FY09 4th Quarter Financial Results

1

Honda Motor Co., Ltd.April 28, 2009

FY09 4th Quarter Financial Results

Honda INSIGHTFor U.S Market

2

FY09 4th Quarter Financial Results & FY10 Financial Forecasts

(1) FY09 Twelve Months Consolidated Financial Results (2) FY10 Financial Forecasts (3) Dividend to Shareholders

(1) 4th Quarter & Twelve Months Consolidated Financial Results (2) Consolidated Capital Expenditures(3) FY10 Financial Forecasts

・Outline Executive Vice President - Koichi Kondo

・ Details Chief Operating Officer for Business Management Operations – Yoichi Hojo

33

EPS (Yen) 330.54 75.50 - 77.2%( - 255.04 yen)

Note : Shares which are based on calculation of EPS

approx.1,815,356,000 shares


Outline of FY09 Twelve Months Financial Results (Consolidated)

Unit (Sales)FY09 Twelve Months

FY08 FY09 Change

Motorcycles 9,320 10,114 + 8.5%

Automobiles 3,925 3,517 - 10.4%

Power Products 6,057 5,187 - 14.4%

Financial resultsFY09 Twelve Months

FY08 FY09 ChangeNet sales & other operating revenue 12,002.8 10,011.2 - 16.6%

Operating income 953.1 189.6 - 80.1%

Income before income taxes 895.8 161.7 - 81.9%

Equity in income of affiliates 118.9 99.0 - 16.7%

Net income 600.0 137.0 - 77.2%

US Dollar 114 101 Yen up by 13 yen

Euro 162 142 Yen up by 20 yen

Average Rates (Yen)

Yen（billions）

Major Change Factors

Business Environment

(weighted average number of shares outstanding )


Unit (thousands)

Motorcycle market

Automobile market

Unit SalesMotorcycles:

Automobiles:

Power Products:

Net sales & other operating revenue

Operating income

<Decrease Factors>

<Increase Factors>

Crude oil and raw material prices rose significantly worldwide in the first half, then declined in the second half. The economy in the U.S. and Europe deteriorated caused by the financial crisis. A further downturn due to the negative economic cycle is feared. In China and India, economic growth slowed down in the second half.In Japan, both capital expenditures and consumer spending declined, and the economy is rapidly deteriorating Yen appreciation against the U.S. dollar and Euro

Demand in the U.S declined significantly Due to strong sales in the first half, industry-wide sales volume in Brazil, India and Thailand maintained YOY despite reduced sales in the second half

Demand in the U.S., Western Europe and Japan declined significantly in the second half. Overall market size was increased in Brazil, China and India despite a temporary decline in demand.

Asia and other regions including Brazil contributed to gain in operating profit, offsetting deterioration in major markets.

Decline due to lower sales volume of automobiles and power productsNegative currency translation effects

Increases in Asia and “Other” Region, which includes Middle East Decreases in North America, Europe and Japan

Favorable sales in Asia and Other Regions, which includes BrazilDecreases in North America, Japan and Europe

Strong sales in Asia and BrazilDecreases in North America, Japan and Europe

Decrease in revenue and model mix change, etc.Increased raw material costsIncreased fixed cost due to production cutCurrency factors

Effects of cost reductionDecrease in R&D

4

Change

- 97.0

- 49.0

- 151.7

- 179.6

- 1,641.2

Amount

40.0

50.0

10.0

10.0

8,370.0

FY10Forecasts

- 49.5%99.0Equity in income of affiliates

- 70.8%

- 93.8%

- 94.7%

- 16.4%

%

137.0Net income

161.7Income before income taxes

189.6 Operating income

10,011.2Net sales & other operating revenue

FY09Results

Yen （billions）

Note : Shares which are basedon calculation of EPS (as of Mar. 31, 2009)

Approx. 1,814,561,000 shares Approx. 1,814,609,000 shares

FY10 Financial Forecasts (Consolidated)

- 53.46 - 70.8%22.0475.50 EPS (Yen)

Yen up by 17 yen

Yen up by 6 yen

125

95

142Euro

101U.S. Dollar

Average Rates (Yen)


※Net income FY10 means attributable toshareholders of Honda

※

5

FY09 Financial Results & FY10 Financial Forecasts (Unconsolidated)

