FY14 Financial Results - PDF Free Download

Financial Results Honda Motor Co., Ltd. April 25, 2014 FIT (North America) 1

Topics - Financial Results - FY15 Financial Forecasts - Dividend Tetsuo Iwamura Executive Vice President 2

Outline of Results Summary (Consolidated) Results Summary Operating income amounted to 750.2 billion yen, an increase of 37.7% mainly due to increased automobile unit sales in Japan and North America and increased motorcycle unit sales in Asia, as well as continuing cost reduction efforts and favorable currency effects. 12 months results and 11,000 10,000 Consolidated Unit Sales 10,343 9,510 3,800 3,400 3,408 3,560 6,500 6,000 Unit (thousand) 13,000 6,071 6,036 11,000 9,877.9 9,000 Net Sales / Operating Income 11,842.4 800 600 400 544.8 750.2 9,000 5,500 7,000 200 8,000 3,000 5,000 Motorcycles Automobiles Power Products 5,000 Net Sales 0 Operating Income 3

Unit Sales Results Honda Group Unit Sales (Thousands) Motorcycles 12 Months Results Change 15,494 17,021 + 9.9% 18,000 16,000 Honda Group Unit Sales 15,494 17,021 4,500 4,000 4,323 4,014 6,000 Unit (thousand) 6,071 6,036 Automobiles 4,014 4,323 + 7.7% 14,000 3,500 5,500 Power Products 6,071 6,036-0.6% Consolidated Unit Sales Motorcycles (Thousands) 12 Months Results Change 9,510 10,343 + 8.8% 12,000 11,000 10,000 9,000 Motorcycles 3,000 3,500 Automobiles Consolidated Unit Sales 9,510 10,343 5,000 Power Product Unit (thousand) 3,560 6,071 6,036 3,408 6,000 Automobiles 3,408 3,560 + 4.5% 8,000 3,000 5,500 Power Products 6,071 6,036-0.6% Honda Group Unit Sales -Increase in motorcycle unit sales due to the positive impact of new model introductions in India and the introduction of models equipped with fuel injection in Indonesia -Increase in automobile unit sales due to the positive impact of new model introductions as well as the launch of fully remodeled vehicles in China, Japan and North America 7,000 6,000 Motorcycles 2,500 Automobiles 5,000 Power Product 4

Financial Results (consolidated) Financial Results Net sales Operating Income Operating Margin Income before income taxes Equity in income of affiliates Net Income EPS (Yen) *1 Average Rates (Yen) US Dollar Euro 12,000 *2 11,842.4 800 12 Months 9,877.9 11,842.4 544.8 750.2 5.5% 6.3% 488.8 728.9 82.7 132.4 367.1 574.1 203.71 318.54 84 100 108 136 750.2 8,000 Change + 19.9% + 37.7% - + 49.1% + 60.1% + 56.4% + 114.83 Yen down by16 yen Yen down By28 yen 728.9 Financial Summary -Revenue increased by 19.9% mainly due to increased revenue from automobile and motorcycle business operations, as well as favorable foreign currency translation effects. -Operating income increased by 37.7% due primarily to an increase in sales volume and model mix and continuing cost reduction efforts as well as favorable foreign currency effect, despite increased SG&A and R&D expenses. For *1 and *2, please refer to footnotes on page 36 200 800 11,000 600 544.8 6,000 488.8 132.4 600 574.1 400 4,000 100 82.7 400 367.1 10,000 9,877.9 200 2,000 200 9,000 Net Sales 0 Operating Income 0 Income before Income tax 0 Equity in income of affiliates 0 Net Income 5

FY15 Financial Forecasts (Consolidated) Results FY15 Forecasts Change Amount % Net Sales 11,842.4 12,750.0 + 907.5 + 7.7% Operating Income 750.2 760.0 + 9.7 + 1.3% Operating Margin Income before Income taxes Equity in income of affiliates Net Income *1 6.3% 728.9 132.4 574.1 6.0% 745.0 155.0 595.0 - + 16.0 + 22.5 + 20.8 - + 2.2% + 17.0% + 3.6% EPS (Yen) *2 318.54 330.14 + 11.60 For *1 and *2, please refer to footnotes on page 36 Average Rates (Yen) US Dollar 100 100 - Euro 136 135 Yen up by 1 yen 6

