Honda 2011 4q-all-e
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Honda 2011 4q-all-e Presentation Transcript

  • 1. Insight FY12 Financial Results Honda Motor Co., Ltd. ACURA ILX April 27, 2012 (North America) 1
  • 2. FY12 Financial Results & FY13 Financial ForecastsFumihiko Ike Senior Managing Officer and Director Chief Financial Officer - FY12 Consolidated Financial Results - FY13 Financial Forecasts - DividendKohei Takeuchi Operating Officer, General Manager of Accounting Division - FY12 Consolidated Financial Results Net Sales and Other Operating Revenue Change in Income before Income Taxes Business Segment Information Geographical Information Change in Equity in Income of Affiliates Consolidated Capital Expenditures - FY13 Financial Forecasts 2
  • 3. Outline of FY12 4th Quarter Financial Results (Consolidated) 4Q Results (Three Months) Financial Summary Unit (Sales) A swift recovery in auto production after the FY11 FY12 Change earthquake and flood, along with new model (千台) (thousand)Motorcycles 2,934 3,456 + 17.8% momentum mainly in Japan and N.A., led to a big rise in sales.Automobiles 860 988 + 14.9% A new motorcycle unit sales record for a quarterPower Products 1,746 2,010 + 15.1% and earnings from stable financial services business led to much higher income in each 4Q Results (Three Months) Financial category. results FY11 FY12 Change Yen (billion) Financial Highlights Net sales & other operating revenue 2,213.0 2,405.0 + 8.7% Unit Sales: Operating income 46.2 111.9 + 142.3% Motorcycle: Increased in Asia and Other regions including South America Income before income taxes 76.6 93.0 + 21.5% Record high for a quartre Equity in income of Automobile: affiliates 25.0 33.2 + 33.1% Increased in North America and Japan Decreased mainly in Asia due to Thailand flood Net income attributable to Honda Motor Co., Ltd. 44.5 71.5 + 60.7% Power Products: Increased mainly in North America and AsiaEPS attributable toHonda Motor Co., Ltd. 24.72 39.72 + 15.00 Net sales & other operating revenue(Yen) -Increased in motorcycle and automobile businessesNote : Shares which are based approx. approx. -Negative currency translation effects on calculation of EPS 1,802,302,000 shares 1,802,302,000 shares (weighted average number (weighted average number of shares outstanding ) of shares outstanding ) Operating incomeAverage Rates (Yen) -Increased R&D expenses -Negative currency effects due to appreciation of the Yen up by US Dollar 82 80 2 yen Japanese yen -Positive change in sales volume and model mix Yen up by -Decreased SG&A expenses Euro 113 104 9 yen 3
  • 4. Outline of FY12 Financial Results (Consolidated) 4Q Results (Three Months) Twelve Months Unit (Sales) FY11 FY12 Change FY11 FY12 Change (千台) (thousand)Motorcycles 2,934 3,456 + 17.8% 11,445 12,559 + 9.7%Automobiles 860 988 + 14.9% 3,512 3,137 - 10.7%Power Products 1,746 2,010 + 15.1% 5,509 5,819 + 5.6% 4Q Results (Three Months) Twelve Months Financial results FY11 FY12 Change FY11 FY12 Change Yen (billion) Net sales & other operating revenue 2,213.0 2,405.0 + 8.7% 8,936.8 7,948.0 - 11.1% Operating income 46.2 111.9 + 142.3% 569.7 231.3 - 59.4% Income before income taxes 76.6 93.0 + 21.5% 630.5 257.4 - 59.2% Equity in income of affiliates 25.0 33.2 + 33.1% 139.7 100.4 - 28.2% Net income attributable to Honda Motor Co., Ltd. 44.5 71.5 + 60.7% 534.0 211.4 - 60.4%EPS attributable toHonda Motor Co., Ltd. 24.72 39.72 + 15.00 295.67 117.34 - 178.33(Yen)Note : Shares which are based approx. approx. approx. approx. on calculation of EPS 1,802,302,000 shares 1,802,302,000 shares 1,806,360,000 shares 1,802,300,000 shares (weighted average number (weighted average number (weighted average number (weighted average number of shares outstanding ) of shares outstanding ) of shares outstanding ) of shares outstanding )Average Rates (Yen) Yen up by Yen up by US Dollar 82 80 86 79 7 yen 2 yen Yen up by Yen up by Euro 113 104 114 108 6 yen 9 yen 4
