Honda fy2011 results

1

FY12 Financial ResultsInsight

ACURA ILX(North America)

Honda Motor Co., Ltd.April 27, 2012

2

FY12 Financial Results & FY13 Financial Forecasts

Fumihiko IkeSenior Managing Officer and DirectorChief Financial Officer

- FY12 Consolidated Financial Results - FY13 Financial Forecasts - Dividend

Kohei TakeuchiOperating Officer, General Manager of Accounting Division

- FY12 Consolidated Financial Results Net Sales and Other Operating RevenueChange in Income before Income TaxesBusiness Segment InformationGeographical InformationChange in Equity in Income of AffiliatesConsolidated Capital Expenditures

- FY13 Financial Forecasts

3

（千台）ChangeFY12FY11

Unit (Sales)

+ 15.1%2,0101,746 Power Products

+ 14.9%988860 Automobiles

+ 17.8%3,4562,934 Motorcycles

4Q Results (Three Months)

+ 15.0039.7224.72EPS attributable toHonda Motor Co., Ltd.(Yen)

ChangeFY12FY11

4Q Results (Three Months)Financial results

+ 33.1%33.2 25.0 Equity in income of affiliates

+ 60.7%71.5 44.5 Net income attributable to Honda Motor Co., Ltd.

+ 21.5%93.0 76.6 Income before income taxes

+ 142.3%111.9 46.2 Operating income

+ 8.7%2,405.0 2,213.0 Net sales & other operating revenue

Yen up by9 yen104 113Euro

Yen up by2 yen80 82US Dollar

Outline of FY12 4th Quarter Financial Results (Consolidated)Financial Summary

Financial Highlights

(thousand)

Yen (billion)

Note : Shares which are based on calculation of EPS

approx.1,802,302,000 shares

(weighted average number of shares outstanding )



Average Rates (Yen)

A swift recovery in auto production after the earthquake and flood, along with new modelmomentum mainly in Japan and N.A., led to a bigrise in sales.A new motorcycle unit sales record for a quarterand earnings from stable financial services business led to much higher income in eachcategory.

Unit Sales:Motorcycle:Increased in Asia and Other regions including South AmericaRecord high for a quartre

Automobile:Increased in North America and JapanDecreased mainly in Asia due to Thailand flood

Power Products:Increased mainly in North America and Asia

Net sales & other operating revenue-Increased in motorcycle and automobile businesses-Negative currency translation effects

Operating income-Increased R&D expenses-Negative currency effects due to appreciation of the Japanese yen

-Positive change in sales volume and model mix-Decreased SG&A expenses

4

ChangeFY12FY11

+ 5.6%5,8195,509

- 10.7%3,1373,512

+ 9.7%12,55911,445

Twelve Months

- 178.33117.34295.67

ChangeFY12FY11

Twelve Months

- 28.2%100.4 139.7

- 60.4%211.4 534.0

- 59.2%257.4 630.5

- 59.4%231.3 569.7

- 11.1%7,948.0 8,936.8

Yen up by6 yen108 114

Yen up by7 yen79 86

（千台）ChangeFY12FY11

Unit (Sales)

+ 15.1%2,0101,746 Power Products

+ 14.9%988860 Automobiles

+ 17.8%3,4562,934 Motorcycles

4Q Results (Three Months)

+ 15.0039.7224.72EPS attributable toHonda Motor Co., Ltd.(Yen)

ChangeFY12FY11

4Q Results (Three Months)Financial results

+ 33.1%33.2 25.0 Equity in income of affiliates

+ 60.7%71.5 44.5 Net income attributable to Honda Motor Co., Ltd.

+ 21.5%93.0 76.6 Income before income taxes

+ 142.3%111.9 46.2 Operating income

+ 8.7%2,405.0 2,213.0 Net sales & other operating revenue

Yen up by9 yen104 113Euro

Yen up by2 yen80 82US Dollar

(thousand)

Yen (billion)






Average Rates (Yen)





Outline of FY12 Financial Results (Consolidated)

