Kotlin Multiplatform & Compose Multiplatform - Starter kit for pragmatics
קבר הצדיק
1. Honda Update June 2008
2008 ACCORD TOURER
(for European Market)
CR-Z
(a lightweight sports hybrid concept )
2. Outline
Highlights of Honda’s Business Growth Strategy
• US Operations (Automobile) P 2- 8
• Brazil Operations (Automobile & Motorcycle) P 9- 11
• Asia Operations (Automobile & Motorcycle) P 12- 18
• Europe Operations (Automobile) P 19- 20
• Production Capacity (Automobile) P 21
• Growth Potential of Motorcycle Business P 22
• Hybrid Vehicle Business Strategy P 23
Financial Highlights
• FY 08 Results
• Outline P 24- 25
• Segment Information P 26- 32
• Profit Analysis P 33- 36
• FY 09 Forecasts P 37- 40
• Dividend per Share P 41- 42
3. Honda’s Business Growth Strategy
Major Key Drivers
US Operations : Automobile
Brazil Operations : Automobile and Motorcycle
Asia Operations : Automobile and Motorcycle
Europe Operations : Automobile
Growth Potential of Motorcycle Business
Hybrid Vehicle Business Strategy
1
4. Operation in North America
Operating income in North America compressed
by higher yen and weak model mix
Yen
(billions)
150 12%
9.5% 10%
7.8%
7.7%
100 7.5% 8%
7.2% 7.3%
6.5% 6.7%
6.1%
5.8%
5.4% 6%
4.3%
50 4%
2%
72.7 68.5 106.7 105.8 114.4 95.7 118.2 128.4 97.0 116.0 156.3 63.1
0 0%
FY06 1Q 2Q 3Q 4Q FY07 1Q 2Q 3Q 4Q FY08 1Q 2Q 3Q 4Q
2
5. Update on Honda’s U.S. Automobile Business
Honda’s steady growth despite weak SAAR
Industry Demand Honda’s Retail Unit Sales
Unit
Unit (thousands)
(thousands) (aggregate numbers of Honda brand and Acura brand)
20,000 Passenger Cars Passenger Cars
Light Trucks Light Trucks 1,570
1,552
16,884 16,965 1,509
16,556 1,500 1,462
16,149
1,394
15,300
15,000
1,000
10,000
500
5,000
0 0
CY 04 '05 '06 '07 08(P)
CY 04 '05 '06 '07 08(E)
Source: Honda
3
6. U.S. Light Vehicle Retail Sales YoY Changes by manufacturers
January – April, 2008 vs 2007
Ho n da
Sm ar t USA
Mazda
Me r c e de s- Be n z
Vo lkswage n
Su zu ki
Kia
BMW
Nissan
Mit su bish i
Hyu n dai
T o yo t a
Fo r d
C h r ysle r
Ge n e r al M o t o r s
T OTAL
Unit
-250
(thousands) -200
-400 -150 -100 -50 0 50
4
7. U.S. Passenger Car Retail Sales YoY Changes by manufacturers
January – April, 2008 vs 2007
Honda
Nissan
Smart USA
Kia
Chrysler
Volkswagen
Hyundai
Mercedes-Benz
Mitsubishi
BMW
Mazda
Toyota
Suzuki
TOTAL
General Motors
Ford
Unit
-25
(thousands) -20 -15 -10 -5 0 5 10 15 20
5
8. U.S. Light Truck Retail Sales YoY Changes by manufacturers
January – April, 2008 vs 2007
Suzuki
Mazda
Mercedes-Benz
BMW
Volkswagen
Mitsubishi
Kia
Hyundai
Honda
Nissan
Toyota
Ford
General Motors
Chrysler
TOTAL
Unit
-200
(thousands) -150
-350 -100 -50 0 50
6
9. Update on Honda’s U.S. Automobile Business
Honda’s fuel efficient vehicles are well received in the U.S.
