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Honda Corporate Update 2016 Autumn

Civic Hatchback

Honda Business Status

FY17 2Q Financial Highlights

Automobile Business Operations

Motorcycle Business Operations

Honda Corporate Update

Business Strategy

2

Profit Structure Profile over Past Decade and FY17 Forecast

3

70

80

90

100

110

120

130

183 203 199

177 192 182

461280

153

7.4%7.7% 7.9%

1.9%

4.2%

6.4%

2.9%

5.5%

6.6%

5.0%

3.4%

4.9%

-1%

1%

3%

5%

7%

-200

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

FY3/06 FY3/07 FY3/08 FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17P

Automobile

Motorcycle

Finance

O/P Margin

4.9%・Earthquake・Thai flood

FY3/12

Yen (billions)

231

569

363

189

953851868

*Includes gain on return of the substitutional portion of the Employees’ Pension Funds to the Japanese government (138 bil ) .

*

USD/JPY

544

￥100 forFY17 2H

650

823670

8.8% *

IFRSUS GAAP

503

Current Fiscal Year Projection (May-13 vs. Oct.-31)

FY17PreviousForecast(May-13)

FY17RevisedForecast(May-13)

Difference

FY17PreviousForecast(May-13)

FY17RevisedForecast(May-13)

Difference

Japan 150 160 + 10 600 595 - 5North

America 310 315 + 5 1,990 1,985 - 5Europe 180 210 + 30 190 180 - 10

Asia 9,780 9,955 + 175 730 700 - 30Other

Region 1,125 1,050 - 75 235 245 + 10Total 11,545 11,690 + 145 3,745 3,705 - 40

11,5453,745

+ 145( + 1.3 %)

- 40( - 1.1 %)

(Automobiles)(Motorcycles)

Consolidated Unit Sales

600.0650.0

+ 50.0

Vol/Mix Costreduction

SG&A

FY17PreviousForecast

Main reasons for revision of forecast Forex - 67.0

JPY/USD - 32.5USD/Others - 4.5 (BRL,CAD,MXN)Main Asian currencies - 11.0 (INR, THB, VND, CNY, IND)Others - 19.0

SG&A + 12.0

Vol/Mix + 21.0

Cost Reduction + 48.0

R&D - 6.0

Pension Impact + 84.0

Operating Profit Yen (billions)Unit (thousands)

ROS4.4%

ROS4.9%

R&DForex

4

11,6903,705

FY17RevisedForecast

+ 12.0- 21.0

- 67.0

+ 48.0 - 6.0Impact of pension

accounting treatment

+ 84.0

+ 33.0without Forex and pension impact






Business Strategy

5

Honda FY2011 Rating ReviewAutomobile Business - CivicCore Strategies for Growth in Automobile Operations

Improve quality of business forsustainable & profitable growthImprove quality of business forsustainable & profitable growth

6

Develop Innovative ProductsUnique to Honda

Strengthen global and regional models

Flexible global production infrastructure

Strong attention to “product concept” and further evolution of design and driving experience

Electrification Technologies

Advance the Six-region Global Operation Structure

Strengthen Global and Regional models

16% 14%

7

Regional models

Global models

Global models

68%

Mini and compact models in Japan

Light Trucks in U.S.

Brio series in Asia

China specific models

4.6CY2015

mil

:core models developed for worldwide distribution

Global Compact Series Civic

Avancier (China) BR-V (Asia)

Ridgeline

CR-V Accord

: models developed and produced locally tomeet specific needs of that region or market

Global models: Global Compact Series

Honda’s Global Compact Series is Being Rolled Out to Global Markets

(City / Grace / Greiz)

(Fit / Jazz)

(Vezel / HR-V / XR-V)

with best-in class Fun to Drive, Fuel Economy, Packaging and Safety

0

20

40

60

80

100

120

140

160

180

Jan-

13Fe

b-13

Mar

-13

Apr-

13M

ay-1

3Ju

n-13

Jul-1

3Au

g-13

Sep-

13O

ct-1

3N

ov-1

3De

c-13

Jan-

14Fe

b-14

Mar

-14

Apr-

14M

ay-1

4Ju

n-14

Jul-1

4Au

g-14

Sep-

14O

ct-1

4N

ov-1

4De

c-14

Jan-

15Fe

b-15

Mar

-15

Apr-

15M

ay-1

5Ju

n-15

Jul-1

5Au

g-15

Sep-

15O

ct-1

5N

ov-1

5De

c-15

Jan-

16Fe

b-16

Mar

-16

Apr-

16M

ay-1

6Ju

n-16

Jul-1

6Au

g-16

Sep-

16

Global Compact Series1.3 mil units in 2015 ( + 41% vs LY )

