02 15-14 honda motors-results_q3_2013-1

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02 15-14 honda motors-results_q3_2013-1

  1. 1. FY14 3rd Quarter Financial Results FY14 3rd Quarter Financial Results Honda Motor Co., Ltd. VEZEL HYBRID January 31, 2014 (JAPAN) 1
  2. 2. FY14 3rd Quarter Financial Results Topics - FY14 3rd Quarter Financial Results - FY14 Financial Forecasts - Dividend Tetsuo Iwamura Executive Vice President 2
  3. 3. FY14 3rd Quarter Financial Results Outline of FY14 3rd Quarter Results Summary (Consolidated) Results Summary Operating income amounted to 228.5 billion yen, an increase of 73.2% mainly due to the positive impact of new model introductions in Japan, North America, and Asia, as well as cost down effects and favorable currency effects. 3rd Quarter Results FY2013 and FY2014 Consolidated Unit Sales 1,200 2,657 900 3,020.8 3,000 2,425.7 1,162 900 2,500 1,195 841 2,350 2,000 800 2,200 FY14 Net Sales / Operating Income Unit (thousand) 1,000 2,800 FY13 250 Yen (billion) 228.5 200 150 131.9 1,100 700 100 1,000 1,900 600 50 500 1,600 Motorcycles Automobiles 0 0 1,000 Power Products Net Sales Operating Income 3
  4. 4. FY14 3rd Quarter Financial Results FY14 3rd Quarter Unit Sales Honda Group Unit Sales FY13 FY14 Change 3,815 4,251 + 11.4% 4,251 Automobiles 986 1,082 + 9.7% 4,000 FY14 Unit (thousand) 4,500 (thousand) Motorcycles FY13 Honda Group Unit Sales 3Q Results (3 Months) 1,082 1,100 1,200 1,195 1,162 986 3,815 900 1,100 3,500 Power Products 1,195 1,162 - 2.8% 3,000 Consolidated Unit Sales 3Q Results (3 Months) FY13 FY14 Change 1,000 700 Motorcycles Automobiles Consolidated Unit Sales 2,800 (thousand) 2,657 900 900 Motorcycles 2,350 2,657 Power Products + 13.1% Unit (thousand) 1,200 1,162 841 2,350 1,195 800 2,300 Automobiles 841 900 1,100 + 7.0% 700 Power Products 1,195 1,162 - 2.8% 1,800 1,000 600 Motorcycles Automobiles Power Products Honda Group Unit Sales - Increase in motorcycle unit sales due to the positive impact of new model introductions in India and introduction of models equipped with fuel injection in Indonesia - Increase in automobile unit sales due to the positive impact of new model introductions as well as the launch of fully remodeled vehicles in Japan, North America and Asia 4
  5. 5. FY14 3rd Quarter Financial Results FY14 3rd Quarter Financial Results (Consolidated) Financial Results 3Q Results (3 Months) Financial Summary FY13 FY14 2,425.7 3,020.8 + 24.5% 131.9 228.5 + 73.2% 5.4% 7.6% Income before income taxes 89.7 216.6 + 141.3% Equity in income of affiliates 21.4 31.6 + 47.7% Net income attributable to Honda Motor Co., Ltd. *1 77.4 160.7 + 107.6% EPS attributable to Honda Motor Co., Ltd. (Yen) *2 42.97 89.18 + 46.21 Yen (billion) Net sales & other operating revenue Operating income Operating margin Change - Average Rates (Yen) US Dollar 81 106 Euro 139 Operating Income 200 184.9 176.0 FY13 171.4 8% 7.2% 7.6% FY13 FY14 5.4% 5.0% 5.9% 6.5% 135.9 4% 100.8 100 For *1 and *2, please refer to footnotes on page 