5

Change

+ 258.5

+ 19.5

+ 377.5

+ 388.6

+ 2,351.9

amount

470.0

120.0

635.0

620.0

10,300.0

FY13Forecasts

+ 19.5%100.4Equity in income of affiliates

+ 122.2%

+ 146.7%

+ 168.0%

+ 29.6%

%

211.4 Net income attributable to Honda Motor Co., Ltd.

257.4Income before income taxes

231.3Operating income

7,948.0Net sales & other operating revenue

FY12Results

+ 143.44260.78 117.34EPS attributable toHonda Motor Co., Ltd. (Yen)

105

80

Yen up by 3 yen

Yen down by 1 yen

108Euro

79 US Dollar

FY13 Financial Forecasts (Consolidated)Yen (billion)


approx.1,802,300,000 shares(weighted average number

of shares outstanding )


Average Rates (Yen)


6

+ 93.7

+ 149.6

+ 186.7

+ 579.9

amount

ChangeFY13Forecasts

FY12Results

46.2

40.3

- 136.7

2,740.0

%

+ 202.5%

+ 370.4%

－

+ 21.2%

140.0Net income

190.0Ordinary income

50.0Operating income(loss)

3,320.0Net sales

Yen up by 3 yen

Yen down by 1 yen

108

79

105

80

Euro

US Dollar

FY12 Financial Results and FY13 Financial Forecasts (Unconsolidated)

Yen (billion)

Average Rates (Yen)

7

Increase/Decrease from

FY11 Results

( + 6 )

( ± 0 )

± 0

+ 3

+ 3

54

15

15

12

12

FY11Results

( + 4 )

( + 4 )( 19 ) ( 15 )4th quarter End

( + 4 )( 19 )153rd quarter End

( 19 )151st quarter End ( + 4 )

( 19 )152nd quarter End

Increase/Decrease from FY12

( + 16 )( 60 )

FY12Results &Projection

( 76 )Fiscal Year

FY13Projection

Dividend

(Yen)

Dividend per share

8

FY12 Financial Results & FY13 Financial Forecasts

Fumihiko IkeSenior Managing Officer and DirectorChief Financial Officer

- FY12 Consolidated Financial Results - FY13 Financial Forecasts - Dividend

Kohei TakeuchiOperating Officer, General Manager of Accounting Division

- FY12 Consolidated Financial Results Net Sales and Other Operating RevenueChange in Income before Income TaxesBusiness Segment InformationGeographical InformationChange in Equity in Income of AffiliatesConsolidated Capital Expenditures

- FY13 Financial Forecasts

9

( + 12.3 %) ( - 10.3 %)( - 1.7%)

- 988.7 ( - 11.1 %)

(+ 11.2 %)

(+ 15.9 %) (- 0.7 %) ( - 5.8 %)

+ 191.9 ( + 8.7 %)4Q

Net Sales byBusiness Segment FY12FY11

2,213.0

80.0

134.5

1,645.3

353.1

72.5Power Product & Other Businesses

2,405.0Total

129.0Financial Services Business

1,844.9Automobile Business

358.5Motorcycle Business

7986US Dollar113 109Euro

7982 US Dollar113 104 Euro

Twelve monthsNet Sales byBusiness Segment FY12FY11

8,936.8

292.6

561.8

6.794.0

1,288.1


7,948.0Total


5,805.9Automobile Business

1,348.8Motorcycle Business

Excluding currency translation effects; + 294.8 (+ 13.3 %)

Excluding currency translation effects; - 555.6 ( - 6.2 %)

2,213.0+ 39.5

+ 260.8 - 0.9 - 4.6- 102.9

2,405.0

8,936.8+ 158.6 - 702.7

- 6.7 - 4.8- 433.0 7,948.0( - 1.2 %)

Net Sales and Other Operating Revenue4th Quarter (Three months)

Twelve Months

FY11 4Q FY12 4Q

MotorcycleBusiness

AutomobileBusiness

Financial ServicesBusiness

Power Product &

Other BusinessesCurrency Effects

Yen (billion)

Yen (billion)

Market average rates

MotorcycleBusiness Automobile

BusinessFinancial Services

BusinessPower Product

& Other Businesses

Currency Effects

FY11Twelve Months

FY12Twelve Months

Market average rates

10

Income before Income taxes + 16.4

76.693.0

+ 62.7

+ 40.4

+ 14.5 - 23.6

- 28.2

- 6.6 - 42.6

Operating Income + 65.7Other Income & Expenses

- 49.3

Change in Income before Income Taxes <FY12 4th Quarter>

Revenue, model mix,

etc.

