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FY04 4 FY04 4

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  • 1. FY04 4th Quarter / 12-Month Results 1 FY04 4th Quarter / 12-Month Financial Results Acura TL
  • 2. FY04 4th Quarter / 12-Month Results 2 Agenda · Outline of FY04 Financial Results & FY05 Financial Forecasts Presenter: Executive Vice President - Koichi Amemiya · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results (2) 12-Month Results (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts Presenter: Senior Managing Director - Satoshi Aoki
  • 3. FY04 4th Quarter / 12-Month Results 3 · Outline of FY04 Financial Results & FY05 Financial Forecasts (1) Outline of FY04 4th Quarter Consolidated Financial Results (2) Outline of FY04 12-Month Financial Results · Consolidated · Unconsolidated (3) FY05 Financial Forecasts · Consolidated · Unconsolidated (4) Acquisition of Common Stock
  • 4. FY04 4th Quarter / 12-Month Results 4 Outline of FY04 4th Quarter Results (Billions of Yen) FY04 4Q FY03 4Q Change Net sales & other operation revenue 2,144.9* 2,128.6 + 0.8% Operating income 137.1 241.6 - 43.3% Income before income taxes 106.4 177.3 - 40.0% Net income 74.1 116.7 - 36.5% EPS (yen) 78.47 120.86 - 35.1% * Record high through all quarters Average Rates (yen) US Dollar 107 119 stronger by 12 yen Euro 134 128 weaker by 6 yen
  • 5. FY04 4th Quarter / 12-Month Results 5 Outline of FY04 12-Month Results (Billions of Yen) FY04 FY03 Change Net sales & other operation revenue 8,162.6* 7,971.4 + 2.4% Operating income 600.1 724.5 - 17.2% Income before income taxes 641.9** 609.7 + 5.3% Net income 464.3** 426.6 + 8.8% EPS (yen) 486.91** 439.43 + 10.8% * Record high for four fiscal years in a row ** Record high Average Rates (yen) US Dollar 113 122 stronger by 9 yen Euro 133 122 weaker by 11 yen
  • 6. FY04 4th Quarter / 12-Month Results 6 FY04 Unconsolidated Financial Results (Billions of Yen) FY04 FY03 Change Net sales & other operation revenue 3,319.7 3,322.7 - 0.1% Operating income 184.7 144.8 + 27.6% Ordinary profit 311.2* 242.6 + 28.3% Net income 226.4** 170.0 + 33.2% * To set record high ** To set record high for two fiscal years in a row Interim End of FY04 Fiscal Year Dividend per share 19 yen 23 yen 42 yen Increase from FY03 3 yen 7 yen 10 yen
  • 7. FY04 4th Quarter / 12-Month Results 7 FY05 Consolidated Financial Forecasts (Billions of Yen) FY05 FY04 Change Net sales & other operation revenue 8,500.0* 8,162.6 + 4.1% Operating income 560.0 600.1 - 6.7% Income before income taxes 500.0 641.9 - 22.1% Net income 390.0 464.3 - 16.0% EPS (yen) 414.49 486.91 - 14.9% * To set record high for five fiscal years in a row Average Rates (Yen) US Dollar 105 113 stronger by 8 yen Euro 125 133 stronger by 8 yen
  • 8. FY04 4th Quarter / 12-Month Results 8 FY05 Unconsolidated Financial Forecasts (Billions of Yen) FY05 FY04 Change Net sales & other operation revenue 3,390.0* 3,319.7 + 2.1% Operating income 90.0 184.7 - 51.3% Ordinary profit 165.0 311.2 - 47.0% Net income 125.0 226.4 - 44.8% * To set record high Interim End of FY05 Fiscal Year Dividend per share 23 yen 23 yen 46 yen Increase from FY04 4 yen - 4 yen
  • 9. FY04 4th Quarter / 12-Month Results 9 Acquisition of Common Stock From June 24, 2003 to April 15, 2004 Aggregate number of shares acquired :approx. 20.9 million shares Aggregate amount of acquisition :approx. 96.9 billion yen From June 25, 2002 to April 15, 2004 Aggregate number of shares acquired :approx. 35.2 million shares Aggregate amount of acquisition :approx. 160 billion yen * Total shares of common stock issued and outstanding: approx. 974.41 million shares * Total shares which are base of calculation of net income per share as of FY2004: approx. 953.63 million shares
  • 10. FY04 4th Quarter / 12-Month Results 10 · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (2) 12-Month Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts
  • 11. FY04 4th Quarter / 12-Month Results 11 · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (2) 12-Month Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts
  • 12. FY04 4th Quarter / 12-Month Results 12 FY04 4th Quarter Net Sales by Business Segment + 16.2 (Billions of Yen) 2,128.6 ( + 0.8% ) 2,144.9 Motorcycle Business + 31.8 2,000 263.0 ( + 12.1% ) 294.8 1,500 Automobile - 16.8 Business 1,000 1,711.1 ( - 1.0% ) 1,694.3 500 60.4 - 2.7 57.6 ( - 4.6% ) Financial Services Power Product & Other Businesses 0 94.0 + 4.0 98.1 FY03 4Q ( + 4.3% ) FY04 4Q Market average rates Market average rates US$1=JPY118.94 US$: - 11.67 yen US$1=JPY107.27 Euro1=JPY127.74 Euro: + 6.33 yen Euro1=JPY134.07 ( Substantial sales increase of approx. 116 bn. yen < + 5.5% > if excluding currency translation effects < approx. 100 bn. yen > )
  • 13. FY04 4th Quarter / 12-Month Results 13 · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (2) 12-Month Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts
  • 14. FY04 4th Quarter / 12-Month Results 14 Unit Sales of Motorcycles (Motorcycles + All-Terrain Vehicles, etc.) + 552,000 units (Thousands of Unit) ( + 26.7% ) 2,800 2,620 203 Others 2,367 2,218 209 2,068 2,001 2,100 210 197 209 Asia 1,996 1,400 1,832 1,691 1,486 1,498 700 92 91 Europe 57 50 North America 170 101 140 190 227 Japan 99 0 123 94 120 86 103 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 15. FY04 4th Quarter / 12-Month Results 15 Motorcycle Operation: Japan Unit Sales in FY04 4Q: 103,000 units ( - 20,000 units from FY03 4Q ) • Decreased sales of Lead100(100cc scooter) and Crea SCOOPY(50cc scooter) • Increased sales of Smart Dio Z4 Smart Dio Z4
  • 16. FY04 4th Quarter / 12-Month Results 16 Motorcycle Operation: North America Unit Sales in FY04 4Q: 227,000 units ( + 57,000 units from FY03 4Q ) • Increased sales of ATVs ( + 28,000 units ) • Increased sales of CRF50F TRX350FE CRF50F
  • 17. FY04 4th Quarter / 12-Month Results 17 Motorcycle Operation: Europe Unit Sales in FY04 4Q: 91,000 units ( - 1,000 units from FY03 4Q ) • Decreased sales of 50cc scooters • Increased sales of Lead and CBF600 series Lead CBF600S
  • 18. FY04 4th Quarter / 12-Month Results 18 Motorcycle Operation: Asia Unit Sales in FY04 4Q: 1,996,000 units ( + 510,000 units from FY03 4Q ) • Increased sales in India, Thailand and China Eterno Wave 125 Wave
  • 19. FY04 4th Quarter / 12-Month Results 19 Motorcycle Operation: Other Regions Unit Sales in FY04 4Q: 203,000 units ( + 6,000 units from FY03 4Q ) • Increased sales in Latin America CG125 Titan C100 Biz
  • 20. FY04 4th Quarter / 12-Month Results 20 Motorcycle Business Net Sales / Operating Income / Operating Margin Net Sales 263.0 241.5 233.5 226.3 294.8 ( + 12.1% ) (Billions of Yen) 30 9.1% 10% 7.3% 8% 26.8 20 (+ 39.3%) 19.2 6% 3.3% 4% 10 2.4% 1.0% 7.4 2% 5.8 OP Income 2.3 OP Margin 0 0% 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 21. FY04 4th Quarter / 12-Month Results 21 Unit Sales of Automobiles + 13,000 units (Thousands of Unit) ( + 1.7% ) 800 780 793 Others 27 735 747 38 66 708 33 43 Asia 23 102 64 79 84 76 Europe 600 44 74 56 57 402 North America 400 407 369 397 385 200 Japan 221 210 153 176 177 0 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 22. FY04 4th Quarter / 12-Month Results 22 Automobile Operation: Japan Unit Sales in FY04 4Q: 210,000 units ( - 11,000 units from FY03 4Q ) • Decreased sales of Fit • Increased sales of Odyssey and Life Odyssey Life
  • 23. FY04 4th Quarter / 12-Month Results 23 Automobile Operation: North America Unit Sales in FY04 4Q: 369,000 units ( - 33,000 units from FY03 4Q ) • Decreased sales of Accord • Strong sales of Acura TSX, Acura TL and Pilot Acura TSX Acura TL Pilot
