11 03-13 honda results-q2-1

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11 03-13 honda results-q2-1

  1. 1. FY14 2nd Quarter Financial Results FY14 2nd Quarter Financial Results Honda Motor Co., Ltd. October 30, 2013 FIT HYBRID (Japan) 1
  2. 2. FY14 2nd Quarter Financial Results Table of Contents - FY14 2nd Quarter Financial Results - FY14 Financial Forecasts - Dividend Tetsuo Iwamura Executive Vice President 2
  3. 3. FY14 2nd Quarter Financial Results Outline of FY14 2nd Quarter Results Summary (Consolidated) Results Summary - Increased unit sales of automobiles, mainly in North America - Increased unit sales of motorcycles in Asia due to new model introductions - An increase in operating profit by 70%, to JPY 171.4 billion due to foreign currency effects caused by appreciation of the Japanese yen FY13 2nd Quarter Results FY2013 and FY2014 Unit (thousand) Consolidated Unit Sales 2,585 900 2,500 869 1,300 816 2,304 1,288 1,295 800 Net Sales / Operating Income 2,890.2 160 140 2,500 1,200 700 2,271.2 120 2,000 1,100 600 100 1,500 1,900 60 1,000 40 Motorcycles Automobiles Power Products 汎用事業 20 0 1,000 500 100.8 80 500 1,600 Yen (billion) 171.4 180 3,500 3,000 869 2,200 FY14 0 Net Sales Operating Income 3
  4. 4. FY14 2nd Quarter Financial Results FY14 2nd Quarter Unit Sales Honda Group Unit Sales FY13 FY14 FY13 Honda Group Unit Sales 2Q Results (3 Months) 4,216 Change 1,400 1,100 Unit (thousand) 1,047 (thousand) 996 4,000 Motorcycles 3,806 4,216 1,300 996 1,047 + 5.1% 1,288 1,295 3,806 + 10.8% 1,200 900 Automobiles FY14 3,500 1,100 Power Products 1,288 1,295 + 0.5% Motorcycles 二輪事業 Consolidated Unit Sales (thousand) 2Q Results (3 Months) FY13 FY14 1,000 700 3,000 Automobiles 四輪事業 Consolidated Unit Sales 1,400 Change 2,585 900 869 816 Motorcycles 2,304 2,585 + 12.2% 800 2,300 Automobiles 816 869 1,288 1,295 1,300 Unit (thousand) 1,288 1,295 2,304 1,200 700 + 6.5% 1,100 600 Power Products Power Products 汎用事業 + 0.5% 1,000 500 1,800 Motorcycles 二輪事業 Automobiles 四輪事業 Power Products 汎用パワープロダクツ事業 汎用事業 Honda Group Unit Sales -Increased sales of motorcycles, mainly in Asia due to new model introductions -Automobile unit sales increased mainly in North America, which saw strong market growth, and in Japan, where sales of mini vehicles have been favorable 4
  5. 5. FY14 2nd Quarter Financial Results FY14 2nd Quarter Financial Results (Consolidated) Financial Results 2Q Results (3 Months) Financial Summary FY13 FY14 2,271.2 2,890.2 + 27.3% 100.8 171.4 + 70.0% 4.4% 5.9% Income before income taxes 106.2 165.5 + 55.8% Equity in income of affiliates 27.4 31.6 + 15.2% Net income attributable to Honda Motor Co., Ltd. *1 82.2 120.3 + 46.4% 45.63 66.79 + 21.16 US Dollar 79 99 Yen down by 20 yen Euro 98 131 Yen down by 33 yen Yen (billion) Net sales & other operating revenue Operating income Operating margin EPS attributable to Honda Motor Co., Ltd. (Yen) *2 Change - Average Rates (Yen) 200 Operating Income 176.0 184.9 171.4 For *1 and *2, please refer to footnotes on page 34 Operating Margin Yen (billion) 8% 131.9 150 -Revenue increased