33 6% 131.9 150 FY14 - Operating income increased by 73.2% mostly due to a rise in income associated with changes in sales volume and model mix, cost down effects as well as the positive impact of a weaker yen, despite increased SG&A and depreciation expenses Operating Margin Yen (billion) 228.5 250 Yen down by 19 yen Yen down by 33 yen 100 - Revenue increased by 24.5% mainly due to a rise in automobile and motorcycle net sales as well as the positive impact of foreign exchange effects 4.4% 2% 50 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 5
  6. 6. FY14 3rd Quarter Financial Results FY14 Nine Months Financial Results (Consolidated) Nine Month Results FY14 Honda Group Unit Sales (Consolidated Unit Sales) (thousand) FY13 Motorcycles 11,532 12,521 (7,020) (7,613) Automobiles 2,981 3,128 (2,506) (2,627) Power Products 4,108 4,046 (4,108) Change (4,046) Financial Results Yen (billion) Nine Month Results FY14 FY13 + 8.6% (+ 8.4%) + 4.9% (+ 4.8%) - 1.5% (- 1.5%) Change 7,132.9 8,745.2 + 22.6% 408.8 584.9 + 43.1% 5.7% 6.7% Income before income taxes 390.8 554.2 + 41.8% Equity in income of affiliates 69.6 95.0 + 36.5% 291.3 403.5 + 38.5% 161.68 223.94 + 62.26 80 99 103 134 Net sales & other operating revenue Operating income Operating margin Net income attributable to Honda Motor Co., Ltd. *1 EPS attributable to Honda Motor Co., Ltd. (Yen) *3 - For *1 and *3, please refer to footnotes on page 33 Average Rates (Yen) US Dollar Euro Yen down by 19 yen Yen down by 31 yen 6
  7. 7. FY14 3rd Quarter Financial Results FY14 Financial Forecasts (Consolidated) Yen (billion) FY13 Results Forecasts Change FY14 amount Change from % previous forecasts Net sales & other operating revenue 9,877.9 12,100.0 + 2,222.0 + 22.5% 0.0 Operating income 544.8 780.0 + 235.1 + 43.2% 0.0 5.5% 6.4% 488.8 755.0 + 266.1 + 54.4% - 10.0 82.7 140.0 + 57.2 + 69.2% + 10.0 Net income attributable to Honda Motor Co., Ltd. *1 367.1 580.0 + 212.8 + 58.0% 0.0 EPS attributable to Honda Motor Co., Ltd. (Yen) *4 203.71 321.81 Operating margin Income before income taxes Equity in income of affiliates - - - + 118.10 For *1 and *4, please refer to footnotes on page 33 Average Rates (Yen) US Dollar 84 Euro 108 100 (4Q 100) 134 (4Q 135) Yen down by 16 yen Yen down by 3 yen Yen down by 26 yen Yen down by 7 yen 7
  8. 8. FY14 3rd Quarter Financial Results Dividend (Yen) Dividend per Share FY13 1st quarter End FY14 (Expectation) Increase / Decrease from FY13 19 20 +1 2nd quarter End 19 20 +1 3rd quarter End 19 20 +1 4th quarter End 19 ( 20 ) (+1) Fiscal Year 76 ( 80 ) (+4) 8
  9. 9. FY14 3rd Quarter Financial Results Topics - FY14 3rd Quarter Financial Results - Net Sales and Other Operating Revenue - Change in Income before Income Taxes - Business & Geographical Segment Information - FY14 Financial Forecasts Kohei Takeuchi Operating Officer and Director Chief Financial Officer 9