Cost Reduction, etc.

Decrease in SG&A Increase in R&D

Currency EffectsUnrealized gains and

losses related toderivative instruments

(Exhibit 2)

Others

FY11 4Q

OperatingIncome

46.2

*Please refer to Exhibit 1 regarding currency effectsFY12 4Q

OperatingIncome111.9

<Increase Factors>-Increase in unit sales and model mix in automobile business,

- Decreased sales incentives, etc.

<Increase Factors>- Decreased fixed cost per unit due to increased production

- Cost reduction effort, etc.<Decrease Factors>- Increased raw material cost, etc.

- Currency effect due to difference between average ratesand transaction rates: - 8.7

- Others - 33.9

Yen (billion)

11

Income before Income taxes - 373.1

630.5

257.4

- 155.1

- 92.8+ 55.8 - 32.2

- 114.0

- 5.9 - 28.7

Operating Income - 338.4Other Income & Expenses

- 34.7

Change in Income before Income Taxes <FY12 Twelve Months >Yen

(billion)

FY11Twelve Months

OperatingIncome

569.7

*Please refer to Exhibit 1 regarding currency effects

FY12Twelve Months

OperatingIncome231.3

Revenue, model mix,

etc.

Cost Reduction, etc. Decrease in SG&A Increase in R&D

Currency Effects Unrealized gains andlosses related to

derivative instruments (Exhibit 2)

Others

<Increase Factors>-Decreased sales incentives, etc.<Decrease Factors>-Decrease in unit sales and model mix in automobile business, etc.

<Increase Factors>- Cost reduction effort, etc.<Decrease Factors>- Increased fixed cost per unit due to decreased production

- Increased raw material cost, etc.

<Increase Factors>- Decreased quality-related expenses, etc.

- Currency effect due to difference between average ratesand transaction rates: - 18.0

- Others - 10.7

12

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

54

- Increased sales of CG150FAN, BIZ125 and CBR300R in Brazil- Increased sales of Wave and CG150 in Argentina+ 74550Other

Regions

3,456

2,741

58

53

Major increase / decrease factorsChange from FY11 4QFY12 4Q

- Positive impact of the introduction of New700cc lineup and VISION- Decreased sales of SH series scooters due to economic slowdown in

Southern European countries0Europe

- Increased sales of Activa and Shine in India- Positive impact of the introduction of VISION and increased sales of

Air Blade and Wave series in Vietnam- Positive impact of the introduction of Click 125i and increased sales of

Wave110-i in Thailand

+ 431Asia

+ 522Total

+ 15

+ 2- Positive impact of the introduction of CBR250R- Increased cruiser model sales such as Shadow- Increased sales of scooter models such as Ruckus and PCX, and CBR1000RR

- Increased sales of PCX and GIORNO- Positive impact of the introduction of Dio110 and NC700X

North America

Japan

Approx. 1,780

344

2,374

2,887

64

Approx. 4,667

Approx. 1,950

445

2,153

2,729

41

Approx. 4,679

2,341 39

4252,895

Approx. 1,750

Approx. 4,645

2,310 58

4762,934

Approx. 1,810Approx. 4,744

2,152 62

52

4392,751

Approx. 630Approx. 3,381

6045

4347

4446

3852

46

Approx. 750

496

2,450

3,076

31

Approx. 3,826

4851

Approx. 2,940

2,031

9,910

12,559

198

Approx. 15,499

200220

+ 1,114( + 9.7% )

Approx. 750

546

2,567

3,276

47

Approx. 4,026

5363

+ 522( + 17.8% )

2,74158

5503,456

Approx. 810Approx. 4,266

5354

Approx. 7,290

1,690

9,178

11,445

202185

Approx. 18,735

190

VISION (Vietnam)

Motorcycle Unit Sales (Motorcycles + All-Terrain Vehicles, etc.)

Unit (thousand)

Unit (thousand)

4Q3QFY12FY11FY12FY11

12 Months12 Months1Q 2Q4Q3Q2Q1Q

Unit sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its subsidiaries

* 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.