Financial Results and FY15 Financial Forecasts (Unconsolidated) Yen (Billion) Results Results Increase / Decrease from FY15 Forecasts Increase / Decrease from Net Sales 3,244.0 3,488.3 + 7.5% 3,640.0 + 4.3% Operating Income 103.9 125.6 + 20.9% 140.0 + 11.5% Operating Margin 3.2% 3.6% - 3.8% - Ordinary Income 193.8 345.9 + 78.5% 355.0 + 2.6% Net Income 154.7 262.9 + 69.9% 280.0 + 6.5% Average Rates (Yen) US Dollar 84 100 Yen down by 16 yen 100 円 - Euro 108 136 Yen down by 28 yen 135 円 Yen up by 1 yen 7

Dividend (Yen) Dividend per Share Results (Projection) Increase / Decrease from FY15 ( Expectation ) Increase / Decrease from 1 st Quarter End 19 20 + 1 ( 22 ) ( + 2 ) 2 nd Quarter End 19 20 + 1 ( 22 ) ( + 2 ) 3 rd Quarter End 19 20 + 1 ( 22 ) ( + 2 ) 4 th Quarter End 19 ( 22 ) ( + 3 ) ( 22 ) ( + 0 ) Fiscal Year 76 ( 82 ) ( + 6 ) ( 88 ) ( + 6 ) 8

Topics Financial Results -4 th Quarter Financial Results - Net Sales and Other Operating Revenue - Change in Income before Income Taxes - Business & Geographical Segment Information - Equity in Income of Affiliates - Capital Expenditure FY15 Financial Forecasts Kohei Takeuchi Operating Officer and Director Chief Financial Officer 9

Outline of 4th Quarter Results Summary (Consolidated) Results Summary Operating income amounted to 165.2 billion yen, an increase of 21.5% mainly due to increased automobile unit sales in Japan, increased motorcycle unit sales in Asia, and continuing cost reduction efforts, as well as favorable foreign currency effects. 4th Quarter Results and Consolidated Unit Sales Unit (thousand) Net Sales / Operating Income 2,800 2,500 2,490 2,730 1,000 900 800 902 933 2,100 1,900 1,963 1,990 3,000 2,744.9 3,097.2 200 150 135.9 165.2 2,200 1,900 700 600 1,700 2,000 100 50 1,600 Motorcycles 500 Automobiles 1,500 Power 汎用事業 products 1,000 Net Sales 0 Operating Income 10

4th Quarter Unit Sales Results Honda Group Unit Sales (Thousands) 4Q Results ( 3 Months) Change 4,500 Honda Group Unit Sales 4,500 1,195 2,000 Unit (thousands) 1,963 1,990 Motorcycles 3,962 4,500 + 13.6% 4,000 3,962 1,100 1,033 1,900 Automobiles 1,033 1,195 + 15.7% 3,500 900 1,800 1,700 Power Products 1,963 1,990 + 1.4% 1,600 Consolidated Unit Sales (Thousands) Motorcycles 4Q Results ( 3 Months ) Change 2,490 2,730 + 9.6% 3,000 2,800 Motorcycles 700 1,000 900 Automobiles Consolidated Unit Sales 2,490 2,730 1,500 Power Products Unit (thousands) 902 1,900 933 2,000 1,963 1,990 Automobiles 902 933 + 3.4% 2,300 800 1,800 1,700 Power Products 1,963 1,990 + 1.4% 1,800 Motorcycles 700 Automobiles 1,600 1,500 Power Products Honda Group Unit Sales - Increase in motorcycle unit sales due to new model introductions in India and models equipped with fuel injection in Indonesia. -Increase in automobile unit sales due to the positive impact of new model introductions as well as the launch of fully remodeled vehicles in China and Japan, despite a decline in North America due to a cold wave. 11

