FY09 4th Quarter Financial Results

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FY09 4th Quarter Financial Results

  1. 1. FY09 4th Quarter Financial Results Honda Motor Co., Ltd. Honda INSIGHT For U.S Market April 28, 2009 1
  2. 2. FY09 4th Quarter Financial Results & FY10 Financial Forecasts ・Outline Executive Vice President - Koichi Kondo (1) FY09 Twelve Months Consolidated Financial Results (2) FY10 Financial Forecasts (3) Dividend to Shareholders ・ Details Chief Operating Officer for Business Management Operations – Yoichi Hojo (1) 4th Quarter & Twelve Months Consolidated Financial Results (2) Consolidated Capital Expenditures (3) FY10 Financial Forecasts 2
  3. 3. Outline of FY09 Twelve Months Financial Results (Consolidated) Business Environment FY09 Twelve Months Unit (Sales) Crude oil and raw material prices rose significantly worldwide in the first FY08 FY09 Change half, then declined in the second half. Unit (thousands) The economy in the U.S. and Europe deteriorated caused by the financial crisis. A further downturn due to the negative economic cycle is feared. Motorcycles 9,320 10,114 + 8.5% In China and India, economic growth slowed down in the second half. In Japan, both capital expenditures and consumer spending declined, and Automobiles 3,925 3,517 - 10.4% the economy is rapidly deteriorating Yen appreciation against the U.S. dollar and Euro Power Products 6,057 5,187 - 14.4% Motorcycle market Demand in the U.S declined significantly Due to strong sales in the first half, industry-wide sales volume in Brazil, India and Thailand maintained YOY despite reduced sales in the second half Automobile market FY09 Twelve Months Demand in the U.S., Western Europe and Japan declined significantly in Financial results the second half. FY08 FY09 Change Overall market size was increased in Brazil, China and India despite a Yen(billions) temporary decline in demand. Net sales & other operating revenue 12,002.8 10,011.2 - 16.6% Major Change Factors Asia and other regions including Brazil contributed to gain in Operating income 953.1 189.6 - 80.1% operating profit, offsetting deterioration in major markets. Income before income Unit Sales taxes 895.8 161.7 - 81.9% Motorcycles: Equity in income of Favorable sales in Asia and Other Regions, which includes Brazil affiliates 118.9 99.0 - 16.7% Decreases in North America, Japan and Europe Automobiles: Net income 600.0 137.0 - 77.2% Strong sales in Asia and Brazil Decreases in North America, Japan and Europe Power Products: - 77.2% Increases in Asia and “Other” Region, which includes Middle East EPS (Yen) 330.54 75.50 ( - 255.04 yen) Decreases in North America, Europe and Japan Note : Shares which are based approx. approx. Net sales & other operating revenue on calculation of EPS 1,815,356,000 shares 1,814,561,000 shares (weighted average number (weighted average number Decline due to lower sales volume of automobiles and power of shares outstanding ) of shares outstanding ) products Negative currency translation effects Average Rates (Yen) Operating income Yen up by <Increase Factors> Effects of cost reduction US Dollar 114 101 13 yen Decrease in R&D <Decrease Factors>Decrease in revenue and model mix change, etc. Yen up by Increased raw material costs Euro 162 142 20 yen Increased fixed cost due to production cut Currency factors 3
  4. 4. FY10 Financial Forecasts (Consolidated) Yen (billions) Change FY09 FY10 Results Forecasts Amount % Net sales & other operating revenue 10,011.2 8,370.0 - 1,641.2 - 16.4% Operating income 189.6 10.0 - 179.6 - 94.7% Income before income taxes 161.7 10.0 - 151.7 - 93.8% Equity in income of affiliates 99.0 50.0 - 49.0 - 49.5% ※ Net income 137.0 40.0 - 97.0 - 70.8% EPS (Yen) 75.50 22.04 - 53.46 - 70.8% Note : Shares which are based Approx. 1,814,561,000 shares Approx. 1,814,609,000 shares ※Net income FY10 means attributable to on calculation of EPS (weighted average number (as of Mar. 31, 2009) shareholders of Honda of shares outstanding ) Average Rates (Yen) U.S. Dollar 101 95 Yen up by 6 yen Euro 142 125 Yen up by 17 yen 4