FY10Forecasts

FY09Results

FY08Results

－

－

－

- 16.7%

Change

- 59.6

- 3.2

- 158.4

3,404.5

298.5

351.1

140.4

4,088.0

Change

－

－

－

- 20.4%

141.0Net income

119.0Ordinary Profit

- 148.0Operating Profit

2,710.0Net sales

Yen up by 17 yen

Yen up by 6 yen

Yen up by 20 yen

Yen up by 13 yen

Euro

U.S. Dollar

125

95

162

114

142

101

Yen (billions)

Average Rates (Yen)

6

Dividend to Shareholders

(Yen)(Yen)

±0

- 14 8 + 222201st quarter End

- 14 8 22222nd quarter End

- 3 8 - 1111223rd quarter End

±08 - 14 8224th quarter End

- 3132 - 2363 86Fiscal Year

Increase/Decreasefrom

FY08 Results

FY08Results

Increase/Decreasefrom

FY09 Results

FY10Projection

FY09Results &Projection

Dividend per share

Projection as of Apr. 28th

*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

7

FY09 4th Quarter Financial Results & FY10 Financial Forecasts

(1) 4th Quarter & Twelve Months Consolidated Financial Results (2) FY10 Financial Forecasts (3) Dividend to Shareholders

(1) 4th Quarter & Twelve Months Consolidated Financial Results (2) Consolidated Capital Expenditures(3) FY10 Financial Forecasts

・Outline Executive Vice President - Koichi Kondo

・ Details Chief Operating Officer for Business Management Operations – Yoichi Hojo

8

(1) 4th Quarter & Twelve Months Consolidated Financial ResultsOutline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating RevenueChange in Operating IncomeBusiness Segment InformationGeographical InformationChange in Income before Income Taxes < Other Income/Expenses and

Currency Effects >

(2) Consolidated Capital Expenditures

(3) FY10 Financial Forecasts

Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts

9

EPS (Yen) 14.01 - 102.59 -( - 116.60 yen)

Note : Shares which are based on calculation of EPS



Outline of FY09 4th Quarter Financial Results (Consolidated)

Unit (Sales)4Q Results

FY08 FY09 Change

Motorcycles 2,368 2,002 - 15.5%

Automobiles 1,051 680 - 35.3%

Power Products 2,092 1,531 - 26.8%

Financial results4Q Results

FY08 FY09 ChangeNet sales & other operating revenue 3,055.5 1,783.8 - 41.6%

Operating income 168.8 - 283.0 －

Income before income taxes 146.8 - 309.5 －

Equity in income of affiliates 24.3 2.7 - 88.7%

Net income 25.4 - 186.1 －

US Dollar 106 94 Yen up by 12 yen

Euro 158 121 Yen up by 37 yen

Average Rates (Yen)

Yen（billions）



Unit (thousands)

Major Change Factors

Business Environment

Motorcycle market

Automobile market

Unit SalesMotorcycles:

Automobiles:

Power Products:

Net sales & other operating revenue

Operating income

<Decrease Factors>

<Increase Factors>

Decreased unit sales in all the regions



Financial crisis and deterioration of real economy led the U.S. and Europe recession to deepen and become more serious. Japan economy deteriorated rapidly due mainly to a decline in exports.Pace of economic expansion has further slowed down in AsiaYen appreciation against the U.S. dollar and Euro

Steep deterioration not only in the U.S. but in Thailand and IndonesiaDemand in India has recovered from the previous quarter.

Steep downturn in the U.S., Japan and Western EuropeDemand in Russia continued to decline largely.Expanding markets in India, Brazil and China

Honda earned operating profit for the fiscal year, however it posted operating loss in the 4Q due to decreased volume in all businesses under rapid market deterioration.

