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Honda 2012 3q-all-e

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  • 1. Insight FY13 3rd Quarter Financial Results Honda Motor Co., Ltd. Urban SUV concept January 31, 2013 1
  • 2. FY13 3rd Quarter Financial Results & FY13 Financial ForecastsFumihiko Ike Senior Managing Officer and Director Chief Financial Officer - FY13 3rd Quarter Consolidated Financial Results - FY13 Financial Forecasts - DividendKohei TakeuchiOperating Officer, General Manager of Accounting Division - FY13 3rd Quarter 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 - FY 13 Financial Forecasts 2
  • 3. FY13 3rd Quarter Financial Results & FY13 Financial ForecastsFumihiko Ike Senior Managing Officer and Director Chief Financial Officer - FY13 3rd Quarter Consolidated Financial Results - FY13 Financial Forecasts - DividendKohei TakeuchiOperating Officer, General Manager of Accounting Division - FY13 3rd Quarter 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 - FY 13 Financial Forecasts 3
  • 4. Outline of FY13 3rd Quarter Financial Results (Consolidated) Financial Summary 3Q Results (Three Months) Honda Group Unit Sales (Consolidated Unit Sales) (thousand) FY12 FY13 Change Operating income amounted to 131.9 billion 3,609 yen, a sharp rise of 197.8% mainly due a 3,815 + 5.7% Motorcycles strong recovery from the Thai flood and the (2,031) (2,350) (+ 15.7%) positive impact of new model introductions, 783 986 + 25.9% Automobiles (622) (841) (+ 35.2%) primarily in North America. 1,021 1,195 + 17.0% Power Products (1,021) (1,195) (+ 17.0%) Financial Highlights Financial 3Q Results (Three Months) Honda Group Unit Sales results FY12 FY13 Change Motorcycle: Yen (billion) Net sales & other Increased in Asia and decreased in South operating revenue 1,942.5 2,425.7 + 24.9% America, mainly in Brazil Automobile: Operating income 44.2 131.9 + 197.8% Increased mainly in North America and Asia Income before income Power Products: taxes 58.4 89.7 + 53.5% Increased in North America, Asia and “Other Equity in income of regions” affiliates 22.9 21.4 - 6.5 % Net Sales and Operating Revenue Net income attributable -Recovery from the Thai flood and new model to Honda Motor Co., Ltd. 47.6 77.4 + 62.5% introductions led to an increase for automobile business operations EPS attributable to -Currency fluctuations had a positive impact Honda Motor Co., Ltd. 26.45 42.97 + 16.52 (Yen) Operating IncomeNote : Shares which are based approx. approx. Increased 197.8% compare to the same period last year on calculation of EPS 1,802,300,000 shares 1,802,298,000 shares due to: (weighted average number of shares outstanding )Average Rates (Yen) -Increased unit sales in automobile business operations Yen down -Positive impact to the fixed costs due to increased US Dollar 77 81 by 4 yen production Yen down -Cost reduction efforts Euro 105 106 by 1 yen -Favorable currency effect 4
  • 5. Outline of Nine Months Financial Results (Consolidated) 3Q Results (Three Months) Nine Months Results Honda Group Unit Sales (Consolidated Unit Sales) FY12 FY13 Change (thousand) FY12 FY13 Change 3,609 3,815 + 5.7% 10,897 11,532 + 5.8% Motorcycles (2,031) (2,350) (+ 15.7%) (6,167) (7,020) (+ 13.8%) 783 986 + 25.9% 2,086 2,981 + 42.9% Automobiles (622) (841) (+ 35.2%) (1,651) (2,506) (+ 51.8%) 1,021 1,195 + 17.0% 3,809 4,108 + 7.8% Power Products (1,021) (1,195) (+ 17.0%) (3,809) (4,108) (+ 7.8%) Financial 3Q Results (Three Months) Nine Months Results results FY12 FY13 