  5. 5. FY09 Financial Results & FY10 Financial Forecasts (Unconsolidated) Yen (billions) FY08 FY09 FY10 Results Results Change Forecasts Change Net sales 4,088.0 3,404.5 - 16.7% 2,710.0 - 20.4% Operating Profit 140.4 - 158.4 - - 148.0 - Ordinary Profit 351.1 - 3.2 - 119.0 - Net income 298.5 - 59.6 - 141.0 - Average Rates (Yen) U.S. Dollar 114 101 Yen up by 13 yen 95 Yen up by 6 yen Euro 162 142 Yen up by 20 yen 125 Yen up by 17 yen 5
  6. 6. Dividend to Shareholders (Yen) FY08 FY09 FY10 Dividend per share Results Results & Increase/Decrease Projection Increase/Decrease from from Projection FY08 Results FY09 Results 1st quarter End 20 22 +2 8 * - 14 * 2nd quarter End 22 22 ±0 8 * - 14 * 3rd quarter End 22 11 - 11 8 * -3 * 4th quarter End 22 8* - 14 * 8 * ±0 * Fiscal Year 86 63 * - 23 * 32 * - 31 * * Projection as of Apr. 28th 6
  7. 7. FY09 4th Quarter Financial Results & FY10 Financial Forecasts ・Outline Executive Vice President - Koichi Kondo (1) 4th Quarter & Twelve Months Consolidated Financial Results (2) FY10 Financial Forecasts (3) Dividend to Shareholders ・ Details Chief Operating Officer for Business Management Operations – Yoichi Hojo (1) 4th Quarter & Twelve Months Consolidated Financial Results (2) Consolidated Capital Expenditures (3) FY10 Financial Forecasts 7
  8. 8. Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts (1) 4th Quarter & Twelve Months Consolidated Financial Results Outline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating Revenue Change in Operating Income Business Segment Information Geographical Information Change in Income before Income Taxes < Other Income/Expenses and Currency Effects > (2) Consolidated Capital Expenditures (3) FY10 Financial Forecasts 8
  9. 9. Outline of FY09 4th Quarter Financial Results (Consolidated) Business Environment 4Q Results Unit (Sales) Financial crisis and deterioration of real economy led the U.S. and Unit (thousands) FY08 FY09 Change Europe recession to deepen and become more serious. Japan economy deteriorated rapidly due mainly to a decline in Motorcycles 2,368 2,002 - 15.5% exports. Pace of economic expansion has further slowed down in Asia Automobiles 1,051 680 - 35.3% Yen appreciation against the U.S. dollar and Euro Power Products 2,092 1,531 - 26.8% Motorcycle market Steep deterioration not only in the U.S. but in Thailand and Indonesia Demand in India has recovered from the previous quarter. Automobile market 4Q Results Steep downturn in the U.S., Japan and Western Europe Demand in Russia continued to decline largely. Financial results Expanding markets in India, Brazil and China Yen(billions) FY08 FY09 Change Net sales & other operating revenue 3,055.5 1,783.8 - 41.6% Major Change Factors Honda earned operating profit for the fiscal year, however it Operating income 168.8 - 283.0 - posted operating loss in the 4Q due to decreased volume in all businesses under rapid market deterioration. Income before income taxes 146.8 - 309.5 - Unit Sales Equity in income of Motorcycles: Decreased unit sales in all the regions affiliates 24.3 2.7 - 88.7% Automobiles: Decreased unit sales in all the regions Net income 25.4 - 186.1 - Power Products: Decreased unit sales in all the regions - EPS (Yen) 14.01 - 102.59 ( - 116.60 yen) Net sales & other operating revenue Decline mainly due to decreased unit sales of automobiles Note : Shares which are based approx. approx. Negative currency translation effects on calculation of EPS 1,814,587,000 shares 1,814,610,000 shares (weighted average number of shares outstanding ) (weighted average number of shares outstanding ) Operating income <Increase Factors> Average Rates (Yen) Effects of cost reduction Yen up by Decrease in SG & A US Dollar 106 94 12 yen <Decrease Factors> Decrease in revenue and model mix change, etc. Yen up by Increased fixed costs due to production cut Euro 158 121 37 yen Increased raw material costs Currency factors 9