Decline mainly due to decreased unit sales of automobilesNegative currency translation effects

Decrease in revenue and model mix change, etc.Increased fixed costs due to production cutIncreased raw material costsCurrency factors

Effects of cost reductionDecrease in SG & A

10

(1) 4th Quarter & Twelve Months Consolidated Financial ResultsOutline of 4th Quarter Consolidated Financial ResultsNet Sales and Other Operating RevenueChange in Operating IncomeBusiness Segment InformationGeographical InformationChange in Income before Income Taxes < Other Income/Expenses and

Currency Effects >




11

Power Product &

Other Businesses

Automobile Business

Financial ServicesBusiness

Currency Effects

FY09 4QFY08 4Q

4QNet Sales by Business Segment FY09FY08

3,055.5

116.8

138.0

2,356.6

444.0

72.6Power Products

& Other Business

1,783.8Total

135.2Financial Services Business

1,301.4Automobile Business

274.4Motorcycle Business

Market average rates

100.54114.28U.S. Dollar

161.53 143.48Euro

93.61105.29U.S. Dollar

157.65 121.81Euro

Yen (billions)

Twelve monthsNet Sales byBusiness Segment FY09FY08

12,002.8

421.1

533.5

9,489.3

1,558.6

343.0Power Products

& Other Business

10,011.2Total


7,674.4Automobile Business

1,411.5Motorcycle Business

If excluding currency translation effects; - 920.0bn. yen (- 30.1 %)

If excluding currency translation effects; - 795.8 bn. yen (- 6.6 %)

4th Quarter (Three months)

Twelve Months

MotorcycleBusiness

Power Product &

Other BusinessesAutomobile

BusinessFinancial Services

Business

MotorcycleBusiness

FY08 Twelve Months

FY09Twelve Months

Market average rates

Yen (billions)

Net Sales and Other Operating Revenue

Currency Effects

（- 19.5 %）

（- 34.5 %）（+ 10.0 %）（- 28.2 %）

3,055.5

- 86.6- 814.2 + 13.8 - 33.0

- 351.5

1,783.8

（+ 1.1 %）（- 9.3 %）

（+ 23.3 %）（- 11.6 %）

12,002.8+ 18.5 - 889.9

+ 124.7 - 49.0- 1,195.7

10,011.2

- 1,271.6（- 41.6 %）

- 1,991.5 （- 16.6 %）

12


Currency Effects >




13

Change in Operating Income <FY09 4th Quarter>

<Increase Factors>• Decrease in quality related expenses• Decreased expenses for advertising, sales promotion, etc.<Decrease Factors>• 0ne-off expenses related to withdrawal from some racing activitiesand cancellations of new model developments , etc.

Income before Income taxes - 456.4 bn. yen

146.8

-309.5

- 357.9

- 107.9

+ 21.5 + 19.3 - 26.8- 7.6 + 3.0

Operating Income - 451.8 bn. yen

<Increase Factors>• Effects of cost reductions, etc.<Decrease Factors>• Increase in fixed cost due to production cut• Impact of increase in raw material prices, etc.

Other Income &

Expenses- 4.5 bn. yen

Operating income

168.8

Operating income

-283.0

<Increase Factors>• Change in pricing for the new model year, etc.

<Decrease Factors>• Decline in profit attributable to lower unit sales •Model mix impact, etc.

Revenue, model mix, etc.

Cost Reduction, the effect of raw

material cost , etc.

Decrease in R&D Currency Effect Fair value of derivativeinstruments

OthersDecrease in SG&A

FY09 4QFY08 4Q

Yen （billions）

14

Change in Operating Income <FY09 Twelve Months>

FY08 Twelve Months

Yen （billions）

FY09 Twelve Months

Income before Income taxes - 734.1 bn. yen (- 81.9%)

895.8

161.7

- 247.7

- 182.5

- 88.3+ 24.7 - 269.5

+ 85.7 - 56.4

Operating Income- 763.4 bn. yen （ - 80.1 % ）

Operating income


189.6

Other Income &

Expenses+ 29.3 bn. yen

<Increase Factors>• Change in pricing for the new model year• Decrease in sales incentives for North America automobile business

<Decrease Factors>• Decline in profit attributable to lower unit sales•Model mix impact, etc.



material cost , etc.Decrease in R&D

Currency Effect Fair value of derivativeinstruments

Others

Increase in SG&A

<Increase Factors>• Effects of cost reductions, etc.<Decrease Factors>• Impact of increase in raw material prices• Increase in fixed cost due to production cut , etc.

<Increase Factors>• Decrease in quality related expenses , etc.<Decrease Factors>• 0ne-off expenses related to withdrawal from some racing activitiesand cancellations of new model developments

• Increase in provisions for credit loss and residual loss , etc.