Unit demonstrates solid passenger car sales
(thousands)
Fit
1800
R dgeline
1600
Fit MDX
1400
Element
1200 CR-V CR-V
1000 Odyssey
800 Pilot
600
TSX
400
Civic RDX
TL
200
Accord Legend/RL
0
Civic
1999
2000
2001
2002
2003
2004
2005
2006
2007
CY 1998
2008(P)
Accord
7
10. Product pipeline and production flexibility in North America
Total Annual Production Capacity: 1,420,000 (current) ⇒ 1,620,000 (fall of 2008)
Passenger cars Light Trucks
Annual
location Capacity
Small Middle Luxury Crossover Pickup Van
Line 1
Line 1
Civic CSX
195
195
Canada
Canada Ontario
Ontario Alliston
Alliston
Line 2
Line 2
195
Civic MD-X Pilot Ridgeline Odyssey
195
Marysville
Marysville 440
440 Accord TL RDX
Ohio
Ohio
East
East
Liberty
Liberty
240
240 Civic CR-V Element
U.S.
U.S. Indiana
Indiana Greensburg
Greensburg 200
200 Civic
Line 1
Line 1
Ridgeline Odyssey
150
150
Alabama
Alabama Lincoln
Lincoln
Line 2
Line 2
150
Pilot Odyssey
150
Mexico
Mexico El Salto
El Salto 50
50 Accord CR-V
Import
Import New model in 2008
from Japan
from Japan
Accord CR-V
8
11. Operation in South America
Operating income in Other region
centered in Brazil to grow
Yen
(billions)
50
13%
11.7%
40
11.4%
11.3% 11.2%
10.9%
10.3% 10.4% 11%
30
9.6%
8.6% 9%
8.3% 8.4%
20
7.2%
7%
10
13.6 15.1 16.6 11.6 15.2 21.4 16.0 19.5 21.7 30.1 31.7 32.7
0 5%
FY06 1Q 2Q 3Q 4Q FY07 1Q 2Q 3Q 4Q FY08 1Q 2Q 3Q 4Q
9
12. Honda’s Automobile Business Growth in South America
Industry Demand Honda’s Unit Sales
(including commercial vehicles) Good sales of FFV models continue to
Unit Unit
(thousands) (thousands) contribute to growth in 2008.
5,000
160
Brazil Argentina Venezuela Chile
4,500 Flexible Fuel Vehicles (currently marketed in Brazil)
Colombia Ecuador Peru
140 Petrol Engine Vehicles
4,000
3,500 120
108
South America
3,000 100 Brazil only
84
2,500
80 86
68
2,000
60 57 67
1,500 57
50
40
1,000
500 20
0 0
CY 04 05 06 07 08(E) CY 04 05 06 07
Source: Global Insight Source: Honda
Honda’s Progress in South America Flexible Fuel Vehicles introduced in Brazil
1. Features of Honda FFV models in Brazil (Civic &Fit) Civic FFV Fit FFV
- Adapt to ethanol-to-gasoline ratios of between 20% and 100%
2. Further acceleration of production capacity in Brazil
100,000→ 120,000 within 2008
3. New plant in Argentina
Capacity:30,000 units, to start operation in 2009
Introduced in Nov. 2006 Introduced in Dec. 2006
10
13. Honda’s Motorcycle Business in Brazil
Solid operation as the market leader in the growing Brazil market
Industry: Other brands Further expansion of capacity is planned in 2009
Unit (thousands) (1,500 2,000 thousand units)
Honda
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400 Expansion of production capacity Dec.2007
(1,350 → 1,500 thousand units per year)
200
0
CY 04 05 06 07 08(E)
Source:
Principal models Honda
CG 150 Titan CG 125 FAN Biz 125
11
14. Operation in Asia
Operating income in Asia exceed 100 billion in FY08
with higher auto and motorcycle growth
Yen
(billions)
50 14%
12%
40
9.4% 9.3% 10%
8.3% 8.0%
30
8%
6.8% 6.9% 6.8% 6.7%
5.8%
6%
20
5.2% 5.3%
4.5% 4%
10
2%
19.1 15.8 17.2 12.7 19.4 18.2 20.2 19.2 36.9 33.4 38.3 21.9
0 0%
1Q 2Q 3Q FY06 4Q 1Q 2Q 3Q FY07 4Q 1Q 2Q 3Q FY08 4Q
12
15. Update on Honda’s Automobile Business in India
Unit
Industry Demand Unit
Honda’s Unit Sales
(thousands) (excluding commercial vehicles, (thousands)
1,400 80