1.1 mil units in Jan-Sep 2016 ( + 20% vs LY )

(thousands)

City / Grace / Greiz

Fit / Jazz

Vezel / HR-V / XR-V

8

Global models: CIVIC

Civic 5D Hatch Prototype

9

Civic 4D Launch

CIVIC 5D Hatchback

CIVIC 2D Coupe

CIVIC 4D

Global launch schedule

0

1,000

2,000

3,000

010203040506070

Civic 2D Civic 4D Civic 5D US Incentive

Civic Global Sales and U.S. Incentives(K unit) (USD)Civic 2D Civic 5D

America

4.6CY2015

mil

CR-V Accord15% 12%

Civic12%

Fit / City / Vezel28%

CR-V and Accord continue to be widely popular representing approx. 27% of CY2015 global Honda unit sales

Global Models: CR-V and Accord

10

New CR-V and Accord to be launched with new platform and downsized turbo engine

Regional Models in North America

(June 2015)

Ridgeline

2016 ～2015

2016 Pilot

New Odyssey

(May 2015)

HR-V

Regional models

Global models

11

2016 Civic (November 2015)

New Accord

(June 2016)Ridgeline

2D Coupe (March 2016)

5D Hatchback (Autumn 2016)

All Honda Light Trucks to undergo full-model change in short period

CR-V (2017 Winter)

Ohio ELPOhio ELPCanadaCanada

AlabamaAlabama

MDX dual-source production will

start in spring 2017

Civic CR-V RDX

OdysseyRidgeline

Leverage Japan production base to

enhance Fit and Civic(Plan) supply

FitMDX Pilot

Start CR-V production in 2017

Civic

CR-V

-

5

10

15

20

Jan14

Mar May Jul Sep Nov Jan15

Mar May Jul Sep Nov Jan16

Mar May Jul Sep

FitHR-V

Increase HR-V production in Mexico

Monthly Production Profile (thousand units)Mexico El SaltoMexico El Salto Mexico CelayaMexico Celaya

Start to produce HR-V in El Salto plant in 2017(Annual capacity : 63k)

Ohio MAPOhio MAP

AccordTLX

ILX

Production in North America

HR-VFit

12

Flexibleproduction

Transfer

IndianaIndiana

Regional Models in China

13

By utilizing common platforms and strengthening local procurement and R&D functions, successive launch of cost competitive models being realized

SDN(4D/5D) SUV MUV

D

Guangqi

Dongfeng

C

Guangqi

Dongfeng

B

Guangqi

Dongfeng

Accord(2013 FMC)

Jade (2013)

Crider (2013)

Odyssey

Spirior(Dec 2014)

Gienia(Oct 2016)

Segment

(Aug 2014)

Fit (May 2014)

City (Aug 2015)

Concept D

Vezel 1.5L (Mar 2015)

XR-V 1.5L (Jul 2015)

Vezel 1.8L (Oct 2014)

XR-V 1.8L (Dec 2014)

CR-V MMC (Apr 2015)

Elysion(Jan 2016)

Greiz (Nov 2015)

All-new SUV

New Civic(April 2016)

Avancier(Oct 2016)

Regional Models in Asia

14

India

Thailand

Indonesia

20152014201320122011

Brio Series

Global Compact Series

Fit / JazzCity HR-V

Brio Amaze Mobilio

(thousand units)

0%

5%

10%

15%

20%

0

50

100

150

200

250

CY12 13 14 15

Volume

Honda Share

0%

5%

10%

15%

20%

0

20

40

60

80

100

120

CY12 13 14 15

Volume

Honda share

0%

5%

10%

15%

20%

0

50

100

150

200

CY12 13 14 15

Volume

Honda Share

0%

5%

10%

15%

0

50

100

150

200

250

300

CY12 13 14 15

Volume

Honda Share

*First car incentive

Malaysia

BR-V

Indonesia & Thailand (Jan 16)India (May 16)

Honda FY2011 Rating ReviewHonda FY2011 Rating ReviewAutomobile Business - CivicGlobal Production Capacity

1,066 1,066

1,923 1,923

200 200

960 1,080

840+501,080+50

150 151

Mar '15 Mar '16

5,189

(thousand units)

as of

Japan

NorthAmerica

Europe

Asia

China

Other

5,550+361

China +240Guangqi +120 Dongfeng +120

Thailand +120Nigeria +1

FY2016(Export only)(Export only)