15


Currency Effects >




16

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Motorcycle Unit Sales (Motorcycles + All-Terrain Vehicles, etc.)Unit

(thousands) FY09 4QChange from

FY 08 4QMajor increase/decrease factors

Japan 51 - 15- Increase of leisure model such as Monkey- Decrease in sales of scooters such as TODAY and

FORZA

North America 72 -78 - Decrease of sports bikes such as CBR1000RR and

custom bikes such as VTX1300C

Europe 71 - 18 - Increase of scooters such as SH150 in Italy- Decrease of scooters such as SH125 in Spain

Asia 1,449 -168 - Increase of Unicorn、Shine in India- Decrease of Wave、CLICK in Thailand

Other Regions 359 -87 - Increase of CG125 in Brazil

- Decrease of CG150 TITAN, BIZ125 in Brazil

Total 2,002 -366

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

371

1,623958084

2,253

Approx 1,100 Approx 1,020

392

1,64568

121107

2,333

- 366（ - 15.5% ）

Approx 1,160

401

1,74861

10254

2,366446

1,61789

15066

2,368

Approx 1,280

436

2,050918058

2,715

Approx 1,210

4Q3QFY09FY08FY09FY08

12 Months12 Months1Q 2Q4Q3Q2Q1Q

1,610

6,633

313453311

9,320

Approx 4,580

509

2,146669379

2,893

Approx 1,260

+ 794（ + 8.5% ）

1,763

7,523

276320232

10,114

Approx 4,700

459

1,878487544

2,504

Approx 1,110

3591,449

71

51

2,002

72

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

AsiaEurope

Other Regions

JapanNorth America

Approx 1,100

Unicorn (India)

Monkey (Japan)

17

Motorcycle Business Net Sales/Operating Income/Operating Margin

Yen(billions)

Operating Margin

Operating Income



1,411.51,558.6274.4342.8401.0393.0444.0364.6381.6368.3Net Sales

12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY09FY08FY09FY08

Yen(billions)

- 2.8

25.2

46.3

31.1

52.7

30.337.031.1

151.2

99.9

- 1.0%

7.4%

11.6%

9.7%7.9%

11.9%

8.3%8.5%9.7%

7.1%

-20

0

20

40

60

80

100

120

140

160

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

<Increase Factors>• Effects of cost reduction, etc.<Decrease Factors>• Increase in raw material costs,• Decrease in revenue and model mix change, etc.

( - 34.0% )

（- 38.2%）（- 9.4%）

18

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

18

Unit(thousands) FY09 4Q Change from

FY 08 4Q Major increase/decrease factors

Japan 141 - 50 - Increase of FREED, INSIGHT, etc.- Decrease of FIT, etc.

North America 219 -240 - Increase of FIT, etc.

- Decrease of Accord, Civic, CR-V, etc.

Europe 103 - 6 - Increase of Civic and CR-V in Russia- Decrease of CR-V and Civic in the U.K., Spain and Italy

Asia 151 -52- Decrease of component parts for China (Accord and

CR-V, etc.) - Decrease of CR-V, in Indonesia, etc.

Other Regions 66 -23 - Increase of CR-V in Brazil

- Decrease of Civic, CR-V in Australia

Total 680 - 371

Automobile Unit Sales




- 371（ - 35.3% ）

6618792

465

946

136

72177100

445

937

143

87

18890

481

991

145

89203109

459

1,051

191

78

22175

460

962

128

91

20487

401

935

152

314

755

391

1,850

615

3,925

322

793

350

1,496

556

3,517

- 408（ - 10.4% ）

CR-V （Brazil）

87

217

85

416

940

135

INSIGHT （Japan）

66151103219

680

141

AsiaEurope

Other Regions

Japan

North America

19

Automobile Business Net Sales/Operating Income/Operating Margin

Yen(billions)

Yen(billions) Operating Margin

Operating Income

7,674.49,489.31,301.41,974.22,170.62,228.02,356.62,449.02,356.42,327.2Net Sales




24.5

661.6

148.3213.0 220.7

79.5161.2

79.0 70.5

- 286.2

0.3%

7.0%

6.4% 9.0%

3.4%7.2%9.0%

3.6% 3.6%

-22.0%

-300

-200

-100

0

100

200

300

400

500

600

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

(- 96.3%)

700

（- 44.8%）（- 19.1%）

<Increase Factors>• Effects of cost reductions, • Decrease in SG&A expenses etc.<Decrease Factors>• Decrease in revenue and model mix change , etc.• Increase in fixed cost due to production cut• Increase in raw material costs etc.

