013(P) 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 India

Over

2.2mil2.8mil

4.0mil

110cc AT-Scooter

Activa

Product Line-upProduct LineProduct Line--upup

Dream Yuga

Expand capacity to meet growing demand Introduce new 110cc model, Dream Yuga Improve fuel economy of scooter models

Future Honda GrowthFuture Honda GrowthFuture Honda Growth

Launch New 110cc Motorcycle

28

-125cc/ 150cc scooters with new “eSP” engine-produced in Thailand

CBR250RCBR250R

-250cc road sport model- produced in Thailand and India

- New 125cc “eSP” engine

PCX / PCX 150PCX / PCX 150PCX / PCX 150

AustraliaAustraliaSouthSouth

AmericaAmerica

EuropeEurope

Japan Japan

AsiaAsia

NorthNorthAmericaAmerica

Latest Technological DevelopmentLatest Technological DevelopmentLatest Technological Development

improves fuel economyby 25%

Export of 125 – 250cc Models from Asia

Next-generation Global Models

CRF250LCRF250L

-250cc on / off-road model- produced in Thailand

New

Product line-upProduct lineProduct line--upup

NewFMC

29

Global Next-generation Mid-sized Motorcycle Engine

Cultivate demand in the U.S., Japan, Europe and other regions

-Newly developed 700cc engineLatest Technological DevelopmentLatest Technological DevelopmentLatest Technological Development

-Fuel economy improved by over 40%

・with 6-SpeedTransmission

・with Dual ClutchTransmission

Product Line-upProduct LineProduct Line--upup

INTEGRA

CROSSTOURER

NC700X

New Mid: 700cc MC

30




Motorcycle business

Automobile business


Business strategy


31

（千台）

Unit (Sales)4Q Results (Three Months)

FY11 FY12 Change

Motorcycles 2,934 3,456 + 17.8%

Automobiles 860 988 + 14.9%

Power Products 1,746 2,010 + 15.1%

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

24.72 39.72 + 15.00

Financial results

4Q Results (Three Months)

FY11 FY12 Change

Net sales & other operating revenue 2,213.0 2,405.0 + 8.7%

Operating income 46.2 111.9 + 142.3%

Income before income taxes 76.6 93.0 + 21.5%

Equity in income of affiliates 25.0 33.2 + 33.1%

Net income attributable to Honda Motor Co., Ltd. 44.5 71.5 + 60.7%

US Dollar 82 80 Yen up by2 yen

Euro 113 104 Yen up by9 yen

Outline of FY12 4th Quarter Financial Results (Consolidated)Financial Summary

Financial Highlights

(thousand)

Yen (billion)

Note : Shares which are based on calculation of EPS

approx.1,802,302,000 shares

(weighted average number of shares outstanding )



Average Rates (Yen)

A swift recovery in auto production after the earthquake and flood, along with new modelmomentum mainly in Japan and N.A., led to a bigrise in sales.A new motorcycle unit sales record for a quarterand earnings from stable financial services business led to much higher income in eachcategory.

Unit Sales:Motorcycle:Increased in Asia and Other regions including South AmericaRecord high for a quartre

Automobile:Increased in North America and JapanDecreased mainly in Asia due to Thailand flood

Power Products:Increased mainly in North America and Asia

Net sales & other operating revenue-Increased in motorcycle and automobile businesses-Negative currency translation effects

Operating income-Increased R&D expenses-Negative currency effects due to appreciation of the Japanese yen

-Positive change in sales volume and model mix-Decreased SG&A expenses

32

Twelve Months

FY11 FY12 Change

11,445 12,559 + 9.7%

3,512 3,137 - 10.7%

5,509 5,819 + 5.6%

295.67 117.34 - 178.33

Twelve Months

FY11 FY12 Change

8,936.8 7,948.0 - 11.1%

569.7 231.3 - 59.4%

630.5 257.4 - 59.2%

139.7 100.4 - 28.2%

534.0 211.4 - 60.4%

86 79 Yen up by7 yen

114 108 Yen up by6 yen

（千台）

Unit (Sales)4Q Results (Three Months)

FY11 FY12 Change

Motorcycles 2,934 3,456 + 17.8%

Automobiles 860 988 + 14.9%

Power Products 1,746 2,010 + 15.1%

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

24.72 39.72 + 15.00

Financial results

4Q Results (Three Months)

FY11 FY12 Change

Net sales & other operating revenue 2,213.0 2,405.0 + 8.7%

Operating income 46.2 111.9 + 142.3%

Income before income taxes 76.6 93.0 + 21.5%

Equity in income of affiliates 25.0 33.2 + 33.1%

Net income attributable to Honda Motor Co., Ltd. 44.5 71.5 + 60.7%

US Dollar 82 80 Yen up by2 yen

Euro 113 104 Yen up by9 yen

(thousand)

Yen (billion)






Average Rates (Yen)





Outline of FY12 Financial Results (Consolidated)

33

Income before Income taxes + 16.4

76.693.0

+ 62.7

+ 40.4

+ 14.5 - 23.6

- 28.2

- 6.6 - 42.6

Operating Income + 65.7Other Income & Expenses

- 49.3

Change in Income before Income Taxes <FY12 4th Quarter>

Revenue, model mix,

etc.