15

China

Europe

Capacity increase to 5.7 milEstablish stable production structure leveraging regional capacity + mutual parts/model sharing

North America

South AmericaAsia

Japan (Units)

1.06 mil

<Export> Global Models

& Hybrid models 1.92 mil200,000

Primarily Civic 5D and CR-V production

150,000

1.13 mil

<Export> Acura & L/T models

Fit & CR-V

1.08 mil

<Export> • Strengthen mutual parts/model

sharing within Asia• Export to Africa

<Export> Leverage local cost benefit for

next markets (Africa)

Middle East and Africa

JazzHybrid models

CR-V

Accord & L/T models

Acura

10-20%for Other regions

80-90% for Local markets

Total Capacity

approx. 5.55 mil units(end of FY2016)

Accord

Utilization Image

Fit

Civic 5D from UK

Flexible global production infrastructure

16

1,000

CR-V , HR-V(plan)

Capacity Utilization by Region

101% 88% 81%94%FY14 FY15

96% 77% 70%96%

95% 95%50% 61%

100%FY16 FY14 FY15 FY16

FY14 FY15 FY16 FY14 FY15

111% 73%FY16

64%FY16

104%FY16FY14 FY15FY14 FY15

(Excluding export factory)

17

103%

North America Japan

China Asia

Europe South America

FY17 1H

※Civic 5D production started in summer 2016

71% 69%

FY17 1H

85%

108% 70%

67%

75%FY17 plan

FY17 1H FY17 1H

FY17 1H FY17 1H

※Targeting 950K units annual production in Japan

Engines

18Targeting best Fuel Efficiency and Fun to Drive in all categories

Turbo engines

Transmissions Hybrid Powertrains

Earth Dreams Technology

18

2010 2020 2030

DI engineCVT / DCT

Turbo engine

Enable people to experience the joy and freedom of mobility and contribute to the creation of a sustainable society where people can enjoy more harmonious lifestyles

Honda’s Environmental and Safety Vision

2000

(CO

2(g/

km)

0 (2002) (2008)

New PHEV

(2016)

Global expansion

Global expansion

Technologies to increaseelectrical efficiency

Technologies to increasethermal efficiency

ZEROemissions technologyNew BEV

New FCV

(2020)

One-motorHybrid system

Two-motorHybrid system

Three-motorHybrid system

(2013)

Looking towards zero emissions withthe development of ZEV and PHEV

CLARITY FUEL CELLFCX CLARITYFCX

ACCORD PHEV

Roadmap for Environmental Technologies

19

(2017)

(2017)

Roadmap for Environmental Technologies

Clarity3兄弟戦略

The Clarity Fuel Cell, only five-passenger fuel cell sedan in the industry, launched in Japan in March 2016 and will be launched in the U.S. and Europe within 2016

The Clarity Electric and the Clarity Plug-in Hybrid will be launched in the U.S. in 2017

All of the Clarity models will leverage the platform that has made the Clarity Fuel Cell’s

low, wide and aerodynamic proportions and spacious five-passenger cabin possible

Honda Clarity series to Leverage Common Platform

20

Toward Zero Collisions

Aiming for practical application of autonomous driving on highways around 2020

Roadmap for Safety Technologies

21

North America Automobile Operations

Unit(thousands)

0

500

1,000

1,500

2,000

CY07 08 09 10 11 12 13 14 15

AcuraHonda Passenger CarsHonda Light Trucks

Source: Honda

Industry Demand Honda Unit SalesUnit

(thousands)

1,5511,428

1,150

New Model Launches/ FMC

1,259

1,147

1,4221,525

1,541

Source: Honda

Acura NSX (May 2016)

1,586

Honda Topics Improve cost competitiveness of core models

- Increase commonality of platforms and parts- Leverage global suppliers- Utilize Mexican local suppliers to drive down overall North

American costs Increase production capacity of Light Trucks

- Start dual production of MDX in Ohio and Alabama plants from spring 2017

Introduce Environmentally Friendly Vehicles- Accord Hybrid, FCX Clarity, PHEV, BEV and more

Accord Hybrid (June 2016)

Civic Coupe (Mar 2016)

Ridgeline (June 2016)

Civic 5D(Sep 2016)

Clarity Fuel Cell (2016)