20

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

20

FY094Q

Change from FY 08 4Q

Major increase/decrease factors

Japan 101 - 50- Increase of gas-powered mini-tiller Pianta FV200, etc- Decrease of GX series engines for OEM generators

North America 655 - 233 - Decrease of GC/GC(V) series for OEM washer

pressure and lawn mower in United States

Europe 472 - 199- Decrease of general purpose engines, such as

GX/GC series engines for OEM construction machinery and generators

Asia 200 -51 - Increase of water pumps in Indonesia- Decrease of generators in India

Other Regions 103 -28

- Decrease in general purpose engines, such as the GX series generators in Australia

Total 1,531 - 561

Power Products Unit Sales


- 561（- 26.8%）

97220

390

687

135

1,529

116242

280

479

141

1,258

140202352

361

123

1,178

131251

671

888

151

2,092

119249

319

493

159

1,339

127

296

231402

146

1,202

484

915

1,693

2,415

550

6,057

502

970

1,306

1,893

516

5,187

- 870（- 14.4%）

153225284

343110

1,115 103200

472

655

101

1,531

Unit(thousands)



Pianta FV200 （Japan）

Asia

Europe

Other Regions

Japan

North America

21

Power Product & Other Businesses Net Sales/Operating Income/Operating Margin

Yen(billions)

Yen(billions)

Operating Margin

Operating Income

368.9442.779.479.5103.0106.8122.3100.2105.0115.2Net Sales




- 15.4

22.3

7.9 6.92.2 5.1

0.2 - 0.9- 2.8

- 11.9- 4.2%

5.0%6.9%

2.3%4.2%

0.2%

6.6%

- 0.9%- 3.5%

- 15.0%-20

-15

-10

-5

0

5

10

15

20

25

-16%

-12%

-8%

-4%

0%

4%

8%

12%

16%

20%

<Increase Factors>• Decrease in SG&A expenses<Decrease Factors>• Decrease in revenue

and model mix change, etc.• Increase in R&D expenses

for Other Businesses (expenses related to start-up

of new businesses) , etc.

（- 35.1%）（- 16.7%）

22

Financial Services Business Net Sales/Operating Income/Operating Margin

Yen(billions)

Yen(billions)

Operating Margin

Operating Income

596.5549.0138.3146.0162.6149.5141.7139.6137.8129.8Net Sales




（- 2.4%）（+ 8.6%）

(- 31.5%)(- 42.3%)

18.09.4

24.328.731.322.9

29.334.2

117.7

80.6

13.1%

6.5%

14.9%

21.3%

19.2%

22.1%

16.4%

26.4%

21.5%

13.5%

0

10

20

30

40

50

60

70

80

90

100

110

120

130

0%

10%

20%

30%

<Increase Factors>• Increase in finance receivables and property on operating leases, etc.<Decrease Factors>• Increase in provisions for residual loss, etc.

23


Currency Effects >




24

Net Sales/Operating Income/Operating MarginJapan

Yen(billions)

Yen(billions)

Operating Income

Operating Margin (%)

4,162.54,889.0740.11,079.21,193.51,149.61,251.01,246.11,215.51,176.2Net Sales




- 176.0

- 64.3

40.937.92.356.2

73.360.6

192.5

- 161.6

-200

-150

-100

-50

0

50

100

150

200

（- 40.8%）（- 14.9%）

( 0.2 % )

( - 23.8 % )

( 3.9 % )

(- 3.9 % )

<Increase Factors>• Effects of cost reductions• Decrease in R&D expenses, etc.

<Decrease Factors>• Decrease in revenue and model mix change, etc• Increase in raw material costs• Currency effects, etc.

25

Net Sales/Operating Income/Operating MarginNorth America

Yen(billions)

Yen(billions)

Operating Income




4,779.16,265.2684.21,231.61,370.01,493.11,484.11,640.51,557.11,583.3Net Sales


- 107.4

70.022.5

94.563.1

156.3116.0

97.0

432.6

79.7

-200

-100

0

100

200

300

400

500

( 4.3 % )

(- 15.7 % )

( 6.9 % )

( 1.7 % )

(- 81.6 %)

（- 53.9%）（- 23.7%）

<Increase Factors>• Decrease in SG&A expenses, • Effects of cost reductions etc.<Decrease Factors>• Decrease in revenue and model mix change, etc• Increase in fixed cost due to production cut• Increase in raw material costs etc.