  10. 10. Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts (1) 4th Quarter & Twelve Months Consolidated Financial Results Outline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating Revenue Change in Operating Income Business Segment Information Geographical Information Change in Income before Income Taxes < Other Income/Expenses and Currency Effects > (2) Consolidated Capital Expenditures (3) FY10 Financial Forecasts 10
  11. 11. Net Sales and Other Operating Revenue Yen (billions) 4th Quarter (Three months) 4Q Net Sales by - 1,271.6(- 41.6 %) Business Segment FY08 FY09 If excluding currency translation effects; - 920.0bn. yen (- 30.1 %) 3,055.5 Motorcycle Business 444.0 274.4 - 86.6 Automobile Business 2,356.6 1,301.4 (- 19.5 %) - 814.2 + 13.8 - 33.0 Financial Services Business 138.0 135.2 Motorcycle (- 34.5 %) (+ 10.0 %) (- 28.2 %) Business - 351.5 Power Products & Other Business 116.8 72.6 Automobile Financial Services Power Product Business Business & 1,783.8 Total 3,055.5 1,783.8 Other Businesses Currency Effects Market average rates U.S. Dollar 105.29 93.61 Euro 157.65 121.81 FY08 4Q FY09 4Q Twelve Months - 1,991.5 (- 16.6 %) Yen (billions) Twelve months Net Sales by Business Segment FY08 FY09 If excluding currency translation effects; - 795.8 bn. yen (- 6.6 %) + 18.5 - 889.9 Motorcycle Business 1,558.6 1,411.5 12,002.8 (+ 1.1 %) (- 9.3 %) + 124.7 - 49.0 Automobile Business 9,489.3 7,674.4 Motorcycle (+ 23.3 %) (- 11.6 %) - 1,195.7 Financial Services Business Business 533.5 582.2 Automobile Financial Services Power Product Power Products & 421.1 343.0 Business Business Other Businesses 10,011.2 & Other Business Total 12,002.8 10,011.2 Currency Effects Market average rates U.S. Dollar 114.28 100.54 Euro 161.53 143.48 FY08 FY09 Twelve Months Twelve Months 11
  12. 12. Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts (1) 4th Quarter & Twelve Months Consolidated Financial Results Outline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating Revenue Change in Operating Income Business Segment Information Geographical Information Change in Income before Income Taxes < Other Income/Expenses and Currency Effects > (2) Consolidated Capital Expenditures (3) FY10 Financial Forecasts 12
  13. 13. Change in Operating Income <FY09 4th Quarter> Yen (billions) Income before Income taxes - 456.4 bn. yen Other Income Operating Income - 451.8 bn. yen & Expenses <Increase Factors> - 4.5 bn. yen • Change in pricing for the new model year, etc. <Decrease Factors> • Decline in profit attributable to lower unit sales •Model mix impact, etc. <Increase Factors> 146.8 - 357.9 • Effects of cost reductions, etc. <Decrease Factors> Operating • Increase in fixed cost due to production cut income • Impact of increase in raw material prices, etc. 168.8 <Increase Factors> FY08 4Q • Decrease in quality related expenses FY09 4Q • Decreased expenses for advertising, sales promotion, etc. <Decrease Factors> • 0ne-off expenses related to withdrawal from some racing activities and cancellations of new model developments , etc. - 107.9 Operating income Revenue, model mix, etc. + 19.3 - 26.8 -283.0 + 21.5 - 7.6 + 3.0 Decrease in R&D Cost Reduction, Decrease in SG&A Currency Effect Fair value Others -309.5 the effect of raw of derivative material cost , etc. instruments 13