Change FY12 FY13 Change Yen (billion) Net sales & other operating revenue 1,942.5 2,425.7 + 24.9% 5,543.0 7,132.9 + 28.7% Operating income 44.2 131.9 + 197.8% 119.3 408.8 + 242.4% Income before income taxes 58.4 89.7 + 53.5% 164.3 390.8 + 137.8% Equity in income of affiliates 22.9 21.4 - 6.5 % 67.1 69.6 + 3.8% Net income attributable to Honda Motor Co., Ltd. 47.6 77.4 + 62.5% 139.8 291.3 + 108.3% EPS attributable to Honda Motor Co., Ltd. 26.45 42.97 + 16.52 77.62 161.68 + 84.06 (Yen)Note : Shares which are based approx. approx. approx. approx. on calculation of EPS 1,802,300,000 shares 1,802,298,000 shares 1,802,300,000 shares 1,802,299,000 shares (weighted average number of shares outstanding ) (weighted average number of shares outstanding )Average Rates (Yen) Yen down Yen down US Dollar 77 81 by 4 yen 78 80 by 2 yen Yen down Yen up Euro 105 106 by 1 yen 110 103 by 7 yen 5
  • 6. FY13 Financial Forecasts (Consolidated) Yen (billion) Change Change from FY12 FY13 previous forecasts Results Forecasts amount %Net sales & otheroperating revenue 7,948.0 9,800.0 + 1,851.9 + 23.3% -Operating income 231.3 520.0 + 288.6 + 124.8% -Income beforeincome taxes 257.4 515.0 + 257.5 + 100.1% - 25.0Equity in income ofaffiliates 100.4 80.0 - 20.4 - 20.3% -Net income attributable toHonda Motor Co., Ltd. 211.4 370.0 + 158.5 + 75.0% - 5.0EPS attributable to HondaMotor Co., Ltd. (Yen) 117.34 205.29 + 87.95 Note : Shares which are based approx. approx. on calculation of EPS 1,802,300,000 shares 1,802,298,000 shares (weighted average number (weighted average number of shares outstanding ) of shares outstanding )Average Rates (Yen) 81 Yen down US Dollar 79 Yen down by 2 yen (1H 79 / 2H 83) by 1 yen 105 Yen down Euro 108 Yen up by 3 yen (1H 101 / 2H 108) by 2 yen 6
  • 7. Dividend (Yen)Dividend per share FY12 FY13 Results Results & Projection Increase / Decrease from FY12 1st quarter End 15 19 +4 2nd quarter End 15 19 +4 3rd quarter End 15 19 +4 4th quarter End 15 ( 19 ) (+4) Fiscal Year 60 ( 76 ) ( + 16 ) 7
  • 8. FY13 3rd Quarter Financial Results & FY13 Financial ForecastsFumihiko Ike Senior Managing Officer and Director Chief Financial Officer - FY13 3rd Quarter Consolidated Financial Results - FY13 Financial Forecasts - DividendKohei TakeuchiOperating Officer, General Manager of Accounting Division - FY13 3rd Quarter 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 - FY 13 Financial Forecasts 8
  • 9. Net Sales and Other Operating Revenue3rd Quarter (Three months) Yen (billion) + 483.2 ( + 24.9 %) 3Q Net Sales by Business Segment FY12 FY13 Excluding currency translation effects + 437.3 ( + 22.5 %) Motorcycle Business 302.5 307.8 + 412.6 + 4.8 + 1.7 Automobile Business (+ 2.7 %) + 45.9 2,425.7 1,451.0 1,915.5 (+ 28.4 %) (+ 3.9 %) Financial Services Business 124.8 135.3 Financial Services Power Product + 18.0 Business & Currency Effects Power Product & Other Businesses Other Businesses 64.0 67.0 1,942.5 (+ 6.0 %) Total 1,942.5 2,425.7 Motorcycle Automobile Market average rates Business Business US Dollar 77 81 Euro 104 105FY12 3Q FY13 3Q *BR Real 46 38 Nine Months Yen (billion) Nine Months Net Sales by + 1,589.9 (+ 28.7 %) FY12 FY13 Business Segment Excluding currency translation effects + 1,702.7 ( + 30.7 %) Motorcycle Business 990.2 964.1 + 1,644.8 + 5.6 - 1.8 (+ 41.5 %) (+ 1.5 %) (- 0.9 %) - 112.7 7,132.9 Automobile Business 3,961.0 5,572.2 Financial Services Power Product Currency Effects Financial Services & 387.1 397.0 Business Other Businesses Business + 54.0 Power Product & 204.6 199.5 (+ 5.5 %) Other Businesses 5,543.0 Total 5,543.0 7,132.9 Automobile Motorcycle Business Market average rates Business US Dollar 79 80 Euro 111 102 FY12 FY13 *BR Real 49 41Nine Months Nine Months 9
