Honda Information Meeting 2010

1

Honda Information Meeting 20Honda Information Meeting 201010

CR-Z（Europe）

2

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.

3

3. Honda’s Medium-term Strategies3. Honda’s Medium-term Strategies

Honda Information Meeting

2. Major Market Outlook and Honda’s Performance2. Major Market Outlook and Honda’s Performance

1. FY10 4Q Financial Highlights1. FY10 4Q Financial Highlights

4

Outline of FY10 Twelve Months Financial Results (Consolidated)

approx.

1,814,605,000 shares

approx.

1,814,560,000 sharesNote : Shares which are based on calculation of EPS

+ 95.9%( + 72.41 yen)147.9175.50

EPS attributable to

Honda Motor Co., Ltd.

(Yen)

ChangeFY10FY09Unit (Sales)

- 8.5%4,7445,187Power Products

- 3.6%3,3923,517Automobiles

- 4.7%9,63910,114Motorcycles

FY10 Twelve Months

ChangeFY10FY09

FY10 Twelve MonthsFinancial results

- 5.8%93.299.0Equity in income of affiliates

+ 95.9%268.4 137.0Net income attributable to Honda Motor Co., Ltd.

+ 107.9%336.1161.7Income before income taxes

+ 91.8%363.7189.6Operating income

- 14.3%8,579.110,011.2Net sales & other operating revenue

Yen up by 12 yen130142Euro

Yen up by 8 yen93101US Dollar

-Signs of moderate recovery could be seen in the U.S.-European economy has bottomed out although there still remains concern about stagnation

-Chinese economy has recovered and expansion is expected going forward. Indian economy has also recovered.

-Economies in other Asian countries have also been recovering.-Although the situation in Japan remains severe, signs of economic recovery are visible.

Unit (thousands)

Yen (billions)

(weighted average number of shares outstanding )

(weighted average number of shares outstanding )Average Rates (Yen)

Business Environment

Major Change Factors

Motorcycle market- Markets in India and Indonesia have expanded.- Formerly declining market in Vietnam has been expanding.- Demand in the U.S. has dropped significantly

Automobile market- Demand in China, India and Brazil expanded significantly.- Formerly declining Japanese market has now been expanding

supported by government stimulus packages.- European market has moderately recovered in the latter half of the year

with various government incentive plans- U.S. market has continuously declined, however it has been showing

moderate recovery since the latter half of the year .

Due mainly to a companywide effort to reduce costs and expenses and therecovery of automobile business in the latter half of the year, Honda achieved a higher profit than the previous forecast, although unit sales decreased in all business segments.

Unit SalesMotorcycles:Sales increased in Asia, declined in other regions including Latin AmericaAutomobiles:Sales increased in Asia and Japan, decreased in North America and EuropePower Products:Sales increased in Asia, decreased in North America and Europe.

Net sales & other operating revenueUnit sales decreased in automobile businessNegative impact of currency translation effect

Operating income<Increase Factors> Decreased SG&A and R&D expenses

Continuing cost reduction efforts<Decrease Factors> Decreased revenue

Increased fixed cost per unit due to production cutCurrency effect

5

Income before Income taxes + 174.4 bn. yen

161.7

336.1

- 246.5

+ 67.4

+ 420.9

+ 99.8 - 167.5

+ 22.2 - 21.9

Operating Income + 174.1 bn. yenOther Income

& Expenses

+ 0.3 bn. yen

Change in Income before Income Taxes <FY10 Twelve Months >Yen

（billions）

<Increase Factors>-Change in pricing for the new model year, etc.<Decrease Factors>-Decline in profit attributable to lower unit sales, etc

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

<Increase Factors>-Decreased expenses for advertising, sales promotion-Decreased logistics expenses, etc.

Revenue, model mix,

etc.

Cost Reduction, etc.

Decrease in SG&A

Decrease in R&D

Currency Effect

(Exhibit 2)

Unrealized gains andLosses related to

derivative instruments

Others

-Currency effect due to difference between average ratesand transaction rates: - 41.4 bn. yen- Others + 19.5 bn. yen

< Currency Effects >Impact on Operating income - 167.5 bn. yen (due to difference of average rates and translation effects)

Impact on Other income & expenses - 41.4 bn. yen (due to difference between average rates and transaction rates)

Impact on Income before income taxes - 209.0 bn. yen (see also Exhibit 1)

FY09 Twelve Months

FY10 Twelve Months

Operating income

363.7

Operating income

189.6

6

0

3,000

6,000

9,000

12,000

15,000

18,000

0

1,000

2,000

3,000

4,000

5,000

6,000

0

1,000

2,000

3,000

4,000

9,63910,375

Approx.