by 27.3%, due mainly to increased revenue in automobile and motorcycle business operations, as well as favorable foreign currency translation effects -Operating income increased by 70%, primarily due to an increase in sales volume and model mix and favorable foreign currency effects, despite increased SG&A expenses and increased depreciation expenses related to new plant start-up FY13 FY14 135.9 100.8 7.2% 7% 6% 5% 5.9% FY14 6.5% 4% 100 FY13 5.0% 5.4% 4.4% 3% 50 2% 1% 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 5
  6. 6. FY14 2nd Quarter Financial Results FY14 1st Half Financial Results (Consolidated) Honda Group Unit Sales (Consolidated Unit Sales)(thousand) 1st Half Results (6 Months) FY13 FY14 Change Motorcycles 7,717 8,270 (4,670) (4,956) Automobiles 1,995 2,046 (1,665) (1,727) 2,913 2,884 -1.0% (2,913) (2,884) (- 1.0%) Power Products Financial Results Yen (billion) FY13 + 7.2% (+ 6.1%) + 2.6% (+ 3.7%) 1st Half Results (6 Months) FY14 Change 4,707.1 5,724.3 + 21.6% 276.8 356.4 + 28.7% 5.9% 6.2% Income before income taxes 301.0 337.6 + 12.2% Equity in income of affiliates 48.2 63.4 + 31.6% 213.9 242.8 + 13.5% 118.71 134.75 + 16.04 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 34 Average Rates (Yen) US Dollar Euro - 79 101 99 130 Yen down by 20 yen Yen down by 29 yen 6
  7. 7. FY14 2nd 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% - Operating income 544.8 780.0 + 235.1 + 43.2% - 5.5% 6.4% 488.8 765.0 + 276.1 + 56.5% - 15.0 82.7 130.0 + 47.2 + 57.2% + 15.0 Net income attributable to Honda Motor Co., Ltd. *1 367.1 580.0 + 212.8 + 58.0% 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 34 Average Rates (Yen) US Dollar Euro 84 108 97 (1H 99 / 2H 95) 127 (1H 130 / 2H 125) Yen down by 13 yen Yen down by 1 yen Yen down by 19 yen Yen down by 1 yen 7
  8. 8. FY14 2nd Quarter Financial Results FY14 Financial Forecasts (Parent Company Only) Yen (billion) FY13 FY14 Results Forecasts Change amount % Change from previous forecasts 3,244.0 3,580.0 + 335.9 + 10.4% - 50.0 Operating income 103.9 150.0 + 46.0 + 44.3% - 20.0 Ordinary income 193.8 375.0 + 181.1 + 93.5% + 15.0 Net income 154.7 280.0 + 125.2 + 81.0% + 20.0 Net sales Average Rates (Yen) US Dollar Euro 84 108 97 (1H 99 / 2H 95) 127 (1H 130 / 2H 125) Yen down by 13 yen Yen down by 1 yen Yen down by 19 yen Yen down by 1 yen 8
  9. 9. FY14 2nd 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) 9
  10. 10. FY14 2nd Quarter Financial Results Table of Contents - FY14 2nd 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 10
  11. 11. FY14 2nd Quarter Financial Results Net Sales and Other Operating Revenue <FY14 2nd Qtr> + 618.9 Yen (billion) ( + 27.3 % ) Excluding currency translation effects 2,271.2 + 168.2 + 116.4 + 6.7 - 1.2 ( + 5.2 %) ( - 1.9 %) + 46.2 ( + 6.6 %) ( + 14.9 %) Automobile Business Motorcycle Business ( + 7.4 % ) + 450.6 2,890.2 Currency Effects Financial Services Power Product Business & Other Businesses Net sales & other operating revenue FY13 2Q FY14 2Q Motorcycle Business 309.7 418.0 Automobile Business 1,766.2 2,229.0 130.4 170.0 64.9 73.1 2,271.2 2,890.2 US Dollar 79 99 Euro 98 131 Financial Services Business Power Product & Other Businesses Total Market average rates FY13 2Q FY14 2Q 11