26

10.2

51.5

10.3

16.7

5.8

18.6

11.28.3 1.1

-10.5

-15

-5

5

15

25

35

45

55

Net Sales/Operating Income/Operating MarginEurope

Yen(billions)

Yen(billions)

Operating Income


1,278.91,594.2264.2299.4350.7364.5441.3361.7390.8400.2Net Salse




（- X.X%）（+ X.X%）

( 4.2 % )

(- 4.0 % )

( 3.2 % )

( 0.8 % )

(- 80.2%)

（- 40.1%）（- 19.8%）

<Increase Factors>• Effects of cost reductions, etc.<Decrease Factors>

• Decrease in revenue and model mix change, etc• Increase in fixed cost due to production cut etc.

27

Net Sales/Operating Income/Operating MarginAsia

Yen(billions)

Yen(billions)

Operating Income


1,608.21,638.2334.8385.2451.8436.2415.9413.4415.6393.3Net Sales




103.6

130.7

36.9 33.438.3

21.9

48.336.6

24.9

- 6.3-20

0

20

40

60

80

100

120

140

( 5.3 % )

( - 1.9 % )

( 8.0 % )

( 6.4 % )

(- 20.7%)

（- 19.5%）（- 1.8%）

<Increase Factors>• Decrease in SG&A expenses, etc.<Decrease Factors>• Decrease in revenue and model mix change, etc• Increase in raw material costs etc.

28

55.773.665.456.3

38.0 39.5

244.0211.4

65.461.2

22.2

97.5

14.322.6

86.1

30.413.923.626.8 29.5

0

50

100

150

200

250

300

Operating Income of Affiliates and Honda’s Equity in Income

Sundiro Honda Motorcycle Co., Ltd.*Wuyang-Honda Motors (Guangzhou) Co., Ltd.*Hero Honda Motors Ltd.P.T. Astra Honda Motor *Hicom-Honda MFG. Malaysia SDN. BHD.Atlas Honda Ltd. *A.P. Honda Co., Ltd.

China

IndiaIndonesiaMalaysiaPakistanThailand

Guangzhou Honda Automobile Co., Ltd.*Dongfeng Honda Engine Co., Ltd.*Dongfeng Honda Automobile Co., Ltd.*

Others 40, Total 50 companies

Motorcycle Business： Automobile Business :As of the end of March, 2009Affiliates accounted for under the equity method in Asia

Fiscal term of companies marked “*” differs from that of Honda Motor Co., Ltd.

Yen(billions)

China

Operating Income of AffiliatesAsia

Yen(billions)

+ 1.5（ + 3.9% ）

+ 32.6（ + 15.4% ）Operating Income Equity in Income



35.2

39.54Q

64.0

73.6

3Q

58.3

65.4

1QFY09

56.1

65.4

2Q

188.0

211.412 Months

FY08

244.038.055.756.361.2OperatingIncome

FY09FY08

31.0

4Q

213.749.750.057.2Net Income

12 Months3Q2Q1Q

29

Net Sales/Operating Income/Operating MarginOther Regions

Yen(billions)

Yen(billions)

Operating Income


1,144.21,092.8196.1304.7349.5293.7313.9284.6267.9226.3Net Sales




135.0

116.4

21.730.1 31.7 32.7 36.3

48.741.8

8.0

0

20

40

60

80

100

120

140

160

180

( 10.4 % ) ( 4.1 % )

( 10.7 % )

( 11.8 % )

(+ 16.0%)

(- 75.4%)

（- 37.5%）（+ 4.7%）

<Increase Factors>• Effects of cost reductions, etc.<Decrease Factors>• Increase in SG&A expenses, • Currency effects, etc.

30


Currency Effects >




31

Yen （billions）

Change in Income before Income Taxes <FY09 4ｔｈ Quarter>

146.8

-309.5

- 357.9

- 107.9

+ 21.5 + 19.3 - 26.8- 7.6 + 3.0



material cost , etc.