5,850

3,6153,392

+ 223

4,744

+ 126

7,628

189190

199

1,433

249

646

1,297

250

950

1,066

322

1,818

469

1,069

8,240

185

200

1,565

185

240

635

1,480

300

960

4,870

1,085

325

1,850

480

1,130

+ 736

Approx.

15,489

Automobiles Power ProductsMotorcycles

Forecast: Unit Sales by Business Segment

Unit (thousands)

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

Japan

Europe

OtherRegions

Asia

NorthAmerica

FY10 FY11Forecasts

FY10 FY11Forecasts

FY10 FY11Forecasts

Unit sales is the total of sales of finished products of Honda and its consolidated subsidiaries and sales of parts for Honda’s affiliates accounted for under the equity method.

Approx.

7,060

Approx.

17,435

7

Change

+ 71.6

+ 1.7

+ 73.8

+ 36.2

+ 760.8

amount

340.0

95.0

410.0

400.0

9,340.0

FY11Forecasts

+ 1.8%93.2Equity in income of affiliates

+ 26.7%

+ 22.0%

+ 10.0%

+ 8.9%

%

268.4Net income attributable to Honda Motor Co., Ltd.

336.1Income before income taxes

363.7 Operating income

8,579.1Net sales & other operating revenue

FY10Results

+ 39.46 + 26.7%187.37147.91EPS attributable to

Honda Motor Co., Ltd. (Yen)

120

90

Yen up by 10 yen

Yen up by 3 yen

130Euro

93US Dollar

FY11 Financial Forecasts (Consolidated)Yen (billions)

approx.1,814,605,000 shares

approx.1,814,602,000 shares

Note : Shares which are based on calculation of EPS

(weighted average number of shares outstanding )

(number of shares outstandingas of March 31, 2010 )

Average Rates (Yen)

8

336.1410.0

+ 198.9 + 6.0 - 87.0

- 36.7- 45.0

- 21.0+ 58.5

Forecast: Change in Income before Income Taxes

FY10 FY11Forecasts

Operating Income

363.7

Operating Income

400.0

Yen (billions)

Income before income taxes + 73.8 bn. yen （ + 22.0 % ）

Operating Income + 36.2 bn. yen （ + 10.0 % ）

Other Income &

Expenses

+ 37.5 bn. yen

Revenue,model mix, etc.

Cost Reduction, the effect of raw

material cost, etc. Increase in SG&A Increase

in R&DCurrency

Effect Unrealized gainsand losses related toderivative

instruments

Others

9

+ 36.7

- 16.6

+ 50.2

Change

463.3

366.6

329.7

FY10Results

500.0

350.0

380.0

FY11Forecasts

R&D expenses

Depreciation and

amortization *

Capital

expenditures *

Forecast: Capital Expenditures, Depreciation, R&D Expenses

Yen(billions)

* “Capital expenditures” in results and the forecast aforementioned exclude investment in operating leases and acquisition of intangible assets.

* “Depreciation and amortization” in results and the forecast aforementioned exclude depreciation of investment in operating leases and amortization of intangible assets.

10

- 14

± 012+ 4 12 84th quarter End

+ 212- 110113rd quarter End

+ 4128221st quarter End

+ 412

- 14

8222nd quarter End

Increase/Decrease from

FY09 Results

- 25 63

FY09Results

+ 10

Increase/Decreasefrom

FY10 Results

4838Fiscal Year

FY11Projection

FY10Results &Projection

Dividend to Shareholders

(Yen)

Dividend per share

Projection as of Apr. 28th

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*Revised upward by 2 yen from the previous projection of 36 yen as of February 3. 2010

++

++

11





12

0

10,000

20,000

CY04 05 06 07 08 09 10(E)

Passenger Cars

Light Trucks

Unit(thousands)

0

500

1,000

1,500

2,000

CY04 05 06 07 08 09 10(P)

Passenger Cars

Light Trucks

Source: Honda

Industry Demand Honda Unit SalesUnit

(thousands)

1,3941,462 1,509

16,14816,884 16,556

1,551

(aggregate numbers of Honda brand and Acura brand)

13,300

1,428

Source: Honda

To Address Crossover models for new segment

( Accord Crosstour Premium and versatile crossover utility vehicle )

All new Hybrid CR-Z and more

Strengthen Acura brand with new models.( TSX Wagon and ZDX provocative 4-door sports coupe )

10,429

Major Markets – Honda Automobile Business in U.S.