  10. 10. FY14 3rd Quarter Financial Results Net Sales and Other Operating Revenue <FY14 3rd Qtr> Yen (billion) + 595.0 ( + 24.5 %) + 424.8 Excluding currency translation effects + 170.2 ( + 7.0 %) + 124.9 2,425.7 + 8.2 (+ 6.5 %) Automobile Business Motorcycle Business - 1.7 (+ 6.1 %) + 38.8 (+ 12.6 %) 3,020.8 ( - 2.7 %) Currency Effects Financial Services Power Product & Business Other Businesses Net sales & other operating revenue FY13 3Q FY14 3Q Motorcycle Business 307.8 400.1 Automobile Business 1,915.5 2,372.4 135.3 175.0 67.0 73.2 2,425.7 3,020.8 81 100 105 137 Financial Services Business Power Product & Other Businesses Total Market average rates US Dollar Euro FY13 3Q FY14 3Q 10
  11. 11. FY14 3rd Quarter Financial Results Net Sales and Other Operating Revenue <FY14 Nine Months> Yen (billion) + 1,612.2 ( + 22.6 %) + 1,295.4 Excluding currency translation effects Motorcycle Business (+ 3.9 %) Automobile Business Net sales & other operating revenue - 5.4 (+ 5.2 %) + 81.8 (+ 8.5 %) ( + 4.4 %) + 20.5 + 219.8 7,132.9 + 316.7 8,745.2 ( - 2.7 %) Currency Effects Financial Services Power Product & Business Other Businesses FY13 9 Months FY14 9 Months Motorcycle Business 964.1 1,215.1 Automobile Business 5,572.2 6,798.0 Financial Services Business 397.0 510.4 Power Product & Other Businesses 199.5 221.5 Total 7,132.9 8,745.2 80 99 102 132 Market average rates US Dollar Euro FY13 Nine Months FY14 Nine Months 11
  12. 12. FY14 3rd Quarter Financial Results Change in Income before Income Taxes <FY14 3rd Qtr> Income before Income taxes Operating Income + 126.8 ( + 141.3 %) Other Income & Expenses + 96.6 ( + 73.2 % ) <Decrease Factors> - Increased selling expenses due to sales increase - Increased general administrative expenses, Yen (billion) + 30.2 + 40.1 etc. - 9.9 216.6 Other + 83.1 Unrealized gains and losses related to derivative instruments (Attachment 2) <Increase Factors> - Increase in sales volume and model mix, etc. + 23.1 - 26.3 + 25.9 Cost Reduction, etc. 89.7 Revenue, model mix, etc. Operating Income 131.9 FY13 3Q - 9.2 Increase in SG&A <Increase Factors> - Cost reduction effects, etc. <Decrease Factors> - Increase in depreciation, etc. Increase in R&D Currency Effects - Currency effects due to difference between average sales rates and transaction rates - Other + 2.7 - 12.6 Operating Income 228.5 FY14 3Q *Please refer to Attachment 1 regarding currency effects 12
  13. 13. FY14 3rd Quarter Financial Results Change in Income before Income Taxes <FY14 Nine Months> Income before Income taxes Operating Income + 163.4 ( + 41.8 % ) Revenue, model mix, etc. - 12.0 etc. 408.8 FY13 Nine Months - 67.3 + 259.8 554.2 Unrealized gains and losses related to derivative instruments (Attachment 2) Other - 62.4 Cost Reduction, etc. - 23.0 Increase in SG&A Increase in R&D Currency Effects <Increase Factors> - Cost reduction effects, <Decrease Factors> - Increase in depreciation - Increased expenses related to new plant start-up, Operating Income - 12.7 + 54.5 <Increase Factors> - Increase in sales volume and model mix, etc. + 13.9 Other Income & Expenses + 176.1 ( + 43.1 %) <Decrease Factors> - Advertisement expenses - Increased general administrative expenses, 390.8 Yen (billion) etc. etc. - Currency effects due to difference between average sales rates and transaction rates - Other - 54.4 - 12.9 Operating Income 584.9 FY14 *Please refer to Attachment 1 regarding currency effects Nine Months 13