  12. 12. FY14 2nd Quarter Financial Results Net Sales and Other Operating Revenue <FY14 1st Half> Yen (billion) + 1,017.1 ( + 21.6 %) + 146.5 ( + 3.1 %) Excluding currency translation effects + 43.0 + 94.8 ( + 6.6 %) 4,707.1 ( + 2.6 %) Automobile Business Motorcycle Business + 12.2 ( - 2.8 %) 5,724.3 - 3.6 ( + 4.7 %) + 870.5 Currency Effects Financial Services Power Product & Business Other Businesses Motorcycle Business FY13 6 Months 656.3 FY14 6 Months 814.9 Automobile Business 3,656.7 4,425.5 Financial Services Business 261.6 335.4 Power Product & Other Businesses 132.4 148.3 4,707.1 5,724.3 79 99 101 130 Net sales & other operating revenue Total Market average rates US Dollar Euro FY13 1st Half FY14 1st Half 12
  13. 13. FY14 2nd Quarter Financial Results Change in Income before Income Taxes <FY14 2nd Qtr> Income before Income taxes Operating Income Other Income & Expenses + 70.5 ( + 70.0 % ) - 11.2 + 22.0 etc. - 33.3 etc. + 93.6 <Decrease Factors> - Increase in depreciation, + 34.6 + 59.3 ( + 55.8 %) <Decrease Factors> - Advertisement expenses, <Increase Factors> - Cost reduction efforts, Yen (billion) etc. Unrealized gains and losses related to derivative instruments (Attachment 2) - 17.6 165.5 Other - 36.0 106.2 Cost Reduction, etc. Revenue, model mix, etc. - 4.1 Increase in SG&A <Increase Factors> - Increase in sales volume and model mix, etc. Operating Income Increase in R&D Currency Effects - Currency effects due to difference between average sales rates and transaction rates - Other - 23.2 - 10.1 100.8 FY13 2Q Operating Income 171.4 *Please refer to Attachment 1 regarding currency effects FY14 2Q 13
  14. 14. FY14 2nd Quarter Financial Results Change in Income before Income Taxes <FY14 1st Half > Income before Income taxes Operating Income + 36.5 ( + 12.2 % ) Other Income & Expenses + 79.5 ( + 28.7 % ) - 42.9 + 14.4 + 176.6 <Decrease Factors> - Advertisement expenses, 301.0 - 12.0 Unrealized gains And losses related to derivative instruments (Attachment 2) etc. - 35.1 Revenue, model mix, etc. Cost Reduction, etc. Yen (billion) - 57.4 337.6 Other - 36.1 - 13.8 Increase in SG&A Increase in R&D Currency Effects <Increase Factors> - Cost reduction effort, Operating Income etc. <Decrease Factors> - Increased expenses related to new plant start-up - depreciation, etc. - Currency effects due to difference between average sales rates and transaction rates - Other 57.1 - 0.2 Operating Income 276.8 356.4 FY14 1st Half FY13 1st Half *Please refer to Attachment 1 regarding currency effects 14
  15. 15. FY14 2nd Quarter Financial Results Motorcycle - Honda Group Unit Sales (Motorcycles + All-Terrain Vehicles, etc.) <India> - positive impact of Dream Neo introduction, increased Activa sales <Indonesia> - positive impact of CB150R, Verza150 introduction, increased BeAT sales <Brazil> - positive impact of PCX, NXR125BROS introduction 4,300 Dream Neo (India) 4,200 4,100 Unit (thousand) + 410 ( + 10.8% ) 4,000 4,216 3,900 3,800 4,054 3,962 3,911 3,815 3,806 3,700 3,600 1Q 2Q 3Q 4Q 1Q FY13 2Q FY14 Japan 59 57 51 50 54 63 North America 59 60 62 69 62 68 Europe 60 38 29 52 52 38 3,285 3,162 3,225 3,363 3,479 3,536 448 489 448 428 407 511 3,911 3,806 3,815 3,962 4,054 Asia Other Regions Total 4,216 15