  14. 14. Change in Operating Income <FY09 Twelve Months> Yen (billions) Income before Income taxes - 734.1 bn. yen (- 81.9%) Operating Income- 763.4 bn. yen ( - 80.1 % ) Other Income & Expenses <Increase Factors> • Effects of cost reductions, etc. + 29.3 bn. yen <Decrease Factors> • Impact of increase in raw material prices • Increase in fixed cost due to production cut , etc. 895.8 - 247.7 <Increase Factors> • Decrease in quality related expenses , etc. <Decrease Factors> • 0ne-off expenses related to withdrawal from some racing activities and cancellations of new model developments - 182.5 • Increase in provisions for credit loss and residual loss , etc. Revenue, model mix, etc. - 88.3 Cost Reduction, + 24.7 - 269.5 the effect of raw material cost , etc. Increase in SG&A Decrease in R&D + 85.7 - 56.4 Operating income <Increase Factors> 161.7 953.1 • Change in pricing for the new model year Others Operating Fair value • Decrease in sales incentives for North America Currency Effect income of derivative automobile business 189.6 instruments <Decrease Factors> FY08 • Decline in profit attributable to lower unit sales FY09 Twelve Months •Model mix impact, etc. Twelve Months 14
  15. 15. Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts (1) 4th Quarter & Twelve Months Consolidated Financial Results Outline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating Revenue Change in Operating Income Business Segment Information Geographical Information Change in Income before Income Taxes < Other Income/Expenses and Currency Effects > (2) Consolidated Capital Expenditures (3) FY10 Financial Forecasts 15
  16. 16. Motorcycle Unit Sales (Motorcycles + All-Terrain Vehicles, etc.) Unit Change from (thousands) FY09 4Q Major increase/decrease factors FY 08 4Q + 794 16,000 - Increase of leisure model such as Monkey ( + 8.5% ) Japan 51 - 15 - Decrease in sales of scooters such as TODAY and FORZA North - Decrease of sports bikes such as CBR1000RR and America 72 -78 custom bikes such as VTX1300C 14,000 Monkey (Japan) - Increase of scooters such as SH150 in Italy Europe 71 - 18 - Decrease of scooters such as SH125 in Spain - Increase of Unicorn、Shine in India Asia 1,449 -168 - Decrease of Wave、CLICK in Thailand Approx 4,700 12,000 Approx 4,580 Other - Increase of CG125 in Brazil Regions 359 -87 - Decrease of CG150 TITAN, BIZ125 in Brazil Total 2,002 -366 Unicorn (India) 10,114 10,000 Unit sales of Honda-brand 9,320 motorcycle 1,763 products that are manufactured and 1,610 8,000 sold by overseas affiliates accounted for - 366 under the equity ( - 15.5% ) method, but do not use any parts 6,000 supplied by Honda and its subsidiaries 7,523 Approx 1,260 6,633 Approx 1,210 4,000 Approx 1,160 Approx 1,280 Approx 1,110 Approx 1,100 Approx 1,020 2,893 Approx 1,100 2,715 2,504 2,253 2,333 2,366 2,368 509 401 436 459 2,002 371 392 446 2,000 359 Other Regions 1,623 1,645 1,748 1,617 2,050 2,146 1,878 1,449 Asia 95 68 61 89 91 66 48 71 Europe 313 276 80 121 102 150 80 93 75 72 North America 453 320 84 107 54 66 58 79 44 51 Japan 311 232 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 * Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts for Honda’s affiliates accounted for under the equity method. 16
  17. 17. Motorcycle Business Net Sales/Operating Income/Operating Margin FY08 FY09 FY08 FY09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Sales 368.3 381.6 364.6 444.0 393.0 401.0 342.8 274.4 1,558.6 1,411.5 Yen (billions) (- 38.2%) (- 9.4%) Operating Margin Operating Income <Increase Factors> • Effects of cost reduction, etc. <Decrease Factors> Yen (billions) • Increase in raw material costs, • Decrease in revenue and model mix change, etc. 160 16% 140 14% ( - 34.0% ) 11.9% 11.6% 120 12% 9.7% 9.7% 100 8.5% 8.3% 7.9% 10% 7.4% 7.1% 80 8% 151.2 60 6% 99.9 40 4% 52.7 46.3 37.0 20 31.1 30.3 31.1 2% 25.2 0 0% - 1.0% -20 - 2.8 -2% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 17