  • 5. FY13 Financial Forecasts (Consolidated) Yen (billion) Change FY12 FY13 Results Forecasts amount %Net sales & otheroperating revenue 7,948.0 10,300.0 + 2,351.9 + 29.6%Operating income 231.3 620.0 + 388.6 + 168.0%Income beforeincome taxes 257.4 635.0 + 377.5 + 146.7%Equity in income of affiliates 100.4 120.0 + 19.5 + 19.5%Net income attributable toHonda Motor Co., Ltd. 211.4 470.0 + 258.5 + 122.2%EPS attributable toHonda Motor Co., Ltd. (Yen) 117.34 260.78 + 143.44Note : Shares which are based approx. approx. on calculation of EPS 1,802,300,000 shares 1,802,299,559 shares (weighted average number (weighted average number of shares outstanding ) of shares outstanding )Average Rates (Yen)US Dollar 79 80 Yen down by 1 yenEuro 108 105 Yen up by 3 yen 5
  • 6. FY12 Financial Results and FY13 Financial Forecasts (Unconsolidated) Yen (billion) Change FY12 FY13 Results Forecasts amount %Net sales 2,740.0 3,320.0 + 579.9 + 21.2%Operating income(loss) - 136.7 50.0 + 186.7 -Ordinary income 40.3 190.0 + 149.6 + 370.4%Net income 46.2 140.0 + 93.7 + 202.5%Average Rates (Yen) US Dollar 79 80 Yen down by 1 yen Euro 108 105 Yen up by 3 yen 6
  • 7. Dividend (Yen)Dividend per share FY11 FY12 Increase/Decrease FY13 Results Results & from Increase/Decrease FY11 Results Projection from FY12 Projection 1st quarter End 12 15 +3 ( 19 ) (+4) 2nd quarter End 12 15 +3 ( 19 ) (+4) 3rd quarter End 15 15 ±0 ( 19 ) (+4) 4th quarter End 15 ( 15 ) (±0) ( 19 ) (+4) Fiscal Year 54 ( 60 ) (+6) ( 76 ) ( + 16 ) 7
  • 8. FY12 Financial Results & FY13 Financial ForecastsFumihiko Ike Senior Managing Officer and Director Chief Financial Officer - FY12 Consolidated Financial Results - FY13 Financial Forecasts - DividendKohei Takeuchi Operating Officer, General Manager of Accounting Division - FY12 Consolidated Financial Results Net Sales and Other Operating Revenue Change in Income before Income Taxes Business Segment Information Geographical Information Change in Equity in Income of Affiliates Consolidated Capital Expenditures - FY13 Financial Forecasts 8
  • 9. Net Sales and Other Operating Revenue 4th Quarter (Three months) Yen (billion) 4Q Net Sales by + 191.9 ( + 8.7 %) FY11 FY12 Business Segment Excluding currency translation effects; + 294.8 (+ 13.3 %) Motorcycle Business 353.1 358.5 Automobile Business 1,645.3 1,844.9 + 260.8 - 0.9 - 4.6 Financial Services (- 0.7 %) - 102.9 Business 134.5 129.0 (+ 15.9 %) ( - 5.8 %) + 39.5 2,405.0 Power Product & Financial Services Power Product Other Businesses 80.0 72.5 2,213.0 (+ 11.2 %) Business & Currency Effects Other Businesses Total 2,213.0 2,405.0 Motorcycle Automobile Business Business Market average rates US Dollar 82 79 Euro 113 104 FY11 4Q FY12 4Q Twelve Months Yen (billion) - 988.7 ( - 11.1 %) Twelve months Net Sales by FY11 FY12 Excluding currency translation effects; - 555.6 ( - 6.2 %) Business Segment Motorcycle Business 1,288.1 1,348.8 + 158.6 - 702.7 - 4.8 Automobile Business 6.794.0 5,805.9 8,936.8 ( + 12.3 %) ( - 10.3 %) - 6.7 ( - 1.2 %) ( - 1.7%) - 433.0 Financial Services Motorcycle 7,948.0 Business 561.8 516.1 Business Automobile Financial Services Power Product Power Product & & Currency Effects 292.6 277.1 Business Business Other Businesses Other Businesses Total 8,936.8 7,948.0 Market average rates US Dollar 86 79 Euro 113 109 FY11 FY12Twelve Months Twelve Months 9
  • 10. Change in Income before Income Taxes <FY12 4th Quarter> Yen (billion) Income before Income taxes + 16.4 Other Income Operating Income + 65.7 & Expenses + 14.5 - 23.6 - 49.3 + 40.4 Decrease in SG&A - 28.2 Increase in R&D + 62.7 - 6.6 - 42.6 Cost Reduction, etc. Currency Effects Unrealized gains and losses related to derivative instruments (Exhibit 2) 93.0 <Increase Factors> 76.6 - Decreased fixed cost per unit due to Others Revenue, increased production model mix, - Cost reduction effort, etc. etc. <Decrease Factors> - Increased raw material cost, etc. - Currency effect due to difference between average rates and transaction rates: - 8.7 - Others - 33.9 <Increase Factors>Operating Operating -Increase in unit sales and model mix in Income Income automobile business, 46.2 - Decreased sales incentives, etc. 111.9FY11 4Q FY12 4Q *Please refer to Exhibit 1 regarding currency effects 10