AsiaEurope

Other Regions

Japan

NorthAmerica

13

31.3 29.1

44.938.9

25.830.0 32.848.1

138.5 142.69.2%

10.8%

8.5%

10.9%13.6%13.6%

9.6%9.6%9.8%10.6%

0

50

100

150

0%

2%

4%

6%

8%

10%

12%

14%

Includesrevenuerelated to

dissolution of a joint venture

with Hero Honda

( + 1.5% )Currency Effect - 34.1

(Revenue from sales to external customers)

358.54Q

302.53Q

330.31Q

FY12

357.32Q

1,288.112 Months

FY11 FY12FY11

353.14Q

1,348.8301.9312.8320.2NetSales

12 Months3Q2Q1Q

Currency Effect - 97.9(Revenue from sales to

external customers)

(+ 2.9%)

( + 4.7% )

( - 31.7%)

Motorcycle Business Net Sales/Operating Income (Margin)

Yen(billion)

Operating Margin

Operating Income <Increase Factors>-Increased sales volume and model mix, etc<Decrease Factors>-Adverse impact of one-time gain related to licensing agreements in the 4Q last year-Increased SG&A expenses, -Negative currency effect, etc

4Q3QFY12FY12

1Q 2Q 12 MonthsFY11FY11

12 Months4Q3Q2Q1Q

Yen(billion)

14

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

7026153

370

899

145

6124448

368

898

177

85567

26541

364

118

224

- Decreased sales of CITY, CIVIC and FIT in Brazil and Argentina, and decreased sales of CIVIC, CR-V, etc. in Australia due mainly to the decreased supply caused by the flood in Thailand

- 1751Other Regions

988

205

45

463

Major increase / decrease factorsChange from FY11 4QFY12 4Q

- Decreased sales of CIVIC and CR-V in Southern Europe caused by weak consumerconfidence

- Decreased sales of JAZZ and ACCORD in the U.K. and Germany- 11Europe

- Decreased sales of CITY, CIVIC, JAZZ, CR-V, due to supply constraints caused by Thai flood

- Increased sales of parts for production of CR-V, etc. in China - Increased sales of BRIO in India and FREED in Indonesia

- 33Asia

+ 128Total

+ 107

+ 82- Increased sales of CIVIC, ACCORD and ODYSSEY - Positive impact of the introduction of fully remodeled CR-V- Decreased sales of FIT

- Positive impact of the introduction of FIT SHUTTLE / HYBRID, N-BOX, and FREED HYBRID

- Decreased sales of FIT / FIT HYBRID, LIFE, ZEST, etc.

North America

Japan

86068

23856

356

142

54757

13935

22591

+ 128( + 14.9% )

51

24438

366

830

134

874

158

3,137

580

1,323

202

- 375( - 10.7% )

4628640269

772

131

20545463

988

224

48

266

1,008

198

1,458

582

3,512

CR-V (North America)

Automobile Unit Sales

Unit (thousand)

Unit (thousand)

Asia

Europe

Other Regions

Japan

NorthAmerica



* 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.

15

-77.2

45.1-16.9-29.1

-76.2

-39.168.486.3

148.9

264.5

-1.3%

3.9%2.4%

-1.2%-2.2%

-6.5%

-2.4%

4.2%5.0%

8.2%

-200

-100

0

100

200

300

-9%

-6%

-3%

0%

3%

6%

9%

12%

15%

1,851.14Q

1,455.63Q

1,178.81Q

FY12

1,337.12Q

6,802.312 Months

FY11 FY12FY11

1,648.44Q

5,822.71,615.91,723.51,814.4NetSales

12 Months3Q2Q1Q

( + 12.3% ) ( - 14.4% )

Automobile Business Net Sales/Operating Income (Margin)

Yen(billion)

Operating Margin

Operating Income


external customers)

Currency Effect - 285.3(Revenue from sales to external

customers)

<Increase Factors>-Increased sales volume and model mix, -Decreased SG&A expenses etc<Decrease Factors>-Increased R&D expenses, -Negative currency effect, etc

4Q3QFY12FY12


12 Months4Q3Q2Q1Q

Yen(billion)

16

0

1,000

2,000

3,000

4,000

5,000

6,000

105344

230

662

1,440

99

136367

200367

1,166

96

157307

254350

1,157

89

139307

490

706

1,746

104

+ 264

+ 4

+ 87

- 76

+ 264

- 15

Change from FY11 4Q

89

- Increased sales of WB20X / 30X pumps and general-purpose engines made in Thailand for the Middle East and South America due to the commencement of production and delivery of backorders created by the flood in Thailand