SUV and MUV)
Category
1,200
70
Premium
60
"A" 60 CR-V
1,000 55
800cc
50 Civic
800
40
40
35
600
30
400 City
20
200 10
Accord
0
0
CY 04 05 06 07 08(E) CY 04 05 06 07
Source: Global Insight Source: Honda
Honda model line up in India
Honda’s Progress in India
1. Enhancing dealer network
- Number of Dealer outlets: 34 (Mar. 2003) → 80 (Mar. 2008)
2. Further Accelerating production capacity expansion
Civic (July 2006-)
City (Oct 2003-)
Existing Plant Second Plant
50,000 →100,000 units 60,000 units
(2008 Jan. completed) (Operation starts toward
the end of 2009 to 2010)
CR-V (Nov 2006-) Accord (May 2008-) 13
16. Honda’s Motorcycle Business in India
Solid business foundation with 2 companies in rapidly growing market
Industry:
Unit (thousands) Expansion of annual production capacity
HHML 500 thou. Increase from April 2008
10,000 Other brands (India total 4,900 → 5,400 thousand units)
Hero Honda
Honda Motorcycle & Scooter India
8,000
6,000
4,000
2,000
0
Source :
CY 04 05 06 07 08(E) Honda
Principal models of
Principal models of Hero Honda Motors Limited Honda Motorcycle & Scooter India
Splendor+ CD Deluxe Passion+ Activa Shine
14
17. Growth of HMSI in India
Steady Growth of Honda Motorcycle & Scooter India, subsidiary of Honda
Industry: Expansion of production capacity by the end of 2010
Unit (thousands)
1,000 (1,000 → 1,200 thousand units per year)
800
600
400
200
0
Source :
CY 04 05 06 07 Honda
Principal models of Honda Motorcycle & Scooter India HMSI Dealer
Activa Shine Unicorn (Sep 2004-) Aviator (Mar 2008-)
15
18. Honda’s Motorcycle Business in Vietnam
Honda to enhance product pipeline for growing market,
Further expansion of production capacity
Industry: Expansion of production capacity in Aug 2008
Unit (thousands) Other brands
(1,000 → 1,500 thousand units per year)
Honda
3,000
2,500
2,000
1,500
1,000
500
0
CY 04 05 06 07 08(E)
Source:
Principal models Honda
Wave S Future Neo FI Click* (Oct 2006-) Air Blade* (Apr 2007-)
(May 2007-) (Apr 2007-) * AT model: Motorcycles equipped with automatic transmission
16
19. Honda’s Motorcycle Business in Indonesia
Honda to enhance product pipeline to go with the momentum of the market
Industry: Other brands
Unit (thousands)
Honda
6,000
5,000
4,000
3,000
2,000
1,000 Added annual production capacity in Sep. 2005
(2,000 → 3,000 thousand units)
0
CY 04 05 06 07 08(E) Source:
Honda
Principal models Coming in 2008
Revo Vario* Supra X 125
* AT model: Motorcycles equipped with automatic transmission 17
20. Update on Honda’s Automobile Business in China
Industry Demand Honda’s Unit Sales
Unit
(thousands)
(excluding commercial vehicles) Unit
(thousands)
7,000 500 Over 490
450
6,000 424
WDHAC models
400
Civic
5,000
350
323
CR-V
4,000
300
257 Fit
250
3,000 214
200 City GHAC models
2,000 150
Odyssey
100
1,000
50 Accord
0 0
CY 04 05 06 07 CY 04 05 06 07 08(P)
Source: CAAM Source: Honda
Honda’s Progress in China GHAC model line up
1 Enhancing model lineup and dealer network
- New Accord introduced in Jan. 2008, New Fit to be introduced within 2008
- Number of Dealer outlets: GHAC 361, WDHAC 189, Acura 8(Mar.2008)
Total 700 outlets within a year Fit City Accord Odyssey
- Introduction of Acura (RL/TL/MDX) WDHAC model line up
2 Progress in Manufacturing Operation
GHAC*1 : Capacity 360 thou. units *1 GHAC: Guangzhou Honda Automobile Co., Ltd.