0

10,000

20,000

CY07 08 09 10 11 12 13 14 15

Passenger Cars

Light Trucks

10,42911,588

12,778

14,491 15.60016.522

17.470

23

24

0

2,000

4,000

6,000

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Regular size vehicle Mini vehicle

Industry Demand Honda Unit Sales

0

250

500

750

1,000

1,250

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Registered vehicle

Mini vehicle

Source: HondaSource: JAMA, Honda


Enhancement of product line-up- Strengthen minivan and hybrid line-up by introducing Odyssey Hybrid, Accord (hybrid) and new Freed

Honda Topics

Improve capacity utilization- Fit (Jazz) export for North America and Europe started in 2015- Accord Hybrid exports began in 2016

Accord (May 2016)

Clarity Fuel Cell(Mar 2016)

Odyssey Hybrid(Feb 2016)

Freed(Sep 2016)

Japan Automobile Operations

25

Europe Automobile Operations


New models with Earth Dream Technology powertrains

Restructuring of operations to improve efficiency

Industry Demand（EU+EFTA）

(excluding commercial vehicles)

Honda Unit Sales

（EU+EFTA）

0

5,000

10,000

15,000

CY08 09 10 11 12 13 14 15

Unit(thousands)

0

50

100

150

200

250

300

350

400

08 09 10 11 12 13 14 15

Unit(thousands)

Source: ACEA / Honda Source: ACEA / HondaCY

Jazz (Aug 2015) HR-V (Sept 2015)Civic Type R (July 2015)- U.K factory to concentrate on producing 5D Civic hatchback to improve plant efficiency

- New CR-V, new Jazz, brand new HR-V and Civic Type R with VTEC turbo engine launched in 2015

Honda Topics

New Model Launches/ FMCIntroduce more new models to establish presence in all segments - New Civic launched in April 2016 - All-new SUV, Avancier, and all-new Gienia launched in Oct 2016- All-new compact SUV, CDX, debut in July 2016 as Acura modelFirst Acura model produced in China

- Introduction of hybrid model - 2016 Accord Hybrid

0

200

400

600

800

1,000

CY08 09 10 11 12 13 14 15

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

CY08 09 10 11 12 13 14 15

Source: HondaSource: CAAM / Honda

Honda Unit Sales in ChinaChina Industry Demand(excluding commercial vehicles)

Accord

Odyssey

CR-V

Civic

City

Fit

※2008-2014 Wholesale ※Wholesale

Spirior

S1Ciimo

Crider

JADEElysion

Crosstour

Strengthen cost structure- Increase local procurement to achieve further cost reductions

Vezel

XR-V

2015 Retail

Honda Topics

Elysion (Jan 2016)

26

Acura CDX (Jul 2016)

Avancier (Oct 2016)

Civic (April 2016)

Accord Hybrid (Sep 2016) Gienia (Oct 2016)

China Automobile Operations

Asia Automobile Operations

0

50

100

150

200

250

300

350

400

450

500

CY08 09 10 11 12 13 14 15

Malaysia Thailand

Indonesia Philippines

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

CY08 09 10 11 12 13 14 15

Malaysia Thailand

Indonesia Philippines

Source: Honda

Honda Unit SalesIndustry Demand

Source: Honda

※Retail Sales


New models launched to meet specific market needs in each Asian market

- All new HR-V rolled out in Asian markets

- All-new BR-V is cultivating entry SUV market in Asia

- 10th generation Civic is being rolled out in Asia

HR-V

Nov 2014 Thailand

Jan 2015 Indonesia

Feb 2015 Malaysia

881 800

666 666

1,208 1,013

Indonesia

Thailand

Malaysia

Honda Topics

27

BR-V

Jan 2016 Indonesia

Jan 2016 Thailand

Civic

Mar 2016 Thailand

Apr 2016 Indonesia

Apr 2016 Malaysia

India Automobile Operations


0

50

100

150

200

250

300

CY09 10 11 12 13 14 15

Honda Unit Sales in India

City

Accord

Civic

Source: Honda

※Retail Sales

JAZZ

Source: SIAM / Honda

India Industry Demand

BRIO

Amaze

Expansion of dealer network

Launch of new models equipped with diesel engines

- BR-V debuted in May 2016

Profitability of automobile operations in Indian market hasimproved due to introduction of new models

Mobilio

1,770

2,320 2,4402,753 2,553 2,571

2,771

450

650760

813

687 606651

0

1,000

2,000

3,000

4,000

5,000

CY09 10 11 12 13 14 15

Commercial

Passenger+UVs

Jazz PE/DE(July 2015)