  • 10. Change in Income before Income Taxes <FY13 3rd Quarter> Yen (billion) Income before Income taxes + 31.2 ( + 53.5 % ) Other Income Operating Income + 87.6 ( + 197.8 % ) & Expenses - 56.3 + 32.2 - 34.3 + 12.5 - 55.6 + 81.2 - 4.1 Cost Reduction, etc. Increase in SG&A Increase in R&D Currency Effects - 0.7 89.7 <Decrease Factors> Unrealized gains and - Increased selling expenses due to losses related to Others sales increase derivative instruments58.4 - Advertisement expenses, etc. (Exhibit 2) Revenue, model mix, etc. <Increase Factors> -Negative impact of fair - Decreased fixed cost per unit due to valuations related to unexpected increased production sudden depreciation of the yen - Cost reduction effort, etc.Operating Operating Income <Increase Factors> - Currency effect due to difference between Income -Increase in unit sales and model mix, etc. average sales rates and transaction rate - 8.8 44.2 - Others + 8.0 131.9FY12 3Q FY13 3Q *Please refer to Exhibit 1 regarding currency effects 10
  • 11. Change in Income before Income Taxes <FY13 Nine Months > Yen (billion) Income before Income taxes + 226.4 ( + 137.8 % ) Other Income Operating Income + 289.4 ( + 242.4 % ) & Expenses - 62.9 + 151.5 - 133.9 - 32.3 + 325.7 - 21.6 Cost Reduction, etc. Increase in SG&A - 57.2 Increase in R&D Currency Effects - 5.6 390.8 Unrealized gains and Others losses related to <Decrease Factors> derivative instruments (Exhibit 2) - Increased selling expenses due to sales increase - Advertisement expenses, etc. 164.3 Revenue, <Increase Factors> model mix, etc. - Decreased fixed cost per unit due to increased production - Currency effect due to difference between - Cost reduction effort, etc. average sales rates and transaction rate - 19.0 - Others + 13.3 Operating <Increase Factors> Operating Income -Increase in unit sales and model mix, etc. Income <Decrease Factors> 408.8 119.3 - Increased sales incentives, etc. FY12 FY13Nine Months Nine Months *Please refer to Exhibit 1 regarding currency effects 11
  • 12. Motorcycle Honda Group Unit Sales (Motorcycles + All-Terrain Vehicles, etc.) Unit Change from FY13 3Q Major increase / decrease factors (thousand) FY12 3Q - Positive impact of PCX150,NC700S and NC700X model introductions Japan 51 0 - Decreased sales of Giorno, Today, and other scooter models - U.S: Positive impact of CRF110F, CRF250L and NC700X introductions; North America 62 + 14 CBR250R sales increase - U.S. Decreased sales of Four Trax Foreman and Four Trax Rancher (ATVs)14,000 Dream Yuga (India) - Positive impact of NC700S, NC700X and SH series introductions Europe 29 -2 - Decline in scooter sales in Italy + 635 Unit(thousand) - India:Positive impact of Dream Yuga intro; increased CB Shine,CB Unicorn sales ( + 5.8% ) Asia 3,225 + 242 - Thailand: Positive impact of Click125i, PCX150 introductions; increased sales of12,000 * Other Wave110i and Scoopy-i models - Brazil: Positive impact of BIZ100 introduction 11,532 Regions 448 - 48 - Brazil: Decreased sales of CG125 FAN, CG150 FAN, CG150 TITAN models 10,897 1,38510,000 Total 3,815 + 206 1,481 8,000 + 206 ( + 5.7% ) 6,000 8,963 9,672 4,164 * 4,000 3,811 3,609 3,911 3,806 3,815 3,477 550 448 Other 546 496 489 448 Regions 439 2,878 3,102 2,983 3,449 3,285 3,162 3,225 2,000 Asia 62 47 31 58 60 38 29 Europe 140 127 46 53 48 53 59 60 62 North 147 181 America 52 63 51 54 59 57 51 Japan 166 167 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months FY12 FY13 FY12 FY13 * Honda Group Unit Sales of Motorcycle business for the three months ended September 30, 2012 is revised and resulted in a decrease of 73 thousand units. This revision is included in Honda Group Unit Sales of Motorcycle business for the nine months ended December 31, 2012. 12