143Other Regions

2,010

394

414

970

Major increase / decrease factorsFY12 4Q

- Decreased sales of general-purpose engines used in OEM lawn & garden products, particularly in Italy, and general-purpose engines used in OEM generators caused by the weak economy in Europe

Europe

- Increased sales of GX160 and GX25 / 35 general-purpose engines due to replacement demand after the flood in Thailand

- Increased sales of GK200 engines and generators in India due to pull-forward demand before upcoming tax rise

Asia

Total

- Increased demand for lawn & garden products such as HRR216 / 217 lawnmowers and pressure washers brought on by unseasonably warm winter in Southern part of the U.S.

- Increased sales of generators and lawnmowers due to increased demand for leisure and garden products in Canada

- Decreased sales of GX160 / 390 general-purpose engines used in OEM generators and pumps for export due to appreciated of the Japanese yen

North America

Japan

109399

307

577

1,512

120

+ 264（+ 15.1% ）

1,021

68

134289200330

5,819

392

1,121

2,314

1,472

520

+ 310（+ 5.6%）

1,276

115

134390

200437

2,010

89

143394

414

970

537

1,325

2,085

388

5,509

1,174

HRR216(North America)

Power Products Unit Sales Unit

(thousand)

Unit (thousand)



* 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.

Asia

Europe

Other Regions

Japan

NorthAmerica

17

0.2 -0.1 -4.0-5.5-2.1 -2.0-2.3-2.0-0.5-0.5

-1.4%-1.8%-2.7%-3.2%-0.2%0.4%

-2.8%-2.9%-0.7%-0.7%

-15

-5

5

15

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

75.64Q

68.0

3Q

73.9

1QFY12

72.1

2Q

307.812 Months

FY11 FY12FY11

83.14Q

289.772.174.577.9NetSales

12 Months3Q2Q1Q

( - 9.0% ) ( - 5.9% )

Power Product & Other Businesses Net Sales/Operating Income (Margin)

Yen(billion)

Operating Margin

Operating Income


external customers)


external customers)

4Q3QFY12FY12


12 Months4Q3Q2Q1Q

<Increase Factors>-Increased sales volume and model mix, etc<Decrease Factors>-Increased SG&A expenses, etc

Yen(billion)

0

18

54.6 47.4 53.642.8

35.939.6

170.0186.2

37.544.6

32.3%27.4% 32.5%29.5%

33.2%

38.7%

32.0%32.9%35.8%

28.8%

0

20

40

60

80

100

120

140

160

180

200

0%

10%

20%

30%

40%

50%

( - 9.2% )

131.2

5,644.34Q

127.5

5,290.53Q

5,169.25,445.75,572.15,427.25,480.35,558.0Total Assets of Finance

Subsidiaries

129.1

2Q

573.4

12 MonthsFY11

138.6

1QFY12 FY12FY11

137.3

4Q

526.5139.2144.2152.5NetSales

12 Months3Q2Q1Q

（- 4.5%）（- 8.2%）

(- 8.7%)

Financial Services Business Total Assets/Net Sales/Operating Income (Margin)

Yen(billion)

Operating Margin

Operating Income


external customers)


external customers)

<Decrease Factors>-Increased allowance for losses on credit,-Negative currency impact, etc

4Q3QFY12FY12


12 Months4Q3Q2Q1Q

Yen(billion)

19

12.5

- 41.2- 35.3

- 45.8- 21.8

14.620.153.1

66.1

- 109.8

-150

-100

-50

0

50

100

( 1.2 % )( - 2.4 % ) ( - 3.3 % )

( 1.8 % )

( + 19.6% ) ( - 6.9%)

3,362.93,611.21,069.0863.1805.3625.3893.8867.5928.2921.5NetSales

12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY12FY11FY12FY11

Net Sales/Operating Income (Margin)Japan

Yen(billion)

Operating Income

Operating Margin (%)

4Q3QFY12FY12


12 Months4Q3Q2Q1Q

<Increase Factors>-Increase in sales volume and model mix,-Decreased SG&A expenses, etc