Honda Topics

BR-V (May 2016)

28

29

Other Regions Automobile Operations

118 126 126

93

135 139 138153

0

20

40

60

80

100

120

140

160

180

200

CY08 09 10 11 12 13 14 15

2,671

3,008

3,329 3,426

3,634 3,580

3,333

2,481

0

1,000

2,000

3,000

4,000

CY08 09 10 11 12 13 14 15

Source: HondaSource: ANFAVEA

Honda Unit SalesIndustry Demand

(excluding trucks)※Retail Sales※Registration

Launch of Global Compact Series All-new HR-V launched in Mar 2015New Civic launched in August 2016


Enhance local R&D facilities and expand local parts procurement

HR-V(Mar 2015)

Honda Topics

Civic(August 2016)






Business Strategy

30

31

0

4,000

8,000

12,000

16,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

69 114 101 151 100 59 139 143 110 177 192 182

6.3%9.3% 7.3%

9.7%7.1% 5.2%

10.8% 10.6%8.2%

10.5% 10.4% 10.1%

0

50

100

150

200

250

300

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Honda M/C Business = High Profitability + Stability + Growth Potential

Honda Global Unit Sales

*excluding sales by Hero Honda

*Operating profit and margin from FY05 to FY13 are based on US GAAP while FY14 and FY15 are based on IFRS

Operating Profit and Margin(billion yen)

(thousand units)

Overview of Motorcycle Business

Indonesia

Malaysia

Thailand

VietnamIndia

PakistanChina

Japan

Bangladesh

Brazil

Argentine

PeruNigeria

Kenya

ItalyU.S.A

(ATV, S×S)Mexico

Philippines

27%

India16.1 mil

70%

Vietnam2.8 mil

69%

Indonesia6.5 mil

78%

Brazil1.3 mil

79%

Thailand1.7 mil

44%

50%

Pakistan1.5 mil

Cambodia0.3mil 90%

21%U.S.A (MS+ATV)

0.7 mil

47%0.4 mil

17%Europe0.8 mil

Motorcycle productionat 34 plants in 21 countries

Motorcycle productionat 34 plants in 21 countries

Motorcycle Market Size and Honda Share

Philippines0.8mil

(CY2015)

Annual Production Capacity in India

4.6mil in 2015 5.8mil in 2016

Annual Capacity in Pakistan

0.6mil in 2014 1.2mil in 3 years

32

*Market share excluding 50cc

Motorcycle Market Size and Honda Share (CY2015)

Next Markets Growing Markets Mature Markets

Africa

1,000

2,000

3,000

4,000

(USD)

4.0mil India16.1 mil

Indonesia6.4mil

ThailandThailand

VietnamVietnam1.4mil

Pakistan

1mil

Philippines

Bangladesh0.8mil

Myanmar

GDP per capita 1.7mil

2.8mil

Growth in Motorcycle Popularity

33

(CY2015)

Thailand

Vietnam

Indonesia

India

Number of motorcycles units in operationPopulation

1,292

255

91

6840%

33%

25%

8%

Significant growth expected

Motorcycle Market Penetration in Asia (millions) Source: Honda & IMF

0.1mil

1.6 1.6 1.6 1.6

1.2 1.2 1.2 1.2

1.2 1.8 1.8 1.8

1.2

CY13 14 15 16

Expanded annual production capacity to 5.8 milThe 4th plant to produce only automatic scooters to meet growing demand.

1st

2nd

3rd

4.0mil4.6mil

5.8mil4.6mil

Capacity Expansion

34

India Motorcycle Operation

4th

Manesar

Rajasthan

Karnataka

Gujarat

3rd

2nd

4th

1st

Product Line-upProduct Line-up

110cc AT-Scooter

Activa

125cc Motorcycle

CB Shine

AT Scooter business operation in India

35

■ Monthly Scooter Unit Sales of Honda / Competitors and Honda Share in Scooter Market

18%

82%

In CY201130%

70%

In CY2015SC SC

MCMC

■ Fast Growing Segment

Scooter / Motorcycle Sales Ratio (Industry)

Activa

0%

10%

20%

30%

40%

50%

60%

70%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000 Competitors (Unit)

Honda (Unit)

Honda Share(%)

ATV

S×S

M/C +2%

+8%

U.S. Market by Business Segment(sales volume in 2015 (vs. 2014))

2014 2015

Work

Sport

Multi

Side by Side (S x S) Segments(units sales in 2014 and 2015)

0

10

20

30

2012 2013 2014 2015

+ 89%+ 89%

Pioneer 700(Sep ‘13)

Pioneer 500(Jul ‘14)

Honda S x S Unit Sales

Pioneer 1000(Oct ‘15)

(Source: M/C and ATV: Motorcycle Industry Council / S×S：Honda estimate)

+ 90%+ 90%

(thousand units)

(thousand units)

Side by Side in the U.S.