4th Quarter Financial Results (Consolidated) Financial Results Net Sales Operating Income Operating margine Income before Income Taxes Equity in Income of Affiliates Net Income EPS (Yen) *1 Average Rates (Yen) US Dollar Euro 250 200 150 100 50 *2 Operating Income 176.0 184.9 171.4 100.8 4Q Results ( 3 Months ) Change 2,744.9 135.9 5.0% 98.0 13.0 75.7 42.03 122 131.9 93 228.5 3,097.2 165.2 5.3% 174.7 37.3 170.5 94.61 103 141 165.2 135.9 + 12.8% + 21.5% - + 78.1% + 185.8% + 125.1% + 52.58 Yen down by 10 yen Yen down by 19 yen 8% 6% 4% 2% Financial Summary - Net sales and other operating revenue increased by 12.8% mainly due to a rise in automobile and motorcycle net sales as well as the positive impact of foreign exchange effects - Operating income increased by 21.5% mostly due to a rise in income associated with changes in sales volume and model mix, cost down effects as well as the positive impact of a weaker yen, despite increased SG&A and R&D expenses as well as higher depreciation costs. For *1 and *2, please refer to footnotes on page 36 Operating Margin 6.5% 7.2% 5.9% 4.4% 7.6% 5.4% 5.3% 5.0% 0 1Q 2Q 3Q 4Q 0% 1Q 2Q 3Q 4Q 12

Net Sales and Other Operating Revenue < 4th Qtr> + 352.2 ( + 12.8 %) 2,744.9 Excluding currency translation effects + 141.6 ( + 5.2 %) + 43.1 (+ 11.5 %) Motorcycle Business + 84.6 + 18.9-5.0 (+ 4.0 %) (+ 12.5 %) ( - 6.2 %) Automobile Business Financial Services Business Power Product & Other Businesses Net Sales& other operating revenue 4Q 4Q Motorcycles 375.3 448.5 Automobiles 2,136.9 2,378.2 Financial Services Business 151.4 187.7 Power Product & Other Businesses 81.1 82.6 Total 2,744.9 3,097.2 Market average rates US Dollar 92 103 Euro 122 141 + 210.6 3,097.2 Currency Effects 4Q 4Q 13

Net Sales and Other Operating Revenue < > + 1,964.5 ( + 19.9 %) + 1,506.0 11,842.4 Excluding currency translation effects + 458.4 ( + 4.6 %) 9,877.9 + 124.9 (+ 9.3 %) Motorcycle Business US Dollar Euro + 304.4 + 39.4-10.4 (+ 3.9 %) (+ 7.2 %) ( - 3.7 %) Automobile Business Net Sales& other operating revenue Motorcycles Automobiles Financial Services Business Power Product & Other Businesses Total Market average rates Financial Services Business FY 13 Power Product & Other Businesses 1,339.5 1,663.6 7,709.2 9,176.3 548.5 698.1 280.6 304.2 9,877.9 11,842.4 83 100 107 134 Currency Effects 14

Change in Income before Income Taxes < 4th Qtr> 98.0 Operating Income 135.9 + 39.4 Revenue, model mix, etc. Income before Income Taxes +76.6( + 78.1 % ) Operating Income + 29.3 ( + 21.5 % ) <Increase Factors> -Increase in sales volume and model mix, etc. + 27.1-39.8 Cost Reduction, etc. Increase in SG&A <Decrease Factors> Reversal effect of insurance gain in previous year Increase in warranty cost <Increase Factors> - Cost reduction efforts, etc. <Decrease Factors> - Increased depreciation costs, etc. - 26.2 + 28.9 Increase in R&D Currency Effects + 19.8 Other Income & Expenses + 47.3 + 27.5 Other Unrealized gains and losses related to derivative instruments (Attachment 2) - Currency effects due to difference between average sales rates and transaction rates + 31.3 -Other -3.7 174.7 Operating Income 165.2 4Q *Please refer to Attachment 1 regarding currency effects 4Q 15