<Decrease Factors>-Increased R&D expenses, etc

Yen(billion)

20

223.2

300.9

110.7

75.889.6

24.5 18.547.7

74.8 82.2

0

50

100

150

200

250

300

350

( 2.5 % )

( 6.8 % )

( 6.0 % )

( - 25.8%)( 7.3 % )

3,714.74,147.81,200.3986.2794.1733.9976.61,011.81,021.61,137.8NetSales


( + 22.9% ) ( - 10.4%)

( + 234.8% )

Net Sales/Operating Income (Margin)North America

Yen(billion)

Operating Income


4Q3QFY12FY12


12 Months4Q3Q2Q1Q

<Increase Factors>-Increase in sales volume and model mix , etc

<Decrease Factors>-Increased SG&A expenses-Negative currency effects, etc

Yen(billion)

21

-12.1-10.2

4.0 - 3.0

-9.4 -1.7 -6.1

-4.0 -3.8

1.8

-15

-10

-5

0

5

10

15

20

25

30

( 1.1 % )

( - 0.9 % ) ( - 2.1 % )( - 1.5 % )

580.7699.2165.8119.4144.5150.9197.3150.7161.3189.8NetSales


( - 16.0% ) ( - 16.9%)

Europe Net Sales/Operating Income (Margin)

Yen(billion)

Operating Income


4Q3QFY12FY12


12 Months4Q3Q2Q1Q

<Increase Factors>-Increase in sales volume and model mix, etc

Yen(billion)

22

76.8

150.6

44.438.3 35.7 32.1

25.1 21.8 13.3 16.50

50

100

150

( 4.2 % )

( 6.8 % )

( - 48.5% )

( 5.2 % )

( - 49.0% )

( 8.2 % )

1,490.41,841.1391.5317.6407.7373.4472.4445.5452.9470.2NetSales


( - 17.1% ) ( - 19.0%)

Asia Net Sales/Operating Income (Margin)

Yen(billion)

Operating Income


4Q3QFY12FY12


12 Months4Q3Q2Q1Q

<Increase Factors>-Decreased SG&A expenses, etc

<Decrease Factors>-Decrease in sales volume and model mix-Negative currency effects, etc

Yen(billion)

23

5.6

12.5

23.0

15.713.115.620.420.2

69.5

56.9

0

10

20

30

40

50

60

70

( 2.6 % )

( 5.0 % )

( - 57.3% )

( 6.4 % )

( - 18.1% )( 7.1 % )

893.1982.0212.6206.1244.3229.9264.3238.8242.5236.3NetSales


( - 19.5% ) ( - 9.1%)

4Q3QFY12FY12


12 Months4Q3Q2Q1Q

Net Sales/Operating Income (Margin)Other Regions

Yen(billion)

Operating Income


Yen(billion)

<Decrease Factors>-Decrease in sales volume and model mix-Negative currency effects, etc

24

100.4

139.7

22.915.5

33.235.6 35.643.4

25.0 28.6

87.9

22.1

111.1

14.827.5 29.5

21.534.4

19.529.3

0

20

40

60

80

100

120

140

160+ 8.2

（ + 33.1 % ）

- 39.3（ - 28.2 % ）

Change in Equity in income of affiliates

Total Asia

Yen(billion)

4Q3QFY12FY12


12 Months4Q3Q2Q1Q

25

40.3

78.0 73.382.5 73.254.7

309.7

75.851.5

219.9

14.829.3 21.529.527.5 34.4

22.1

111.1

19.5

87.9

0

50

100

150

200

250

300

350

+ 1.9（ + 10.1 % ）

- 23.1( - 20.9 % )

44.051.5

4Q

45.4

54.73Q

62.5

73.31Q

FY12

34.1

40.32Q

FY12

262.0309.7

12 MonthsFY11

186.1219.912 Months

75.873.278.082.5OperatingIncome

FY11

66.5

4Q

60.264.171.1Net Income

3Q2Q1Q

Operating Income of Affiliates in Asia and Honda’s Equity in Income from Asia

Yen(billion)

Operating Income of Affiliates and Honda’s Equity in Income

Operating Income Equity in Income

Yen(billion)

4Q3QFY12FY12


12 Months4Q3Q2Q1Q

Fiscal term of companies marked “*” differs from that of Honda Motor Co., Ltd.