  • 24. FY04 4th Quarter / 12-Month Results 24 Automobile Operation: Europe Unit Sales in FY04 4Q: 74,000 units ( + 10,000 units from FY03 4Q ) • Favorable sales of Accord Diesel and Jazz Accord Diesel Jazz
  • 25. FY04 4th Quarter / 12-Month Results 25 Automobile Operation: Asia Unit Sales in FY04 4Q: 102,000 units ( + 36,000 units from FY03 4Q ) • Strong sales in China and India Accord City
  • 26. FY04 4th Quarter / 12-Month Results 26 Automobile Operation: Other Regions Unit Sales in FY04 4Q: 38,000 units ( + 11,000 units from FY03 4Q ) • Strong sales in Latin America and Middle East Fit Civic
  • 27. FY04 4th Quarter / 12-Month Results 27 Automobile Business Net Sales / Operating Income / Operating Margin Net Sales 1,711.1 1,621.0 1,646.2 1,630.4 1,694.3 ( - 1.0% ) (Billions of Yen) 200 9.4% 10% 8.4% 7.7% 7.6% 8% 150 160.9 133.6 6% 126.2 100 122.6 3.2% 4% 50 53.3 2% (- 66.8%) OP Income OP Margin 0 0% 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 28. FY04 4th Quarter / 12-Month Results 28 Unit Sales of Power Products + 72,000 units (Thousands of Unit) ( + 4.2% ) 1,788 1,800 1,716 83 Others 93 Asia 149 1,500 200 Europe 1,217 538 1,200 75 592 1,064 154 978 85 900 84 153 244 163 177 302 North America 600 895 712 634 300 419 415 Japan 119 110 135 109 123 0 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 29. FY04 4th Quarter / 12-Month Results 29 Power Products Operation Unit Sales in FY04 4Q: 1,788,000 units ( + 72,000 units from FY03 4Q) • Increased sales of general-purpose engines in North America GC engine
  • 30. FY04 4th Quarter / 12-Month Results 30 Power Product and Other Businesses Net Sales / Operating Income / Operating Margin Net Sales 96.0 85.7 76.8 79.1 99.8 ( + 4.0% ) (Billions of Yen) 6 5% 4.2% 5 3.8% 4% 4 2.7% 4.1 3% 2.4% (+ 78.1%) 3 1.3% 2.9 2% 2 2.3 2.1 1% 1 1.1 OP Income OP Margin 0 0% 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 31. FY04 4th Quarter / 12-Month Results 31 Financial Services Net Sales / Operating Income / Operating Margin Net Sales 61.0 63.9 63.5 59.6 58.6 ( - 4.1% ) (Billions of Yen) 96.7% 90.0% 120 100% 32.1% 31.8% 30% 25.0% 90 21.5% 23.7% 20% 60 59.0 52.7 (- 10.7%) 10% 30 13.0 13.8 OP Income 20.5 20.1 14.9 OP Margin 0 0% 4Q 1Q 2Q 3Q 4Q FY03 FY04 FY03 4Q includes effects of reclassification by 45.9 billion yen FY04 4Q includes effects of reclassification by 38.8 billion yen
  • 32. FY04 4th Quarter / 12-Month Results 32 · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (2) 12-Month Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts
  • 33. FY04 4th Quarter / 12-Month Results 33 Japan Net Sales / Operating Income / Operating Margin Net Sales 992.5 943.8 943.1 962.3 1,081.5 ( + 9.0%) (Billions of Yen) 100 7.8% 8% 80 84.2 6% (+ 121.6%) 60 4.0% 4.2% 3.8% 3.2% 4% 40 39.5 38.0 37.8 30.7 2% 20 OP Income OP Margin 0 0% 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 34. FY04 4th Quarter / 12-Month Results 34 North America Net Sales / Operating Income / Operating Margin Net Sales 1,252.5 1,211.6 1,167.3 1,173.8 1,120.2 ( - 10.6% ) (Billions of Yen) 200 15% 13.5% 12% 150 168.5 8.2% 8.6% 9% 100 6.0% 98.9 101.0 6% 3.5% 70.4 50 3% 39.6 OP Income (- 76.4%) OP Margin 0 0% 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 35. FY04 4th Quarter / 12-Month Results 35 Europe Net Sales / Operating Income / Operating Margin Net Sales 266.1 251.3 220.4 186.5 290.1 ( + 9.0% ) (Billions of Yen) 18 6% 5.2% 15 5% 4.1% 12 4% 11.5 9 2.3% 3% 10.7 2.4% 6 2% 0.8% 7.0 5.8 (- 34.7%) 3 1% OP Income 1.4 OP Margin 0 0% 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 36. FY04 4th Quarter / 12-Month Results 36 Asia Net Sales / Operating Income / Operating Margin Net Sales 153.3 159.4 179.4 160.4 204.7 ( + 33.5% ) (Billions of Yen) 20 7.9% 8% 6.8% 15 6.3% 14.1 6% 4.7% 4.7% 10 10.9 10.0 9.5 4% (+ 32.7%) 7.2 5 2% OP Income OP Margin 0 0% 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 37. FY04 4th Quarter / 12-Month Results 37 Equity in Income of Affiliates – Asia (Billions of Yen) 60 50 54.5 40 44.3 Income before income taxes 30 34.9 34.5 32.7 20 21.1 17.1 Equity in Income 10 13.3 12.3 of Affiliates 11.0 0 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 38. FY04 4th Quarter / 12-Month Results 38 Other Regions Net Sales / Operating Income / Operating Margin Net Sales 65.2 69.4 89.9 95.5 93.2 ( + 42.9% ) (Billions of Yen) 12 12% 10 8.2% 8.5% 9% 8 6.3% 8.1 6 6% 4.7% 4.0% 5.6 5.6 4 4.3 3% (+ 65.8%) 2 2.6 OP Income OP Margin 0 0% 4Q 1Q 2Q 3Q 4Q FY03 FY04