  • 13. Motorcycle Business Unit Sales/Net Sales/Operating Income (Margin) FY12 FY13 FY12 FY13 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months Honda Group Unit Sales 3,477 3,811 3,609 4,164 3,911 3,806 * 3,815 10,897 11,532* (thousand) Unit (Consolidated Unit Sales) (1,949) (2,187) (2,031) (2,483) (2,366) (2,304) (2,350) (6,167) (7,020) Yen Net Sales 330.3 357.3 302.5 358.5 346.6 309.7 307.8 990.2 964.1 (billion) Yen(billion) ( + 1.7 % ) ( - 2.6 % ) Operating Margin Currency Effect - 12.8 Currency Effect - 80.1 (Revenue from sales to (Revenue from sales to 15%145 13.6% Operating Income external customers) external customers) ( - 22.5 % )125 10.9% 10.6% 11%105 9.2% 8.5% 8.2% 11.1% 85 7.4% <Increase Factors> 8.8% 65 7% -Cost reduction, etc <Decrease Factors> 109.7 45 -Negative currency effect, etc ( - 11.8 % ) 85.0 25 3% 44.9 38.9 36.8 25.8 32.8 25.4 22.8 5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months -15 FY12 FY13 FY12 FY13 -1% * Honda Group Unit Sales and Consolidated Unit Sales of Motorcycle business for the three months ended September 30, 2012 is revised and resulted in a decrease of 73 thousand units. This revision is included in Honda Group Unit Sales and Consolidated Unit Sales of Motorcycle business for the nine months ended December 31, 2012. 13
  • 14. Automobile Honda Group Unit Sales Unit Change from FY13 3Q Major increase / decrease factors (thousand) FY12 3Q - Increased sales of N-BOX, positive impact of N-BOX+, N-ONE introductions Japan 138 +2 - Decreased sales of FIT and STEP WGN North - U.S.: Increased sales of ACCORD, CR-V and RDX America 454 + 88 - U.S.: Decreased sales of ODYSSEY and TL Accord (North America) - Positive impact of fully remodeled CR-V in European region Europe 38 0 - Decreased sales of JAZZ in Germany, Spain and other countries3,500 + 895 - Thailand: Increased sales of CITY, FIT, CIVIC, BRIO and other models ( + 42.9% ) Unit Asia 279 + 84 - Indonesia: Increased sales of BRIO, FREED and CR-V - China: decrease in sales(thousand)3,000 Other 77 + 29 - Brazil: Increased sales of CIVIC, FIT and CITY models 2,981 Regions - Australia: Increased sales of CIVIC, CR-V and FIT models 218 Total 986 + 2032,500 + 203 842 ( + 25.9% ) 2,0862,000 151 121 6011,500 113 1,022 999 996 986 1,3081,000 783 51 63 78 77 Other Regions 236 678 48 262 625 45 301 279 Asia 860 46 195 39 57 44 38 Europe 500 190 38 216 463 40 450 35 404 454 North 269 366 America 225 492 227 361 133 136 185 169 138 Japan 92 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months FY12 FY13 FY12 FY13 14
  • 15. Automobile Business Unit Sales/Net Sales/Operating Income (Margin) FY12 FY13 FY12 FY13 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months Honda Group Unit Sales 625 678 783 1,022 999 996 986 2,086 2,981 Unit (thousand) (Consolidated (458) (571) (622) (831) (849) (816) (841) (1,651) (2,506) Unit Sales) Yen Net Sales 1,178.8 1,337.1 1,455.6 1,851.1 1,894.7 1,769.7 1,918.4 3,971.6 5,582.9 (billion) Yen(billion) ( + 31.8 % ) ( + 40.6 % ) Operating Margin Currency Effect + 51.8 Currency Effect - 33.6 (Revenue from sales to (Revenue from sales to Operating Income external customers) external customers)250 15% <Increase Factors> -Changes in unit sales and model mix, 12% -Cost reduction , etc <Decrease Factors>150 -Increased SG&A expenses, etc 9% 5.3% 208.7 6% 3.7% 3.7% 2.4% 2.1% 50 100.6 70.9 3% - 16.9 45.1 37.1 0% - 29.1 - 3.1% -50 - 76.2 - 1.2% -3% - 2.2% - 122.3 -6% - 6.5%-150 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months -9% FY12 FY13 FY12 FY13 15