  • 11. Change in Income before Income Taxes <FY12 Twelve Months > Yen (billion) Income before Income taxes - 373.1 Other Income Operating Income - 338.4 & Expenses 630.5 - 155.1 - 34.7 <Increase Factors> - Decreased quality-related expenses, etc. - 92.8 Revenue, + 55.8 - 32.2 model mix, - 114.0 etc. Increase in R&D Cost Reduction, etc. Decrease in SG&A - 5.9 - 28.7 Currency Effects Unrealized gains and 257.4 <Increase Factors> losses related to Others - Cost reduction effort, etc. derivative instruments <Decrease Factors> (Exhibit 2) - Increased fixed cost per unit due to decreased production - Increased raw material cost, etc. <Increase Factors> - Currency effect due to difference between average rates -Decreased sales incentives, etc. and transaction rates: - 18.0 Operating <Decrease Factors> - Others - 10.7 Operating Income -Decrease in unit sales and model mix in Income automobile business, etc. 569.7 231.3 FY11 FY12Twelve Months Twelve Months *Please refer to Exhibit 1 regarding currency effects 11
  • 12. Motorcycle Unit Sales (Motorcycles + All-Terrain Vehicles, etc.) Unit Change from FY12 4Q Major increase / decrease factors (thousand) FY11 4Q - Increased sales of PCX and GIORNO Japan 54 +2 - Positive impact of the introduction of Dio110 and NC700X Unit VISION (Vietnam) - Positive impact of the introduction of CBR250R(thousand) North + 1,114 America 53 + 15 - Increased cruiser model sales such as Shadow - Increased sales of scooter models such as Ruckus and PCX, and CBR1000RR ( + 9.7% )20,000 - Positive impact of the introduction of New700cc lineup and VISION Europe 58 0 - Decreased sales of SH series scooters due to economic slowdown in Approx. 18,735 Southern European countries18,000 - Increased sales of Activa and Shine in India - Positive impact of the introduction of VISION and increased sales of Asia 2,741 + 431 Air Blade and Wave series in Vietnam - Positive impact of the introduction of Click 125i and increased sales of16,000 Approx. 15,499 Wave110-i in Thailand Other - Increased sales of CG150FAN, BIZ125 and CBR300R in Brazil Approx. 7,290 Regions 550 + 74 - Increased sales of Wave and CG150 in Argentina Approx. 2,94014,000 Total 3,456 + 522 12,55912,000 11,445 2,031 Unit sales of Honda-brand motorcycle + 522 products that are manufactured and sold by 1,69010,000 overseas affiliates accounted for under the equity method, but do not use any parts ( + 17.8% ) supplied by Honda and its subsidiaries 8,000 9,910 6,000 Approx. 4,667 Approx. 4,645 9,178 Approx. 4,679 Approx. 4,744 Approx. 4,266 Approx. 1,780 Approx. 1,950 Approx. 1,750 Approx. 1,810 Approx. 4,026 Approx. 3,826 Approx. 810 Approx. 3,381 Approx. 750 Approx. 750 4,000 Approx. 630 3,276 3,456 2,887 2,729 2,895 2,934 2,751 3,076 546 550 Other 344 425 476 496 Regions 445 439 2,000 Asia 2,567 47 2,450 31 2,741 202 198 2,374 64 2,153 41 2,341 39 2,310 58 2,152 58 Europe 62 North 200 60 43 44 38 46 53 48 53 America 185 45 47 46 52 52 63 51 54 Japan 190 220 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 * Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts to Honda’s affiliates accounted for under the equity method. 12
  • 13. Motorcycle Business Net Sales/Operating Income (Margin) FY11 FY12 FY11 FY12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net YenSales 320.2 312.8 301.9 353.1 330.3 357.3 302.5 358.5 1,288.1 1,348.8 (billion) Currency Effect - 34.1 Currency Effect - 97.9 ( + 1.5% ) (Revenue from sales to ( + 4.7% ) (Revenue from sales to external customers) Operating Margin external customers) Operating Income <Increase Factors> -Increased sales volume and model mix, etc Yen <Decrease Factors> (+ 2.9%)(billion) -Adverse impact of one-time gain related to licensing agreements in the 4Q last year 150 -Increased SG&A expenses, -Negative currency effect, etc 14% ( - 31.7%) 13.6% 13.6% 10.8% 10.6% 12% 10.9% 9.8% 9.6% 9.6% 100 8.5% 9.2% 10% 138.5 142.6 8% 6% 50 48.1 44.9 Includes 38.9 31.3 30.0 revenue 32.8 4% 29.1 related to dissolution of 25.8 a joint venture with Hero Honda 2% 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 13