  • 39. FY04 4th Quarter / 12-Month Results 39 · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (2) 12-Month Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts
  • 40. FY04 4th Quarter / 12-Month Results 40 Change in Income Before Income Taxes < FY04 4th Quarter > - 70.8 bn. ( - 40.0% ) - Increase in quality related Factors affecting Operating Income expenses in North America (Billions of Yen) - Increase in human resource Revenue, expenses 200 model mix, Cost Increase etc Reduction in SG&A Change in average rates: - 31.4 bn. -22.7 18.8 Translation effects: - 8.6 bn. 150 -60.0 Increase in R&D Currency Other -0.5 Income & Effect 177.3 Expenses 100 -40.0 Materials & Others: + 21.9 bn. 33.6 Labor expenses: - 3.1 bn. 106.4 50 · Decrease of unit sales in North American Automobile Business · Increase of unit sales in Asia, Europe, Other regions’ Automobile Businesses 0 FY03 FY04 4Q 4Q
  • 41. FY04 4th Quarter / 12-Month Results 41 Change in Income Before Income Taxes < FY04 4th Quarter > - 70.8 bn. ( - 40.0% ) Gain & Loss on derivative instruments: + 8.0 bn. Difference between transaction rates and average rates: - 1.6 bn. (Billions of Yen) Decrease in loss on sales and impairment of Revenue, investment securities, etc.: + 27.2 bn. 200 model mix, Cost Increase etc Reduction in SG&A -22.7 18.8 150 -60.0 Increase in R&D Currency Other -0.5 Income & Effect 177.3 Expenses 100 -40.0 33.6 106.4 50 0 FY03 FY04 4Q 4Q
  • 42. FY04 4th Quarter / 12-Month Results 42 Gain and Loss on Derivative Instruments and Related Others (Billions of Yen) FY04 4Q FY03 4Q Change Foreign Currency Exchange Related* + 6.3 - 6.7 + 13.0 Interest Rate and Others - 0.5 + 4.5 - 5.0 Total + 5.8 - 2.2 + 8.0 *Fair Value Adjustments for Foreign 1Q 2Q 3Q 4Q Currency Exchange Contracts Reversal of Fair Value Adjustments A for the Prior Quarter + 4.4 + 7.2 - 11.0 - 1.3 Fair Value Adjustments for the B Current Quarter - 7.2 + 11.0 + 1.3 + 7.6 Gain and Loss on Fair Value Adjustments A+B for Foreign Currency Exchange Contracts - 2.8 + 18.2 - 9.7 + 6.3
  • 43. FY04 4th Quarter / 12-Month Results 43 Change in Income Before Income Taxes < FY04 4th Quarter > - 70.8 bn. ( - 40.0% ) Gain & Loss on derivative instruments: + 8.0 bn. Difference between transaction rates and average rates: - 1.6 bn. (Billions of Yen) Decrease in loss on sales and impairment of Revenue, investment securities, etc.: + 27.2 bn. 200 model mix, Cost Increase etc Reduction in SG&A -22.7 18.8 150 -60.0 Increase in R&D Currency Other -0.5 Income & Effect 177.3 Expenses 100 -40.0 33.6 106.4 Currency effects 50 (change in average rates / translation effects): - 40.0 bn. Difference between transaction rates + and average rates: - 1.6 bn. Currency effect on 0 FY03 Income before income taxes: - 41.6 bn. FY04 4Q 4Q
  • 44. FY04 4th Quarter / 12-Month Results 44 Currency Effect on Income Before Income Taxes (Billions of Yen) FY04 4Q FY03 4Q Difference of Effects Average Rates Average Rates Change Average Rates (Billions of Yen) ( yen ) ( yen ) JPY / USD - 33.6 107 119 - 12 yen JPY / Euro + 3.8 134 128 + 6 yen Impact JPY / Others + 3.5 - - - on Transactions between Operating other currencies - 5.1 - - - Income Total - 31.4 - - - Difference of Currency Effects FY04 4Q FY03 4Q Market Average Market Average Change translation (Billions of Yen) Rates ( yen ) Rates ( yen ) JPY/USD 107.27 118.94 - 11.67 yen - 8.6 JPY/Euro 134.07 127.74 + 6.33 yen Impact on Other Difference between Income & transaction rates and - 1.6 Expenses average rates Total - 41.6