  • 16. Power Products Honda Group Unit Sales Unit Change from FY13 3Q Major increase / decrease factors (thousand) FY12 3Q - Increased sales of heavy duty HSS1170i snowblower and other models Japan 63 -5 - Decrease in sales of EU16i and other models due to lower demand for generators North - Increased sales of GC/V and M4 engines to meet increase in OEM demand America 426 + 96 - Increase in EU2000i, EU3000IS generators due to blackouts from Hurricane Sandy - Increased OEM sales of GCV135 and GCV160 engines Europe 206 +6 - Decreased sales of tiller models such as F220 and FG205 EU2000i (Generator) - Thailand: Increased sales of UMK435 lawnmower model Asia 341 + 52 - Indonesia: Increased sales of WB20 and WB30 pumps as dealer network expanded + 2995,000 - China: Increased sales of GX160 and other engines to meet rise in OEM demand - Saudi Arabia: Increase in WB200 pump sales ( + 7.8% ) Unit Other(thousand) Regions 159 + 25 - South Africa: Decreased sales of EP650 and other generators following end of special price sales campaign Total 1,195 + 174 4,1084,000 3,809 439 3773,000 1,224 + 174 1,078 ( + 17.0% ) 2,010 5922,000 143 707 1,512 1,625 394 128 109 1,276 1,288 1,195 399 134 1,021 414 421 152 159 Other Regions 1,344 1,6201,000 390 134 236 462 307 341 Asia 289 200 200 970 150 206 Europe 577 758 437 330 436 426 North America 120 115 68 89 82 88 63 Japan 303 233 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months FY12 FY13 FY12 FY13 16
  • 17. Power Product & Other Businesses Unit Sales/Net Sales/Operating Income (Margin) FY12 FY13 FY12 FY13 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months Honda Group Unit Sales 1,512 1,276 1,021 2,010 1,625 1,288 1,195 3,809 4,108 Unit (thousand) (Consolidated (1,512) (1,276) (1,021) (2,010) (1,625) (1,288) (1,195) (3,809) (4,108) Unit Sales) Yen Net Sales 73.9 72.1 68.0 75.6 69.9 67.2 71.3 214.1 208.5 (billion) Yen ( - 2.6 % )(billion) ( + 4.8 % ) Operating Margin Currency Effect + 1.2 Currency Effect - 3.2 (Revenue from sales to (Revenue from sales to Operating Income external customers) external customers) 2 2% <Increase Factors> -Changes in unit sales and model mix in power product business, etc 1% 0.4% 0.1% - 0.1 0.05 0.07 0.1% 0 0.2 0% - 0.2% - 2.1 - 2.0 - 2.2 - 2.0 - 2.1 -1% - 0.9% - 1.0% -2 -2% - 2.7% - 3.2% - 3.3% -3% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months -4 FY12 FY13 FY12 FY13 -4% 17
  • 18. Financial Services Business Total Assets/Net Sales/Operating Income (Margin) FY12 FY13 FY12 FY13 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months Total Assets of Finance Subsidiaries 5,445.7 5,169.2 5,290.5 5,644.3 5,567.6 5,577.7 6,197.2 Yen Net Sales 138.6 129.1 127.5 131.2 134.0 133.1 138.1 395.3 405.3 (billion) Yen ( + 8.3 % ) ( 2.5 % )(billion) Operating Margin Currency Effect + 4.2 Currency Effect + 5.6 (Revenue from sales to (Revenue from sales to 200 Operating Income external customers) external customers) 50% ( - 12.5 % ) 38.7% 40% 150 33.2% 29.5% 30.5% 27.4% 28.7% 27.6% 30% 33.9% 100 <Increase Factors> 28.9% -Positive currency effect, etc <Decrease Factors> 20% -Increased expenses on lease residual values etc ( + 1.4 % ) 134.0 117.2 50 10% 53.6 42.8 37.5 35.9 40.8 38.2 38.1 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months FY12 FY13 FY12 FY13 18