Operations in North America

Strategy in N.A Market

Insight (Mar 2009)Acura ZDX (Dec 2009)

※Retail Sales ※Retail Sales

Accord Crosstour(Nov 2009)

16,965

1,150

TSX Wagon(will be launched in 2010)

Odyssey Concept(will be launched in 2010)

CR-Z(will be launched in 2010)

13

47.6 110.7 70.7

7.1

63.1156.3116.097.0128.4118.295.7114.4

-107.4

94.5 22.5 70.0

7.0%

10.8%

0.7%

-15.7%

5.3%4.3%

9.5%7.5%

6.7% 6.1%7.7%7.3%7.8%

6.3%

1.6%

5.7%

-150

-100

-50

0

50

100

150

FY071Q

2Q 3Q 4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q-16%

-12%

-8%

-4%

0%

4%

8%

12%

16%

Yen (billions)

Operations in North America

Operating income for the fourth quarter increased by JPY 178.2 billion from the last year, due mainly to Increased sales of L/T models such as CR-V, MDX and Odyssey, etc.

14

Enhancing product line up with efficiency- Strengthen Hybrid model lineup, extend Hybrid technology to

core models

- Cost reduction by using global purchasing network

Enhancing sales network- Improving consolidated car dealer’s profit

- Improving stability of consolidated sales subsidiaries

0

2,000

4,000

6,000

CY04 05 06 07 08 09 10(E)

Registered vehicle

Mini

Source: Honda

Industry Demand Honda Unit Sales

0

250

500

750

1,000

FY05 06 07 08 09 10 11(P)

Registered vehicle

Mini vehicle

Source: Honda

Unit(thousands)

Unit(thousands)

717 710 720

640

5,082

5,855 5,854 5,739

5,354

Insight (Feb 2009) FCX Clarity (Nov 2008)

Mature Markets - Honda Automobile Business in Japan

Operations in Japan

Strategy in Japan Market

※Retail Sales

※Retail Sales

CR-Z (Feb 2010)

4,609

580

662

Fit (Oct 2007)FREED (May 2008)

15

-8.710.0-25.7

-4.6

2.3

56.273.360.668.241.968.948.9

-176.0

37.9 40.9

-64.3

-1.0%

1.2%

-23.8%

-3.2%

-0.6%0.2%

4.5%6.0%5.9%5.2%

5.4%3.4%4.4%

3.3% 3.4%

-6.0%

-200

-150

-100

-50

0

50

100

FY071Q

2Q 3Q 4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q-24%

-18%

-12%

-6%

0%

6%

12%

Yen (billions)

Operations in Japan

Operating income for the fourth quarter improved JPY 167.3 billion from the last year, due mainly to decreased SG&A expenses, increased sales of Fit, STEPWGN, and all new CR-Z.

16

-6.8 -7.6

1.81.718.65.816.710.312.63.79.06.4

-10.5

11.2 8.3 1.1

-3.7%-3.8%

0.8%

-4.0%

0.9%

4.2%

1.6%

4.3%

2.9% 2.6%

2.9%

1.4%2.0%

3.1%

2.4%

0.4%

-15

-5

5

15

25

FY071Q

2Q 3Q 4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q-5%

0%

5%

10%

Operations in Europe

Yen (billions)

Operating income for the fourth quarter improved JPY 2.8 billioncompared to the same period last year as a result of increased production in U.K.