  14. 14. FY14 3rd Quarter Financial Results Motorcycle - Honda Group Unit Sales (Motorcycles + All-Terrain Vehicles, etc.) <India> Unit (thousand) - Positive impact of Dream Neo introduction - Increased Activa and Activa I sales + 436 <Indonesia> - Increased BeAT FI sales - Positive impact of CB150R and Verza150 introductions ( + 11.4% ) <Brazil> 4,300 - Decreased BIZ100 and CG125 FAN sales Dream Neo (India) 4,200 4,100 4,000 4,216 3,800 3,911 3Q 4,054 3,962 3,815 3,806 3,700 4,251 2Q FY14 3,900 3,600 1Q 2Q 3Q 4Q 1Q FY13 Japan 59 57 51 50 54 63 52 North America 59 60 62 69 62 68 63 Europe 60 38 29 52 52 38 27 3,285 3,162 3,225 3,363 3,479 3,536 3,678 448 489 448 428 407 511 431 3,911 3,806 3,815 3,962 4,054 4,216 Asia Other Regions Total 4,251 14
  15. 15. FY14 3rd Quarter Financial Results Motorcycle Business Net Sales/Operating Income (Margin) Unit (thousand) Yen (billion) Honda Group Unit Sales FY13 1Q 2Q 3Q 4Q FY14 2Q 1Q 3Q 3,911 3,806 3,815 3,962 4,054 4,216 4,251 (Consolidated Unit Sales) (2,366) (2,304) (2,350) (2,490) (2,371) (2,585) (2,657) Net Sales 346.6 309.7 307.8 375.3 396.8 418.0 400.1 Yen (billion) 150 ( + 30.0 % ) Operating Income Operating Margin + 92.3 (Currency Effect + 53.5) 10.6% 10.7% 8.2% 130 7.4% 12% 10.9% 8.6% 6.7% 8% 110 <Increase Factors> 90 70 <Decrease Factors> 4% - Increased sales volume and model mix, - Positive currency effects, etc. ( + 51.4 % ) - Increased SG&A expenses, 0% etc. 50 30 34.5 25.4 10 -10 42.5 36.8 1Q -4% 45.5 22.8 2Q 3Q FY13 25.2 4Q -8% 1Q 2Q FY14 3Q -12% 15
  16. 16. FY14 3rd Quarter Financial Results Automobiles - Honda Group Unit Sales <Japan> Unit (thousand) - Positive impact of fully remodeled FIT and Odyssey - Positive impact of N-WGN introduction + 96 <North America> ( + 9.7% ) - Increased CR-V, CIVIC and ACCORD sales - Positive impact of fully remodeled ACURA MDX 1,100 <Asia> FIT Hybrid (Japan) 1,050 - Positive impact of CRIDER and JADE introduction in China - Decreased CITY and JAZZ sales in Thailand 1,000 1,082 1,047 1,033 999 996 986 1Q 950 2Q 999 3Q 900 4Q 1Q 2Q FY14 FY13 3Q Japan 185 169 138 200 140 180 216 North America 450 404 454 423 459 447 465 Europe 39 44 38 50 40 40 38 262 301 279 280 285 309 287 63 78 77 80 75 71 76 999 996 986 1,033 999 1,047 Asia Other Regions Total 1,082 16
  17. 17. FY14 3rd Quarter Financial Results Automobile Business Net Sales/Operating Income (Margin) Unit (thousand) Yen (billion) Honda Group Unit Sales FY13 1Q 2Q 3Q 1Q 4Q FY14 2Q 3Q 999 996 986 1,033 999 1,047 1,082 (Consolidated Unit Sales) (849) (816) (841) (902) (858) (869) (900) Net Sales 1,894.7 1,769.7 1,918.4 2,140.6 2,200.9 2,233.1 2,377.7 Yen (billion) ( + 23.9 % ) Operating Income Operating Margin 12% + 459.2 (Currency Effect + 332.0) <Increase Factors> - Increased sales volume and model mix, - Cost reduction effects, - Positive currency effects, etc. 270 <Decrease Factors> - Increased SG&A expenses, 170 etc. ( + 117.5 % ) 6% 3.7% 100.6 8% 6.5% 5.3% 4.4% 70 10% 3.6% 2.1% 70.9 3.6% 77.2 96.3 154.2 4% 80.1 2% 37.1 0% -30 1Q 2Q 3Q FY13 4Q 1Q 2Q FY14 3Q 17