  16. 16. FY14 2nd Quarter Financial Results Motorcycle Business Net Sales/Operating Income (Margin) Unit (thousand) Yen (billion) FY13 FY14 1Q 2Q 3Q 4Q 1Q 2Q 3,911 3,806 3,815 3,962 4,054 4,216 (Consolidated Unit Sales) (2,366) (2,304) (2,350) (2,490) (2,371) (2,585) Net Sales 346.6 309.7 307.8 375.3 396.8 418.0 Honda Group Unit Sales ( + 35.0 % ) Yen (billion) 150 Operating Income Operating Margin + 108.3 (Currency Effect + 62.0) 10.7% 10.6% 8.2% 130 7.4% 10.9% 6.7% 12% 8% 110 <Increase Factors> 90 4% - Increased sales volume and model mix, - Positive currency effects, etc ( + 79.3%) 70 <Decrease Factors> - Increased SG&A expenses, 50 0% etc -4% 30 36.8 25.4 10 -10 1Q 45.5 42.5 22.8 2Q 3Q FY13 -8% 25.2 4Q 1Q 2Q -12% FY14 16
  17. 17. FY14 2nd Quarter Financial Results Automobiles - Honda Group Unit Sales <North America> - Increased sales of ACCORD, CR-V and CIVIC - positive impact of fully remodeled ACURA MDX <Japan> - positive impact of N-ONE introduction, increased N BOX sales <Asia> - positive impact of AMAZE introduction 1,060 (North America) MDX 1,040 Unit (thousand) + 51 ( + 5.1% ) 1,020 1,000 1,047 1,033 980 999 996 1Q 2Q 960 999 986 940 3Q 4Q 1Q FY13 2Q FY14 Japan 185 169 138 200 140 180 North America 450 404 454 423 459 447 Europe 39 44 38 50 40 40 262 301 279 280 285 309 63 78 77 80 75 71 999 996 986 1,033 999 1,047 17 Asia Other Regions Total
  18. 18. FY14 2nd Quarter Financial Results Automobile Business Net Sales/Operating Income (Margin) Unit (thousand) Yen (billion) FY13 FY14 1Q 2Q 3Q 4Q 1Q 2Q 999 996 986 1,033 999 1,047 (Consolidated Unit Sales) (849) (816) (841) (902) (858) (869) Net Sales 1,894.7 1,769.7 1,918.4 2,140.6 2,200.9 2,233.1 Honda Group Unit Sales ( + 26.2 % ) Yen (billion) + 463.3 (Currency Effect + 346.3) Operating Income Operating Margin 11% <Increase Factors> - Increased sales volume and model mix, - Positive currency effects, etc 270 <Decrease Factors> 8% - Increased SG&A expenses, 170 etc ( + 115.8%) 5.3% 4.4% 3.7% 70 100.6 3.6% 3.6% 5% 2.1% 70.9 77.2 96.3 80.1 2% 37.1 1Q -30 2Q 3Q FY13 4Q 1Q 2Q FY14 -1% 18
  19. 19. FY14 2nd Quarter Financial Results Power Products - Honda Group Unit Sales <North America> - increased sales of GCV160/190 and other engines used in lawn mowers and pressure washers - increased sales of HRR216 and HRAX217 lawn mowers <Asia> - decreased sales of GX160/GK200 and other engines used in water pumps HRR216 (lawn mower) 2,500 Unit (thousand) +7 2,000 ( + 0.5% ) 1,500 1,963 1,000 1,625 1,288 500 0 1Q 1,589 1,195 2Q 3Q 4Q 1Q FY13 Japan 1,295 2Q FY14 82 88 63 81 63 93 North America 758 436 426 984 828 504 Europe 236 150 206 412 237 156 Asia 421 462 341 348 364 426 Other Regions 128 152 159 138 97 116 1,625 1,288 1,195 1,963 1,589 Total 1,295 19