  • 19. Japan Net Sales/Operating Income (Margin) FY12 FY13 FY12 FY13 Yen 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months (billions) Net Sales 625.3 805.3 863.1 1,069.0 1,006.6 925.0 902.3 2,293.9 2,834.1 Yen Operating Income ( + 4.5% ) ( + 23.6% ) (billions) Operating Margin (%) <Increase Factors> -Changes in revenue and model mix, etc. <Decrease Factors> -Increased R&D expenses, etc.140 ( 4.6 % ) 90 131.7 ( 4.5 % ) 40 60.9 ( - 4.8 % ) 12.5 30.0 40.7 ( - 5.3 % ) -10 - 45.8 - 35.3 - 41.2 - 122.4 -60-110 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months-160 FY12 FY13 FY12 FY13 19
  • 20. North America Net Sales/Operating Income (Margin) FY12 FY13 FY12 FY13 Yen 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months (billions) Net Sales 733.9 794.1 986.2 1,200.3 1,214.7 1,054.7 1,245.8 2,514.3 3,515.3 Yen Operating Income ( + 26.3 % ) ( + 39.8 % ) (billions) Operating Margin (%) ( + 27.5 % )200 <Increase Factors> ( 5.1 % ) -Changes in revenue and model mix, etc. <Decrease Factors> -Increased SG&A expenses, etc. ( 5.6 % )150 ( - 5.3 % )100 141.0 179.8 ( 7.6 % ) ( 5.7 % )50 74.8 82.2 82.2 70.8 47.7 18.5 26.7 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months FY12 FY13 FY12 FY13 20
  • 21. Europe Net Sales/Operating Income (Margin) FY12 FY13 FY12 FY13 Yen 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months (billions) Net Sales 150.9 144.5 119.4 165.8 147.8 144.5 142.8 414.9 435.2 Yen Operating Income ( + 19.5% ) ( + 4.9% ) (billions) Operating Margin (%) <Increase Factors> -Changes in revenue and model mix etc. <Decrease Factors> -Increased SG&A expenses, etc.10 5 1.8 ( - 4.6 % ) ( - 3.2 % ) ( - 2.5 % ) ( - 3.4 % ) 0 - 6.1 - 4.0 - 3.8 - 7.6 - 8.7 - 3.5 - 13.9 - 19.9 -5-10-15-20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months FY12 FY13 FY12 FY13-25 21
  • 22. Asia Net Sales/Operating Income (Margin) FY12 FY13 FY12 FY13 Yen (billions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months Net Sales 373.4 407.7 317.6 391.5 512.8 539.4 587.4 1,098.9 1,639.6 Yen Operating Income ( + 84.9% ) ( + 49.2% ) (billions) Operating Margin (%)140 ( + 80.2% )120 <Increase Factors> -Changes in revenue and model mix ( 6.6 % ) -Cost reduction etc. <Decrease Factors>100 -Increased SG&A expenses, etc.80 ( + 203.9% ) ( 5.5 % )60 ( 6.9 % )4020 ( 4.2 % ) 36.4 40.5 60.3 108.7 25.1 21.8 16.5 31.7 13.3 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months FY12 FY13 FY12 FY13 22
  • 23. Other Regions Net Sales/Operating Income (Margin) FY12 FY13 FY12 FY13 Yen (billions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months Net Sales 229.9 244.3 206.1 212.6 220.3 229.6 222.5 680.4 672.5 Yen Operating Income ( + 8.0% ) ( - 1.2% ) (billions) Operating Margin (%)60 <Increase Factors> ( 7.5 % ) -Changes in revenue and model mix, etc.50 <Decrease Factors> -Increased SG&A expenses, ( - 50.4% ) -Negative currency impact, etc 51.34030 ( - 78.7% ) ( 3.8 % ) 25.420 ( 6.1 % )10 15.7 23.0 12.5 12.2 10.5 ( 1.2 % ) 5.6 2.60 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months FY12 FY13 FY12 FY13 23
  • 24. Change in Equity in income of affiliates Total Asia Yen(billions) + 2.5 ( + 3.8 % ) 80.0 69.6 70.0 67.1 66.4 64.2 60.0 - 1.5 ( - 6.5% ) 50.0 40.0 33.2 28.6 29.3 30.0 27.4 25.3 22.9 22.1 21.5 20.7 20.8 21.4 20.0 18.0 15.5 14.8 10.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 Months FY12 FY13 FY12 FY13 24