17

0

5,000

10,000

15,000

20,000

25,000

CY04 05 06 07 08 09 10(E)

India Indonesia Thailand Vietnam

Industry:Unit ( thousands )

Source: Honda

Industry Demand in Major Asian Motorcycle Markets

(18.7mil)

Operations in Asia

(8.8mil)

(5.9mil)

(1.7mil)

(2.3mil)

※Wholesale

18

0

2,000

4,000

6,000

8,000

10,000

CY04 05 06 07 08 09 10(E)

Other brands

Hero Honda

Honda Motorcycle & Scooter India

Industry: Unit (thousands)

Source : Honda

In India, motorcycle business foundation solidified behindtwo companies, Hero Honda and HMSI

Principal models of Honda Motorcycle & Scooter India

CB Twister

(1,091)

(4,323)

Operations in Asia

ActivaFMC Apr. 09 Debut in Feb. ‘10

※Wholesale

19

0

1,000

2,000

3,000

4,000

5,000

6,000

CY04 05 06 07 08 09 10(E)

Other brands

Honda

Source: Honda


Principal models

Demand for Honda expected to grow in 2010

(2,701)

Revo110cc

FMC Jan.09

Operations in Asia

CS1125cc

Debut Apr. 08

BeAT110cc

AT ModelDebut Jun. 08

Blade110cc

Debut Dec.08

※Wholesale

20

0

500

1,000

1,500

2,000

2,500

3,000

3,500

CY04 05 06 07 08 09 10(E)

Other brands

Honda

Source: Honda


Principal models

Honda to enhance product pipeline for Vietnamese motorcycle market

(1,397)

Operations in Asia

※Wholesale

Wave110S

(2009 May)

Air Blade FI

(2009 June)

Lead

(2008 Dec)

SH125,150

(2009 Nov)

Future X

(2010 Feb)

21

0

50

100

150

200

250

CY04 05 06 07 08 09 10(P)

Malaysia Thailand

Indonesia Philippines

0

500

1,000

1,500

2,000

2,500

CY04 05 06 07 08 09 10(E)

Malaysia Thailand

Indonesia Philippines

Source: Honda

Honda Unit SalesUnit (thousands)

Industry DemandUnit (thousands)

Source: Honda

156148

138146

Optimal allocation to enhance production efficiency

Production of FREED in Indonesia started in June 2009

Enhance complementary products in ASEAN region

1901,704

FREED (Jun 2009) Jazz (May 2008) City (Sep 2008)

Strategy in Southeast Asian Market

Honda Automobile Business in Southeast Asia

Operations in Asia

※Wholesale ※Retail Sales

189

22

20.3 27.5 35.0 30.021.938.333.436.919.220.218.219.4 4.537.4 33.4 24.9

7.0%

8.8%

1.3%

6.3%

7.4%

5.3%

9.3%

8.0%5.8%

9.4%

5.2%

6.7%6.8%

8.6%8.4%

6.5%

0

10

20

30

40

50

FY071Q

2Q 3Q 4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q-3%

-1%

1%

3%

5%

7%

9%

11%

13%

15%

Operations in Asia

Yen (billions)

Operating income for the fourth quarter increased JPY 25.5 billion from the last year, due mainly to increased revenue and favorable currency effect.

23

0

500

1,000

1,500

2,000

CY04 05 06 07 08 09 10(E)

Other brands

Honda

Source: Honda


Principal models

Solid operation as a market leader in Brazilian motorcycle market

Introducing PGM-FI (Fuel Injection) models to meet Euro3

(1,192)

Biz 125 CG 150 Titan MixFlex Fuel

Debut Mar 09

Operations in Other Regions

※Wholesale

CB 300RDebut June 09

XRE 300Debut Aug 09

LEADDebut July 09

NXR 150 BROS MixFlex FuelNov 09

24

0

20

40

60

80

100

120

140

160

180

200

CY04 05 06 07 08 09 10(P)

0

1,000

2,000

3,000

4,000

CY04 05 06 07 08 09 10(E)

Unit (thousands)

Unit (thousands)

Source: HondaSource: Honda

5057

67

Brazil

86

Confidential

118

( Flexible Fuel Vehicle)( Petrol Engine Vehicle)

2,671

2,377

1,8441,6181,532

Expansion of production capacityBrazil: Expand capacity to 120,000 units in Aug 2008

City launched in July 2009 as the third locally produced model

Environmental strategyFFV model for Brazil market

Fit FFV (Nov 2008) City FFV

Strategy in South America Market

Honda Unit SalesStrong sales of FFV models contributed to growth

Industry Demand(including commercial vehicles)


Honda Automobile Business in Brazil

※Retail Sales※Retail Sales

3,008

126

FFV

25


9.9 17.4 18.9

-0.3

41.848.736.3 8.015.2 21.4 16.0 19.5 21.7 30.1 31.7 32.7

7.5%7.2%

13.8%14.0%

12.4%

8.6%

8.3% 8.4%

9.6%

10.9% 11.3% 11.2%10.4%

4.4%

4.1%

-0.5%

-10

0

10

20

30

40

50

FY071Q

2Q 3Q 4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q

-3%

0%

3%

6%

9%

12%

15%

Yen (billions)

Operating income for the fourth quarter increased JPY 10.9billion from the last year, due mainly to increased sales of motorcycles such as flex fuel NXR150 BROS MIX in Brazil.