  18. 18. FY14 3rd Quarter Financial Results Power Products - Honda Group Unit Sales Unit (thousand) <North America> - Increased OEM sales of GCV160/190 engines for lawn mowers, high-pressure washers <Other> - 33 ( - 2.8% ) - Decreased sales of pumps in Middle / Near East 2,500 GCV160 (engine) 2,000 1,500 1,963 1,000 1,625 1,288 500 1,589 1,195 1,295 1,162 0 1Q 2Q 3Q 4Q 1Q 2Q FY14 FY13 Japan 3Q 82 88 63 81 63 93 63 North America 758 436 426 984 828 504 427 Europe 236 150 206 412 237 156 198 Asia 421 462 341 348 364 426 338 Other Regions 128 152 159 138 97 116 136 1,625 1,288 1,195 1,963 1,589 1,295 1,162 Total 18
  19. 19. FY14 3rd Quarter Financial Results Power Product & Other Businesses Unit (thousand) Yen (billion) Honda Group Unit Sales Net Sales/Operating Income (Margin) FY13 1Q 2Q 3Q 4Q FY14 2Q 1Q 3Q 1,625 1,288 1,195 1,963 1,589 1,295 1,162 (Consolidated Unit Sales) (1,625) (1,288) (1,195) (1,963) (1,589) (1,295) (1,162) Net Sales 69.9 67.2 71.3 83.1 77.9 75.9 78.6 Yen (billion) 40 ( + 10.2 % ) Operating Income Operating Margin 20% + 7.2 (Currency Effect + 7.9) <Increase Factors> 30 - Positive currency effects, 15% etc. <Decrease Factors> - Increased SG&A expenses, 20 10% - decreased sales volume and model mix in power product business operations, etc. 10 5% 0.05 1.3 0.07 0 0% -2.2 -10 0.1% 0.1% 1.7% -0.8 -2.8 -1.1% -3.3% -20 -30 -7.4 -3.7% -10% -8.9% 1Q 2Q 3Q FY13 4Q -5% 1Q 2Q FY14 3Q -15% 19
  20. 20. FY14 3rd Quarter Financial Results Financial Services Business Total Assets/Net Sales/Operating Income (Margin) 1Q 2Q FY13 3Q 4Q 1Q FY14 2Q 3Q Total Assets of Finance Subsidiaries 5,567.6 5,577.7 6,197.2 6,765.3 7,206.8 7,404.6 8,082.7 Net Sales 134.0 133.1 138.1 154.9 167.9 172.5 177.6 Yen (billion) Yen (billion) ( + 28.6% ) Operating Income Operating Margin + 39.4 (Currency Effect + 31.3) 120 30.5% 100 28.7% 27.6% 26.4% 26.6% 27.0% 40% 24.0% 80 30% 20% <Increase Factors> - Positive currency effects, etc. ( + 12.0% ) 60 40 40.8 38.2 38.1 40.9 44.6 46.5 42.7 10% 0% 20 -10% 0 -20% 1Q 2Q 3Q FY13 4Q 1Q 2Q FY14 3Q 20
  21. 21. FY14 3rd Quarter Financial Results Net Sales/Operating Income (Margin) by Business Segment <FY14 Nine Months > Motorcycle Business Power Product and Other Businesses Financial Services Business Nine Months Unit (thousand) Yen (billion) Automobile Business Nine Months Nine Months Nine Months FY13 FY14 11,532 12,521 2,981 3,128 4,108 4,046 - - (Consolidated Unit Sales) (7,020) (7,613) (2,506) (2,627) (4,108) (4,046) (-) (-) Net Sales 964.1 1,215.1 5,582.9 6,811.8 208.5 232.5 405.3 518.1 Honda Group Unit Sales 350 FY13 FY13 FY14 (4.9%) 200 208.7 150 (3.7%) 100 -50 FY14 330.7 250 0 FY13 Operating Income : Yen (billion) Operating Margin : (%) 300 50 FY14 85.0 (10.1%) (8.8%) + 44.3% Nine Months FY13 117.2 133.9 122.6 FY14 -2.1 -2.3 + 58.5% Nine Months FY13 FY14 (- 1.0%) (- 1.0%) Nine Months FY13 FY14 (28.9%) (25.8%) + 14.2% Nine Months FY13 FY14 21