  20. 20. FY14 2nd Quarter Financial Results Power Product & Other Businesses Unit (thousand) Yen (billion) Net Sales/Operating Income (Margin) FY13 FY14 1Q 2Q 3Q 4Q 1Q 2Q 1,625 1,288 1,195 1,963 1,589 1,295 (Consolidated Unit Sales) (1,625) (1,288) (1,195) (1,963) (1,589) (1,295) Net Sales 69.9 67.2 71.3 83.1 77.9 75.9 Honda Group Unit Sales Yen (billion) ( + 12.9 % ) + 8.6 (Currency Effect + 9.3) 40 20% Operating Income Operating Margin 15% 30 <Increase Factors> - Positive currency effects, 20 etc 10% <Decrease Factors> - Increased SG&A expenses, etc 5% 10 0.1% 0.1% 0.05 1.3 0.07 0% 0 -2.2 -10 -20 -7.4 -3.3% 1Q 1.7% -0.8 -1.1% -8.9% 2Q 3Q FY13 4Q 1Q 2Q -5% -10% FY14 20
  21. 21. FY14 2nd Quarter Financial Results Financial Services Business Total Assets/Net Sales/Operating Income (Margin) Unit (thousand) Yen (billion) 1Q 2Q 3Q 4Q 1Q 2Q Total Assets of Finance Subsidiaries 5,567.6 5,577.7 6,197.2 6,765.3 7,206.8 7,404.6 Net Sales 134.0 133.1 138.1 154.9 167.9 172.5 200 FY13 FY14 ( + 29.6% ) + 39.4 (Currency Effect + 32.8) Operating Income 40% Operating Margin 180 160 30.5% 28.7% 27.6% 140 27.0% 26.6% 26.4% 30% 120 100 20% <Increase Factors> - Positive currency effects, 80 etc ( + 21.7% ) 60 10% 40 20 40.8 38.2 38.1 2Q 3Q 40.9 46.5 44.6 0 0% 1Q FY13 4Q 1Q 2Q FY14 21
  22. 22. FY14 2nd Quarter Financial Results Net Sales/Operating Income (Margin) by Business Segment <FY14 1st Half > Motorcycle Business Power Product and Other Businesses Financial Services Business 1H Unit (thousand) Yen (billion) Automobile Business 1H 1H 1H FY13 FY14 FY13 FY14 FY13 FY14 FY13 FY14 Honda Group Unit Sales 7,717 8,270 1,995 2,046 2,913 2,884 - - (Consolidated Unit Sales) (4,670) (4,956) (1,665) (1,727) (2,913) (2,884) (-) (-) Net Sales 656.3 814.9 3,664.5 4,434.1 137.2 153.9 267.1 340.5 200 Operating Income : Yen (billion) Operating Margin : (%) 176.5 150 (4.0%) 137.7 100 (3.8%) 62.2 50 88.1 (9.5%) 79.1 (10.8%) + 41.7% + 28.1% 0 (0.3%) (29.6%) (26.8%) + 15.3% (- 1.6%) 1H -50 -2.2 0.5 91.2 FY13 1H FY14 FY13 1H FY14 FY13 1H FY14 FY13 FY14 22
  23. 23. FY14 2nd Quarter Financial Results Net Sales/Operating Income (Margin) by Geographical Segment <FY14 2nd Qtr> Japan Net Sales Yen (billion) Europe Asia Other Regions 2Q Yen (billion) North America 2Q 2Q 2Q 2Q FY13 FY14 925.0 1,014.4 FY13 FY14 1,054.7 1,471.9 FY13 FY14 FY13 FY14 FY13 FY14 144.5 174.4 539.4 693.8 229.6 280.4 Operating Income 60 60.0 49.2 40 46.0 36.4 30.0 0 18.6 26.7 20 10.5 + 64.0% + 72.1% + 64.9% -8.7 -20 2Q FY13 2Q FY14 FY13 -13.5 2Q FY14 FY13 + 76.9% 2Q FY14 FY13 2Q FY14 FY13 FY14 23
  24. 24. FY14 2nd Quarter Financial Results Net Sales/Operating Income (Margin) by Geographical Segment <FY14 1st Half > Japan Net Sales Europe Asia Other Regions 1H Yen (billion) North America 1H 1H 1H 1H FY13 FY14 1,931.7 1,990.3 FY13 FY14 2,269.4 2,973.2 FY13 FY14 292.4 350.4 FY13 FY14 1,052.2 1,400.6 FY13 FY14 450.0 521.1 Yen (billion) Operating Income 111.4 100 108.9 117.8 113.7 91.0 68.1 50 24.0 22.8 0 -50 + 22.5% + 8.2% + 66.9% -16.3 1H FY13 1H FY14 FY13 -23.3 1H FY14 FY13 + 5.5% 1H FY14 FY13 1H FY14 FY13 FY14 24