26

Operations by Business Segment

9.3 15.8 28.052.730.337.031.144.211.132.013.1 -2.831.1 46.3 25.2 5.6

8.4%

2.2%

-1.0%

3.4%

11.9%

8.3%9.7%9.6%8.5%

10.5%

3.7%4.2%

7.9%

11.6%

7.4%

5.8%

-10

10

30

50

70

FY071Q

2Q 3Q 4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q

-3%

2%

7%

12%

17%

22%

110.424.0

13.7-21.370.579.0150.3

-275.4

150.0 130.8 160.7 157.7 148.3 213.0 220.7 79.5

1.4%

6.3%

3.6%3.6%

6.7%7.2% 7.1% 6.5% 6.4%6.2%

9.0% 9.0%

3.4%0.9%

-21.2%

-1.4%

-300

-200

-100

0

100

200

300

FY071Q

2Q 3Q 4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q

-25%

-15%

-5%

5%

15%

25%

Yen (billions)

Yen (billions)

Motorcycle Business

Automobile Business

27

Operations by Business Segment

-3.1-2.9-4.6

5.12.26.97.97.210.47.411.0

-11.9

0.2

-0.9-2.8 -5.9

-3.7%

-8.1%

-15.0%

-6.4%

4.2%

2.3%

6.6%7.5%

6.9%5.8%

9.9%10.2%

0.2%

-0.9%

-3.5%

-4.0%

-20

0

20

FY071Q

2Q 3Q 4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q

-15%

-10%

-5%

0%

5%

10%

15%

47.1 53.6 47.231.322.929.334.240.922.722.629.2 18.028.7 24.3 9.4 46.8

32.0%

29.4%

13.1%

29.8%

22.1%

16.4%

21.3%22.8%

26.4%

34.6%

21.7%

32.2%

19.2%

14.9%

6.5%

34.8%

0

20

40

60

80

FY071Q

2Q 3Q 4Q FY081Q

2Q 3Q 4Q FY091Q

2Q 3Q 4Q FY101Q

2Q 3Q 4Q

0%

10%

20%

30%

40%

Yen (billions)

Yen (billions)

Power Product & Other Businesses

Financial Services Business

28





2929

Honda Direction and Key Challenges

2. Advancement of Motorcycle Business2. Advancement of Motorcycle Business

3. Advancement of Automobile Business3. Advancement of Automobile Business

1. Honda Business Update1. Honda Business Update

3030


• Honda motorcycle sales units and automobile production/sales

units trend in major markets

• Financial outline for FY10 results and FY11 forecasts

• Business overview for FY10 and FY11

1. Honda Business Update1. Honda Business Update

3131

38,17

5

33,03

9

56,04

0

46,78

5

46,32

1

33,21

7

54,90

0

35,59

0

50,58

0

42,33

2

43,70

3

36,88

9

43,8

43

65

28

3

35,9

70

34,9

06

48,1

22

45,7

14

44,3

52

52,9

40

57,4

46

47,3

12

60,7

41

53,1

52

60

33

0

60

93

5

60,5

48

0

20,000

40,000

60,000

80,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 2009 2010

Honda Automobile Production

North AmericaJapan

Ch

ina

134

,068

126

,532

119

,377

126

,169

119

,202

118

,165

112

,820

118

,062

121

,432

135

,267

103

,739

86,59

4

10

3,1

11

12

62

70

11

1,9

97

73

02

4

68

77

6

67

77

9

96

18

3

65

74

8

85

46

6

69

,94

9

98

,07

9

10

4,6

07

11

0,9

20

10

0,2

04

90

,27

5

10

1,2

05

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000


2008 2009 2010

100,3

30

106,1

42

103,1

68

91,2

63

92,3

60

105,2

59

112,1

57

86,2

64

118,6

31

126,1

34

114,5

65

108,1

14

83

,31

0

93

77

1

86

31

7

85

47

9

81

,00

0

77

,90

0

54

,54

9

79

,31

6

73

,02

0

52

,66

3

57

,06

6

61

,64

2

54

,74

8

77

,22

47

7,3

84

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000


2008 2009 2010

Guangqi Honda + Dongfeng Honda + Honda Automobile (China)