  18. 18. Automobile Unit Sales Unit (thousands) Change from FY09 4Q FY 08 4Q Major increase/decrease factors - 408 - Increase of FREED, INSIGHT, etc. ( - 10.4% ) 4,500 Japan 141 - 50 - Decrease of FIT, etc. North - Increase of FIT, etc. America 219 -240 - Decrease of Accord, Civic, CR-V, etc. 4,000 INSIGHT (Japan) 3,925 - Increase of Civic and CR-V in Russia Europe 103 -6 - Decrease of CR-V and Civic in the U.K., Spain and Italy 314 - Decrease of component parts for China (Accord and CR-V, etc.) 3,517 3,500 Asia 151 -52 - Decrease of CR-V, in Indonesia, etc. Other - Increase of CR-V in Brazil 322 Regions 66 -23 - Decrease of Civic, CR-V in Australia 755 CR-V (Brazil) 3,000 Total 680 - 371 793 391 2,500 - 371 350 ( - 35.3% ) 2,000 1,850 1,500 1,496 991 1,051 946 937 962 935 940 1,000 87 89 66 72 78 91 87 188 203 680 187 177 221 109 204 217 Other 92 90 66 100 75 Regions 87 85 151 500 Asia 481 459 103 Europe 465 445 460 401 416 615 556 219 North America 136 143 145 191 128 152 135 141 Japan 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 * Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts for Honda’s affiliates accounted for under the equity method. 18
  19. 19. Automobile Business Net Sales/Operating Income/Operating Margin FY08 FY09 FY08 FY09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Sales 2,327.2 2,356.4 2,449.0 2,356.6 2,228.0 2,170.6 1,974.2 1,301.4 9,489.3 7,674.4 Yen (billions) (- 44.8%) (- 19.1%) Yen <Increase Factors> (billions) Operating Margin • Effects of cost reductions, Operating Income • Decrease in SG&A expenses etc. <Decrease Factors> 600 50% 700 • Decrease in revenue and model mix change , etc. 661.6 • Increase in fixed cost due to production cut 45% • Increase in raw material costs etc. 500 40% 400 (- 96.3%) 35% 30% 300 25% 213.0 220.7 20% 200 148.3 161.2 15% 79.5 79.0 70.5 7.0% 10% 100 9.0% 9.0% 24.5 5% 6.4% 7.2% 0 0% 3.4% 3.6% 3.6% 0.3% -5% -100 -10% -15% -200 -22.0% -20% -300 -25% - 286.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 19
  20. 20. Power Products Unit Sales Unit (thousands) FY09 Change from Major increase/decrease factors 4Q FY 08 4Q - Increase of gas-powered mini-tiller Pianta FV200, etc Japan 101 - 50 - Decrease of GX series engines for OEM generators - 870 7,000 North - Decrease of GC/GC(V) series for OEM washer (- 14.4%) America 655 - 233 pressure and lawn mower in United States - Decrease of general purpose engines, such as Pianta FV200 (Japan) Europe 472 - 199 GX/GC series engines for OEM construction 6,057 machinery and generators 6,000 - Increase of water pumps in Indonesia Asia 200 -51 - Decrease of generators in India 484 Other - Decrease in general purpose engines, such as the 103 -28 GX series generators in Australia 5,187 Regions 915 5,000 Total 1,531 - 561 502 970 4,000 1,693 - 561 (- 26.8%) 3,000 1,306 2,092 2,000 131 1,529 251 2,415 1,339 1,531 97 1,258 1,202 Other 1,178 1,115 103 Regions 1,893 220 671 119 200 116 127 Asia 140 249 1,000 390 242 153 472 202 296 Europe 319 225 280 352 231 284 687 888 479 493 402 655 North America 361 343 550 516 135 141 123 151 159 146 110 101 Japan 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 * Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts for Honda’s affiliates accounted for under the equity method. 20
  21. 21. Power Product & Other Businesses Net Sales/Operating Income/Operating Margin FY08 FY09 FY08 FY09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Yen Net Sales 115.2 105.0 100.2 122.3 106.8 103.0 79.5 79.4 442.7 368.9 (billions) (- 35.1%) (- 16.7%) Operating Margin Operating Income <Increase Factors> Yen • Decrease in SG&A expenses (billions) <Decrease Factors> • Decrease in revenue 25 and model mix change, etc. 20% • Increase in R&D expenses for Other Businesses (expenses related to start-up 20 of new businesses) , etc. 16% 15 22.3 12% 6.9% 10 6.6% 8% 4.2% 5.0% 7.9 2.3% 5 4% 6.9 0.2% 0 2.2 5.1 - 0.9% 0% - 3.5% 0.2 - 0.9 -5 - 11.9 -4% - 2.8 - 4.2% -10 -8% - 15.4 -15 -12% - 15.0% -20 -16% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 21