  • 45. FY04 4th Quarter / 12-Month Results 45 Equity in Income of Affiliates (Billions of Yen) FY04 4Q FY03 4Q Change Equity in Income 14.1 18.3 - 4.1 Equity in income declined due to translation Factors effects
  • 46. FY04 4th Quarter / 12-Month Results 46 · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (2) 12-Month Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts
  • 47. FY04 4th Quarter / 12-Month Results 47 FY04 12 Months - Net Sales by Business Segment + 191.1 (Billions of Yen) 7,971.4 ( + 2.4% ) 8,162.6 Motorcycle 8,000 + 18.1 996.2 Business 978.0 ( + 1.9% ) 6,000 Automobile Business 4,000 6,440.0 + 151.9 6,592.0 ( + 2.4% ) 2,000 + 4.7 237.9 ( + 2.0% ) 242.6 Financial Services Power Product & Other Businesses 0 315.3 + 16.2 331.5 FY03 ( + 5.1% ) FY04 Market average rates Market average rates US$1=JPY121.95 US$: - 8.88 yen US$1=JPY113.07 Euro1=JPY121.04 Euro: + 11.57 yen Euro1=JPY132.61 ( Substantial sales increase of approx. 506 bn. yen < + 6.4% > if excluding currency translation effects < approx. 315 bn. yen > )
  • 48. FY04 4th Quarter / 12-Month Results 48 · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (2) 12-Month Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts
  • 49. FY04 4th Quarter / 12-Month Results 49 Unit Sales of Motorcycles (Motorcycles + All-Terrain Vehicles, etc.) + 1,126,000 (Thousands of Unit) ( + 13.9% ) 10,000 9,206 Others 831 8,080 8,000 785 6,095 6,000 5,118 Asia 4,436 7,017 5,948 4,000 4,786 3,851 3,213 2,000 299 Europe 389 341 315 305 North America 394 519 590 610 656 Japan 0 440 407 404 432 403 FY00 FY01 FY02 FY03 FY04
  • 50. FY04 4th Quarter / 12-Month Results 50 Motorcycle Business Net Sales / Operating Income / Operating Margin Net Sales 718.9 805.3 947.9 978.0 996.2 ( + 1.9% ) (Billions of Yen) 100 7.3% 8% 7.0% 6.6% 80 5.9% 6% 69.6 4.3% 60 56.4 57.2 4% 40 47.2 42.4 (- 25.9%) 2% 20 OP Income OP Margin 0 0% FY00 FY01 FY02 FY03 FY04
  • 51. FY04 4th Quarter / 12-Month Results 51 Unit Sales of Automobiles + 95,000 ( + 3.3% ) (Thousands of Unit) 3,000 2,888 2,983 Others 137 2,666 105 Asia 2,580 205 341 2,473 244 2,500 267 207 Europe 223 176 231 191 249 2,000 1,368 1,522 North America 1,500 1,346 1,558 1,295 1,000 500 878 849 Japan 706 776 716 0 FY00 FY01 FY02 FY03 FY04
  • 52. FY04 4th Quarter / 12-Month Results 52 Automobile Business Net Sales / Operating Income / Operating Margin Net Sales 4,961.0 5,231.3 5,929.7 6,440.0 6,592.0 ( + 2.4% ) (Billions of Yen) 700 8.8% 8.6% 9% 600 7.0% 6.7% 6.1% 500 551.3 520.5 6% 400 438.8 (- 20.4%) 300 348.0 320.0 3% 200 100 OP Income OP Margin 0 0% FY00 FY01 FY02 FY03 FY04
  • 53. FY04 4th Quarter / 12-Month Results 53 Unit Sales of Power Products + 463,000 (Thousands of Unit) ( + 10.1% ) 5,047 5,000 327 Others 4,584 Asia 293 619 4,057 4,000 3,884 3,926 657 Europe 935 1,261 1,039 904 3,000 1,290 1,325 1,012 1,269 2,000 North America 2,363 1,872 1,601 1,000 1,614 1,412 409 472 477 Japan 0 183 164 FY00 FY01 FY02 FY03 FY04
  • 54. FY04 4th Quarter / 12-Month Results 54 Power Product and Other Businesses Net Sales / Operating Income / Operating Margin Net Sales 288.8 264.7 293.8 326.3 341.6 ( + 4.7% ) (Billions of Yen) 30 6% 4.4% 20 4% 3.0% 2.5% 10 1.4% 2% 12.8 10.3 -0.3 8.0 (+ 28.3%) 4.0 0 0% -0.1% OP Income OP Margin -10 -2% FY00 FY01 FY02 FY03 FY04
  • 55. FY04 4th Quarter / 12-Month Results 55 Financial Services Net Sales / Operating Income / Operating Margin Net Sales 147.7 176.0 209.3 240.9 245.8 ( + 2.0% ) (Billions of Yen) 44.7% 44.1% 50% 200 28.3% 30% 160 25.7% 21.5% 120 17.5% 20% 107.8 108.4 12.5% (+ 0.6%) 80 69.6 61.9 10% 40 45.0 30.8 OP Income 18.0 OP Margin 0 0% FY00 FY01 FY02 FY03 FY04 FY03 includes effects of reclassification by 45.9 billion yen FY04 includes effects of reclassification by 38.8 billion yen