  25. 25. FY14 2nd Quarter Financial Results Change in Equity in Income of Affiliates + 4.1 70 ( + 15.2% ) Yen60 (billion) 50 40 30 31.7 31.6 27.4 20 21.4 20.7 10 13.0 0 1Q 2Q 3Q 4Q 1Q FY13 2Q FY14 Yen (billion) From Asia 20.8 25.3 18.0 13.9 25.1 28.3 25
  26. 26. FY14 2nd Quarter Financial Results Consolidated Capital Expenditures <FY14 1st Half > + 52.9 Excluding currency translation effects - 4.9 Motorcycle Business ( + 21.1 % ) + 12.1 + 18.6 250.7 Yen (billion) Automobile Business Business Segment Motorcycle Business Automobile Business Financial Services Business Power Product & Other Businesses Total ( + 4.9 % ) +0 + 40.8 303.7 - 1.5 Financial Services Business Power product & Other Businesses FY13 1H Currency Translation Effects FY14 1H 26.6 25.1 217.1 272.1 0.1 0.2 6.7 6.1 250.7 303.7 79 99 101 130 Market average rates US Dollar Euro FY13 1st Half * FY14 1st Half Capital expenditures in results aforementioned exclude investment in operating leases, capital leases and intangible assets 26
  27. 27. FY14 2nd Quarter Financial Results Table of Contents - FY14 2nd 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 27
  28. 28. FY14 2nd Quarter Financial Results Forecast: Honda Group Unit Sales Unit (thousand) Motorcycles Automobiles 17,400 17,320 15,494 4,014 4,430 Power Products 4,430 6,071 6,200 6,000 - 80 - 200 ( - 0.5%) FY13 ±0 ( ± 0%) ( - 3.2%) FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts Change FY13 FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts FY13 Change FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts Change Japan 235 225 -10 825 825 0 285 315 +30 North America 315 280 -35 1,795 1,795 0 2,715 2,740 +25 Europe 175 170 185 185 965 14,800 1,325 1,325 0 0 965 14,750 -5 +50 1,720 1,485 0 -235 1,925 1,845 -80 300 300 0 515 495 -20 17,400 17,320 -80 4,430 4,430 0 6,200 6,000 -200 Asia Other Regions Total 28
  29. 29. FY14 2nd Quarter Financial Results Forecast: Consolidated Unit Sales Unit (thousand) Motorcycles Automobiles 11,000 10,650 9,510 3,408 Power Products 3,670 3,670 6,071 6,200 6,000 - 350 - 200 ( - 3.2%) FY13 ±0 ( ± 0%) ( - 3.2%) FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts Change FY13 FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts FY13 Change FY14 FY14 Previous Forecast Revised Forecast FY14 FY14 Previous Forecasts Revised Forecasts Change Japan 235 225 -10 815 815 0 285 315 +30 North America 315 280 -35 1,795 1,795 0 2,715 2,740 +25 Europe 175 170 185 185 965 8,350 8,130 575 575 0 0 965 Asia -5 -220 1,720 1,485 0 -235 Other Regions 1,925 1,845 -80 300 300 0 515 495 -20 11,000 10,650 -350 3,670 3,670 0 6,200 6,000 -200 Total 29
  30. 30. FY14 2nd 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% - Operating income 544.8 780.0 + 235.1 + 43.2% - 5.5% 6.4% 488.8 765.0 + 276.1 + 56.5% - 15.0 82.7 130.0 + 47.2 + 57.2% + 15.0 Net income attributable to Honda Motor Co., Ltd. *1 367.1 580.0 + 212.8 + 58.0% 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 34 Average Rates (Yen) US Dollar Euro 84 108 97 (1H 99 / 2H 95) 127 (1H 130 / 2H 125) Yen down by 13 yen Yen down by 1 yen Yen down by 19 yen Yen down by 1 yen 30