Change in Income before Income Taxes < > 488.8 <Increase Factors> -Increase in sales volume and model mix, etc. Income before Income Taxes + 240.0 ( + 49.1 % ) Operating Income + 205.4 ( + 37.7 % ) + 53.3 + 15.0-102.3 Revenue, model mix, etc. <Increase Factors> - Cost Reduction efforts, etc. <Decrease Factors> - Increased depreciation costs, etc. Cost Reduction, etc. Increase in SG&A - 49.3 Increase in R&D + 288.7 Currency Effects Other Income & Expenses + 34.5 + 74.4-39.8 Unrealized gains and losses related to derivative instruments (Attachment 2) Other 728.9 Operating Income 544.8 <Decrease Factors> Increase in advertisement expense Reversal effect of Insurance gain in previous year Increase in General and Administrative expenses Increase in warranty costs - Currency effects due to difference between average sales rates and transaction rates - 23.1 -Other - 16.7 Operating Income 750.2 *Please refer to Attachment 1 regarding currency effects 16

Motorcycle - Honda Group Unit Sales (Motorcycles + All-Terrain Vehicles, etc.) 4,600 4,400 Dream Neo (India) <ASIA> - India: Positive impact of Dream Neo as well as increased sales of Activa and CB Shine - Indonesia: Increased sales of BeAT FI and Vario Techno 125 <Other Regions> - Brazil: Increased sales of CG125 FAN and BIZ125 Unit (Thousand) + 538 ( + 13.6% ) 4,200 4,000 3,800 3,600 3,911 3,806 3,815 3,962 4,054 4,216 4,251 4,500 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Japan 59 57 51 50 54 63 52 57 North America 59 60 62 69 62 68 63 83 Europe 60 38 29 52 52 38 27 49 Asia 3,285 3,162 3,225 3,363 3,479 3,536 3,678 3,843 Other Region 448 489 448 428 407 511 431 468 Total 3,911 3,806 3,815 3,962 4,054 4,216 4,251 4,500 17

Motorcycle Business Net Sales/Operating Income (Margin) Unit (thousand) Honda Group Unit Sales (Consolidated Unit Sales) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 3,806 3,815 3,962 4,054 4,216 4,251 (2,304) (2,350) (2,490) (2,371) (2,585) (2,657) 3,911 (2,366) 4,500 (2,730) Net Sales 346.6 309.7 307.8 375.3 396.8 418.0 400.1 448.5 Yen (billion) Operating Income Operating Margin ( + 19.5 % ) + 73.1 (Currency effect + 30.0) 150 130 10.6% 8.2% 7.4% 6.7% 10.7% 10.9% 8.6% 9.6% 12% 8% 110 90 70 50 30 10 36.8 25.4 22.8 <Increase Factors> - Increased sales volume and model mix, - Cost reduction efforts - Foreign currency effects, etc. <Decrease Factors> - Increased SG&A expenses, etc. ( + 70.3 % ) 25.2 42.5 45.5 34.5 42.9 4% 0% -4% -8% -10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q -12% 18

Automobiles - Honda Group Unit Sales 1,200 1,100 Fit (Japan) <JAPAN> -Positive impact of fully remodeled FIT and ODYSSEY -Positive impact of N-WGN and VEZEL models <ASIA> - China: Positive impact of CRIDER, JADE introductions - India: Positive impact of AMAZE, CITY introductions - Thailand: decrease in sales volume <NORTH AMERICA> - Decrease in sales volume due to cold wave Unit (Thousand) + 162 ( + 15.7% ) 1,195 1,000 1,033 999 996 986 999 1,047 1,082 900 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Japan 185 169 138 200 140 180 216 282 North America 450 404 454 423 459 447 465 386 Europe 39 44 38 50 40 40 38 51 Asia 262 301 279 280 285 309 287 405 Other 63 78 77 80 75 71 76 71 Regions Total 999 996 986 1,033 999 1,047 1,082 1,195 19