  • 14. Automobile Unit Sales Unit Change from FY12 4Q Major increase / decrease factors (thousand) FY11 4Q - Positive impact of the introduction of FIT SHUTTLE / HYBRID, N-BOX, Japan 224 + 82 and FREED HYBRID - Decreased sales of FIT / FIT HYBRID, LIFE, ZEST, etc. - Increased sales of CIVIC, ACCORD and ODYSSEY CR-V (North America) North America 463 + 107 - Positive impact of the introduction of fully remodeled CR-V - Decreased sales of FIT - Decreased sales of CIVIC and CR-V in Southern Europe caused by weak consumer Unit Europe 45 - 11 confidence - 375(thousand) - Decreased sales of JAZZ and ACCORD in the U.K. and Germany ( - 10.7% ) 4,000 - Decreased sales of CITY, CIVIC, JAZZ, CR-V, due to supply constraints caused by Thai flood Asia 205 - 33 - Increased sales of parts for production of CR-V, etc. in China - Increased sales of BRIO in India and FREED in Indonesia 3,512 3,500 Other - Decreased sales of CITY, CIVIC and FIT in Brazil and Argentina, Regions 51 - 17 and decreased sales of CIVIC, CR-V, etc. in Australia due mainly to the decreased 266 3,137 supply caused by the flood in Thailand 3,000 Total 988 + 128 202 1,008 874 2,500 + 128 198 2,000 ( + 14.9% ) 158 1,500 1,458 1,323 898 860 988 1,000 899 855 51 Other 70 61 772 830 Regions 67 68 48 205 Asia 244 46 261 265 238 547 244 45 Europe 53 48 286 500 41 56 57 38 463 139 40 North 580 370 368 364 356 35 366 America 582 225 269 145 177 118 142 91 131 134 224 Japan 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 * Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts to Honda’s affiliates accounted for under the equity method. ** Certain sales of automobiles that are financed with residual value type auto loans by our domestic finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles. As a result, they are not included in total sales of our automobile segment or in our measure of unit sales. 14
  • 15. Automobile Business Net Sales/Operating Income (Margin) FY11 FY12 FY11 FY12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Sales 1,814.4 1,723.5 1,615.9 1,648.4 1,178.8 1,337.1 1,455.6 1,851.1 6,802.3 5,822.7 Yen (billion) Currency Effect - 61.2 Currency Effect - 285.3 ( + 12.3% ) ( - 14.4% ) (Revenue from sales to external Operating Margin (Revenue from sales to customers) external customers) Operating Income <Increase Factors> Yen(billion) -Increased sales volume and model mix, -Decreased SG&A expenses etc 15% <Decrease Factors> -Increased R&D expenses,300 -Negative currency effect, etc 264.5 12% 8.2% 9%200 5.0% 6% 4.2% 3.9%100 148.9 2.4% 3% 86.3 68.4 -39.1 -29.1 0 -16.9 45.1 0% -76.2 -1.2% -1.3% -3% -2.4% -2.2%-100 -77.2 -6% -6.5%-200 -9% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 15
  • 16. Power Products Unit Sales Unit Change from HRR216 FY12 4Q Major increase / decrease factors (thousand) FY11 4Q (North America) - Decreased sales of GX160 / 390 general-purpose engines used in OEM generators and Japan 89 - 15 pumps for export due to appreciated of the Japanese yen - Increased demand for lawn & garden products such as HRR216 / HRX217 lawnmowers North and pressure washers brought on by unseasonably warm winter in the U.S. America 970 + 264 - Increased sales of generators and lawnmowers due to increased demand for leisure and + 310 garden products in Canada (+ 5.6%) Unit - Decreased sales of general-purpose engines used in OEM lawn & garden products,(thousand) Europe 414 - 76 particularly in Italy, and general-purpose engines used in OEM generators caused by the weak economy in Europe 6,000 - Increased sales of GX160 and GX25 / 35 general-purpose engines due to replacement 5,819 demand after the flood in Thailand 5,509 Asia 394 + 87 - Increased sales of GK200 engines and generators in India due to pull-forward demand 520 before upcoming tax rise - Increased sales of WB20X / 30X pumps and general-purpose engines made in Thailand 537 5,000 Other Regions 143 +4 for the Middle East and South America due to the commencement of production and delivery of backorders created by the flood in Thailand 1,472 Total 2,010 + 264 1,325 4,000 + 264 (+ 15.1% ) 1,121 3,000 1,174 2,010 Other 2,000 1,746 143 Regions 1,440 139 1,512 394 Asia 2,085 2,314 105 1,166 1,157 307 109 1,276 399 134 1,021 414 Europe 344 136 157 1,000 490 390 134 230 367 307 307 289 970 North 200 662 200 254 706 577 200 America 437 367 350 330 99 89 104 120 115 68 89 Japan 388 392 96 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 * Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts to Honda’s affiliates accounted for under the equity method. 16
  • 17. Power Product & Other Businesses Net Sales/Operating Income (Margin) FY11 FY12 FY11 FY12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Yen Sales 77.9 74.5 72.1 83.1 73.9 72.1 68.0 75.6 307.8 289.7 (billion) Currency Effect - 2.8 Currency Effect - 10.6 Operating Margin ( - 9.0% ) (Revenue from sales to ( - 5.9% ) (Revenue from sales to external customers) external customers) Operating Income Yen(billion) 15 <Increase Factors> 30% -Increased sales volume and model mix, etc <Decrease Factors> 25% -Increased SG&A expenses, etc 20% 15% 5 10% 5% -0.5 -0.5 -2.0 -2.3 0.2 -0.1 -2.1 -2.0 -5.5 -4.0 0 0% -0.7% -0.7% 0.4% -0.2% -2.9% -2.8% -3.2% -2.7% -1.8% -1.4% -5% -5 -10% -15% -20% -25%-15 -30% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 17
  • 18. Financial Services Business Total Assets/Net Sales/Operating Income (Margin) FY11 FY12 FY11 FY12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 MonthsTotal Assets Yen of FinanceSubsidiaries 5,558.0 5,480.3 5,427.2 5,572.1 5,445.7 5,169.2 5,290.5 5,644.3 (billion) Net Sales 152.5 144.2 139.2 137.3 138.6 129.1 127.5 131.2 573.4 526.5 Operating Margin (- 4.5%) Currency Effect - 4.5 (Revenue from sales to (- 8.2%) Currency Effect - 39.0 (Revenue from sales to external customers) Yen Operating Income external customers)(billion)200 <Decrease Factors> 50% -Increased allowance for losses on credit, -Negative currency impact, etc (- 8.7%)180 38.7% 186.2160 40% 35.8% ( - 9.2% ) 170.0140 32.9% 32.0% 33.2% 28.8% 29.5%120 27.4% 32.5% 32.3% 30%100 80 20% 60 54.6 53.6 47.4 44.6 42.8 39.6 37.5 40 35.9 10% 20 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 18
  • 19. Japan Net Sales/Operating Income (Margin) FY11 FY12 FY11 FY12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Yen Sales 921.5 928.2 867.5 893.8 625.3 805.3 863.1 1,069.0 3,611.2 3,362.9 (billion) ( + 19.6% ) ( - 6.9%) Operating Income Yen(billion) Operating Margin (%) <Increase Factors> -Increase in sales volume and model mix,100 -Decreased SG&A expenses, etc <Decrease Factors> -Increased R&D expenses, etc ( 1.8 % ) 50 66.1 53.1 ( 1.2 % ) 20.1 14.6 ( - 2.4 % ) 12.5 ( - 3.3 % ) 0 - 21.8 - 35.3 - 45.8 - 41.2 -50-100 - 109.8-150 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 19
  • 20. North America Net Sales/Operating Income (Margin) FY11 FY12 FY11 FY12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Yen Sales 1,137.8 1,021.6 1,011.8 976.6 733.9 794.1 986.2 1,200.3 4,147.8 3,714.7 (billion) ( + 22.9% ) ( - 10.4%) Operating Income Operating Margin (%) Yen(billion)350 <Increase Factors> -Increase in sales volume and model mix , etc ( - 25.8%) <Decrease Factors> ( 7.3 % )300 -Increased SG&A expenses -Negative currency effects, etc 300.9250 ( 6.0 % ) ( + 234.8% )200 223.2150100 ( 6.8 % ) 110.7 89.6 82.2 50 75.8 74.8 ( 2.5 % ) 47.7 0 24.5 18.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 20
  • 21. Europe Net Sales/Operating Income (Margin) FY11 FY12 FY11 FY12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Net Yen Sales 189.8 161.3 150.7 197.3 150.9 144.5 119.4 165.8 699.2 580.7 (billion) ( - 16.0% ) ( - 16.9%) Operating Income Yen(billion) Operating Margin (%)3025 <Increase Factors>20 -Increase in sales volume and model mix, etc1510 5 ( 1.1 % ) 1.8 4.0 ( - 0.9 % ) ( - 1.5 % ) ( - 2.1 % ) 0 - 3.0 -4.0 -3.8 -5 -1.7 -6.1 -9.4 -10.2-10 -12.1-15 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 21