  31. 31. FY14 2nd Quarter Financial Results Forecast: Change in Income before Income Taxes Income before Income taxes Operating Income Yen (billion) + 276.1 ( + 56.5 % ) + 235.1 ( + 43.2 % ) Other Income & Expenses + 40.9 + 72.0 - 31.1 765.0 + 248.0 + 143.6 + 20.0 Cost Reduction, etc. 488.8 Revenue, model mix, etc. Other - 129.0 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 Forecasts 31
  32. 32. FY14 2nd Quarter Financial Results Forecast: Change in Income before Income Taxes Income before Income taxes Operating Income ± 780.0 + 12.0 Revenue, model mix, etc. ±0 Cost Reduction, etc. Yen (billion) - 15.0 ( - 1.9 % ) Other Income & Expenses 0(±0%) - 15.0 - 12.0 ±0 ±0 increase in SG&A Increase in R&D Currency Effects - 5.0 Unrealized gains and losses related to derivative instruments - 10.0 765.0 Other Operating Income Operating Income 780.0 780.0 FY14 Previous Forecast FY14 Revised Forecasts 32
  33. 33. FY14 2nd Quarter Financial Results Forecast: Capital Expenditures, Depreciation, R&D Expenses Yen (billion) Change Change from previous forecasts 700.0 + 106.4 - 286.6 370.0 + 83.4 + 10.0 560.2 630.0 + 69.8 - FY13 Results Forecasts Capital expenditures * 593.6 Depreciation and Amortization * R&D expenses * FY14 Capital expenditures and Depreciation and amortization in results and forecast aforementioned exclude investment in operating leases, capital leases and intangible assets 33
  34. 34. Caution with Respect to Forward-Looking Statements: FY14 2nd 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: 2nd Quarter Results FY13: 1,802,299,000, FY14: 1,802,295,000 (page 5) *3: 1st Half Results FY13: 1,802,299,000, FY14: 1,802,295,981 (page 6) *4: Fiscal Year Results and Forecast FY13: 1,802,298,819, FY14: 1,802,295,000 (pages 7 and 30) 34
  35. 35. FY14 2nd Quarter Financial Results -Currency Effects(effects associated with sales transactions and translation effects) (Attachment 1) Yen (billion) FY14 2nd Qtr JPY / USD JPY / Euro JPY / Others Transactions between other currencies *1 Difference of average rates (Impact on Operating income) 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 + 30.6 + 2.7 + 6.5 + 4.2 + 43.8 - 23.2 Average Rates (Yen) FY13 2nd Qtr FY14 2nd Qtr 79 99 98 131 Yen down by 20 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 + 20.6 + 49.8 *3 + 70.4 FY14 1st Half + 57.9 + 4.2 + 17.3 + 0.9 + 80.4 - 57.1 + 23.2 *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 + 96.2 + 119.4 35
  36. 36. FY14 2nd Quarter Financial Results (Attachment 2) - Unrealized Gains and Losses Related to Derivative Instruments Yen (billion) 2nd Qtr FY13 Foreign currency forward Interest rate swap / Currency swap FY14 1st Half Change FY13 FY14 Change - 0.9 + 23.1 + 24.0 + 24.6 + 49.5 + 24.9 - 3.5 - 5.5 - 2.0 - 0.0 - 10.4 - 10.3 Others - 0.0 - 0.0 + 0.0 + 0.1 + 0.0 - 0.0 Total - 4.5 + 17.5 + 22.0 + 24.6 + 39.1 + 14.4 36
  37. 37. FY14 2nd Quarter Financial Results 37

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