13.3

372 views
315 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
372
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

13.3

  1. 1. 0 06 07 08 0 Review of Operations Thousands Years en 4,000 Motorcycle Business 3,000 76.4 % 2,000 1,000 0 06 07 08 0 Thousands Years en 8,000 6,000 3.2 % 4,000 2,000 0 06 07 08 0 Yen (billions) Years en Percentage of Net Sales by Business Unit Sales Net Sales 600 Thousands Years ended March Years ended March Years ended March 31 (billions) Thousands Thousands 31 31 Yen YenYears ended March Years ended March Years ended (billions) Yen31(billions) 31 12,000 12,000 12,000 2,000 2,000 2,000450 8,000 8,000 8,000 7.1 1,500 % 1,500 1,500300 13.3 13.3 13.3 % % % 4,000 4,000 4,000 1,000 1,000 1,000150 500 500 500 0 06 07 08 0 0 0 0 0 0 0 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 Japan North America Europe Asia Other Regions Non-current Thousands Years ended March Years ended March Years ended March 31 (billions) Thousands Thousands 31 31 Yen YenYears ended March Years ended March Years ended (billions) Yen31(billions) 31 4,000 4,000 4,000 1,000 1,000 1,000 10,000 10,000 10,000 Unit Sales Thousands 2009 2010 % change Japan 3,000 3,000 232 3,000 750 750 190750 7,500 (18.1)% 7,500 7,500 76.4 76.4 76.4 North America 320 189 (40.9) 2,000 2,000 2,000 500 500 500 5,000 5,000 5,000 % Europe% % 276 199 (27.9) Asia 1,000 1,000 7,523 1,000 250 250 7,628250 2,500 2,500 1.4 2,500 Other Regions 0 0 1,763 00 0 1,433 00 (18.7) 0 0 Total 06 07 08 09 10 06 10,114 09 10 07 08 06 07 08 09 10 9,639 06 07 08 09 10 (4.7)% 07 06 08 09 10 06 07 08 09 Net Sales Yen (millions) 2009 2010 % change Japan ¥ 81,822 ¥ 70,461 (13.9)% Thousands Years ended March Years ended March Years ended March 31 (billions) Thousands Thousands 31 31 Yen YenYears ended March Years ended March Years ended (billions) Yen31(billions) 31 North America 8,000 8,000 182,284 80 8,000 80 103,956 500 80 (43.0) 500 500 Europe 178,621 60 60 124,665 400 60 (30.2) 400 400 6,000 6,000 6,000 Asia 460,412 461,067 300 0.1 3.2 3.2 3.2 40 40 40 300 300 4,000 4,000 4,000 % Other Regions % % 508,372 380,143 (25.2) 20 20 20200 200 200 Total 2,000 2,000 ¥1,411,511 2,000 ¥1,140,292 (19.2)% 0 0 0100 100 100 Years ended March 31 0 0 0 0 0 0 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 12
  2. 2. Honda’s total unit sales of motorcycles, all-terrain vehicles (ATVs) and personal watercraft (PWC) totaled 9,639 thousand units, decreased by 4.7% from the previous fiscal year. Unit sales in Japan totaled 190 thousand units, decreased by 18.1%. Overseas unit sales totaled 9,449 thousand units, decreased by 4.4%, due mainly to decreased unit sales in Other Regions, including South America, and North America although sales in Asia outside Japan increased. Revenue decreased ¥271.2 billion, or 19.2%, to ¥1,140.2 billion, due mainly to the decline in unit sales and unfavorable foreign currency translation effects. Honda estimates that, had the exchange rate remained unchanged from the previous year, net sales for the year would have decreased by approximately 10.0%, or about ¥141.2 billion. Operating income decreased ¥41.0 billion, or 41.1%, to ¥58.8 billion, despite declines in SG&A expenses and R&D costs, mainly because of the decline in net sales and unfavorable foreign currency effects. 13
  3. 3. Review of Operations Motorcycle Business Japan Total industry demand for motorcycles in Japan in fiscal 2010 was approximately 410,000 units*1, about 25% lower than in the previous fiscal year. This decline in demand was mainly due to the effects of the economic downturn, regulations on emission limits, demographic factors such as the decline in the number of younger people, the decline in the number of peo- ple who acquire motorcycle driving licenses and the shortage of motorcycle parking spaces in city areas. Amid these difficult operating conditions, in June 2009, Honda strengthened its lineup by launching its Super Cub 110 business model, which is both economic and practi- cally useful. Also, in March 2010, Honda launched its CB1100 Type I large sport bike adding functional elegance, which is equipped with a newly developed air-cooled four-cylinder en- gine. In addition, in March 2010, Honda introduced its PCX in Japan, and it received a highly favorable reception. Only three weeks after the launch, orders for 8,000 units had been re- ceived, which was more than 90% of the annual sales goal. A strategic global model, PCX is a 125cc scooter featuring a global standard design for major components, which enhances cost-competitiveness and production efficiency. The PCX is also the first scooter to be introduced in Japan in the 125cc class Super Cub 110 (Japan) equipped with an idling-stop system*2. Despite expansion in sales of new models, unit sales in Japan decreased 18.1%, to 190,000 units, due to more in- tense competition and other factors. *1: Source: Japan Automobile Manufacturers Association (JAMA) *2: According to Honda research. Forza (Japan) CB1100 (Japan) 14
  4. 4. VTR (Europe) Europe Total demand for motorcycles in Europe* during calendar 2009 declined approximately 16%, to about 1.05 million units. Although demand in some countries rose because of government incentives to support the purchase of new mo- torcycles and changes in the driver’s license system, overall demand fell because of the impact of the economic downturn throughout Europe. Amid this business environment, in May 2009, Honda introduced its VTR250 naked-type leisure bike with a slimmer body and featuring easy handling. Also, in January 2010, Honda introduced the VFR1200F, a large sports tourer with a V4-stroke engine, which combines a sporty performance North America with high-quality riding comfort. In fiscal 2010, the full-year contribution of the Total demand for motorcycles and all-terrain vehicles (ATVs) in CBF125, which was launched in the previous fiscal year, the the United States* during calendar 2009 declined 37% from the new CBF1000 naked-type leisure bike, the new VRF1200F and previous year, to