WDHAC*2 : Capacity 120 thou. units--> 240 thou. units within 2yrs *2 WDHAC: Dongfeng Honda Automobile Co., Ltd.
CHAC*3 : Added 2nd shift from Apr. 2007, capacity 50 thou. units *3 CHAC: Honda Automobile (China) Co., Ltd.
3 GHAC begin selling products under its own brand in 2010 Civic CR-V
18
21. Operation in Europe
Operating income in Europe (including Russia) to grow,
expecting higher sales in Russia
Yen
(billions)
30 5%
4.3% 4.3%
4.2%
4%
20
2.9% 2.9%
2.8% 2.6% 3%
2%
2.0%
10
1.6%
1.4%
1%
1.1%
12.7 0.3%
0.8 2.8 9.8 6.4 9.0 3.7 12.6 10.3 16.7 5.8 18.6
0 0%
FY06 1Q 2Q 3Q 4Q FY07 1Q 2Q 3Q 4Q FY08 1Q 2Q 3Q 4Q
19
22. Update on Honda’s Automobile Business in Russia
Unit Industry Demand Unit
(thousands)
Honda’s Unit Sales
(thousands) (excluding commercial vehicles) 60
3,000
Foreign brands
Domestic brands
2,500
2,000
40 38.6
Jazz
CR-V
1,500
1,000 20
Civic
15.7
500 8.9
6.0 Accord
0 0
CY 04 05 06 07 CY 04 05 06 07
Source: AEB (The Association of European Businesses) Source: Honda
Honda model line up in Russia
Honda’s Progress in Russia
1 Starting business
- Established subsidiary company (HMR) in Feb. 2004
Jazz Civic 5D Civic 4D
2 Enhancing dealer network
- Number of Dealer outlets:
15 (2004 end) → 43 (Mar. 2008)
expand mainly in large cities,
total 70 outlets in a few years
CR-V Accord Pilot (coming in 2008)
20
23. Expansion of Production Capacity (Automobiles)
High value added model at Yorii Auto Plant
Next generation high efficiency engine at Ogawa Engine Plant
Unit
(thousands)
Yorii
India
Japan
Argentina +60
Indiana +200
+30
+200
Thailand
+120
Brazil
+20
4,055 WDHAC
China
+120 within 2yrs
Current 2008 2009 2010
21
24. Growth Potential of Motorcycle Business in Emerging Markets
GDP per capita Penetration Rate (% of population) of Motorcycles
(U.S.$)
(JETRO 2006) 10% 20% 30% 40% 50% 60%
$15,482 Taiwan 59.5%
Population (millions)
$5,718 Malaysia 28.3% Units in operation (millions)
*Indonesia data as of 2004
$3,136 Thailand 23.8% *India data as 2004 provisional
$723 Vietnam 20.5%
$1,640 Indonesia* 10.8%
$5,714 Brazil 5.1%
$796 India*
4.6%
100 mil 200 mil 1,100 mil
Motorcycle penetration is still low in Honda’s principal markets
Industry: Vietnam
● Honda wholesales unit (thousands) 12,000 Honda wholesales:
( thousands ) Thailand ( thousands )
20,000 Brazil
Indonesia 10,000
India
8,000
6,000
10,000
4,000
2,000
Source: Honda
0 0
CY 04 05 06 07 08(E)
Honda has strong position in such markets 22
25. Hybrid Vehicle Business Strategy
Hybrid Car in the U.S. market
Unit
(thousands)
Hybrid technology is about to hit the “growth” stage,
350 Honda aims wider market penetration with
Other Brand
300
Honda
new dedicated hybrid model
250
200
150
Introduction of Honda Insight
100
50
Insight, 2006 Civic Hybrid,
0 first hybrid vehicle in the U.S. won the “World Car of the Year Award”
for Greenest Car
CY99 00 01 02 03 04 05 06 07
-Compact Control Unit / Battery
Cost down on Next Hybrid System -Thin Hybrid Motor
-Efficient manufacturing processes
Hybrid models with affordable price: 500,000 annual global sales beyond 2010
New Hybrid Model Compact, 5 door/5 passenger, to be marketed in early 2009
Hybrid Sports
CR-Z, Concept model
Honda annual
global sales New Civic Hybrid
beyond 2010
Fit Hybrid
23
26. Financial Highlights