Cost Reduction, etc.

Decrease in SG&A Increase in R&D

Currency EffectsUnrealized gains and

losses related toderivative instruments

(Exhibit 2)

Others

FY11 4Q

OperatingIncome

46.2FY12 4Q

OperatingIncome111.9

<Increase Factors>-Increase in unit sales and model mix in automobile business,

- Decreased sales incentives, etc.

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

- Cost reduction effort, etc.<Decrease Factors>- Increased raw material cost, etc.

- Currency effect due to difference between average ratesand transaction rates: - 8.7

- Others - 33.9

Yen (billion)

34

Income before Income taxes - 373.1

630.5

257.4

- 155.1

- 92.8+ 55.8 - 32.2

- 114.0

- 5.9 - 28.7

Operating Income - 338.4Other Income & Expenses

- 34.7

Change in Income before Income Taxes <FY12 Twelve Months >Yen

(billion)

FY11Twelve Months

OperatingIncome

569.7FY12

Twelve Months

OperatingIncome231.3

Revenue, model mix,

etc.

Cost Reduction, etc. Decrease in SG&A Increase in R&D

Currency Effects Unrealized gains andlosses related to

derivative instruments (Exhibit 2)

Others

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

<Increase Factors>- Cost reduction effort, etc.<Decrease Factors>- Increased fixed cost per unit due to decreased production

- Increased raw material cost, etc.

<Increase Factors>- Decreased quality-related expenses, etc.

-Currency effect due to difference between average rates and transaction rates: - 18.0- Others - 10.7

One time expense effect to O/POne time expense effect to O/POne time expense effect to O/P

35

28.0 31.3 30.0 29.1 48.1 44.9 38.9 25.8 32.846.331.152.730.337.031.144.211.1 9.325.2

-2.8

5.6 15.8

9.2%

8.5%

10.9%

13.6%13.6%

9.6%9.6%

5.8%

3.4%

8.4%

11.6%

7.9%

11.9%10.5%

8.3%9.7%

8.5%

3.7%

7.4%

-1.0%

2.2%

9.8%

-10

10

30

50

70

FY073Q

4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q FY111Q

2Q 3Q 4Q FY121Q

2Q 3Q 4Q-3%

2%

7%

12%

17%

22%

149 68

-76

45

-39

-17-29

86

24

110

-21

-275

71

14

161 158 148 213 221 80 150 79

2.4%-1.2%

-2.2%

-6.5%

-2.4%

4.2%

5.0%

8.2%

-1.4%

-21.2%

3.6%

7.1% 6.4%9.0%9.0%

6.5%

3.4%

6.7%

3.6%1.4%

0.9%

6.3%

-300

-200

-100

0

100

200

300

FY073Q

4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q FY111Q

2Q 3Q 4Q FY121Q

2Q 3Q 4Q-25%

-15%

-5%

5%

15%

25%

Yen (billions)

Yen (billions)

Motorcycle Business

Automobile Business

=Operating Income

=Operating Margin

=Operating Income

=Operating Margin

Operations by Business Segment

36

0.2 -0.1

-2.1 -2.0

-0.3

-2.3-2.0

-0.4

-3.1-0.9

0.25.12.26.97.97.210.4

-4.6-2.8

-11.9

-5.9 -2.9

-2.7%

-0.2%

-3.2%

0.3%

-2.8%-2.8%

-0.4%

-4.0%

-6.4%

-3.7%

-0.9%

0.2%

4.2%

5.8%

2.3%

6.6%6.9%

9.9%

-3.5%

-15.0%

-8.1%

-0.5%

-20

0

20

FY073Q

4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q FY111Q

2Q 3Q 4Q FY121Q

2Q 3Q 4Q-15%

-10%

-5%

0%

5%

10%

15%

47.2 54.6 47.4 44.6 39.6 53.6 42.8 37.5 35.924.328.731.322.929.334.240.922.7 47.19.4 18.0 46.8 53.6