  • 22. Asia Net Sales/Operating Income (Margin) FY11 FY12 FY11 FY12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Yen (billion) Net Sales 470.2 452.9 445.5 472.4 373.4 407.7 317.6 391.5 1,841.1 1,490.4 ( - 17.1% ) ( - 19.0%) Operating Income Yen(billion) Operating Margin (%) <Increase Factors> ( 8.2 % )150 -Decreased SG&A expenses, etc <Decrease Factors> 150.6 -Decrease in sales volume and model mix -Negative currency effects, etc ( - 49.0% ) ( - 48.5% )100 ( 5.2 % ) 76.8 50 ( 6.8 % ) 44.4 38.3 35.7 32.1 ( 4.2 % ) 25.1 21.8 13.3 16.5 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 22
  • 23. Other Regions Net Sales/Operating Income (Margin) FY11 FY12 FY11 FY12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months Yen Net (billion) Sales 236.3 242.5 238.8 264.3 229.9 244.3 206.1 212.6 982.0 893.1 ( - 19.5% ) ( - 9.1%) Operating Income Yen Operating Margin (%)(billion) ( 7.1 % ) ( - 18.1% )70 69.560 <Decrease Factors> ( 6.4 % ) -Decrease in sales volume and model mix -Negative currency effects, etc 56.95040 ( - 57.3% )3020 23.0 20.2 20.4 ( 5.0 % )10 15.6 13.1 15.7 12.5 ( 2.6 % ) 5.6 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 23
  • 24. Change in Equity in income of affiliates Total Asia Yen(billion) + 8.2 - 39.3160 ( + 33.1 % ) ( - 28.2 % ) 139.7140120 111.1 100.4100 87.9 80 60 43.4 40 35.6 35.6 34.4 33.2 27.5 29.5 25.0 28.6 29.3 19.5 22.9 22.1 21.5 20 15.514.8 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 24
  • 25. Operating Income of Affiliates in Asia and Honda’s Equity in Income from Asia FY11 FY12 FY11 FY12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 MonthsOperating Yen Income 82.5 78.0 73.2 75.8 73.3 40.3 54.7 51.5 309.7 219.9 (billion) Net Income 71.1 64.1 60.2 66.5 62.5 34.1 45.4 44.0 262.0 186.1 Operating Income of Affiliates and Honda’s Equity in Income Operating Income Equity in Income Yen + 1.9 (billion) - 23.1 ( + 10.1 % ) 350 ( - 20.9 % ) 309.7 300 250 219.9 200 150 111.1 82.5 87.9 100 78.0 73.2 75.8 73.3 54.7 51.5 34.4 40.3 50 27.5 29.5 19.5 29.3 22.1 21.5 14.8 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 Months 12 Months FY11 FY12 FY11 FY12 Affiliates accounted for under the equity method in Asia As of the end of March 31, 2012 Motorcycle Business: Automobile Business : China Sundiro Honda Motorcycle Co., Ltd.* China Guangqi Honda Automobile Co., Ltd.* Wuyang-Honda Motors (Guangzhou) Co., Ltd.* Dongfeng Honda Engine Co., Ltd.* Indonesia P.T. Astra Honda Motor * Dongfeng Honda Automobile Co., Ltd.* Pakistan Atlas Honda Ltd. Thailand A.P. Honda Co., Ltd. Others 34 , Total 42 companies Fiscal term of companies marked “*” differs from that of Honda Motor Co., Ltd. 25
  • 26. Consolidated Capital Expenditures <FY12 Twelve Months> Yen (billion) + 95.2 ( + 30.6 % ) Excluding currency translation effects + 114.9 ( + 36.9 % ) + 88.7 + 0.1 - 3.3 - 19.6 Financial 406.5 Power product Services & Currency + 29.4 Business Other Businesses Translation 311.3 Effects Automobile Motorcycle Business BusinessFY11 Twelve Months ※ Capital expenditures in results aforementioned exclude FY12 Twelve Months Market average rates investment in operating leases and intangible assets Market average rates US$ 1= JPY 86 US$ 1= JPY 79 (Yen up by 7 yen) Euro 1= JPY 113 Euro 1= JPY 109 (Yen up by 4 yen) Yen (billions) Yen (billions) Motorcycle Motorcycle Business 37.0 Business 62.0 Automobile Automobile Business 260.1 Business 334.1 Financial Services Financial Services Business 0.1 Business 0.3 Power Product & Power Product & Other Businesses 13.9 Other Businesses 10.0 Total 311.3 Total 406.5 26
  • 27. 2012年度以降の売上台数に係るChange in the Disclosure of Unit Sales Information from Fiscal Year Ending March 31, 2013“Honda Group Unit Sales” and “Consolidated Unit Sales” 27