Automobile Business Net Sales/Operating Income (Margin) Honda Group Unit Sales (Consolidated Unit Sales) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 996 986 1,033 999 1,047 1,082 (816) (841) (902) (858) (869) (900) 999 (849) 1,195 (933) Net Sales 1,894.7 1,769.7 1,918.4 2,140.6 2,200.9 2,233.1 2,377.7 2,383.0 Yen (billion) Operating Income Operating Margin ( + 11.3% ) + 242.4 (Currency effect + 156.6) 12% 270 170 70 5.3% 100.6 <Increase Factors> - Cost reduction efforts - Foreign currency effects, etc. <Decrease Factors> - Increased SG&A expenses - Reversal effect of Insurance gain in previous quarter - Increase in warranty costs - Increased R&D expenses etc. 2.1% 37.1 3.7% 70.9 3.6% 77.2 4.4% 96.3 3.6% 80.1 6.5% 154.2 ( - 5.6 % ) 3.1% 72.9 10% 8% 6% 4% 2% -30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 0% 20

Power Products - Honda Group Unit Sales 2,500 2,000 HS520A (Snowblower) <NORTH AMERICA> -Decrease in OEM engine and lawnmower sales due to cold wave -Increased sales of snowblowers <EUROPE> -Increased sales of OEM engines <ASIA> - Increased OEM sales of new GX engine Unit (Thousand) + 27 ( + 1.4% ) 1,500 1,000 500 1,963 1,625 1,589 1,288 1,195 1,295 1,162 1,990 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Japan 82 88 63 81 63 93 63 95 North America 758 436 426 984 828 504 427 959 Europe 236 150 206 412 237 156 198 441 Asia 421 462 341 348 364 426 338 372 Other Region 128 152 159 138 97 116 136 123 Total 1,625 1,288 1,195 1,963 1,589 1,295 1,162 1,990 21

Power Product & Other Businesses Net Sales/Operating Income (Margin) Unit (thousand) Honda Group Unit Sales (Consolidated Unit Sales) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1,288 1,195 1,963 1,589 1,295 1,162 (1,288) (1,195) (1,963) (1,589) (1,295) (1,162) 1,625 (1,625) 1,990 (1,990) Net Sales 69.9 67.2 71.3 83.1 77.9 75.9 78.6 85.6 Yen (billion) 40 Operating Income Operating Margin ( + 3.1 % ) + 2.5 (Currency Effect + 6.5) 20% 30 15% <Increase Factors> 20 - Increased sales volume and model mix in power product business operations, etc. 10% 10 0-10 0.05 0.07 1.3-2.2 0.1% 0.1% -7.4 1.7% -0.8-2.8-3.3% -1.1% -3.7% 0.5 0.7% 5% 0% -5% -20-8.9% -10% -30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q -15% 22

Financial Services Business Total Assets/Net Sales/Operating Income (Margin) Total Assets of Finance Subsidiaries 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 5,567.6 5,577.7 6,197.2 6,765.3 7,206.8 7,404.6 8,082.7 7,980.9 Net Sales 134.0 133.1 138.1 154.9 167.9 172.5 177.6 190.4 Yen (billion) 120 Operating Income Operating Margin ( + 22.9% ) + 35.5 (Currency effect + 17.3) 40% 100 30.5% 28.7% 27.6% 26.4% 26.6% 27.0% 25.6% 24.0% 30% 80 60 <Increase Factors> - Positive currency effects, etc. ( + 19.3% ) 20% 10% 40 40.8 38.2 38.1 40.9 44.6 46.5 42.7 48.8 0% 20-10% 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q -20% 23

Honda Group Unit Sales <> Motorcycles 15,494 17,021 Automobiles 4,014 Power Products Unit (Thousand) 4,323 6,071 6,036 +1,527 ( + 9.9 %) + 309 ( + 7.7 %) -35 (-0.6 %) Change Change Change Japan North America Europe Asia Other Region Total 217 250 179 13,035 1,813 15,494 226 276 166 14,536 1,817 17,021 + 9 + 26-13 + 1,501 + 4 + 1,527 692 1,731 171 1,122 298 4,014 818 1,757 169 1,286 293 4,323 + 126 314 314 0 + 26 2,604 2,718 + 114-2 1,004 1,032 + 28 + 164 1,572 1,500-72 -5 577 472-105 + 309 6,071 6,036-35 24