Others 34 , Total 42 companies

As of the end of March 31, 2012Affiliates accounted for under the equity method in Asia

China Sundiro Honda Motorcycle Co., Ltd.*Wuyang-Honda Motors (Guangzhou) Co., Ltd.*

Indonesia P.T. Astra Honda Motor *Pakistan Atlas Honda Ltd. Thailand A.P. Honda Co., Ltd.

Motorcycle Business：China Guangqi Honda Automobile Co., Ltd.*

Dongfeng Honda Engine Co., Ltd.*Dongfeng Honda Automobile Co., Ltd.*

Automobile Business :

26


311.3Total


260.1Automobile Business

37.0Motorcycle Business


406.5Total


334.1Automobile Business

62.0MotorcycleBusiness

Excluding currency translation effects + 114.9 ( + 36.9 % )

+ 88.7

311.3+ 29.4

+ 0.1 - 3.3 - 19.6406.5

+ 95.2 ( + 30.6 % )

Consolidated Capital Expenditures <FY12 Twelve Months>

※ Capital expenditures in results aforementioned excludeinvestment in operating leases and intangible assets

MotorcycleBusiness

AutomobileBusiness

FinancialServicesBusiness

Power product&

Other BusinessesCurrency

Translation Effects

FY11 Twelve Months FY12 Twelve MonthsMarket average ratesUS$ 1= JPY 86Euro 1= JPY 113

Yen (billions) Yen (billions)

Market average rates US$ 1= JPY 79 (Yen up by 7 yen)Euro 1= JPY 109 (Yen up by 4 yen)

Yen (billion)

27

Change in the Disclosure of Unit Sales Information from Fiscal Year Ending March 31, 2013

“Honda Group Unit Sales” and “Consolidated Unit Sales”

2012年度以降の売上台数に係る

28

"Honda Group Unit Sales"

The total of unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method (Sum of ① and ②)

External Customers

②Finished products

③Production parts

Automobiles + Motorcycles

MotorcyclesAutomobiles

Automobiles Motorcycles

② Finished products

Power products

Motorcycles

Automobiles

*The photos are for the purpose of illustration only.

①Finished products

Honda+

Consolidated Subsidiaries

Equity method Affiliates

China – automobile:Guangqi Honda

Dongfeng Honda

China – motorcycle:Sundiro Honda

Wuyang-Honda

Asia – motorcycle:Astra HondaA.P. HondaAtlas Honda

29

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 for under the equity method (Excluding ③ from the current "Unit Sales“)

"Consolidated Unit Sales"

Honda+

Consolidated Subsidiaries

②Finished products

③Production parts

Automobiles + Motorcycles

MotorcyclesAutomobiles

Automobiles Motorcycles

Finished products

Power Products

Motorcycles

Automoboles

①Finished products

External Customers

Equity method Affiliates

China – automobile:Guangqi Honda

Dongfeng Honda

China – motorcycle:Sundiro Honda

Wuyang-Honda

Asia – motorcycle:Astra HondaA.P. HondaAtlas Honda

*The photos are for the purpose of illustration only.

30

0

2,000

4,000

6,000

8,000

0

1,000

2,000

3,000

4,000

0

5,000

10,000

15,000

20,000

220200198

12,412

2,031

15,061

235255210

13,820

2,080

16,600

588

1,323

158

837

3,108202

710

1,740

230

1,310

4,300310

5,819

1,121

392

2,314

520

1,472

6,300

1,150

355

2,520

605

1,670

+ 1,539( + 10.2 % )

+ 1,192( + 38.4 % )

+ 481( + 8.3 % )

Honda Group Unit SalesMotorcycles Automobiles Power Products

Unit (thousand)

Japan

Europe

OtherRegions

Asia

NorthAmerica

FY13Forecasts

FY13Forecasts

FY13Forecasts

FY12(Reference)

FY12(Reference)

FY12(Reference)

31

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Consolidated Unit Sales

0

3,000

6,000

9,000

12,000

6,300

1,150

355

2,520

605

1,670

+ 1,250( + 14.5 % )