  • 56. FY04 4th Quarter / 12-Month Results 56 · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (2) 12-Month Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts
  • 57. FY04 4th Quarter / 12-Month Results 57 Japan Net Sales / Operating Income / Operating Margin Net Sales 3,448.2 3,594.5 3,811.0 3,918.9 3,930.8 (+ 0.3%) (Billions of Yen) 300 6.6% 250 6% 253.4 4.9% 4.9% 200 4.1% 3.4% 191.4 192.4 4% 150 (+ 0.5%) 146.0 100 116.3 2% 50 OP Income OP Margin 0 0% FY00 FY01 FY02 FY03 FY04
  • 58. FY04 4th Quarter / 12-Month Results 58 North America Net Sales / Operating Income / Operating Margin Net Sales 3,331.5 3,608.4 4,307.9 4,711.9 4,673.0 (- 0.8% ) (Billions of Yen) 500 9.3% 9.4% 10% 8.2% 7.7% 400 444.3 8% 402.3 6.6% 300 6% 310.1 (- 30.2%) 273.0 276.5 200 4% 100 2% OP Income OP Margin 0 0% FY00 FY01 FY02 FY03 FY04
  • 59. FY04 4th Quarter / 12-Month Results 59 Europe Net Sales / Operating Income / Operating Margin Net Sales 678.5 547.2 603.5 824.5 948.5 ( + 15.0% ) (Billions of Yen) 40 10% 2.7% 20 1.8% 25.8 5% (+ 78.2%) 14.4 0 -14.4 0% -35.3 -20 -55.5 -5% -2.1% -40 -5.9% -10% OP Income -10.1% OP Margin -60 -15% FY00 FY01 FY02 FY03 FY04
  • 60. FY04 4th Quarter / 12-Month Results 60 Asia Net Sales / Operating Income / Operating Margin Net Sales 523.1 704.1 ( + 34.6% ) (Billions of Yen) 80 10% 7.2% 8% 60 6.3% Notes: ‘Asia’ was included in ‘Other 6% 40 Regions’ prior to FY04 and 44.6 are not re-classified for 37.8 (+18.2%) 4% periods prior to FY03 20 2% OP Income OP Margin 0 0% FY00 FY01 FY02 FY03 FY04
  • 61. FY04 4th Quarter / 12-Month Results 61 Equity in Income of Affiliates – Asia (Billions of Yen) 180 Income before 150 166.1 income taxes 138.4 120 Notes: ‘Asia’ was included in ‘Other 90 Regions’ prior to FY04 and are not re-classified for periods prior to FY03 Equity in Income 60 61.7 of Affiliates 48.2 30 0 FY00 FY01 FY02 FY03 FY04
  • 62. FY04 4th Quarter / 12-Month Results 62 Other Regions Net Sales / Operating Income / Operating Margin Net Sales 274.3 348.2 ( + 26.9% ) (Billions of Yen) 40 10% 8.5% 8% 30 6.8% Notes: ‘Asia’ was included in ‘Other 6% 20 Regions’ prior to FY04 and 23.2 23.7 are not re-classified for (+ 2.5%) periods prior to FY03 4% 10 2% OP Income OP Margin 0 0% FY00 FY01 FY02 FY03 FY04
  • 63. FY04 4th Quarter / 12-Month Results 63 · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (2) 12-Month Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts
  • 64. FY04 4th Quarter / 12-Month Results 64 Change in Income Before Income Taxes < FY04 12 Months > Change in average rates: - 74.9 bn. + 32.1 bn. Translation effects: - 26.1 bn. ( + 5.3% ) Factors affecting Operating Income (Billions of Yen) 800 Revenue, model mix, Cost Increase Other etc Reduction in SG&A Increase Income & in R&D Currency Expenses 23.1 58.8 -93.2 -12.1 Effect 600 156.5 -101.0 400 609.7 Materials & Others: + 70.9 bn. 641.9 - Increase in human resource Labor expenses: - 12.1 bn. & quality related expenses - Allowance for financial 200 - Increase of unit sales in Overseas services Automobile Businesses - Increase of unit sales in Asian Motorcycle Business 0 FY03 FY04
  • 65. FY04 4th Quarter / 12-Month Results 65 Change in Income Before Income Taxes < FY04 12 Months > + 32.1 bn. Gain & Loss on derivative instruments: + 118.8 bn. ( + 5.3% ) Difference between transaction rates and average rates: + 4.1 bn. Decrease in loss on sales and impairment of (Billions of Yen) investment securities, etc. + 33.6 bn. 800 Revenue, model mix, Cost Increase Other etc Reduction in SG&A Increase Income & in R&D Currency Expenses 23.1 58.8 -93.2 -12.1 Effect 600 156.5 -101.0 400 609.7 641.9 200 0 FY03 FY04