  • 25. Consolidated Capital Expenditures <FY13 Nine Months> + 150.0 ( + 62.6 % ) Yen (billions) Excluding currency translation effects + 155.2 ( + 64.7 % ) + 144.3 + 0 + 4.1 - 5.2 389.7 Financial Power product Currency & Translation Services Other Businesses Effects Business 239.7 + 6.5 Motorcycle Automobile Business BusinessFY12 Nine Months * Capital expenditures in results aforementioned exclude FY13 Nine Months Market average rates investment in operating leases and intangible assets Market average rates US$ 1= JPY 79 US$ 1= JPY 80 (Yen down by 1 yen) Euro 1= JPY 111 Euro 1= JPY 102 (Yen up by 9 yen) Yen (billions) Yen (billions) Motorcycle Motorcycle Business 39.4 Business 42.6 Automobile Automobile Business 194.1 Business 337.0 Financial Services Financial Services Business 0.1 Business 0.2 Power Product & Power Product & Other Businesses 6.0 Other Businesses 9.8 Total 239.7 Total 389.7 25
  • 26. FY13 3rd Quarter Financial Results & FY13 Financial ForecastsFumihiko Ike Senior Managing Officer and Director Chief Financial Officer - FY13 3rd Quarter Consolidated Financial Results - FY13 Financial Forecasts - DividendKohei TakeuchiOperating Officer, General Manager of Accounting Division - FY13 3rd Quarter 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 - FY 13 Financial Forecasts 26
  • 27. Forecast: Honda Group Unit Sales Motorcycles Automobiles Power Products Unit - 40 - 60(thousand) - 160 ( - 0.3 % ) ( - 1.5 % ) ( - 2.6 % )20,000 5,000 8,000 4,120 4,060 15,560 15,520 6,220 15,061 4,000 310 295 6,06015,000 6,000 5,819 550 1,840 1,790 515 Other 2,031 520 Regions 3,108 1,155 1,130 3,000 202 Asia 1,472 1,670 1,61510,000 837 205 185 4,000 12,412 13,055 13,070 1,121 1,045 1,010 Europe 2,000 158 1,323 1,740 1,740 5,000 2,000 North 2,314 2,630 2,610 America 1,000 198 180 180 200 255 255 588 710 710 Japan 220 230 225 392 325 310 0 0 0 FY12 FY13 FY13 FY12 FY13 FY13 FY12 FY13 FY13 Previous Revised Previous Revised Previous Revised Forecasts Forecasts Forecasts Forecasts Forecasts Forecasts 27
  • 28. Forecast: Consolidated Unit Sales Motorcycles Automobiles Power Products Unit - 80 - 160(thousand) - 40 ( - 0.8 % ) ( - 1.1 % ) ( - 2.6 % )12,000 8,000 4,000 9,620 9,540 3,490 6,220 6,060 3,450 9,000 8,650 6,000 5,819 550 Other 310 295 515 Regions 1,840 1,790 520 3,000 2,031 535 530 1,472 1,670 1,620 Asia 2,482 205 185 202 6,000 4,000 219 2,000 158 1,121 1,045 1,010 Europe 1,740 1,740 6,001 7,115 7,090 1,323 3,000 2,000 North 1,000 2,314 2,630 2,630 America 198 180 180 580 700 700 200 255 255 Japan 220 230 225 392 325 310 0 0 0 FY12 FY13 FY13 FY12 FY13 FY13 FY12 FY13 FY13 Previous Revised Previous Revised Previous Revised Forecasts Forecasts Forecasts Forecasts Forecasts Forecasts 28
  • 29. FY13 Financial Forecasts (Consolidated) Yen (billion) Change Change from FY12 FY13 previous forecasts Results Forecasts amount %Net sales & otheroperating revenue 7,948.0 9,800.0 + 1,851.9 + 23.3% -Operating income 231.3 520.0 + 288.6 + 124.8% -Income beforeincome taxes 257.4 515.0 + 257.5 + 100.1% - 25.0Equity in income ofaffiliates 100.4 80.0 - 20.4 - 20.3% -Net income attributable toHonda Motor Co., Ltd. 211.4 370.0 + 158.5 + 75.0% - 5.0EPS attributable to HondaMotor Co., Ltd. (Yen) 117.34 205.29 + 87.95 Note : Shares which are based approx. approx. on calculation of EPS 1,802,300,000 shares 1,802,298,000 shares (weighted average number (weighted average number of shares outstanding ) of shares outstanding )Average Rates (Yen) 81 Yen down US Dollar 79 Yen down by 2 yen (1H 79 / 2H 83) by 1 yen 105 Yen down Euro 108 Yen up by 3 yen (1H 101 / 2H 108) by 2 yen 29