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

235255210

7,120

2,080

9,900

220200198

6,001

2,031

8,650

580

1,323

158219

2,482202

700

1,740

230

560

3,540310

5,819

1,121

392

2,314

520

1,472

+ 1,058( + 42.6 % )

+ 481( + 8.3 % )

FY13Forecasts

FY13Forecasts

FY13Forecasts

Motorcycles Automobiles Power Products

Unit (thousand)

Japan

Europe

OtherRegions

Asia

NorthAmerica

FY12(Reference)

FY12(Reference)

FY12(Reference)

32

Change

+ 258.5

+ 19.5

+ 377.5

+ 388.6

+ 2,351.9

amount

470.0

120.0

635.0

620.0

10,300.0

FY13Forecasts

+ 19.5%100.4Equity in income of affiliates

+ 122.2%

+ 146.7%

+ 168.0%

+ 29.6%

%

211.4 Net income attributable to Honda Motor Co., Ltd.

257.4Income before income taxes

231.3Operating income

7,948.0Net sales & other operating revenue

FY12Results

+ 143.44260.78 117.34EPS attributable toHonda Motor Co., Ltd. (Yen)

105

80

Yen up by 3 yen

Yen down by 1 yen

108Euro

79 US Dollar

FY13 Financial Forecasts (Consolidated)Yen (billion)


approx.1,802,300,000 shares(weighted average number

of shares outstanding )


Average Rates (Yen)


33

Income before Income taxes + 377.5 ( + 146.7 % )

257.4

635.0+ 476.8

+ 152.0 - 205.0

- 35.2± 0 - 8.0 - 3.0

Operating Income + 388.6 ( + 168.0 % )

* *

*

* 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.

Forecast: Change in Income before Income TaxesYen (billion)

Other Income & Expenses

- 11.0

Revenue,model mix,

etc.

Increase in SG&A

Cost Reduction, etc.

Increasein R&D

Currency Effect Unrealized gainsand losses related toderivative

instruments

Others

Operating Income

231.3

FY12

Operating Income620.0

FY13Forecasts

34

+ 35.2

- 8.7

+ 173.5

Change

519.8

293.7

406.5

FY12Results

555.0

285.0

580.0

FY13Forecasts

R&D expenses

Depreciation and amortization

Capital Expenditures*

*

**

**

*

Yen(billion)

“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.

Forecast: Capital Expenditures, Depreciation, R&D Expenses

3535

Caution with Respect to Forward-Looking Statements: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, Asia 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.

36

- 91.6- 28.2Currency effect associated with sales transaction

- 40.4- 8.6Currency effect from translation of foreign financial statements (impact on operating income)

- 132.0

- 18.0

- 73.6

- 3.5- 10.6

- 3.5- 55.8

FY1212 Months

Average Rates (Yen)

ChangeFY124Q

FY114Q

FY12 4Q

Yen up by 2 yen

8082- 11.8JPY / USDYen up by

9 yen104113- 1.9JPY / Euro

―――- 3.0JPY / Others

―――- 2.7Transactions between other currencies

- 19.5Difference of average rates(Impact on Operating income)

- 8.7Difference between transaction rates and average rates (Impact on Other income & expenses)

- 36.9Total

*1

*2

*3

-Currency Effects-(effects associated with sales transactions and translation effects) (Exhibit 1)

*1:Impact of YOY difference of FOREX to be used for booking revenue of foreign currency transactions

*2:Impact of YOY difference between average FOREXand hedge rates during the period

*3:Effect due to the difference of the rate used for translatingHonda’s overseas subsidiaries’ financial statements denominated in foreign currencies into Japanese yenwith the corresponding period of the fiscal year

Yen(billion)

37

+ 7.7

- 0.4

+ 8.4

- 0.2

FY11

12 Months

+ 1.8

+ 0.3

+ 13.9

- 12.4

FY12

- 5.9

+ 0.7

+ 5.4

- 12.2

Change

- 18.8

0

- 3.7

- 15.0

FY11

4Q

- 25.5

0

- 4.4

- 21.0

FY12

- 6.6

0

- 0.6

- 6.0

Change

Others

Total

Interest rate swap Currency swap

Foreign currencyForward

- Unrealized Gains and Losses Related to Derivative Instruments - (Exhibit 2)

Yen(billion)

Honda fy2011 results

Economy & Finance

Transcript of Honda fy2011 results