Decrease in R&D Currency Effect Fair value of derivativeinstruments

OthersDecrease in SG&A

FY09 4QFY08 4Q

Operating income

168.8

Operating income

-283.0

Income before Income taxes - 456.4 bn. yen

Operating Income - 451.8 bn. yen Other Income

& Expenses

- 4.5 bn. yen

<Increase Factors>• Decrease in quality related expenses• Decreased expenses for advertising, sales promotion, etc.<Decease Factors>• 0ne-off expenses related to withdrawal from some racing activitiesand cancellations of new model developments , etc.

<Increase Factors>• Effects of cost reductions, etc.<Decease Factors>• Increase in fixed cost due to production cutImpact of increase in raw material prices,

etc.

<Increase Factors>• Change in pricing for the new model year, etc.

<Decease Factors>• Decline in profit attributable to lower unit sales •Model mix impact, etc.

<Currency Effects >Impact on Operating income - 26.8 bn. yen (due to difference of average rates and translation effects)Impact on Other income & expenses +12.4 bn. yen (due to difference between average rates and transaction rates)Impact on Income before income taxes - 14.4 bn. yen (see also Exhibit 1)

Currency effect due to difference between average rates and transaction rates: +12.4 bn. yenInterest rate swap cost, etc. ： - 9.3 bn.yen

(Exhibit 2)

32

Change in Income before Income Taxes < FY09 Twelve Months >

FY08 12 Months

Yen （billions）

FY09 12 Months

895.8

161.7

- 247.7

- 182.5

- 88.3+ 24.7 - 269.5

+ 85.7 - 56.4

Operating income

953.1Operating

income

189.6



material cost , etc. Decrease in R&D

Currency Effect Fair value of derivativeinstruments

Others

Increase in SG&A

Income before Income taxes - 734.1 bn. yen (- 81.9%)

Operating Income- 763.4 bn. yen （ - 80.1 % ） Other Income &

Expenses+ 29.3 bn. yen

<Increase Factors>• Change in pricing for the new model year• Decrease in sales incentives for North America automobile business

<Decease Factors>• Decline in profit attributable to lower unit sales•Model mix impact, etc.

<Increase Factors>• Effects of cost reductions, etc.<Decease Factors>• Impact of increase in raw material prices• Increase in fixed cost due to production cut , etc.

<Increase Factors>• Decrease in quality related expenses , etc.<Decease Factors>• 0ne-off expenses related to withdrawal from some racing activitiesand cancellations of new model developments

• Increase in provisions for credit loss and residual loss , etc.

Currency effect due to difference between average rates and transaction rates: +33.0 bn. yenInterest rate swap cost, etc. ： - 89.4 bn.yen

<Currency Effects >Impact on Operating income - 269.5 bn. yen (due to difference of average rates and translation effects)Impact on Other income & expenses + 33.0 bn. yen (due to difference between average rates and transaction rates)Impact on Income before income taxes - 236.5 bn. yen (see also Exhibit 1)

(Exhibit 2)

33


Currency Effects >




34

FinancialServicesBusiness

Power product&

Other BusinessesMotorcycle Automobile

Business

FY08 Twelve MonthsMarket average ratesUS$ 1= JPY 114.28Euro 1= JPY 161.53

FY09 Twelve Months

Currency Effects

16.9Power Product & Other Businesses

599.1Total


490.7Automobile Business


If excluding currency translation effects + 4.3 bn. yen (+ 0.7 %)

Yen

(billions)

Market average ratesUS$ 1= JPY 100.54 (Yen up by 13.74 yen)Euro 1= JPY 143.48 (Yen up by 18.05 yen)

Yen (billions)

21.7Power Product & Other Businesses

654.0Total


544.9Automobile Business


Yen (billions)

※ Capital expenditures in results aforementioned excludeinvestment in operating leases and intangible assets

Consolidated Capital Expenditures <FY09 Twelve Months>

- 6.9654.0

+ 12.9 + 0.6 - 2.3 - 59.2

599.1

- 54.8 bn. yen （- 8.4 %）

35


Currency Effects >




36

Japan

Europe

Other Regions

Asia

NorthAmerica

Automobiles Power Products

FY09Results

Motorcycles

FY10Forecasts

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

Unit(thousands)