Honda Business Update

Full capacity level Full capacity level

Full capacity level

3232

32,5

64

27,2

29

52,8

62

40,8

64

42,1

64

33,5

50

44,0

93

38,7

26

46,6

98

35,6

80

36,9

70

41,4

89

44

,207

61

,913

551

14

38

,022

31

,569

45

,772

42

,062

44

,531

51

,496

50

,647

45

,711

59

,140

50

,667

57

,231

59

,011

58

,284

0

20,000

40,000

60,000

80,000


2008 2009 2010

Honda Automobile Sales

North AmericaJapan

Ch

ina

98,51

1

115

,397

138

,734

135

,180

167

,997

142

,539

138

,744

146

,855

96,62

6

85,86

4

76,23

3

86,08

5

80

,67

1

10

82

62

11

3,6

97

71

,03

1

71

,57

5

88

,37

9

10

1,0

29

98

,34

4

10

0,4

20

11

4,6

90

16

1,4

39

77

,22

9

85

,50

2

74

,00

3

10

7,1

43

67

,47

9

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000


2008 2009 2010

44,57

8

57,63

1

89,49

8

45,24

5

39,95

4

54,78

4

53,98

8

39,07

4

59,13

5

45,72

4

49,12

9

45,66

0

55

,31

2

81

05

8

50

,41

6

64

,68

7

64

,66

7

53

,32

4

61

,99

4

40

,72

6

57

,37

7

50

,88

6

37

,52

5

46

,07

2

67

,21

1

45

,99

7

34

,10

34

7,8

18

0

20,000

40,000

60,000

80,000

100,000


2008 2009 2010

Guangqi Honda + Dongfeng Honda


3333

40

6,3

35

42

3,9

59

42

9,0

67

46

3,6

78

47

9,0

64

46

1,2

63

47

1,4

65

50

6,1

82

48

2,7

03

40

7,5

35

48

6,4

90

48

6,1

22

49

9,9

13

49

7,2

52

55

1,5

01

50

1,4

40

302,665

384,184

446,170

476,344

386,800

362,377

372,261

395,243

353,870

389,735

340,862

372,511

0

100,000

200,000

300,000

400,000

500,000

600,000


2008 2009 2010

14

3,6

13

12

6,3

31

13

6,0

66

14

2,9

65

13

4,5

67

13

1,1

93

10

1,1

58

13

3,4

92

13

2,1

65

10

0,4

26

92

,89

6

76

,04

5

74,814

71,344

93,010

123,069

112,512

105,831

92,944

119,848

111,522

114,961

90,498

75,654

10

0,7

50

87

,14

1

12

5,3

51

12

0,9

68

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000


2008 2009 2010

Honda Motorcycle Sales

BrazilIndia

Ind

on

esia


17

9,6

85

20

0,4

86

20

4,3

52

15

5,7

89

20

8,2

66

21

6,8

76

24

1,0

28

29

2,0

76

19

9,2

84

29

2,3

38

25

2,9

98

25

8,1

00

216,041

242,865

291,257

304,529

208,130

206,748

227,590

254,272

250,181

258,038

278,823

300,585

263,094

222,012

230,544

173,849

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000


2008 2009 2010

3434

- Honda achieved higher profit for FY10 despite the severe economic downturn

- Operating profit for FY11 will exceed the FY10 result, due primarily to top-line growth

Yen (billions)

FY09 FY10

Operating income

189.6

Operating income

363.7

Cost Reduction

Approx.

450

Approx.

-275

Decrease in

Volume, etc-Reduction in sales incentives

-Decrease in quality related expenses

-Revision of SG&A expenses

-Revision of R&D expenses

Top-line Growth

FY11

Operating income

400.0

Approx.

-100

FOREX, Other increased cost, etc

Approx.

140


3535

●Favorable sales of Insight, Fit and FREEDhave been seen in Japan

●All-new CR-Z sport hybrid vehicle was introduced in Japan in February 2009

●Promoting the sales of models with superior fuel economy

●All new CR-Z will go onsale in North America

●Accord Crosstour and Acura ZDX were launchedin November and December 2009, respectively.

