FY14 2nd Quarter Financial Results FIT HYBRID Honda Motor Co., Ltd. - PowerPoint PPT Presentation

FY14 2nd Quarter Financial Results FY14 2nd Quarter Financial Results FIT HYBRID Honda Motor Co., Ltd. (Japan) October 30, 2013 1

FY14 2nd Quarter Financial Results Table of Contents - FY14 2nd Quarter Financial Results - FY14 Financial Forecasts - Dividend Tetsuo Iwamura Executive Vice President 2

FY14 2nd Quarter Financial Results Outline of FY14 2nd Quarter Results Summary (Consolidated) Results Summary - Increased unit sales of automobiles, mainly in North America - Increased unit sales of motorcycles in Asia due to new model introductions - An increase in operating profit by 70%, to JPY 171.4 billion due to foreign currency effects caused by depreciation of the Japanese yen 2nd Quarter Results FY2013 and FY2014 FY13 FY14 Unit Consolidated Unit Sales Net Sales / Operating Income Yen (billion) (thousand) 2,585 900 869 1,288 1,295 171.4 2,500 3,500 180 1,300 816 2,890.2 160 800 2,304 3,000 140 869 2,500 2,271.2 2,200 120 1,200 100.8 700 2,000 100 80 1,500 1,900 60 1,100 600 1,000 40 500 20 1,000 0 1,600 500 0 Motorcycles Automobiles Power Products Net Sales Operating Income 汎用事業 3

FY14 2nd Quarter Financial Results FY14 2nd Quarter Unit Sales FY13 FY14 Honda Group Unit Sales 2Q Results (3 Months) Honda Group Unit 4,216 1,400 (thousand) Unit Sales 1,100 FY13 FY14 Change 1,047 (thousand) 1,295 996 4,000 1,288 1,300 3,806 3,806 4,216 + 10.8% Motorcycles 1,200 900 996 1,047 + 5.1% Automobiles 3,500 1,100 1,288 1,295 + 0.5% Power Products 1,000 3,000 700 Motorcycles Automobiles Power Products 四輪事業 汎用事業 二輪事業 2Q Results (3 Months) Consolidated Unit Sales Consolidated Unit Unit Sales 1,400 FY13 FY14 Change (thousand) 900 869 2,585 (thousand) 1,295 816 1,288 1,300 Motorcycles 2,304 2,585 + 12.2% 800 2,304 2,300 1,200 700 816 869 + 6.5% Automobiles 1,100 600 Power Products 1,288 1,295 + 0.5% 1,000 500 1,800 Motorcycles Automobiles 汎用パワープロダクツ事業 Power Products 汎用事業 二輪事業 四輪事業 Honda Group Unit Sales -Increased sales of motorcycles, mainly in Asia due to new model introductions -Automobile unit sales increased mainly in North America, which saw strong market growth, and in Japan, where sales of mini vehicles have been favorable 4

FY14 2nd Quarter Financial Results FY14 2nd Quarter Financial Results (Consolidated) 2Q Results (3 Months) Financial Summary Financial Results FY13 FY14 Change Yen (billion) -Revenue increased by 27.3%, due mainly Net sales & other operating 2,271.2 2,890.2 + 27.3% to increased revenue in automobile and revenue motorcycle business operations, as well 100.8 171.4 + 70.0% Operating income as favorable foreign currency translation 4.4% 5.9% - Operating margin effects -Operating income increased by 70%, 106.2 165.5 + 55.8% Income before income taxes primarily due to an increase in sales 27.4 31.6 + 15.2% Equity in income of affiliates volume and model mix and favorable Net income attributable to Honda foreign currency effects, despite 82.2 120.3 + 46.4% *1 Motor Co., Ltd. increased SG&A expenses and increased EPS attributable to + 21.16 45.63 66.79 depreciation expenses related to new *2 Honda Motor Co., Ltd. (Yen) plant start-up Average Rates (Yen) Yen down For *1 and *2, please refer to footnotes on page 34 US Dollar 79 99 by 20 yen Yen down Euro 98 131 by 33 yen Operating Income Operating Margin Yen (billion) FY13 176.0 184.9 8% 200 7.2% 171.4 5.9% FY14 7% FY13 FY14 135.9 6% 150 131.9 6.5% 5% 5.0% 5.4% 100.8 4% 100 4.4% 3% 2% 50 1% 0% 0 5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

FY14 2nd Quarter Financial Results FY14 1st Half Financial Results (Consolidated) 1st Half Results (6 Months) Honda Group Unit Sales (Consolidated Unit Sales) FY13 FY14 Change （ thousand ） 7,717 8,270 + 7.2% Motorcycles (4,670) (4,956) (+ 6.1%) 1,995 2,046 + 2.6% Automobiles (1,665) (1,727) (+ 3.7%) 2,913 2,884 -1.0% Power Products (2,913) (2,884) (- 1.0%) 1st Half Results (6 Months) Financial Results FY13 FY14 Change Yen (billion) 4,707.1 5,724.3 + 21.6% Net sales & other operating revenue 276.8 356.4 + 28.7% Operating income 5.9% 6.2% - Operating margin 301.0 337.6 + 12.2% Income before income taxes 48.2 63.4 + 31.6% Equity in income of affiliates Net income attributable to 213.9 242.8 + 13.5% *1 Honda Motor Co., Ltd. EPS attributable to + 16.04 118.71 134.75 Honda Motor Co., Ltd. (Yen) *3 For *1 and *3, please refer to footnotes on page 34 Average Rates (Yen) 79 99 US Dollar Yen down by 20 yen 101 130 Euro Yen down by 29 yen 6