36

+ 48%+ 48%

-1%






Business Strategy

37

0

500

1,000

1,500

0

500

1,000

1,500

Outline of FY17 2nd Quarter Unit Sales (Consolidated)

38

Honda Group Unit Sales

2Q Results (3 Months)

FY16 FY17 Change

Motorcycles 4,370 4,538 + 3.8%

Automobiles 1,139 1,218 + 6.9%

Power Products 1,275 1,240 - 2.7%


2Q Results (3 Months)

FY16 FY17 Change

Motorcycles 2,740 3,042 + 11.0%

Automobiles 889 890 + 0.1%

Power Products 1,275 1,240 - 2.7%

0

1,000

2,000

3,000

4,000

5,000

0

200

400

600

800

1,000

1,200

1,400

0

1,000

2,000

3,000

4,000

5,000

0

200

400

600

800

1,000

1,200

1,400

4,370 4,5381,139 1,218 1,275 1,240

2,740 3,042 889 890

1,275 1,240

(thousand)

(thousand)

Honda Group Unit Sales


Motorcycles Automobiles

FY16 FY17

Unit (thousand)

Motorcycles Automobiles

Honda Group Unit Sales- Increase in motorcycle unit sales due mainly to sales growth in India, despite decline in sales in Indonesia and Brazil

- Increase in automobile unit sales due primarily to sales growth in China

Power Products

Power Products

Unit (thousand)

39

FY17 2nd Quarter Financial Results (Consolidated)

Financial Results2Q Results (3 Months)

FY16 FY17 Change

Sales revenue 3,621.2 3,262.9 - 9.9%

Operating profit 164.8 228.0 + 38.4%

Operating margin 4.6% 7.0% + 2.4ptShare of profit of investmentsaccounted for using the equity method 34.1 39.8 + 16.6%

Profit before income taxes 210.9 270.5 + 28.3%Profit for the periodattributable to owners of the parent 127.7 177.0 + 38.6%

Earnings per shareattributable to owners of the parent 70.88 98.26 + 27.38

*1については巻末をご覧くださいUS Dollar 122 102 Yen up by 20 yen

*1

239.2

164.8 163.0

-63.8

266.8 228.0

-100-50

050

100150200250300

1Q 2Q 3Q 4Q

FY16FY17

6.5%

4.6%

4.5%

-1.7%

7.7% 7.0%

-2%

0%

2%

4%

6%

8%

10%

1Q 2Q 3Q 4Q

FY16FY17

Market average rates (Yen)

Operating Profit Yen (billion) Operating Margin

Financial SummarySales revenue decreased by 9.9% primarily due to negative foreign currency translation impact, despite increases in automobile, financial services, and motorcycle business operations.

Operating profit increased by 38.4% due primarily to cost reduction efforts, a decline in SG&A expenses, including quality related expenses, as well as the impact of pension accounting treatment, despite negative foreign currency effects.

Yen (billion)

(Yen)

Change in Profit before Income Taxes <FY17 2nd Qtr>

40

41

Cash Flows of Non-financial Services Businesses

131 68 70 -115

185

132

4.8%

2.6% 2.6%

-4.2%

7.3%

5.5%

1QFY16

2Q 3Q 4Q 1QFY17

2Q 3Q 4Q

Honda Consolidated Financial Results

FY16O/P

M/CFinance

36%

FY16Revenue

M/CPower Products

Finance12%

56 49 50 28 31 60

11.8% 10.8% 11.2%

6.3% 7.2%

14.5%

0

50

100

150

200

1QFY16

2Q 3Q 4Q 1QFY17

2Q 3Q 4Q

Quarterly Profit Business Scale

Yen (billions)

Operating IncomeOperating Margin

69 114 101 151 100 59 139 143 110 177 192 182

6%

9%

7%

10%

7%

5%

11% 11%

8%

10% 10% 10%

0

50

100

150

200

250

300


Annual Profit

Auto

Auto

FY16Revenue

M/CPower Products

Finance

73%


Auto

Motorcycle business

Automobile business

Yen (billions)