Net Sales/Operating Income (Margin) by Business Segment < > Unit (thousand) Motorcycle Business Automobile Business Power Product and Other Businesses Financial Services Business Honda Group Unit Sales (Consolidated Unit Sales) 15,494 17,021 4,014 4,323 6,071 6,036 - - (9,510) (10,343) (3,408) (3,560) (6,071) (6,036) (-) (-) Net Sales 1,339.5 1,663.6 7,723.5 9,194.9 291.6 318.1 560.2 708.5 500 400 300 200 100 0-100 Operating Income : Operating Margin : (%) 110.2 (8.2%) + 50.2% 285.9 (3.7%) 403.7 (4.4%) 165.6 182.7 158.1 (10.0%) (- 3.3%) (- 0.6%) + 41.2% + 15.6% -9.5-1.7 (28.2%) (25.8%) 25

Net Sales/Operating Income (Margin) by Geographical Segment < 4th Qtr> Japan North America Europe Asia Other Regions 4Q 4Q 4Q 4Q 4Q Net Sales 1,059.3 1,109.1 1,341.7 1,405.3 206.8 244.0 665.9 748.2 223.9 260.3 Operating Income : Operating Margin : (%) 60 20 46.6 43.2 29.0 41.8 20.4 14.9 38.0 54.0 10.2 12.9-7.3% + 44.2% - 26.8% + 42.2% + 26.5% -20 4Q 4Q 4Q 4Q 4Q 26

Net Sales/Operating Income (Margin) by Geographical Segment < > Net Sales 300 250 3,893.5 Japan 4,192.2 Operating Income : Operating Margin : (%) North America 4,857.1 290.9 5,969.9 642.1 Europe Asia Other Regions 775.2 2,305.6 2,826.9 896.4 1,025.5 200 150 100 178.4 214.0 208.9 217.9 146.7 50 0-50 44.9 35.6 0.4 + 20.0% + 39.2% + 48.5% + 25.8% -17.1 27

Change in Equity in Income of Affiliates 70 + 24.3 60 50 ( + 185.8% ) 40 30 20 20.7 27.4 21.4 31.7 31.6 31.6 37.3 10 13.0 0 From Asia 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 20.8 25.3 18.0 13.9 25.1 28.3 28.0 30.0 28

Consolidated Capital Expenditures < > + 132.5 ( + 22.3 % ) Excluding currency translation effects + 59.0 ( + 9.9 % ) + 73.5 726.1 + 84.5-0.0-2.4 593.6-23.0 Motorcycle Business Automobile Business Capital Expenditure Market average rates US Dollar Euro Financial Services Business 12 Months Motorcycle Business 73.5 Automobile Business 505.0 Financial Services Business 0.5 Power Product & Other Businesses 14.5 Total 593.6 Power Product & Other Business 83 107 12 Months Currency Translation Effects 55.5 656.4 0.6 13.5 726.1 Capital expenditures in results aforementioned exclude investment in operating leases, capital leases and intangible assets 100 134 29

Forecast: Honda Group Unit Sales Motorcycles 17,021 18,240 Automobiles 4,323 4,830 Power Products Unit (Thousand) 6,036 6,345 + 1,219 ( + 7.2 %) + 507 (+11.7 %) + 309 (+ 5.1 %) FY15 FY15 FY15 Japan North America Europe Asia Other Region Total Results 226 276 166 14,536 1,817 17,021 FY15 Forecasts 230 300 175 15,765 1,770 18,240 Change + 4 + 24 + 9 + 1,229-47 + 1,219 Results 818 1,757 169 1,286 293 4,323 FY15 Forecasts 990 1,810 170 1,590 270 4,830 Change + 1 + 304-23 Results 472 FY15 Forecasts 1,030 1,655 510 6,345 Change + 172 314 305-9 + 53 2,718 2,845 + 127 + 507 1,032 1,500 6,036-2 + 155 + 38 + 309 31