•FY 08 Results
•Outline
•Segment Information
•Profit Analysis
•FY 09 Forecasts
•Dividend per Share
27. Outline of 4th Quarter Financial Results (Consolidated)
4Q Results Business environment
Unit Sales US economy slow down, ongoing subprime loan impact
FY07 FY08 Change Declining personal consumption in European economy
Unit (thousands)
Continued growth of Asian economy
Motorcycles 2,408 2,368 - 1.7% Signs of weakness in Japan economy
Continued high prices for crude oil and raw materials
Automobiles 957 1,051 + 9.8% Yen appreciation against U.S. dollar, depreciation against
other currencies
Power Products 2,128 2,092 -1.7% Motorcycle Market
Growth in Vietnam and Brazil continued
Declining market in North America
4Q Results Automobile Market
Growth of emerging markets such as BRICs
Financial results Strong demand for fuel-efficient cars in the U.S.
Yen (billions) FY07 FY08 Change
Japan automobile market remain stagnant
Net sales & other
3,087.8 3,055.5 - 1.0% Review of financial results
operating revenue
Operating margin decreased due to factors including
Operating income 250.2 168.8 - 32.5% significant yen appreciation against U.S. dollar despite the
increased automobile unit sales achieved in the toughening
Income before business environment such as in the U.S.
239.0 146.8 - 38.6%
income taxes Unit Sales
Equity in income Motorcycles: Strong sales in South America, etc.
19.9 24.3 * + 22.1% Decreased unit sales of component parts for Asia
of affiliates
Automobiles: Unit sales increased in all regions
Net income 176.1 25.4 - 85.6% Power Products:Increased unit sales in Europe, Asia, Other Regions
Decreased unit sales in North America
EPS (Yen) 96.70 14.01 - 82.69 Net sales & other operating revenue
Increased unit sales in automobile segments
Note : Shares which are based approx. approx.
* Record high Net sales decreased due to currency translation effects
on calculation of EPS 1,821,994,000 shares 1,814,587,000 shares for 4Q
(weighted average number of shares outstanding ) Operating income
<Increase Factors>
Continuing cost reduction effects
Average Rates (Yen) Increased profit from increased automobile unit sales
stronger by <Decrease Factors>
U.S. Dollar 120 106 14 yen Currency effect of yen appreciation against U.S. dollar
weaker by Increase in sales incentives in North America
Euro 157 158 Increased raw material costs
1 yen 24
28. Outline of 4th Quarter & Twelve Months Financial Results (Consolidated)
4Q Results Twelve Months Results
Unit Sales
FY07 FY08 Change FY07 FY08 Change
Unit (thousands)
Motorcycles 2,408 2,368 - 1.7% 10,369 9,320 - 10.1%
Automobiles 957 1,051 + 9.8% 3,652 3,925 + 7.5%
Power Products 2,128 2,092 -1.7% 6,421 6,057 - 5.7%
4Q Results Twelve Months Results
Financial results
Yen (billions) FY07 FY08 Change FY07 FY08 Change
Net sales & other
operating revenue
3,087.8 3,055.5 - 1.0% 11,087.1 12,002.8 * + 8.3%
Operating income 250.2 168.8 - 32.5% 851.8 953.1 * + 11.9%
Income before
income taxes
239.0 146.8 - 38.6% 792.8 895.8 * + 13.0%
Equity in income
19.9 24.3* + 22.1% 103.4 118.9* + 15.0%
of affiliates
Net income 176.1 25.4 - 85.6% 592.3 600.0 * + 1.3%
EPS (Yen) 96.70 14.01 - 82.69 324.62 330.54* + 5.92
Note : Shares which are based approx. approx. * Record high approx. approx.