  22. 22. FY14 3rd Quarter Financial Results Net Sales/Operating Income (Margin) by Geographical Segment <FY14 3rd Qtr> Japan Net Sales 140 Europe Asia Other Regions 3Q Yen (billion) North America 3Q 3Q 3Q 3Q FY13 FY14 902.3 1,092.8 FY13 FY14 1,245.8 1,591.4 FY13 FY14 142.8 180.7 FY13 FY14 587.4 FY13 FY14 678.0 222.5 243.9 Operating Income : Yen (billion) Operating Margin : (%) 131.1 100 70.8 60 59.3 40.7 20 40.5 + 45.7% + 85.0% + 23.4% -8.7 -20 3Q 3Q FY14 FY13 3Q FY14 FY13 7.9 2.6 + 197.2% -3.5 FY13 50.0 3Q FY14 FY13 3Q FY14 FY13 FY14 22
  23. 23. FY14 3rd Quarter Financial Results Net Sales/Operating Income (Margin) by Geographical Segment <FY14 Nine Months> Japan Net Sales 250 Europe Asia Other Regions Nine Months Yen (billion) North America Nine Months Nine Months Nine Months Nine Months FY13 FY14 2,834.1 3,083.1 FY13 FY14 3,515.3 4,564.6 Operating Income : Yen (billion) Operating Margin : (%) FY13 FY14 435.2 531.2 FY13 FY14 1,639.6 2,078.6 FY13 FY14 672.5 765.1 249.0 200 170.8 150 179.8 163.8 131.7 100 108.7 50 + 29.7% + 38.5% 0 -50 + 50.7% -19.9 Nine Months FY13 FY14 Nine Months FY13 FY14 FY13 FY14 31.9 + 25.5% -32.0 Nine Months 25.4 Nine Months FY13 FY14 Nine Months FY13 FY14 23
  24. 24. FY14 3rd Quarter Financial Results Change in Equity in Income of Affiliates + 10.2 bil. yen 70.0 ( + 47.7% ) 60.0 Yen (billion) 50.0 40.0 30.0 31.7 31.6 31.6 27.4 20.0 21.4 20.7 10.0 13.0 0.0 1Q 2Q 3Q 4Q 1Q FY13 2Q FY14 3Q Yen (billion) From Asia 20.8 25.3 18.0 13.9 25.1 28.3 28.0 24
  25. 25. FY14 3rd Quarter Financial Results Consolidated Capital Expenditures <FY14 Nine Months> Yen (billion) + 60.6 Excluding currency translation effects ( + 15.6 % ) + 3.2 ( + 0.8 % ) + 57.3 389.7 - 10.7 Motorcycle Business + 15.8 Automobile Business Capital Expenditure + 0.0 450.4 - 1.8 Power product & Other Businesses Financial Services Business Currency Translation Effects FY14 9 Months FY13 9 Months Motorcycle Business 42.6 36.4 Automobile Business 337.0 404.2 Financial Services Business 0.2 0.3 Power Product & Other Businesses 9.8 9.4 Total 389.7 450.4 80 99 102 132 Market average rates US Dollar Euro FY13 Nine Months •Capital expenditures in results aforementioned exclude investment in operating leases, capital leases and intangible assets FY14 Nine Months 25
  26. 26. FY14 3rd Quarter Financial Results Topics - FY14 3rd Quarter Financial Results - Net Sales and Other Operating Revenue - Change in Income before Income Taxes - Business & Geographical Segment Information - FY14 Financial Forecasts Kohei Takeuchi Operating Officer and Director Chief Financial Officer 26