FY09Results

FY09Results

Forecast: Unit Sales by Business Segment


FY10Forecasts

FY10Forecasts

0

3,000

6,000

9,000

12,000

15,000

0

1,000

2,000

3,000

4,000

5,000

6,000

0

1,000

2,000

3,000

4,000

- 307 - 527- 1,519

10,114

Approx 5,380

8,595

Approx 4,700

3,2103,517

5,187

7,523

320232

276

1,763

350

556

1,496

322

793

1,306

516

1,893

502

970

6,500

190

205

1,465

235

290

555

1,350

240

775

4,660

1,230

420

1,690

440

880

37

Change

- 97.0

- 49.0

- 151.7

- 179.6

- 1,641.2

Amount

40.0

50.0

10.0

10.0

8,370.0

FY10Forecasts

- 49.5%99.0Equity in income of affiliates

- 70.8%

- 93.8%

- 94.7%

- 16.4%

%

137.0Net income

161.7Income before income taxes


10,011.2Net sales & other operating revenue

FY09Results

Yen （billions）

Note : Shares which are basedon calculation of EPS (as of Mar. 31, 2009)

Approx. 1,814,561,000 shares Approx. 1,814,609,000 shares

FY10 Financial Forecasts (Consolidated)

- 53.46 - 70.8%22.0475.50 EPS (Yen)

Yen up by 17 yen

Yen up by 6 yen

125

95

142Euro

101U.S. Dollar

Average Rates (Yen)


※Net income FY10 means attributable toshareholders of Honda

※

38

CurrencyEffect

OthersFair value of

derivativeinstruments

FY09Results

Yen

(billions)

Forecast: Change in Income before Income Taxes

Revenue, model mix,

etc. Cost Reduction, etc.

Decrease in R&D

Decrease in SG&A

FY10Forecasts

161.7

10.0

Operating Income - 179.6 bn. yen ( - 94.7 %) Other Income &

Expenses + 27.9 bn. yen

- 334.8

- 39.0

+ 339.0

+ 48.2 - 193.0

+ 20.0 + 7.9

Income before income taxes - 151.7 bn. yen ( - 93.8 %)

Operating income

189.6

Operating income

10.0

39

Yen

(billion)

Forecast: Capital Expenditures, Depreciation, R&D Expenses

- 48.1

- 28.2

- 209.1

Change

563.1

408.2

599.1

FY09Results

515.0

380.0

390.0

FY10Forecasts

R&D expenses

Depreciation and

amortization *

Capital

expenditures *

125

95

Yen up by 17 yen

Yen up by 6 yen

142 Euro

101U.S. Dollar

* “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.

40

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.

41

- 189.1- 31.6Currency effect associated with sales transaction

- 47.3*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

+ 17.2Currency effect from translation of foreign financial statements (impact on operating income)

- 236.5

+ 33.0

- 222.1

+ 7.5- 43.3- 30.9

- 155.4

FY0912 Months

Average Rates (Yen)

ChangeFY094Q

FY084Q

FY09 4Q

Yen up by 12 yen94106- 25.4JPY / USD

Yen upby 37 yen121158- 13.6JPY / Euro

―――- 4.8JPY / Others

―――- 0.0Transactions between other currencies

*1:Impact of YOY difference of FOREX to be used for booking revenue of foreign currency transactions

- 44.0Difference of average rates(Impact on Operating income)

*2:Impact of YOY difference between average FOREX and hedge rates during the period+ 12.4

Difference between transaction rates and average rates (Impact on Other income & expenses)

- 14.4Total

*1

*2

*3

Yen(billion)

-Currency Effects-(effects associated with sales transactions and translation effects)

(Exhibit 1)

42

- 70.2

- 0.5

- 84.2

+ 14.5

FY08

12 Months

+ 15.5

+ 1.8

+ 39.5

- 25.8

FY09

+ 85.7

+ 2.3

+ 123.8

- 40.4

Change

- 20.2

- 1.0

- 41.0

+ 21.8

FY08

4Q

- 27.8

+ 0.2

+ 16.7

- 44.8

FY09

- 7.6

+ 1.2

+ 57.8

-66.7

Change

Others

Total

Interest rate swap Currency swap

Foreign currencyForward

Yen(billion)

- Gain and Loss on Fair Value Adjustments for Derivative Instruments - (Exhibit 2)

47

Economy & Finance

FY09 4th Quarter Financial Results