* Record high for
on calculation of EPS 1,821,994,000 shares 1,814,587,000 shares for 4Q 1,824,675,000 shares 1,815,356,000 shares twelve months
(weighted average number of shares outstanding ) (weighted average number of shares outstanding )
Average Rates (Yen)
stronger by stronger by
U.S. Dollar 120 106 14 yen 117 114 3 yen
weaker by weaker by
Euro 157 158 1 yen 151 162 11 yen
25
29. Motorcycle Unit Sales (Motorcycles ＋ All-Terrain Vehicles, etc.)
Change - 1,049
Unit FY08 4Q from FY 07 4Q
Major increase / decrease factors （ - 10.1% ） Approx.4,580
(thousands)
Approx.2,860
13,000
13,000 Japan 66 - 13 ・Decrease of Dio etc.
North ・Decrease of CBR600RR, VT750
150 -14 Wave S (Vietnam)
12,000
12,000 America ・ Decrease of ATV such as Four Trax Foreman
11,000
Europe 89 -8 ・Decrease of CBR600RR in Italy
11,000
・Decrease of component parts for Indonesia 10,369
Asia 1,617 - 89 ・Increase of Wave S and AT models such as Air Blade in
10,000
10,000 Vietnam
1,305
Other ・Introduction of POP100 in Brazil CG125 FAN (Brazil) 9,320
Regions
446 + 84 ・Increase of CG125, NXR150 in Brazil
9,000
9,000
Unit sales of Honda-brand
Other
Total 2,368 - 40 motorcycle products that 1,610 Regions
8,000
8,000 are manufactured and sold
by overseas affiliates
accounted for under the
7,000
7,000 equity method, but do not
use any parts supplied by
Honda and its subsidiaries
6,000 - 40
6,000
（ - 1.7% ）
7,895 6,633 Asia
5,000
5,000
4,000
4,000
Approx.560 Approx.640 Approx.1,150 Approx.1,100 Approx.1,160 Approx.1,280
Approx.1,020
3,000
3,000 Approx.500 2,816 2,765
2,380 341 314 2,408 2,253 2,333 2,366 2,368
288 362 392 401
2,000
2,000 371 446
2,163 2,217
1,809 1,706
1,000
1,000 1,623 1,645 1,748 1,617 329 Europe
313
105 71 56 97 95 68 61 89 North
143 107 164 121 102 150 503 453 America
89 80
89 98 71 79 84 107 54 66 337 311 Japan
00
1Q
第１四半期 2Q 3Q
第２四半期 第３四半期
第３四半期 4Q
第４四半期 1Q
第１四半期 2Q 3Q
第２四半期 第３四半期 4Q
第３四半期 第４四半期
第４四半期 12ヶ月間通算 12ヶ月間通算
第１四半期 第２四半期 第４四半期 第１四半期 第２四半期 12ヶ月間通算 12ヶ月間通算
Twelve Months Twelve Months
FY07 FY08 FY07 FY08
Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts for Honda’s affiliates accounted for under the equity method. 26
31. Automobile Unit Sales
Unit Change
FY08 4Q from FY 07 4Q
Major increase / decrease factors
(thousands) + 273
・Increase of FIT and Inspire （ + 7.5% ）
Japan 191 +2 ・Decrease of That’s FIT (Japan)
4,000 North ・Increase of Accord and CR-V
3,925
America
459 +9 ・ Decrease of Pilot
3,652 314 Other
Regions
Europe 109 +7 ・Increase of Civic and CR-V in Russia, Ukraine
3,500 248
・Increase of component parts for China (CR-V and Fit etc ) Civic (Russia)
Asia 203 + 54 ・Increase of CR-V in ASEAN countries such as Indonesia 755 Asia
620
Other ・Increase of Civic FFV in Brazil
3,000 89 + 22 ・Increase of Accord in Middle East countries such as
Regions Saudi Arabia and UAE
Total 1,051 + 94 324 391 Europe
2,500 CR-V (Indonesia)
2,000
+ 94
1,850 North
（ + 9.8% ） 1,788 America
1,500
991 1,051
1,000 896 884 915 957 946 937 89
67 72 87
61 66
60 60 188 203
155 149 187 177
153 163
102 109
71 79 72 92 100 90
500
456 411 471 450 465 445 481 459 672 615 Japan
156 171 156 189 136 143 145 191
0
1Q
第１四半期 2Q
第２四半期 3Q
第３四半期 4Q
第４四半期 1Q
第１四半期 2Q
第２四半期 3Q
第３四半期 4Q
第４四半期 累計 累計
Twelve Months Twelve Months
FY07 FY08 FY07 FY08
Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts for Honda’s affiliates accounted for under the equity method. 28
33. Power Products Unit Sales
Change
Unit FY08 4Q Major increase / decrease factors
(thousands)
from FY 07 4Q - 364
（- 5.7%）
Japan 151 + 12 ・Increase of general purpose engines for OEM GX35T
(general purpose engine)
6,421
6,500 North ・Decrease of general purpose engines for OEM, generators in
America
888 -135 the U.S.
