2015 ACURA TLX Investor Presentation August 2014 Presentation August 2014 2015 ACURA TLX American Honda Finance Corporation 2 Caution with Respect to Forward-Looking Statements: These

Investor Presentation

August 2014

2015

ACURA TLX

American Honda Finance Corporation

2

Caution with Respect to Forward-Looking Statements:

These slides may contain “forward-looking statements” within the meaning of the Private Securities

Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Certain such forward-

looking statements can be identified by the use of forward-looking terminology such as “believes,”

“expects,” “may,” “will,” “should,” “seeks,” “scheduled,” or “anticipates” or similar expressions or the

negative thereof or other variations thereof or comparable terminology, or by discussions of strategy,

plans or intentions. Such forward-looking statements are necessarily dependent on assumptions, data,

or methods that may be incorrect or imprecise and that may be incapable of being realized. Factors such

as declines in the financial condition or performance of Honda or AHFC or the sales of Honda or Acura

products, changes in general business and economic conditions, and fluctuations in interest rates and

currency exchange rates, among others, could cause actual results and other matters to differ materially

from those in such forward-looking statements.

Accounting Standards:

Our consolidated financial information is prepared in conformity with U.S. generally accepted accounting

principles.

This information is presented as of August 12, 2014 and does not purport to be accurate as of any other

date. We undertake no obligation to update this information.

This presentation does not constitute an offer to sell or a solicitation of an offer to purchase any

securities. Any offer or sale of securities will be made only by means of an offering memorandum and

related documents.

American Honda Finance Corporation 3

Honda Corporate Structure

Su

pp

ort A

gre

em

ent

Honda Motor Co., Ltd.

“Honda”

American Honda

Motor Co., Inc.

“AHM”

American Honda

Finance Corporation

“AHFC”

100%

100%

If necessary, provide liquidity for AHFC to meet our obligations

Ensure AHFC maintains a positive net worth

Keep Well Highlights

Maintain 80% ownership


AHFC Operations

5 American Honda Finance Corporation

Business Highlights

Total receivable increase 3.6 bil over prior year

Underwriting remains consistent

Premier customer service

Low charge-offs continue

Strong residual values continue

Strong credit ratings


7

AHFC Income Before Income Taxes

1,990

1,6521,445

316 453

5,637 5,760 5,986

1,466 1,550

0

1,000

2,000

3,000

4,000

5,000

6,000

0200400600800

1,0001,2001,4001,6001,8002,000

FY12 FY13 FY14 3moEndingJun 13

3moEndingJun 14

Income Before Income Taxes

Total Finance RevenuesUS$ (millions)


8

AHFC Income Before Income Taxes

1,811 1,7061,551

399 4220

400

800

1,200

1,600

2,000

FY12 FY13 FY14 3moEndingJun 13

3moEndingJun 14

Excludes valuation adjustments and reclassifications

US$ (millions)


Lease includes both direct finance leases and operating leases.

Retail excludes securitized assets

AHFC Portfolio Mix

$55,561 $58,852 $62,930 $63,992

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

FY12 FY13 FY14 Jun 14

Retail $24,359 $24,356 $26,430 $26,981

Lease $21,134 $22,706 $23,952 $25,013

Dealer $3,249 $4,208 $4,371 $4,123

Securitized Assets $6,819 $7,582 $8,177 $7,875

Debt $40,567 $42,149 $45,634 $46,076

US$ (millions)

As of June 30, 2014:

Retail Loans are approx. 54% of

outstanding receivables (including

ABS assets)

Leases are 39% of outstanding

receivables

Securitized Assets are Retail

Loans. We do not currently

securitize other asset classes.

Dealer Loans

Flooring 30% of the Honda/Acura

Auto dealers

Flooring 97% of the Honda/Acura

Motorcycle dealers


AHFC CFS Originations, Penetration & Outstanding

1,118 1,176 1,361

369 351

71%

63%

71% 71% 66%

43% 43% 39% 37% 36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

500

1,000

1,500

2,000

2,500

3,000

FY12 FY13 FY14 3mo EndingJun 13

3mo EndingJun 14

Originations

Retail Auto Lease Auto Other

Unit (thousands) Penetration New Auto

Motorcycle

Outstanding 3,440 3,491 3,660 3,523 3,713

Penetration FY12, FY14 and the period

ending June 2013 show

higher new auto penetration

as a result of higher

incentive programs

sponsored by our parent,

American Honda Motor Co.,

Inc.