●The next-generation Odyssey Concept was on display at the Chicago Auto Show in Feb 2010.

●Sales of L/T models such as CR-V, MDX and PILOTrecovered in the latter half of FY09

●All new Odyssey will go on sale,which may have a positive effecton the sales of L/T modelsin North America

●Electric scooter concept EVE-neo showed on display at the Tokyo motor show in October 2009

●EV-neo Electric scooter for business use will go onsale in December 2010

Insight Fit Freed

CR-ZEV-neo

- Prototype -

Accord Crosstour

New Odyssey - concept -at Chicago Auto Show

CR-V MDX Pilot

PCX

●Promoting all-new PCX,a scooter with an affordableprice range

TSX Sport Wagonat NY Auto Show●All new TSX Sport Wagon

will go on sale in North America

FY10 review FY11 Direction

CR-Z

●All new CR-Z will go on sale in Europe

CR-Z

< Europe >

< North America >

< Japan >

●Four-month shutdown for Honda of the U.K. Manufacturing, Ltd. (From Feb. 09 to May 09)

●Honda of the U.K. Manufacturing, Ltd. startedproduction of Jazz from October 2009

●PCX will be launchedwithin FY11

●CR-V production in Japan will increase due to favorablesales of U.S L/T models


3636

FY10 review FY11 Direction

< Other Regions >

< Asia >●Production, sales and export of Freed began

in Indonesia

Freed (Indonesia)

●Jazz with 1.2-liter engine was introduced in India

Jazz (India) City (India)

●Favorable sales of City in India

●Honda New Small concept, a concept modelfor a new small-sized vehicle shown at Auto Expo 2010 in New Delhi

Honda New Small Concept

●Accelerating further the sales of motorcycles andautomobiles in the Asia Region with competitive models

●All new scooter PCX was launchedin Thailand and Japan

PCX(Thailand)

●Capacity at Dongfeng Honda will expand from 200,000units to 240,000 units within 2010New No.2 Dongfeng plant will start production in 2012Honda with annual production capacity of 60,000units

Accord (China) City (China) Civic (India)

CB Twister (India) Wave 110i (Thailand) Wave110 S (Vietnam)

●Expanded annual mfg. capacity of Dongfeng Honda Automobile Co., Ltd from 120,000 units to 200,000 units

●Honda to launch new small car in 2011 for India andThailand; aim for price under 500,000 Rps in India

●City FFV (Fuel Flexible vehicle)was introduced in Brazil

●Planning to increase sales by around 10% in FY11compared to that of FY10

●Accord Crosstour will be launched in China within 2010;Honda will begin sales in China of the Japan-made Insightand CR-Z in 2012.


Insight CR-Z Accord Crosstour

City FFV(Brazil)

●Flex fuel NXR 150 BROS Mixwas introduced in Brazil

NXR 150 BROS Mix (Brazil)

City FFVCR-V●Expanding models of motorcycles equipped with a Mix Fuel Injection System

3737

• Maintaining strong position in markets with high potential

and through capacity expansion

• Advancement of Honda Wave 110 series

• Production of upscale models in Asia to address the

developed markets

• Accelerating cost reduction


2. Advancement of Motorcycle Business2. Advancement of Motorcycle Business

3838

1,153 1,120 1,054 969 794 552

1,594 2,266 2,319 2,752 3,061 2,760

11,2719,755

9,247

7,669

8,898

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2004 2005 2006 2007 2008 2009

Honda Total Global Motorcycle Sales (2004 to 2009)

Unit (thousands)

Advancement of Motorcycle Business

India, Indonesia, Thailand, Vietnam, Brazil

Emerging markets excluding above

Emerging markets that Honda helped cultivate continue to grow

10,416

12,284 12,62013,476

15,126Japan, USA, Europe

15,041

ThailandVietnam

Brazil

4.6%23.6% 14.8%5.9%

Taiwan

59.5% 25.3%

Indonesia

India

Matured Market

Growth MarketsPopulation (million)

Vehicle per capita ratio

64 88194 234

1,186

ThailandVietnam

Brazil

4.6%23.6% 14.8%5.9%

Taiwan

59.5% 25.3%

Indonesia

India

Matured Market

Growth MarketsPopulation (million)


Population (million)