406 6,057
6,000 Europe 671 + 47 ・Increase of general purpose engines for OEM Other
484 Regions
・Increase of general purpose engines for OEM, water pumps in GCV160 760
5,500 Asia 251 + 21 Thailand, Indonesia (general purpose engine)
・Decrease of general purpose engines
・Increase of lawn mowers in Australia
915 Asia
5,000 Other
Regions
131 + 19 ・Increase of generators in South Africa
4,500 1,625
Total 2,092 - 36
4,000 HRU19D1 Buffalo Buck 1,693 Europe
(lawn mower)
3,500
- 36
（- 1.7%）
3,000
2,500
2,128 2,092
112 3,103
2,000 131
1,724 230 251 2,415 North
72 1,529 America
1,500 162 1,382 624 97
1,187 117 220
1,258 1,178 671
382
105 161 116
140
1,000 207 365
390 242
202
254 1,023 280
971 352 888
500 494 615 687
479 361 527 550 Japan
137 127 124 139 135 141 123 151
0
1Q
第１四半期 2Q
第２四半期 3Q
第３四半期 4Q
第４四半期 1Q
第１四半期 2Q
第２四半期 3Q
第３四半期 4Q
第４四半期 Twelve累計 累計
Months Twelve Months
FY07 FY08 FY07 FY08
Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts for Honda’s affiliates accounted for under the equity method. 30
36. Change in Income Before Income Taxes < FY08 4th Quarter >
Income before Income taxes Yen (billions)
- 92.2 bn. yen ( - 38.6 % )
Other Income
Operating Income - 81.3 bn. yen ( - 32.5 %) & Expenses
- 10.8 bn. yen
<Increase Factors> <Decrease Factors>
- Continuing cost reduction effects, etc. - Increase in provision for the allowance for
<Decrease Factors> credit losses
- Increased raw material costs - Increase in quality related expenses
- Increase in depreciation expenses, etc. - Increased logistics expenses due to the
increase in unit sales, etc.
- 28.3 + 31.6 - 46.2
Revenue,
+ 4.4
Cost Reduction,
model mix, the effect of raw
Increase Decrease
etc. material cost
in SG&A - 42.8
fluctuations, etc. in R&D
Currency - 27.0 + 16.1
Effect
<Decrease Factors> Fair value of Others
derivative
- Increase in sales incentives in North America instruments
- Change in model mix, etc. ( Exhibit 2)
<Increase Factors>
- Increased profit from increased automobile unit sales - Currency effect due to difference between average
rates and transaction rates: + 28.1 bn. yen
- Change in sales prices, etc.