452 628 600 662 25 127 265 -77 286 461 280 153

6%

8%7% 7%

0%2%

4%

-1%

4%

5%

3%

1%

-200

0

200

400

600

800

1000


(99)*

(8%)*

* (excluding one time profit)

(512)*

(6%)*

* (excluding one time profit)42

FY16O/P

Auto

Finance

30%

M/C

US GAAP IFRS

US GAAP IFRS

12.9% (excl. pension impact)

2.4% (excl. pensionimpact)

52 52 51 44 51 38

11.0% 11.1% 11.5%9.5% 10.8%

8.5%

FY161Q

2Q 3Q 4Q FY171Q

2Q 3Q 4Q


FY16Revenue

M/C

Power Products

Finance

2%

1-4 -7 -20

1 -1

0.6%

-4.4%-9.1%

-21.6%

0.7%-1.4%

FY161Q

2Q 3Q 4Q FY171Q

2Q 3Q 4Q


Yen (billions)


19 36 36 22 -15 -17 -6 -4 -103

-4-31

6%

9% 8%5%

-4% -5%

-2% -1% -3%

1%

-1%

-9%-50

0

50


Annual Profit

FY16Revenue

M/CPower Products

FinanceOperating IncomeOperating Margin

Auto

Power Product & Other Business

Financial Business

Yen (billions)

90 91 116 118 81 195 186 170 158 183 203 199

35% 29% 28%

21%

14%

31% 32% 32%28%

14% 13%11%

0

50

100

150

200

250

300


13%

43

FY16O/P

Finance

Auto

FY16O/P

Finance

M/C40%

Auto

M/C

US GAAP IFRS

US GAAP IFRS

*

-6%

Power Products

-4.4% (excl. pension impact)

28 26 28

-180

-20 86

3.0% 2.7% 2.7%

-18.1%

-2.2%

8.8%

FY161Q

2Q 3Q 4Q FY171Q

2Q 3Q 4Q

109 37 3826

171 38

5.0%

1.8% 1.8% 1.3%

8.3%

2.1%

FY161Q

2Q 3Q 4Q FY171Q

2Q 3Q 4Q




185 371 228 193 -162

-29

66 -110 178 246 210 -99

4%

8%

5%4%

-4%

-1%

2%

-3%

5%6% 5%

-3%-200

-100

0

100

200

300

400

500


Annual Profit


Japan

321 354 457 433 80 236 301 223 209 336 182 211

7%6%

7%7%

2%

6%

7%6%

4%5%

3%2%

0

50

100

150

200

250

300

350

400

450

500


FY15Revenue

North America

Other Regions

Europe

Asia

Japan12%

FY15O/P North

America

Other Regions

Europe

Asia

Japan-22%

North America

Yen (billions)

(233)*

(5%)*

* (excluding one time profit)

Yen (billions)

FY15Revenue

JapanOther Regions

Europe

Asia

NorthAmerica

55%

FY15O/P

Other Regions

Europe

Asia46%

NorthAmerica

Japan

US GAAP IFRS

US GAAP IFRS

44

96 86 88 66 90 91

10.6%9.8% 9.7%

7.8%

10.9% 11.0%

FY161Q

2Q 3Q 4Q FY171Q

2Q 3Q 4Q

FY15O/P

FY15Revenue

FY15O/P

FY15Revenue

-13

-522

1

0-0.6%

1.7%

-2.8%

9.5%

0.7%0.1%

FY161Q

2Q 3Q 4Q FY171Q

2Q 3Q 4Q


Business Scale

Yen (billions)


61 65 77 131 104 113 151 77 147 232 279 336

7% 7%6%

8%6%

7%8%

5%6%

8% 8%9%

0

50

100

150

200

250

300

350

400


Annual Profit


Asia (China JVs are not included)

Yen (billions)

41 26 32 52 10 -11 -10 -12 0 -34 -23

19

4%

2% 2%3%

1%-1% -1% -2%

0% -4%-3%

2%

-100

-50

0

50

100

150

200


North America

Other Regions

Europe

Asia

Japan

6%

North America

Other Regions

Europe

Asia

Europe

North America

Other Regions

Europe

Asia Japan

Other Regions

Europe

Asia73%

Japan

Quarterly Profit

Japan

21%

North America

45

US GAAPIFRS

US GAAP IFRS

4%

5 7 0

-20

14 13

1.9%3.4%

-0.2%

-12.1%

8.3% 7.7%

FY16Q1

Q2 Q3 Q4 FY17Q1

Q2 Q3 Q4

FY15O/P

FY15Revenue


Business Scale

Yen (billions)