  • 30. Forecast: Change in Income before Income Taxes Yen (billions) Income before Income taxes + 257.5 ( + 100.1 % ) Other Income Operating Income + 288.6 ( + 124.8 % ) & Expenses * - 31.0 * + 165.0 - 181.0 + 344.8 - 35.2 * - 5.0 - 2.0 - 29.0 Cost Reduction, increase etc. in SG&A 515.0 Increase Currency Effect Unrealized gains in R&D and losses Others 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 231.3 520.0FY12 FY13 Revised Forecast 30
  • 31. Forecast: Change in Income before Income Taxes Yen (billions) Income before Income taxes – 25.0 ( - 4.6 % ) Other Income Operating Income ± 0 (± 0.0 % ) & Expenses - 25.0540.0 - 38.0 + 40.0 - 12.0 - 2.0 ±0 ±0 - 13.0 515.0 Revenue, Unrealized gains Cost Reduction, SG&A R&D Currency Effect Others model mix, and losses etc. related to etc. derivative instrumentsOperating Operating Income Income 520.0 520.0 FY13 FY13Previous RevisedForecast Forecast 31
  • 32. Forecast: Capital Expenditures, Depreciation, R&D Expenses Yen (billions) Change from FY12 FY13 Change previous Results Revised Forecasts forecastCapital *expenditures 406.5 600.0 + 193.5 -Depreciation and *Amortization 293.7 285.0 * * - 8.7 -R&D expenses 519.8 555.0 + 35.2 - * “Capital expenditures” in results and the forecast aforementioned exclude investment in operating leases and acquisition of intangible assets. * “Depreciation and amortization” in results and the forecast aforementioned exclude depreciation of investment in operating leases and amortization of intangible assets. ** Honda changed to the straight line method effective from April 2012 for the depreciation method. 32
  • 33. 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 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. 33
  • 34. -Currency Effects- (Exhibit 1) (effects associated with sales transactions and translation effects) Yen (billion) Average Rates (Yen) FY13 FY13 3Q FY12 FY13 9 Months Change 3Q 3Q Yen down by JPY / USD + 13.4 77 81 4 yen + 12.8 Yen down by JPY / Euro - 0.0 105 106 1 yen - 3.7 JPY / Others - 2.4 ― ― ― - 15.1 Transactions between other currencies - 7.0 ― ― ― - 14.8Difference of average rates *1 *1:Impact of YOY difference of FOREX to be used for(Impact on Operating income) + 3.8 booking revenue of foreign currency transactions - 21.0Difference between transaction *2 *2:Impact of YOY difference between average FOREXrates and average rates - 8.8 and hedge rates during the period - 19.0(Impact on Other income & expenses)Currency effect associated withsales transaction - 4.9 - 40.0 *3 *3:Effect due to the difference of the rate used for translatingCurrency effect from translation Honda’s overseas subsidiaries’ financial statementsof foreign financial statements + 8.7 denominated in foreign currencies into Japanese yen - 0.5(impact on operating income) with the corresponding period of the fiscal year Total + 3.7 - 40.6 34
  • 35. - Unrealized Gains and Losses Related to Derivative Instruments - (Exhibit 2) Yen (billion) 3Q 9 Months FY12 FY13 Change FY12 FY13 Change Foreign currency - 5.2 - 53.1 - 47.8 + 8.5 - 28.4 - 37.0 Forward Interest rate swap + 6.2 - 1.3 - 7.5 + 18.3 - 1.4 - 19.7Currency swap Others + 0.0 - 0.1 - 0.2 + 0.4 - 0.0 - 0.4 Total + 1.0 - 54.5 - 55.6 + 27.3 - 29.9 - 57.2 35
  • 36. 36