approximately 840,000 units. This decline was other models had a positive effect; nevertheless, the number of due to the continuing credit contraction, deterioration in employ- large scooters and other products declined. As a consequence, ment conditions and shrinkage in leisure-related expenditures. total unit sales in Europe decreased 27.9% from the previous Amid this business environment, in April 2009, Honda fiscal year, to 199,000 units. launched the large cruiser model Fury, re-creating the classic * According to Honda research. The motorcycle market includes 10 countries: chopper style with a very low seat height and long front-end the United Kingdom, Germany, France, Italy, Spain, Switzerland, Portugal, the but in a modern, dependable bike. Netherlands, Belgium and Austria. Unit sales in North America decreased 40.9% from the previous fiscal year, to 189,000 units. Although sales of new models held strong, sales of medium-sized bikes, princi- pally in the 750cc class, and scooters declined in reaction to the previous year’s demand increase caused by high gasoline prices, and as a result, Honda’s motorcycle unit sales declined 47.9%, to about 98,000 units. In the ATV category, although demand for utility ATVs remained firm, total unit sales of ATVs and other products decreased 31.1%, to about 91,000 units. * Source: MIC (Motorcycle Industry Council) Fury (North America) 15
  5. 5. Review of Operations Motorcycle Business Asia Demand for motorcycles is continuing to expand in Asia, where customers. In Thailand, Honda launched the Wave 110i AT they are an essential means of transportation. In calendar 2009, Cub-style scooter in February 2010, which is outfitted with the despite the negative impact of the global economic downturn new type CV-matic automatic transmission and features both in the first half of the year, demand recovered during the sec- practicality and convenience. ond half and total demand for motorcycles*1 rose about 6% Honda’s unit sales in Asia*2 for the fiscal year under over the previous year, to approximately 40.2 million units. review rose 1.4% over the previous fiscal year, to 7,628,000 By country, sales in India rose about 19%, to approxi- units. This increase was due to favorable expansion in sales of mately 8.8 million units; sales in Indonesia decreased roughly new models and growth in sales, principally in India, Vietnam, 8%, to about 6 million units; and sales in Thailand dropped and certain other countries. approximately 10%, to about 1.5 million units. In production activities, in India, consolidated sub- Amid these business conditions, in India, Honda intro- sidiary Honda Motorcycle & Scooter India Private Limited made duced the all-new Activa 110cc scooter. Also, in February 2010, the decision to build a second production plant to respond to Honda launched its CB Twister, a fuel-efficient 110cc motorcy- rapidly growing demand in that country. Along with the ex- cle, which is targeted at younger riders and follows the trends pansion in capacity of its existing plant, the second plant is in European large-bike design. In India, 100cc-to-110cc motor- scheduled to go into operation in the latter half of 2011, and cycles account for about half of the total market, and the CB this will bring this company’s total annual production capac- Twister is expected to show a strong sales performance. ity to 2.2 million units. In addition, Honda Vietnam Co., Ltd. In October 2009, Honda began production and (HVN) plans to expand the annual production capacity of its sales in Thailand of its strategic global model, PCX, which is motorcycle production plant by 500,000 units in order to meet a 125cc-class scooter featuring a global standard design for rapidly growing demand in Vietnam. With this newly planned major components, which enhances cost-competitiveness and expansion, HVN’s total motorcycle production capacity will be production efficiency. 2 million units annually within the latter half of 2011. In addition, in the Wave series, which is a major Hon- *1: According to Honda research. The motorcycle registration market includes eight countries in this region: Thailand, Indonesia, Malaysia, the Philippines, da model in Asia and is currently marketed mainly in ASEAN Vietnam, India, Pakistan and China. countries, Honda introduced a full model change version of its *2: This total includes sales of finished products of Honda and its consolidated subsidiaries and sales of knocked down kits to Honda’s affiliated companies Wave 110 RSX in Vietnam in October 2009, giving it a sport- accounted for under the equity method for use in local production by such companies. ier design for added appeal to the target market of younger CB Twister (India) Wave 110i AT (Thailand) 16
  6. 6. Other Regions In Brazil, the principal market within Other Regions, total de- mand in calendar 2009 decreased about 16%, to approxi- mately 1.61 million units,* because of the tightening of loan conditions for motorcycles in the wake of the global financial crisis and other factors. Amid these conditions, in Brazil, Honda introduced an upgraded version of its CB300R in June 2009, offering advanced design and enhanced riding performance. Also, in November, Honda launched its NXR 150 BROS MIX, which is equipped with the Mix Fuel Injection System that makes it pos- sible to use various combinations of ethanol and gasoline flex- ibly. Installing this Mix Fuel Injection System leads to reduce CO2 emissions while also contributing to reducing fuel costs. This is Honda’s second model incorporating this system, which was first introduced on the CG150 TITAN MIX. In Other Regions (including Latin America, the Mid- dle East, Africa and Oceania), unit sales decreased 18.7%, compared with the previous fiscal year, to 1,433,000 million units, despite the positive effects of introducing the CB300R and CG150 Fan motorcycles in Brazil. *Source: ABRACICLO (the Brazilian Association of Motorcycle, Moped and Bicycle Manufacturers) NXR 150 BROS MIX (Brazil) CB300R (Brazil) 17

×