Forecast: Consolidated Unit Sales Motorcycles 10,343 11,030 Automobiles 3,560 3,870 6,036 Power Products Unit (Thousand) 6,345 + 687 ( + 6.6 %) + 310 ( + 8.7 %) + 309 (+ 5.1 %) FY15 FY15 FY15 Japan North America Europe Asia Other Region Total Results 226 276 166 7,858 1,817 10,343 FY15 Forecasts 230 300 175 8,555 1,770 11,030 Change + 4 + 24 + 9 + 697-47 + 687 Results 812 1,757 169 529 293 3,560 FY15 Forecasts 980 1,810 170 640 270 3,870 Change + 1 + 111-23 Results 472 FY15 Forecasts 1,030 1,655 510 6,345 Change + 168 314 305-9 + 53 2,718 2,845 + 127 + 310 1,032 1,500 6,036-2 + 155 + 38 + 309 32

Forecast: Change in Income before Income Taxes Income before Income taxes + 16.0 ( + 2.2 %) 728.9 + 125.7 Revenue, model mix, etc. Operating Income + 9.7 ( + 1.3 % ) + 50.0-87.0 Cost Reduction, etc. increase in SG&A - 12.0-67.0 Increase in R&D Currency Effects Other Income & Expenses + 6.3-43.0 + 49.3 Unrealized gains and losses related to derivative instruments Other 745.0 Operating Income 750.2 Operating Income 760.0 FY15 Forecast 34

Forecast: Capital Expenditures, Depreciation, R&D Expenses Results FY15 Forecasts Change Capital expenditures * 726.1 650.0-76.1 Depreciation and amortization * 375.8 415.0 + 39.2 R&D expenses 634.1 645.0 + 10.9 * Capital expenditures and Depreciation and amortization in results and forecast aforementioned exclude investment in operating leases, capital leases and intangible assets 35

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 and other regions. (3) With respect to changes in net sales and model mix, management has analyzed changes in sales volume and in the mix of product models sold in major markets which have resulted in increases/decreases in profit, as well as certain other reasons for increases/decreases in net sales and cost of sales. (4) With respect to selling, general and administrative expenses, management has analyzed reasons for an increase/decrease in selling, general and administrative expenses from the previous fiscal year net of currency translation effects. *1 Net income attributable to Honda Motor Co., Ltd. *2 Basic net income attributable to Honda Motor Co., Ltd. Basic net income attributable to Honda Motor Co., Ltd., is calculated based on weighted average number of shares outstanding as shown below: - Fiscal Year Results : 1,802,298,000 (approx), : 1,802,294,000 (approx) (page 5, 6, 33) - 4th Quarter Results : 1,802,298,000 (approx), : 1,802,291,000 (approx) (page 12) - Fiscal Year Forecast FY15: 1,802,291,000 (approx) (pages 6 and 33) 36

-Currency Effects- (effects associated with sales transactions and translation effects) (Attachment 1) JPY / USD JPY / Euro JPY / Others Transactions between other currencies 4Q + 24.8 + 2.1-18.0-3.3 4Q 93 122 - - Average Rates (Yen) 4Q 103 141 - - Change Yen down by 10 yen Yen down by 19 yen - - Twelve Months + 107.6 + 10.0 + 4.5-7.5 Difference of average rates *1 (Impact on Operating income) + 5.6 *1:Impact of YoY difference of FOREX to be used for booking revenue of foreign currency transactions + 114.6 Difference between transaction *2 rates and average sales rates (Impact on Other income & expenses) + 31.3 *2:Impact of YoY difference between average FOREX and hedge rates during the period - 23.1 Currency effect associated with sales transaction + 36.9 + 91.5 Currency effect from translation of foreign financial statements (impact on operating income) *3 + 23.2 *3:Effect due to the difference of the rate used for translating Honda s overseas subsidiaries financial statements denominated in foreign currencies into Japanese yen with the corresponding period of the fiscal year + 174.0 Total + 60.1 + 265.5 37

(Attachment 2) - Unrealized Gains and Losses Related to Derivative Instruments - 4Q Change Change Foreign currency Forward Interest rate swap / Currency swap -0.3-4.7 + 11.4 + 3.2 + 11.8 + 8.0-28.8-6.1 + 49.6-10.2 + 78.5-4.0 Others + 0.0-0.0-0.0 + 0.0-0.0-0.0 Total -5.0 + 14.7 + 19.8-35.0 + 39.3 + 74.4 38