33 57 72 116 135 46 70 57 36 38 40

-8

7%

10%9%

11%12%

5%7% 6%

4% 4% 4%

-1%

-50

0

50

100

150

200

250

300


Annual Profit

Other region

Yen (billions)

78 73 73 86 98 91 111 88 78

18 27 3133

2 2

29

135

0

100

200


Equity Income

North America

Europe

Other Japan

Europe

Asia

6%Japan

Quarterly Profit

6%

North America

Asia

Other

96 100 103119

9993

140

10083

131

38 34 45 8 27 40

FY161Q

2Q 3Q 4Q FY171Q

2Q 3Q 4Q

*Discontinued JV with Hero at Dec 2010

*ChinaGuangqi HondaDongfeng Honda

IndonesiaP.T Astra Honda

PakistanAtlas Honda

JapanShowa, Keihin, etc

Affiliates

46

96

US GAAP IFRS

US GAAP IFRS

(from Asia)

(32.5) (28.9) (39.4)

126

(24.3)

-2%

(36.2)(39.3)

47

FY17 Financial Forecasts (Consolidated)

FY16Results

FY17Forecast

Change Change from previous forecastamount %

Sales revenue 14,601.1 13,400.0 - 1,201.1 - 8.2% - 350.0

Operating profit 503.3 650.0 + 146.6 + 29.1% + 50.0

Operating margin 3.4% 4.9% + 1.5 pt + 0.5 ptShare of profit of investments accounted for using the equity method

126.0 140.0 + 13.9 + 11.1% + 10.0

Profit before income taxes 635.4 770.0 + 134.5 + 21.2% + 65.0

Profit for the yearattributable to owners of the parent 344.5 415.0 + 70.4 + 20.5% + 25.0

US Dollar 120 103(1H 105 / 2H 100)

Yen up by 17 yenYen up

by 2 yen

Earnings per shareattributable to owners of the parent 191.16 230.26 + 39.10 + 13.87

Yen (billion)

Market average rates (Yen)

(Yen)

FY17 Guidance: Units Sales by Business Segment [IFRS]

48

"Honda Group Unit Sales"

Motorcycles Automobiles Power Products

“Consolidated Unit Sales"

Global Honda group unit sales including affiliates, such as China Auto and Motorcycle in Indonesia

Consolidated unit sales do not include sales units in affiliates

(thousands)

Motorcycles Automobiles Power Products(thousands)

49

FY17 Forecast: Change in Profit before Income Taxes

50

FY17 Forecast: Capital Expenditures, Depreciation, R&D Expenditures

0%

2%

4%

6%

8%

0

200

400

600

800

FY04 05 06 07 08 09 10 11 12 13 14 15 16

17P

0%

2%

4%

6%

8%

0

200

400

600

800

FY04 05 06 07 08 09 10 11 12 13 14 15 16

17P

0%

2%

4%

6%

8%

0

200

400

600

800

FY04 05 06 07 08 09 10 11 12 13 14 15 16

17P

Capital Expenditures Depreciation / Amortization

Actual Amounts (billion Yen) % against Sales

US GAAP IFRS US GAAP IFRS US GAAP IFRS

560

440

690R&D Expenditure

Dividend

51

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 fluctuation of foreign exchange rates, as well as other factors detailed from time to time.Accounting standards: Our consolidated financial standards are prepared in conformity with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB)Notice on the Factors for Increases and Decreases in Income:With respect to the discussion above of the change in Operating profit, 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)“Currency effects” consist of translation adjustments, which come from the translation of the currency of foreignsubsidiaries’ 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 beenanalyzed, primarily relate to the following currencies: U.S. dollar, Canada dollar, Euro, GBP, BRL and Japanese Yen.(2) With respect to “Cost reduction, etc”, management has analyzed cost reduction and effects of raw material costfluctuations at the levels of the Company and its material foreign manufacturing subsidiaries in North America, Europeand other regions.(3) With respect to “Revenue, model mix, etc”, management has analyzed changes in sales volume and in the mix ofproduct models sold in major markets which have resulted in increases/decreases in profit, as well as certain otherreasons for increases/decreases in sales revenue 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.(5) With respect to “Research and Development expenses”, management has analyzed reasons for an increase/decreasein research and development expenses from the previous fiscal year net of currency translation effects.

52

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