  • 66. FY04 4th Quarter / 12-Month Results 66 Change in Income Before Income Taxes < FY04 12 Months > + 32.1 bn. Gain & Loss on derivative instruments: + 118.8 bn. ( + 5.3% ) Difference between transaction rates and average rates: + 4.1 bn. Decrease in loss on sales and impairment of (Billions of Yen) investment securities, etc. + 33.6 bn. 800 Revenue, model mix, Cost Increase Other etc Reduction in SG&A Increase Income & in R&D Currency Expenses 23.1 58.8 -93.2 -12.1 Effect 600 156.5 -101.0 400 609.7 641.9 Currency effects (change in average rates / translation effects): - 101.0 bn. Difference between transaction rates + and average rates: + 4.1 bn. 200 Currency effect on - 96.9 bn. Income before income taxes: 0 FY03 FY04
  • 67. FY04 4th Quarter / 12-Month Results 67 Currency Effect on Income Before Income Taxes (Billions of Yen) FY04 FY03 Difference of Effects Average Rates Average Rates Change Average Rates (Billions of Yen) ( yen ) ( yen ) JPY / USD - 97.6 113 122 - 9 yen JPY / Euro + 17.8 133 122 + 11 yen Impact JPY / Others + 17.7 - - - on Transactions between Operating other currencies - 12.8 - - - Income Total - 74.9 - - - Difference of Currency Effects FY04 FY03 Market Average Market Average Change translation (Billions of Yen) Rates ( yen ) Rates ( yen ) JPY/USD 113.07 121.95 - 8.88 yen - 26.1 JPY/Euro 132.61 121.04 + 11.57 yen Impact on Other Difference between Income & transaction rates and + 4.1 Expenses average rates Total - 96.9
  • 68. FY04 4th Quarter / 12-Month Results 68 Equity in Income of Affiliates (Billions of Yen) FY04 FY03 Change Equity in Income 75.1 61.9 + 13.1 Equity in income rose mainly due to increased Factors income of affiliates in Asia
  • 69. FY04 4th Quarter / 12-Month Results 69 · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (2) 12-Month Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts
  • 70. FY04 4th Quarter / 12-Month Results 70 Consolidated Balance Sheets (Billions of Yen) Change Actual End of FY04 End of FY03 difference* Total Assets 8,328.7 7,681.2 + 647.4 + 1,290.0 Financial Subsidiaries only 3,641.9 3,327.5 + 314.3 + 740.0 Property, plant and equipment only 1,435.5 1,394.3 + 41.1 + 98.0 Total Liabilities 5,454.3 5,051.5 + 402.7 + 840.0 Interest Bearing Debt only 2,616.0 2,322.4 + 293.5 + 570.0 ( Financial Subsidiaries only ) ( 2,387.4 ) ( 2,049.8 ) ( + 337.5 ) ( + 610.0 ) ( Non-financial services business ) ( 228.5 ) ( 272.6 ) ( - 44.0 ) ( - 40.0 ) Exchange rates US Dollar 105.69 120.20 stronger by 14.51 yen Euro 128.88 129.83 stronger by 0.95 yen ( Capital Expenditure & Depreciation are amount of Property, plant & Equipment < but excluding company vehicles > ) FY03 Change Actual FY04 difference* Capital Expenditures 258.3 286.8 - 28.5 - 19.8 Depreciation 199.0 205.5 - 6.4 - 1.6 *Excluding currency effect
  • 71. FY04 4th Quarter / 12-Month Results 71 FY04 Consolidated Cash Flows Increase of (Billions of Yen) 177.0 billion yen 1,400 Operating Investing Activities Activities 1,200 1,000 712.9 Financing Currency 800 -967.4 Activities Effects -28.0 600 724.4 459.5 400 547.4 200 0 Cash & cash equivalents Cash & cash equivalents Beginning Balance Ending Balance FY04 FY04
  • 72. FY04 4th Quarter / 12-Month Results 72 FY04 Consolidated Cash Flows Increase of (Billions of Yen) 177.0 billion yen 1,400 Operating Investing Activities Activities 1,200 1,000 712.9 Financing Currency 800 -967.4 Activities Effects -28.0 600 724.4 459.5 400 547.4 200 Free cash flow 0 - 254.4 bn. Cash & cash equivalents Cash & cash equivalents Beginning Balance Ending Balance FY04 FY04
  • 73. FY04 4th Quarter / 12-Month Results 73 FY04 Cash Flows from Operating Activities Increase of (Billions of Yen) 177.5 billion yen 1,200 Operating Investing Activities Activities -178.3 Financing Activities 900 548.6 -165.7 Currency Effects -26.9 600 707.9 530.3 300 Free cash flow 370.3 bn. 0 Cash & cash equivalents Cash & cash equivalents Beginning Balance Ending Balance FY04 FY04