  • 28. "Honda Group Unit Sales"The total of unit sales of completed products of Honda, its consolidated subsidiariesand its affiliates accounted for under the equity method (Sum of ① and ②) ①Finished products Automobiles Motorcycles Power products ② Finished products ②Finished products Equity method Affiliates Honda + China – automobile: External Guangqi HondaConsolidated Automobiles Motorcycles Dongfeng Honda Automobiles CustomersSubsidiaries China – motorcycle: ③Production parts Sundiro Honda Wuyang-Honda Asia – motorcycle: Astra Honda Automobiles + Motorcycles A.P. Honda Atlas Honda Motorcycles *The photos are for the purpose of illustration only. 28
  • 29. "Consolidated Unit Sales"The total of unit sales of completed products of Honda and its consolidated subsidiaries,not including parts for local production at Honda’s affiliates accounted forunder the equity method (Excluding ③ from the current "Unit Sales“) ①Finished products Automobiles Motorcycles Power Products Finished products ②Finished products Equity method Affiliates Honda China – automobile: External + Guangqi HondaConsolidated Automobiles Motorcycles Dongfeng Honda CustomersSubsidiaries China – motorcycle: Automoboles ③Production parts Sundiro Honda Wuyang-Honda Asia – motorcycle: Astra Honda Automobiles + Motorcycles A.P. Honda Atlas Honda Motorcycles *The photos are for the purpose of illustration only. 29
  • 30. Honda Group Unit Sales Motorcycles Automobiles Power Products Unit + 1,539 + 1,192 + 481(thousand) ( + 10.2 % ) ( + 38.4 % ) ( + 8.3 % ) 8,00020,000 4,300 310 4,000 16,600 6,300 Other 15,061 5,819 605 Regions 2,080 6,00015,000 1,310 3,108 520 2,031 3,000 202 1,670 Asia 1,472 837 230 4,00010,000 1,150 Europe 13,820 2,000 158 1,121 12,412 1,740 1,323 5,000 2,000 North 2,314 2,520 1,000 America 198 210 588 710 200 255 Japan 220 235 392 355 0 0 0 FY12 FY13 FY12 FY13 FY12 FY13 (Reference) Forecasts (Reference) Forecasts (Reference) Forecasts 30
  • 31. Consolidated Unit Sales Motorcycles Automobiles Power Products Unit + 481 (thousand) + 1,250 + 1,058 ( + 14.5 % ) 4,000 ( + 42.6 % ) ( + 8.3 % )12,000 8,000 3,540 3,500 9,900 310 7,000 6,300 3,000 9,000 8,650 2,080 560 6,000 5,819 605 Other Regions 2,482 520 2,031 2,500 230 5,000 1,670 Asia 202 1,472 219 6,000 2,000 158 4,000 1,740 1,150 Europe 7,120 1,500 1,121 3,000 6,001 1,323 3,000 1,000 2,000 2,520 North 2,314 America 500 1,000 580 700 198 210 200 255 392 Japan 220 235 355 0 0 0 FY12 FY13 FY12 FY13 FY12 FY13 (Reference) Forecasts (Reference) Forecasts (Reference) Forecasts 31
  • 32. FY13 Financial Forecasts (Consolidated) Yen (billion) Change FY12 FY13 Results Forecasts amount %Net sales & otheroperating revenue 7,948.0 10,300.0 + 2,351.9 + 29.6%Operating income 231.3 620.0 + 388.6 + 168.0%Income beforeincome taxes 257.4 635.0 + 377.5 + 146.7%Equity in income of affiliates 100.4 120.0 + 19.5 + 19.5%Net income attributable toHonda Motor Co., Ltd. 211.4 470.0 + 258.5 + 122.2%EPS attributable toHonda Motor Co., Ltd. (Yen) 117.34 260.78 + 143.44Note : Shares which are based approx. approx. on calculation of EPS 1,802,300,000 shares 1,802,299,559 shares (weighted average number (weighted average number of shares outstanding ) of shares outstanding )Average Rates (Yen)US Dollar 79 80 Yen down by 1 yenEuro 108 105 Yen up by 3 yen 32
  • 33. Forecast: Change in Income before Income Taxes Yen (billion) Income before Income taxes + 377.5 ( + 146.7 % ) Operating Income + 388.6 ( + 168.0 % ) Other Income & Expenses - 11.0 * + 152.0 * - 205.0 + 476.8 - 35.2 * Cost Reduction, ±0 - 8.0 - 3.0 635.0 etc. Increase in SG&A Increase Currency Effect Unrealized gains Others in R&D and losses related to derivative instruments257.4 Revenue, model mix, etc. * The impact of the change in depreciation method which is anticipated to cause a decrease in depreciation expense by approximately JPY 40.0 billion in total, is included.Operating Operating Income Income 231.3 620.0FY12 FY13 Forecasts 33