  22. 22. Financial Services Business Net Sales/Operating Income/Operating Margin FY08 FY09 FY08 FY09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Yen Sales 129.8 137.8 139.6 141.7 149.5 162.6 146.0 138.3 549.0 596.5 (billions) (- 2.4%) (+ 8.6%) Operating Margin Operating Income Yen (billions) <Increase Factors> • Increase in finance receivables and property on operating leases, etc. <Decrease Factors> 130 • Increase in provisions for residual loss, etc. 120 110 30% 26.4% (- 42.3%) (- 31.5%) 100 90 21.3% 22.1% 21.5% 80 19.2% 16.4% 20% 70 14.9% 60 13.5% 50 13.1% 117.7 40 80.6 10% 6.5% 30 34.2 29.3 31.3 20 28.7 22.9 24.3 10 18.0 9.4 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 22
  23. 23. Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts (1) 4th Quarter & Twelve Months Consolidated Financial Results Outline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating Revenue Change in Operating Income Business Segment Information Geographical Information Change in Income before Income Taxes < Other Income/Expenses and Currency Effects > (2) Consolidated Capital Expenditures (3) FY10 Financial Forecasts 23
  24. 24. Japan Net Sales/Operating Income/Operating Margin FY08 FY09 FY08 FY09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Sales 1,176.2 1,215.5 1,246.1 1,251.0 1,149.6 1,193.5 1,079.2 740.1 4,889.0 4,162.5 Yen (billions) (- 40.8%) (- 14.9%) <Increase Factors> • Effects of cost reductions • Decrease in R&D expenses, etc. Operating Income Yen <Decrease Factors> (billions) Operating Margin (%) • Decrease in revenue and model mix change, etc • Increase in raw material costs 200 • Currency effects, etc. 150 192.5 ( 3.9 % ) 100 50 73.3 60.6 56.2 2.3 ( 0.2 % ) 37.9 40.9 0 -50 - 64.3 -100 (- 3.9 % ) ( - 23.8 % ) -150 - 176.0 - 161.6 -200 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 24
  25. 25. North America Net Sales/Operating Income/Operating Margin FY08 FY09 FY08 FY09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Sales 1,583.3 1,557.1 1,640.5 1,484.1 1,493.1 1,370.0 1,231.6 684.2 6,265.2 4,779.1 Yen (billions) (- 53.9%) (- 23.7%) Operating Income Yen (billions) Operating Margin (%) 500 <Increase Factors> • Decrease in SG&A expenses, • Effects of cost reductions etc. (- 81.6 %) 400 <Decrease Factors> • Decrease in revenue and model mix change, etc 432.6 • Increase in fixed cost due to production cut • Increase in raw material costs etc. 300 200 ( 6.9 % ) 156.3 100 116.0 97.0 94.5 70.0 79.7 63.1 22.5 ( 1.7 % ) 0 ( 4.3 % ) - 107.4 -100 (- 15.7 % ) -200 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 25
  26. 26. Europe Net Sales/Operating Income/Operating Margin FY08 FY09 FY08 FY09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Salse 400.2 390.8 361.7 441.3 364.5 350.7 299.4 264.2 1,594.2 1,278.9 Yen (billions) (- X.X%) (- 40.1%) (- 19.8%) (+ X.X%) Operating Income Yen (billions) Operating Margin (%) 55 45 <Increase Factors> • Effects of cost reductions, etc. <Decrease Factors> (- 80.2%) 35 • Decrease in revenue and model mix change, etc 51.5 • Increase in fixed cost due to production cut etc. ( 3.2 % ) 25 15 16.7 18.6 10.3 11.2 5 ( 4.2 % ) 8.3 1.1 10.2 5.8 ( 0.8 % ) -5 -10.5 (- 4.0 % ) -15 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 26
  27. 27. Asia Net Sales/Operating Income/Operating Margin FY08 FY09 FY08 FY09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Sales 393.3 415.6 413.4 415.9 436.2 451.8 385.2 334.8 1,638.2 1,608.2 Yen (billions) (- 19.5%) (- 1.8%) Operating Income Yen (billions) Operating Margin (%) 140 (- 20.7%) 120 <Increase Factors> • Decrease in SG&A expenses, etc. 100 <Decrease Factors> 130.7 • Decrease in revenue and model mix change, etc • Increase in raw material costs etc. 80 ( 8.0 % ) 103.6 60 ( 6.4 % ) 40 48.3 38.3 36.9 33.4 36.6 20 21.9 24.9 ( 5.3 % ) 0 - 6.3 ( - 1.9 % ) -20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 27