AHFC Performance Data

FY12 FY13 FY14 Jun 13 Jun 14

Delinquency (60 or more days)(1),(3) 0.10% 0.10% 0.10% 0.14% 0.13%

Allowance for Credit Losses(1),(3) 0.42% 0.23% 0.24% 0.24% 0.23%

Charge-Offs (Net of Recoveries)(2),(3),(4) 0.30% 0.28% 0.27% 0.18% 0.18%

(1) Percentages based on ending receivable balances for respective periods.

(2) Percentages based on average receivable balances for respective periods.

(3)

(4) Percentages for the three months ended June 30, 2013 and 2014 have been annualized.

Fiscal Year Ending 3 mo Ending

Ending and average receivable balances exclude the allowance for credit losses, write-down of lease residual values, unearned subvention

income related to our incentive f inancing programs and deferred originat ion costs. Average receivable balances are calculated based on

the average of each month’s ending receivables balance for that f iscal period.


AHFC’s underwriting standards are reflected in our low charge-off and delinquency numbers.

11

Conservative approach to markets

Access to various domestic and international markets

Recognize windows of opportunity

Maintain prudent maturity profile

AHFC Funding Strategy


AHFC’s Inaugural SEC–registered Debt

Sept. 5 ,2013 Shelf Registration

(S-3)

Sept. 25, 2013 MTN Program

Active

Oct. 3, 2013 Inaugural

Transaction

Inaugural transaction details

$ 750 mil 3 year Floater

$1.0 bil 3 year Fixed

$1.0 bil 5 year Fixed

Investor Comments • Appreciate transparency a public program offers

• SEC registration is helpful especially being index eligible

• Registered programs offer ability to allocate to many more of our funds

• Will buy bigger/larger orders of a transaction with registered programs

American Honda Finance raised $2.75bn by issuing three-

year floaters, three-year fixed and five-year fixed that

attracted an order book of slightly over $9bn.

This was the first time the issuer was issuing in the SEC-

registered format and investors charged into the different

tranches even as the company tightened pricing from IPT

levels. The three-year fixed tranche saw most of the

demand, followed by the five-year fixed and three-year

floater. IFR Markets Reuters

Source: Honda


- Commercial Paper Program

US $7 billion, CAD $2 billion (HCFI)

(supported by US $7 billion and CAD $1.6

billion (HCFI) Bank Credit Facilities)

- Related Party Debt

- Bank Loans

- US $16 billion Shelf USMTN Public

Program

- US $25 billion USMTN Private 144a

Program (Inactive)

- US $11 billion EMTN Program (Inactive)

- Private Placement Issuance (HCFI)

- Public & Private Securitization (AHFC &

HCFI)

AHFC Funding Flexibility

Diversified AHFC Funding Programs


9% 11% 9%13%

12%11% 10%

11%

17%16% 14%

14%

28%

32%36%

34%

14%

8%

8%7%

4%4%

3% 3%17%18%

18% 17%$40,567$42,149

$45,634 $46,076

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

FY12 FY13 FY14 Jun 14

US$ (millions)

Commercial Paper Related Party Debt Bank Loan US MTN Euro MTN Other ABS

14

FY14 & FYTD15 Debt Issuance

$3,750

$3,000

$1,161$800

$5,750

$1,000 $1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

USMTN (Public) USMTN (Private) EMTN Bank Loan Securitization

US$ (millions)Funding Activities(US Operations Only)

FY14 3 mo EndingFYTD Jun 14


Excludes unamortized discount and fees

Euro MTN by Currency

61%11%

28%

EMTN by Currency

EURO JPY USD


As of June 30, 2014

16

Term Debt Maturity Profile


34%

24%

21%

7%

14%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

<1yr 1yr - 2yr 2yr - 3yr 3yr - 4yr >4yr

US$ (millions)

As of June 30, 2014

Excludes Commercial Paper and Related Party Debt

Does not include unamortized discounts and fees

Foreign debt based on exchange rates as of June 30, 2014

Repayment schedule of secured debt reflects payment performance assumptions on underlying receivables

17

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2015 ACURA TLX Investor Presentation August 2014 Presentation August 2014 2015 ACURA TLX American Honda Finance Corporation 2 Caution with Respect to Forward-Looking Statements: These