  27. 27. FY14 3rd Quarter Financial Results Forecast: Honda Group Unit Sales Unit (thousand) Motorcycles Automobiles 17,320 17,095 15,494 4,014 4,430 Power Products 4,385 6,071 6,000 6,050 - 225 + 50 ( - 1.3%) FY13 - 45 ( - 1.0%) ( + 0.8%) FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts Japan 225 230 North America 280 275 Europe 170 170 14,800 14,600 1,845 1,820 17,320 17,095 Asia Other Regions Total Change +5 -5 0 - 200 - 25 - 225 FY13 FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts 825 825 1,795 1,785 185 180 1,325 1,305 300 290 4,430 4,385 Change 0 - 10 -5 - 20 - 10 - 45 FY13 FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts 315 310 2,740 2,760 965 990 1,485 1,510 495 480 6,000 6,050 Change -5 + 20 + 25 + 25 - 15 + 50 27
  28. 28. FY14 3rd Quarter Financial Results Forecast: Consolidated Unit Sales Unit (thousand) Motorcycles Automobiles 10,650 10,410 9,510 3,408 3,670 Power Products 3,620 6,071 6,000 6,050 - 240 + 50 ( - 2.3%) FY13 - 50 ( - 1.4%) ( + 0.8%) FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts Japan 225 230 North America 280 275 Europe 170 170 Asia 8,130 7,915 Other Regions 1,845 1,820 10,650 10,410 Total Change +5 -5 0 - 215 - 25 - 240 FY13 FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts 815 815 1,795 1,785 185 180 575 550 300 290 3,670 3,620 Change 0 - 10 -5 - 25 - 10 - 50 FY13 FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts 315 310 2,740 2,760 965 990 1,485 1,510 495 480 6,000 6,050 Change -5 + 20 + 25 + 25 - 15 + 50 28
  29. 29. FY14 3rd Quarter Financial Results FY14 Financial Forecasts (Consolidated) Yen (billion) FY13 Results Forecasts Change FY14 amount Change from % previous forecasts Net sales & other operating revenue 9,877.9 12,100.0 + 2,222.0 + 22.5% 0.0 Operating income 544.8 780.0 + 235.1 + 43.2% 0.0 5.5% 6.4% 488.8 755.0 + 266.1 + 54.4% - 10.0 82.7 140.0 + 57.2 + 69.2% + 10.0 Net income attributable to Honda Motor Co., Ltd. *1 367.1 580.0 + 212.8 + 58.0% 0.0 EPS attributable to Honda Motor Co., Ltd. (Yen) *4 203.71 321.81 Operating margin Income before income taxes Equity in income of affiliates - - - + 118.10 For *1 and *4, please refer to footnotes on page 33 Average Rates (Yen) US Dollar 84 Euro 108 100 (4Q 100) 134 (4Q 135) Yen down by 16 yen Yen down by 3 yen Yen down by 26 yen Yen down by 7 yen 29
  30. 30. FY14 3rd Quarter Financial Results Forecast: Change in Income before Income Taxes Income before Income taxes Operating Income Yen (billion) + 266.1 ( + 54.4 % ) + 235.1 ( + 43.2 % ) Other Income & Expenses + 30.9 + 69.0 - 38.1 + 278.0 755.0 Other + 102.6 + 20.0 - 118.0 Cost Reduction, etc. 488.8 Revenue, model mix, etc. Unrealized gains and losses related to derivative instruments - 47.5 increase in SG&A Increase in R&D Currency Effects Operating Income Operating Income 544.8 780.0 FY13 FY14 Revised Forecast 30
  31. 31. FY14 3rd Quarter Financial Results Forecast: Change in Income before Income Taxes Income before Income taxes Operating Income 765.0 - 41.0 0.0 Revenue, model mix, etc. Cost Reduction, etc. 0.0 + 11.0 decrease in SG&A Yen (billion) - 10.0 ( - 1.3 %) Other Income & Expenses ( 0.0 % ) 0.0 R&D - 10.0 +30.0 Currency Effects - 3.0 Unrealized gains and losses related to derivative instruments - 7.0 755.0 Other Operating Income Operating Income 780.0 780.0 FY14 Previous Forecast FY14 Revised Forecast 31