  28. 28. Asia Operating Income of Affiliates FY08 FY09 FY08 FY09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Yen Operating Income 61.2 56.3 55.7 38.0 65.4 65.4 73.6 39.5 211.4 244.0 (billions) Net Income 57.2 50.0 49.7 31.0 58.3 56.1 64.0 35.2 188.0 213.7 Yen (billions) Operating Income of Affiliates and Honda’s Equity in Income + 32.6 Operating Income Equity in Income ( + 15.4% ) 300 244.0 250 + 1.5 ( + 3.9% ) 211.4 200 150 86.1 97.5 100 73.6 61.2 56.3 55.7 65.4 65.4 50 26.8 22.2 22.6 38.0 29.5 23.6 30.4 39.5 14.3 13.9 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 Affiliates accounted for under the equity method in Asia As of the end of March, 2009 Motorcycle Business: Automobile Business : China Sundiro Honda Motorcycle Co., Ltd.* China Guangzhou Honda Automobile Co., Ltd.* Wuyang-Honda Motors (Guangzhou) Co., Ltd.* Dongfeng Honda Engine Co., Ltd.* India Hero Honda Motors Ltd. Dongfeng Honda Automobile Co., Ltd.* Indonesia P.T. Astra Honda Motor * Malaysia Hicom-Honda MFG. Malaysia SDN. BHD. Pakistan Atlas Honda Ltd. * Thailand A.P. Honda Co., Ltd. Others 40, Total 50 companies Fiscal term of companies marked “*” differs from that of Honda Motor Co., Ltd. 28
  29. 29. Other Regions Net Sales/Operating Income/Operating Margin FY08 FY09 FY08 FY09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Sales 226.3 267.9 284.6 313.9 293.7 349.5 304.7 196.1 1,092.8 1,144.2 Yen (billions) (- 37.5%) (+ 4.7%) <Increase Factors> • Effects of cost reductions, etc. Operating Income Yen <Decrease Factors> (billions) Operating Margin (%) • Increase in SG&A expenses, 180 • Currency effects, etc. (+ 16.0%) 160 (- 75.4%) 140 120 135.0 ( 11.8 % ) 100 116.4 ( 10.7 % ) 80 60 40 48.7 41.8 31.7 32.7 36.3 8.0 20 30.1 ( 10.4 % ) ( 4.1 % ) 21.7 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY08 FY09 FY08 FY09 29
  30. 30. Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts (1) 4th Quarter & Twelve Months Consolidated Financial Results Outline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating Revenue Change in Operating Income Business Segment Information Geographical Information Change in Income before Income Taxes < Other Income/Expenses and Currency Effects > (2) Consolidated Capital Expenditures (3) FY10 Financial Forecasts 30
  31. 31. Change in Income before Income Taxes <FY09 4th Quarter> Yen Income before Income taxes - 456.4 bn. yen (billions) Other Income Operating Income - 451.8 bn. yen & Expenses <Increase Factors> - 4.5 bn. yen • Change in pricing for the new model year, etc. <Decease Factors> 146.8 - 357.9 • Decline in profit attributable to lower unit sales •Model mix impact, etc. Operating income <Increase Factors> 168.8 • Decrease in quality related expenses • Decreased expenses for advertising, sales promotion, etc. <Decease Factors> FY08 4Q • 0ne-off expenses related to withdrawal from some racing activities FY09 4Q and cancellations of new model developments , etc. Currency effect due to difference between average rates and transaction rates: +12.4 bn. yen - 107.9 Interest rate swap cost, etc. : - 9.3 bn.yen Operating income Revenue, model mix, etc. + 19.3 - 26.8 -283.0 + 21.5 - 7.6 + 3.0 Decrease in R&D Currency Effect Fair value Others Cost Reduction, the effect of raw Decrease in SG&A of derivative -309.5 material cost , etc. instruments (Exhibit 2) <Increase Factors> • Effects of cost reductions, etc. <Currency Effects > <Decease Factors> Impact on Operating income - 26.8 bn. yen (due to difference of average rates and translation effects) • Increase in fixed cost due to production cut Impact on Other income & expenses +12.4 bn. yen (due to difference between average rates and transaction rates) Impact of increase in raw material prices, Impact on Income before income taxes - 14.4 bn. yen (see also Exhibit 1) etc. 31

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