FY14 2nd Quarter Financial Results FY14 Financial Forecasts (Consolidated) Yen (billion) Change FY14 Change from FY13 previous forecasts Forecasts amount % Results Net sales & other 9,877.9 12,100.0 + 2,222.0 + 22.5% - operating revenue 544.8 780.0 + 235.1 + 43.2% - Operating income 5.5% 6.4% - - - Operating margin Income before 488.8 765.0 + 56.5% + 276.1 - 15.0 income taxes 82.7 130.0 + 47.2 + 57.2% + 15.0 Equity in income of affiliates Net income attributable to 367.1 580.0 + 212.8 + 58.0% - *1 Honda Motor Co., Ltd. EPS attributable to Honda 203.71 321.81 + 118.10 Motor Co., Ltd. (Yen) *4 For *1 and *4, please refer to footnotes on page 34 Average Rates (Yen) 97 Yen down by 84 US Dollar Yen down by 13 yen 1 yen (1H 99 / 2H 95) 127 Yen down by 108 Euro Yen down by 19 yen 1 yen (1H 130 / 2H 125) 7

FY14 2nd Quarter Financial Results FY14 Financial Forecasts (Parent Company Only) Yen (billion) Change Change from FY14 FY13 previous Forecasts Results forecasts amount % 3,244.0 3,580.0 + 335.9 + 10.4% - 50.0 Net sales 103.9 150.0 + 44.3% - 20.0 Operating income + 46.0 193.8 375.0 + 93.5% Ordinary income + 15.0 + 181.1 154.7 280.0 Net income + 125.2 + 81.0% + 20.0 Average Rates (Yen) 97 Yen down by 84 US Dollar Yen down by 13 yen 1 yen (1H 99 / 2H 95) 127 Yen down by 108 Euro Yen down by 19 yen 1 yen (1H 130 / 2H 125) 8

FY14 2nd Quarter Financial Results Dividend (Yen) FY14 FY13 Increase / Dividend per Share (Expectation) Decrease from FY13 1 st quarter End 19 20 + 1 19 20 + 1 2nd quarter End 19 ( 20 ) ( + 1 ) 3rd quarter End 19 ( 20 ) ( + 1 ) 4th quarter End 76 ( 80 ) ( + 4 ) Fiscal Year 9

FY14 2nd Quarter Financial Results Table of Contents - FY14 2nd Quarter Financial Results Net Sales and Other Operating Revenue Change in Income before Income Taxes Business & Geographical Segment Information - FY14 Financial Forecasts Kohei Takeuchi Operating Officer and Director Chief Financial Officer 10

FY14 2nd Quarter Financial Results Net Sales and Other Operating Revenue <FY14 2nd Qtr> Yen (billion) + 618.9 ( + 27.3 % ) Excluding currency translation effects + 168.2 ( + 7.4 % ) 2,890.2 + 450.6 + 6.7 + 116.4 - 1.2 2,271.2 + 46.2 ( + 5.2 %) Currency Effects ( - 1.9 %) ( + 6.6 %) Financial Services ( + 14.9 %) Power Product Automobile Business & Business Motorcycle Other Businesses Business Net sales & other FY13 2Q FY14 2Q operating revenue Motorcycle Business 309.7 418.0 1,766.2 2,229.0 Automobile Business Financial Services Business 130.4 170.0 Power Product & 64.9 73.1 Other Businesses 2,271.2 2,890.2 Total Market average rates 79 99 US Dollar 98 131 Euro FY13 2Q FY14 2Q 11

FY14 2nd Quarter Financial Results Net Sales and Other Operating Revenue <FY14 1st Half> Yen (billion) + 1,017.1 ( + 21.6 %) Excluding currency translation effects + 146.5 ( + 3.1 % ） 5,724.3 + 870.5 + 94.8 + 12.2 - 3.6 4,707.1 + 43.0 ( - 2.8 %) ( + 4.7 %) Currency Effects ( + 2.6 %) ( + 6.6 %) Power Product Financial Services & Automobile Business Motorcycle Other Businesses Business Business FY13 FY14 Net sales & other operating revenue 6 Months 6 Months 656.3 814.9 Motorcycle Business 3,656.7 4,425.5 Automobile Business 261.6 335.4 Financial Services Business Power Product & 132.4 148.3 Other Businesses 4,707.1 5,724.3 Total Market average rates 79 99 US Dollar 101 130 Euro FY13 FY14 1st Half 1st Half 12

FY14 2nd Quarter Financial Results Change in Income before Income Taxes <FY14 2nd Qtr> Yen Income before Income taxes + 59.3 ( + 55.8 %) (billion) Other Income Operating Income + 70.5 ( + 70.0 % ) & Expenses - 11.2 <Decrease Factors> - 33.3 + 22.0 <Increase Factors> - Advertisement expenses, etc. - Cost reduction efforts, etc. + 93.6 <Decrease Factors> 165.5 - Increase in depreciation, etc. Unrealized gains and losses related to Other derivative instruments + 34.6 - 17.6 (Attachment 2) - 36.0 106.2 Cost Reduction, etc. Revenue, - 4.1 model mix, etc. Increase in SG&A Increase in R&D Currency Effects - Currency effects due to difference between <Increase Factors> - 23.2 average sales rates and transaction rates - Increase in sales volume and model mix, etc. Operating - 10.1 Operating - Other Income Income 100.8 171.4 FY13 2Q FY14 2Q *Please refer to Attachment 1 regarding currency effects 13