  32. 32. FY14 3rd Quarter Financial Results Forecast: Capital Expenditures, Depreciation, R&D Expenses Yen (billion) FY13 FY14 Results Forecasts Change Change from previous forecasts Capital expenditures * 710.0 + 116.4 + 10.0 Depreciation and amortization * 286.6 375.0 + 88.4 + 5.0 R&D expenses * 593.6 560.2 630.0 + 69.8 0.0 Capital expenditures and Depreciation and amortization in results and forecast aforementioned exclude investment in operating leases, capital leases and intangible assets 32
  33. 33. Caution with Respect to Forward-Looking Statements: FY14 3rd Quarter Financial Results 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. *1 Net income attributable to company for period indicated. EPS attributable to Honda Motor Co., Ltd., is calculated based on weighted average number of shares outstanding as shown below: *2: 3rd Quarter Results FY13: 1,802,298,000 (approx), FY14: 1,802,293,000 (approx) (page 5) *3: Nine Months Results FY13: 1,802,299,000 (approx), FY14: 1,802,295,000 (approx) (page 6) *4: Fiscal Year Results and Forecast FY13: 1,802,298,000 (approx), FY14: 1,802,294,000 (approx) (pages 7 and 29) 33
  34. 34. -Currency Effects- FY14 3rd Quarter Financial Results (effects associated with sales transactions and translation effects) (Attachment 1) Yen (billion) FY14 3Q JPY / USD JPY / Euro JPY / Others Transactions between other currencies Difference of average rates (Impact on Operating income) *1 Difference between transaction *2 rates and average sales rates (Impact on Other income & expenses) Currency effect associated with sales transaction Currency effect from translation of foreign financial statements (impact on operating income) Total + 24.8 + 3.6 + 5.4 - 5.3 + 28.5 + 2.7 Average Rates (Yen) FY13 3Q FY14 3Q 81 100 106 139 Yen down by 19 yen Yen down by 33 yen - - - Change *1:Impact of YoY difference of FOREX to be used for booking revenue of foreign currency transactions *2:Impact of YoY difference between average FOREX and hedge rates during the period + 31.2 + 54.6 *3 + 85.8 FY14 Nine Months + 82.7 + 7.8 + 22.5 - 4.1 + 108.9 - 54.4 + 54.5 *3:Effect due to the difference of the rate used for translating Honda’s overseas subsidiaries’ financial statements denominated in foreign currencies into Japanese yen with the corresponding period of the fiscal year + 150.8 + 205.3 34
  35. 35. FY14 3rd Quarter Financial Results (Attachment 2) - Unrealized Gains and Losses Related to Derivative Instruments Yen (billion) 3Q Nine Months FY13 Foreign currency forward Interest rate swap / Currency swap Others Total FY14 Change FY13 FY14 Change - 53.1 - 11.3 + 41.7 - 28.4 + 38.2 + 66.7 - 1.3 - 3.1 - 1.7 - 1.4 - 13.5 - 12.1 - 0.1 - 0.0 + 0.1 - 0.0 - 0.0 + 0.0 - 54.5 - 14.4 + 40.1 - 29.9 + 24.6 + 54.5 35
  36. 36. FY14 3rd Quarter Financial Results 36

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