  • 74. FY04 4th Quarter / 12-Month Results 74 · Details of FY04 Financial Results & FY05 Financial Forecasts (1) 4th Quarter Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (2) 12-Month Results Net Sales by Business Segment Business Segment Information Geographic Segment Information Change in Income before Income Taxes, Equity in Income of Affiliates (3) Consolidated Balance Sheets & Cash Flows (4) FY05 Financial Forecasts
  • 75. FY04 4th Quarter / 12-Month Results 75 Forecast: Unit Sales of Motorcycles (Motorcycles + All-Terrain Vehicles, etc.) (Thousands of Unit) + 84,000 10,000 9,206 9,290 Others 8,080 831 930 8,000 785 6,095 6,000 5,118 Asia 7,017 6,980 5,948 4,000 4,786 3,851 2,000 295 Europe 341 315 305 299 N. America 519 590 610 656 715 404 432 403 370 Japan 0 407 FY01 FY02 FY03 FY04 FY05 Forecast
  • 76. FY04 4th Quarter / 12-Month Results 76 Forecast: Unit Sales of Automobiles + 272,000 (Thousands of Unit) 3,500 3,255 Others 2,983 155 3,000 2,888 510 Asia 105 137 2,580 2,666 205 341 China:270,000 China:151,000 2,500 267 244 207 255 Europe 176 231 191 2,000 1,368 1,522 1,565 N. America 1,500 1,346 1,558 1,000 500 878 849 770 Japan 776 716 0 FY01 FY02 FY03 FY04 FY05 Forecast
  • 77. FY04 4th Quarter / 12-Month Results 77 Forecast: Unit Sales of Power Products (Thousands of Unit) + 553,000 6,000 5,600 Others 250 5,047 5,000 4,584 327 790 Asia 293 619 4,000 3,884 3,926 657 Europe 1,300 1,039 904 1,261 3,000 1,290 1,012 1,269 2,000 2,840 N. America 2,363 1,872 1,601 1,000 1,412 472 477 Japan 409 420 0 164 FY01 FY02 FY03 FY04 FY05 Forecast
  • 78. FY04 4th Quarter / 12-Month Results 78 Forecast: Net Sales + 337.4 bn. ( + 4.1% ) Billions of Yen 8,500.0 7,971.4 8,162.6 8,000 7,362.4 6,463.8 6,000 4,000 Motorcycles Automobiles 2,000 Financial Services Power Product & Other Businesses 0 FY01 FY02 FY03 FY04 FY05 Forecast
  • 79. FY04 4th Quarter / 12-Month Results 79 FY05 Consolidated Financial Forecasts (Billions of Yen) FY05 FY04 Change Net sales & other operation revenue 8,500.0* 8,162.6 + 4.1% Operating income 560.0 600.1 - 6.7% Income before income taxes 500.0 641.9 - 22.1% Net income 390.0 464.3 - 16.0% EPS (yen) 414.49 486.91 - 14.9% * To set record high for five fiscal years in a row Average Rates (Yen) US Dollar 105 113 stronger by 8 yen Euro 125 133 stronger by 8 yen
  • 80. FY04 4th Quarter / 12-Month Results 80 Forecast of Change in Income Before Income Taxes - 141.9 bn. Gain & Loss on ( - 22.1% ) derivative instruments: - 89.0 bn. Others: - 13.0 bn. (Billions of Yen) Increase Decrease in R&D 800 Cost in SG&A -21.0 Currency Revenue, model mix, Reduction 23.0 Effect 700 etc 42.0 Other 55.0 -139.0 Income & Materials & Others: + 56.0 bn. Labor expenses: - 14.0 bn. Expenses 600 641.9 Change in average rates -102.0 U.S. Dollar vs. Yen: - 70.0 bn. 500 Euro vs. Yen: - 10.0 bn. Others vs. Yen: - 16.0 bn. 500.0 Between other currencies: - 20.0 bn. 400 Translation effects Gross profit: - 71.0 bn. SG&A: + 48.0 bn. 300 FY04 FY05 Total currency effects: - 139.0 bn. Forecast
  • 81. FY04 4th Quarter / 12-Month Results 81 FY05 Consolidated Financial Forecasts (Billions of Yen) FY05 FY04 Change Capital Expenditure 290.0 258.3 + 12.3% Depreciation 200.0 199.0 + 0.5% R&D 470.0 448.9 + 4.7% ( Capital Expenditure & Depreciation are amounts of Property, plant & Equipment < but excluding company vehicles> )
  • 82. FY04 4th Quarter / 12-Month Results 82 Caution with Respect to Forward-Looking Statement: This slide contains forward-looking statements about the future 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 other major currencies, as well as other factors detailed from time to time. Segment Information: The segment information has been prepared in accordance with a Ministerial Ordinance under the Securities and Exchange Law of Japan, which requires certain additional information to be disclosed, including business and geographical segment information.
  • 83. FY04 4th Quarter / 12-Month Results 83