  • 34. Forecast: Capital Expenditures, Depreciation, R&D Expenses Yen (billion) FY12 FY13 Change Results ForecastsCapital Expenditures * 406.5 580.0 + 173.5 **Depreciation and amortization* 293.7 285.0 - 8.7R&D expenses 519.8 555.0 + 35.2 * “Depreciation and amortization” in results and the forecast aforementioned exclude depreciation of investment in operating leases and amortization of intangible assets ** Honda uses the straight-line method for calculating the forecasts for the depreciation of property, plant and equipment for the year ending March 31, 2013. 34
  • 35. Caution with Respect to Forward-Looking Statements:This slide contains forward-looking statements about the performance of Honda, which are based on management’sassumptions and beliefs taking into account information currently available to it. Therefore, please be advised thatHonda’s actual results could differ materially from those described in these forward-looking statements as a result ofnumerous factors, including general economic conditions in Honda’s principal markets and foreign exchange ratesbetween the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailedfrom 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 forthbelow and used what it believes to be a reasonable method to analyze the respective changes in such factors. Each ofthese factors is explained below. Management has analyzed changes in these factors at the levels of the Company andits material consolidated subsidiaries.(1)“Foreign currency effects” consist of translation adjustments, which come from the translation of the currency offoreign subsidiaries’ financial statements into Japanese Yen, and foreign currency adjustments, which result fromforeign-currency-denominated sales, which, at the levels of the Company and those consolidated subsidiaries whichhave been analyzed, primarily relate to the following currencies: U.S. dollar, Canada dollar, Euro, GBP, BRL andJapanese Yen.(2) With respect to “cost reduction and effects of raw material cost fluctuations”, management has analyzed costreduction and effects of raw material cost fluctuations at the levels of the Company and its material foreignmanufacturing subsidiaries in North America, Europe, Asia and other regions.(3) With respect to “changes in net sales and model mix”, management has analyzed changes in sales volume and inthe mix of product models sold in major markets which have resulted in increases/decreases in profit, as well as certainother 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 anincrease/decrease in selling, general and administrative expenses from the previous fiscal year net of currencytranslation effects. 35
  • 36. -Currency Effects- (Exhibit 1) (effects associated with sales transactions and translation effects) Yen (billion) Average Rates (Yen) FY12 FY12 4Q 12 Months FY11 FY12 Change 4Q 4Q Yen up by JPY / USD - 11.8 82 80 2 yen - 55.8 Yen up by JPY / Euro - 1.9 113 104 9 yen - 3.5 JPY / Others - 3.0 ― ― ― - 10.6 Transactions between other currencies - 2.7 ― ― ― - 3.5Difference of average rates *1 *1:Impact of YOY difference of FOREX to be used for(Impact on Operating income) - 19.5 booking revenue of foreign currency transactions - 73.6Difference between transaction *2 *2:Impact of YOY difference between average FOREXrates and average rates - 8.7 and hedge rates during the period - 18.0(Impact on Other income & expenses)Currency effect associatedwith sales transaction - 28.2 - 91.6Currency effect from *3 *3:Effect due to the difference of the rate used for translatingtranslation of foreign financial Honda’s overseas subsidiaries’ financial statementsstatements - 8.6 denominated in foreign currencies into Japanese yen - 40.4 with the corresponding period of the fiscal year(impact on operating income) Total - 36.9 - 132.0 36
  • 37. - Unrealized Gains and Losses Related to Derivative Instruments - (Exhibit 2) Yen (billion) 4Q 12 Months FY11 FY12 Change FY11 FY12 ChangeForeign currency - 15.0 - 21.0 - 6.0 - 0.2 - 12.4 - 12.2 ForwardInterest rate swap Currency swap - 3.7 - 4.4 - 0.6 + 8.4 + 13.9 + 5.4 Others 0 0 0 - 0.4 + 0.3 + 0.7 Total - 18.8 - 25.5 - 6.6 + 7.7 + 1.8 - 5.9 37
  • 38. 38