- Gain and loss from valuation of the balance of
receivable and debt: - 12.0 bn. yen
239.0 146.8
FY07 4Q FY08 4Q
【Currency Effect 】
<Impact on Operating income> - 42.8 bn. yen (due to difference of average rates & translation effects)
<Impact on Other income & expenses> + 28.1 bn. yen (due to difference between average rates and transaction rates)
<Impact on Income before income taxes> - 14.6 bn. yen (see also Exhibit 1) 33
37. FY08 4th Quarter & Twelve Months Change in Income Before Income Taxes
- Currency effects (effects associated with sales transactions and translation effects) - (Exhibit 1)
Yen (billions)
FY08 4Q Average Rates (Yen)
FY08
Twelve months
Effects in Yen Effects in Yen
(billions) FY07 4Q FY08 4Q Change (billions)
stronger
JPY / USD - 44.5 120 106
by 14 yen
- 34.5
weaker
JPY / Euro + 0.5 157 158
by 1 yen
+ 15.2
JPY / Others - 0.2 ― ― ― + 23.6
between other currencies + 11.8 ― ― ― + 8.6
Due to difference of average rates *1: Impact of YOY difference of FOREX to be used for
(Impact on Operating income)
*1 - 32.3 booking revenue of foreign currency transactions + 13.0
Due to difference between average *2: Impact of YOY difference between average FOREX and
*2
rates and transaction rates + 28.1 hedge rates during the period
+ 53.6
(Impact on Other income & expenses)
Currency effect associated with
sales transactions - 4.1 + 66.7
*3: Effect due to the difference of the rate used for
Currency effect from translation translating Honda’s overseas subsidiaries’ financial
of foreign financial statements
*3 - 10.4 statements denominated in foreign currencies into + 24.6
Japanese yen with the corresponding period of the
(Impact on Operating income) fiscal year
Total - 14.6 + 91.3
34
38. FY08 4th Quarter & Twelve Months Change in Income Before Income Taxes
- Gain and loss on derivative instruments - (Exhibit 2)
Yen (billions)
4Q Twelve Months
FY07 FY08 Change FY07 FY08 Change
Gain and loss on fair value
adjustments for foreign
currency exchange contracts
+ 14.2 + 21.8 + 7.6 - 0.8 + 14.5 + 15.4
Interest rate swap - 6.6 - 41.0 - 34.3 - 28.7 - 84.2 - 55.5
Others - 0.7 - 1.0 - 0.3 - 27.2 - 0.5 + 26.6
Total + 6.7 - 20.2 - 27.0 - 56.8 - 70.2 - 13.4
Reference： (4Q) (Twelve Months)
＜Swap interest rate＞ ＜Swap interest rate＞
At the end of Dec, 2006 5.16% At the end of Dec, 2007 3.92% At the end of Mar, 2006 5.23% At the end of Mar, 2007 5.04%
At the end of Mar, 2007 5.04% At the end of Mar, 2008 2.53% At the end of Mar, 2007 5.04% At the end of Mar, 2008 2.53%
Difference (-0.12%) Difference (-1.39%) Difference (-0.19%) Difference (-2.51%)
35
39. Asia Equity in income of affiliates
Yen + 7.6 + 13.4
(billions)
（ + 114.3% ） （ + 18.5% ）
86.1
80
72.6
70
60
50
40
30 26.8
22.6 23.2 22.2 22.6
20.1
20 14.3
10 6.6
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Twelve Months Twelve Months
FY07 FY08 FY07 FY08
Reference：
Operating income & Net income of affiliates accounted for under the equity method in Asia
Operating
income 58.0 55.7 49.9 30.1 61.2 56.3 55.7 38.0 193.8 211.4
Net income 51.8 50.2 44.2 27.6 57.2 50.0 49.7 31.0 174.0 188.0
Affiliates accounted for under the equity method
Motorcycle Business Automobile Business：
China Sundiro Honda Motorcycle Co., Ltd.* China Guangzhou Honda Automobile Co., Ltd.*
Wuyang-Honda Motors (Guangzhou) Co., Ltd.* Dongfeng Honda Engine Co., Ltd.*
India Hero Honda Motors Ltd. Dongfeng Honda Automobile Co., Ltd.*
Indonesia P.T. Astra Honda Motor*
Malaysia Hicom-Honda MFG. Malaysia SDN. BHD.
Pakistan Atlas Honda Limited* Others 37, Total 47 companies
Thailand A.P. Honda Co., Ltd.
As of the end of March, 2008
* Indicates fiscal term of companies differs from that of Honda Motor Co., Ltd. 36