64 88194 234

1,186

Unit sales in countries where Honda owns high market share increased 52% during 2004 – 2009

Huge potential demand remains in India, Indonesia and Brazil where Honda has a strong position

11,729

Thailand

Vietnam

Brazil

Indonesia

India

Honda sales units and market share in 2009

Honda sales unitsOther Brand

Honda’s share

62%

46%

73%

62%

62%

3939


CurrentPlant Capacity

5.4million

1.55million

Honda Motorcycle & Scooter India (HMSI) will expand production capacity

A second motorcycle plant will start production in 2011 with annual production capacity of 600,000 units (1,550k units →2,150k units)

Rapidly growing motorcycle market in India

CB TwisterActivaAviator

2,474 2,821 3,154 3,231 3,5164,323

453553

643861

979

1 ,091

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2004 2005 2006 2007 2008 2009

Hero Honda Honda Motorcycle & Scooter India

4040


Wave 110 series －a new Asian core-platform model- Establish brand image based on superior quality and performance,

and high value-added technologiesWave110i - All-new Cub platform applied to wave110 equipped with PGM-FI

Wave110i AT - Cub-style scooter equipped with new CV-Matic automatic transmission

- Expand to ASEAN countries with derivative models

Wave 110i (PGM-FI)(Thailand 2009)

Wave 110i AT (CV-Matic)(Thailand 2010)

Wave110 S(Vietnam 2009)

Wave 110 RSX(Vietnam 2009)

Wave 110 RS(Vietnam 2009/ Malaysia 2010)

Wave 110(Malaysia 2010)

4141


PCX -125cc personal comfort scooter positioned as a global model

- To be introduced in various regions from Thailand, starting from ASEAN countries, Japan, Europe and North America

- Aiming to be a global model for the next generation and beyond

- Strong cost structure with integration of production provides economies of scale and global sourcing

Production in Thailand

Japan

ASEAN Region

EuropeU.S.

- Honda to increase production of upscale motorcycles targeting affluent buyers in Asia; these fun-type models also will be exported to developed markets in other regions

4242

B

C A

15 millionunits

China

Brazil

Thailand

Indonesia

India

80% of parts for commuter-use motorcycles integrated into global sourcing from Top 3 supplier base


Existing Purchasing Allocation Future Ideal Allocation Image

IMAGE

・Three major supplier bases will get

benefit of 15 million volume

・Component parts sourced from

the best suppliers in each region

4343


• Improve competitiveness and business efficiency with

“Global 4” models

• Strengthening hybrid model lineup

• Focus on entering into growing small car segment

• Expansion of production capacity

3. Advancement of Automobile Business3. Advancement of Automobile Business

4444

97 98 99 00 01 02 03 04 05 06 07 08 09

CR-V

Fit/Jazz/City

Accord

Civic

685

629763

448

0

200

400

600

800

1,000

Unit: thousands

- Unit Sales of Honda’s Global 4 Models

Source: Honda

Accord

Fit/Jazz

Civic

CR-V

Growth of global models makes Honda competitive and efficient

74%

Advancement of Automobile Business

2,533thousand units

58%

Global 4 Models

Annual global salesCY2000

CY2009

Others

Global 4 models

3,393thousand units

NextNext

Next

Consistent model change on core global models

4545

ASEAN Region

Europe

U.S.

South America

ChinaJapan


20022002

19991999

20042004

20052005

20092009

20102010

201?201?

Civic

Accord

Civic

New Civic

Fit

CR-Z

201?201?

Honda will increase hybrid vehicles and apply them globally to meet fuel efficient requirements in each country

In addition, Honda is developing a new hybrid system that will be installed in mid- to large-size vehicles

Insight20102010

201?201?

Honda

ACURA

46


Honda to launch new small car in 2011 for India and Thailand.

Focus on entering into growing small car segment.

Honda New Small (Concept model) Honda New Small (Concept model)

4747

WDHAC (Dongfeng Honda)

Expansion of production capacity

New #2 plant will start production in 2012

Expand production capacity in China and South Americadue to solid growth

HAR(Honda Motor de Argentina)

New plant will start production in 2011


+60K units

(240K→300K)

+30K units

(0K→30K)

GHAC (Gangqi Honda)

+120K units

(360K→480K)Expansion of production capacity Guanqi Honda will increase production capacity by

the latter-half of 2011

48

Documents

Honda Information Meeting 2010