27.4%33.2%29.5%

38.7%

28.8%

32.0%32.9%

34.8%

29.8% 32.0%

14.9%19.2%

22.1%

34.6%

16.4%

21.3%

26.4%

21.7%

6.5%

13.1%

29.4%

35.8%

0

20

40

60

80

FY073Q

4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q FY111Q

2Q 3Q 4Q FY121Q

2Q 3Q 4Q0%

10%

20%

30%

40%

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

37

FY12Results

FY13Forecasts

Change

amount %

Net sales & other operating revenue 7,948.0 10,300.0 + 2,351.9 + 29.6%

Operating income 231.3 620.0 + 388.6 + 168.0%

Income before income taxes 257.4 635.0 + 377.5 + 146.7%

Equity in income of affiliates 100.4 120.0 + 19.5 + 19.5%

Net income attributable to Honda Motor Co., Ltd. 211.4 470.0 + 258.5 + 122.2%

EPS attributable toHonda Motor Co., Ltd. (Yen) 117.34 260.78 + 143.44

US Dollar 79 80 Yen down by 1 yen

Euro 108 105 Yen up by 3 yen

FY13 Financial Forecasts (Consolidated)Yen (billion)


approx.1,802,300,000 shares(weighted average number

of shares outstanding )


Average Rates (Yen)


38

Guidance: Units Sales by Business Segment

"Honda Group Unit Sales"

"Consolidated Unit Sales"

0

2,000

4,000

6,000

8,000

0

1,000

2,000

3,000

4,000

0

5,000

10,000

15,000

20,000

220200198

12,412

2,031

15,061

235255210

13,820

2,080

16,600

588

1,323

158

837

3,108202

710

1,740

230

1,310

4,300310

5,819

1,121

392

2,314

520

1,472

6,300

1,150

355

2,520

605

1,670

+ 1,539( + 10.2 % )

+ 1,192( + 38.4 % )

+ 481( + 8.3 % )

Motorcycles Automobiles Power Products

Unit (thousand)

Japan

Europe

OtherRegions

Asia

NorthAmerica

FY13Forecasts

FY12FY11 FY13Forecasts

FY12FY11

585

1,458

198

1,021

3,529267

190185202

16,064

1,690

18,331

FY13Forecasts

FY12FY11

5,509

1,174

388

2,085

537

1,325

0

3,000

6,000

9,000

12,000

0

2,000

4,000

6,000

8,000

6,300

1,150

355

2,520

605

1,670

+ 1,250( + 14.5 % )

0

1,000

2,000

3,000

4,000

235255210

7,120

2,080

9,900

220200198

6,001

2,031

8,650

580

1,323

158219

2,482202

700

1,740

230

560

3,540310

5,819

1,121

392

2,314

520

1,472

+ 1,058( + 42.6 % )

+ 481( + 8.3 % )

Japan

Europe

OtherRegions

Asia

NorthAmerica

582

1,458

198

375

2,879266

Motorcycles Automobiles Power ProductsUnit

(thousand)

FY13Forecasts

FY12FY11 FY13Forecasts

FY12FY11FY13Forecasts

FY12FY11190185202

5,148

1,690

7,4155,509

1,174

388

2,085

537

1,325

39

Income before Income taxes + 377.5 ( + 146.7 % )

257.4

635.0+ 476.8

+ 152.0 - 205.0

- 35.2± 0 - 8.0 - 3.0

Operating Income + 388.6 ( + 168.0 % )

* *

*

* The impact of the change in depreciation method which is anticipated to cause a decrease in depreciation expense by approximately JPY 40.0 billion in total, is included.

Forecast: Change in Income before Income TaxesYen (billion)

Other Income & Expenses

- 11.0

Revenue,model mix,

etc.

Increase in SG&A

Cost Reduction, etc.

Increasein R&D

Currency Effect Unrealized gainsand losses related toderivative

instruments

Others

Operating Income

231.3

FY12

Operating Income620.0

FY13Forecasts

40

FY12Results

FY13Forecasts Change

Capital Expenditures 406.5 580.0 + 173.5

Depreciation and amortization 293.7 285.0 - 8.7

R&D expenses 519.8 555.0 + 35.2

*

*

**

**

*

Yen(billion)

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

Honda uses the straight-line method for calculating the forecasts for the depreciation of property, plant and equipment for the year ending March 31, 2013.

Forecast: Capital Expenditures, Depreciation, R&D Expenses

41

FY11Results

FY12Results &Projection

FY13Projection

Increase/Decrease from

FY11 Results

Increase/Decrease from FY12

1st quarter End 12 15 + 3 ( 19 ) ( + 4 )

2nd quarter End 12 15 + 3 ( 19 ) ( + 4 )

3rd quarter End 15 15 ± 0 ( 19 ) ( + 4 )

4th quarter End 15 ( 15 ) ( ± 0 ) ( 19 ) ( + 4 )

Fiscal Year 54 ( 60 ) ( + 6 ) ( 76 ) ( + 16 )

Dividend

(Yen)

Dividend per share

4242

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.

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