1
FY12 3rd Quarter Financial Results
NSX Concept(North America)
Honda Motor Co., Ltd.January 31, 2012
2
FY12 3rd Quarter Financial Results & FY12 Financial Forecasts
Fumihiko IkeSenior Managing Officer and DirectorChief Operating Officer for Business Management Operations
- FY12 3rd Quarter Consolidated Financial Results - FY12 Financial Forecasts - Dividend
Kohei TakeuchiOperating Officer, General Manager of Accounting Division
- FY12 3rd Quarter Consolidated Financial Results Net Sales and Other Operating RevenueChange in Income before Income TaxesBusiness Segment InformationGeographical InformationChange in Equity in Income of AffiliatesConsolidated Capital Expenditures
- FY12 Financial Forecasts
3
(千台)ChangeFY12FY11
Unit (Sales)
- 11.8%1,0211,157 Power Products
- 2.9%830855 Automobiles
+ 6.3%3,0762,895 Motorcycles
3Q Results (Three Months)
- 18.5626.4545.01EPS attributable toHonda Motor Co., Ltd.(Yen)
ChangeFY12FY11
3Q Results (Three Months)Financial results
- 47.3%22.9 43.4 Equity in income of affiliates
- 41.2%47.6 81.1 Net income attributable to Honda Motor Co., Ltd.
- 55.5%58.4 131.5 Income before income taxes
- 64.7%44.2 125.6 Operating income
- 8.0%1,942.5 2,110.4 Net sales & other operating revenue
Yen up by7 yen105 112Euro
Yen up by6 yen77 83US Dollar
Outline of FY12 3rd Quarter Financial Results (Consolidated)
(thousands)
Financial Summary
Yen (billions)
Note : Shares which are based on calculation of EPS
approx.1,802,304,000 shares
(weighted average number of shares outstanding )
approx.1,802,300,000 shares
(weighted average number of shares outstanding )
Average Rates (Yen)
Financial Highlights
Honda achieved net income of 47.6 billion yen for the quarter.Despite the negative currency impact and adverse impact on the deferred income tax assets due to the change in income tax laws in Japan, the recovery of automobile sales in major markets, solid growth of motorcycle business inemerging markets and the companywide effort to reduce costs and expenses, helped absorb the negative impact caused by the flood in Thailand.
Unit Sales:Motorcycle:
Automobile:
Power Products:
Increased in all regions except Europe
Increased in Japan and North AmericaDecreased mainly in Asia and Other regions due to flooding in ThailandDecreased in all regions mainly due to flooding in Thailand
Net sales & other operating revenue-Increased in motorcycle business -Decreased in automobile business due to the impact of flooding in Thailand
-Negative currency translation effects
Operating income-The negative change in sales volume and model mix, due to the impact of flooding in Thailand
-Increased cost per unit due to decreased production-Increased raw material costs-Negative currency effect due to appreciation of the Japanese yen
4
- 193.2077.62270.82
ChangeFY12FY11
+ 1.2%3,8093,763
- 19.0%2,1492,652
+ 7.0%9,1038,511
Nine Months Results
ChangeFY12FY11
Nine Months Results
- 41.5%67.1114.7
- 71.4%139.8489.5
- 70.3%164.3553.9
- 77.2%119.3523.5
- 17.6%5,543.06,723.7
Yen up by 4 yen110114
Yen up by 9 yen7887
Outline of Nine Months Financial Results (Consolidated)
(千台)ChangeFY12FY11
Unit (Sales)
- 11.8%1,0211,157 Power Products
- 2.9%830855 Automobiles
+ 6.3%3,0762,895 Motorcycles
3Q Results (Three Months)
- 18.5626.4545.01EPS attributable toHonda Motor Co., Ltd.(Yen)
ChangeFY12FY11
3Q Results (Three Months)Financial results
- 47.3%22.9 43.4 Equity in income of affiliates
- 41.2%47.6 81.1 Net income attributable to Honda Motor Co., Ltd.
- 55.5%58.4 131.5 Income before income taxes
- 64.7%44.2 125.6 Operating income
- 8.0%1,942.5 2,110.4 Net sales & other operating revenue
Yen up by7 yen105 112Euro
Yen up by6 yen77 83US Dollar
(thousands)
Yen (billions)
Note : Shares which are based on calculation of EPS
approx.1,802,304,000 shares
(weighted average number of shares outstanding )
approx.1,802,300,000 shares
(weighted average number of shares outstanding )
Average Rates (Yen)
approx.1,802,300,000 shares
(weighted average number of shares outstanding )
approx.1,807,578,000 shares
(weighted average number of shares outstanding )
5
Change
- 319.0
- 44.7
- 380.5
- 369.7
- 1,086.8
amount
215.0
95.0
250.0
200.0
7,850.0
FY12Revised Forecasts
- 32.0%139.7Equity in income of affiliates
- 59.7%
- 60.4%
- 64.9%
- 12.2%
%
534.0 Net income attributable to Honda Motor Co., Ltd.
630.5Income before income taxes
569.7Operating income
8,936.8Net sales & other operating revenue
FY11Results
- 176.38119.29295.67EPS attributable toHonda Motor Co., Ltd. (Yen)
106
78
Yen up by 8 yen
Yen up by 8 yen
114Euro
86US Dollar
FY12 Financial Forecasts (Consolidated)Yen (billions)
Note : Shares which are based on calculation of EPS
approx.1,806,360,000 shares
approx.1,802,300,000 shares
(weighted average number of shares outstanding )
(weighted average number of shares outstanding )
Average Rates (Yen)
6
Net income
Ordinary income
Operating income
Net sales
Change
- 42.3%
- 84.8%
-
- 5.3%
%amountFY12
Revised ForecastsFY11Results
50.0
35.0
- 150.0
2,760.0
- 36.6
- 194.7
- 163.9
- 155.4
86.6
229.7
13.9
2,915.4
Euro
US Dollar
106
78
Yen up by 8 yen
Yen up by 8 yen
114
86
FY12 Financial Forecasts (Unconsolidated)
Yen (billions)
Average Rates (Yen)
7
+ 3
( ± 0 )( 15 ) 15 4th quarter End
± 015 153rd quarter End
15121st quarter End + 3
15 122nd quarter End
Increase/Decrease from
FY11 Results
( + 6 )54
FY11Results
( 60 )Fiscal Year
FY12Results
(Projections)
-
-
-
-
-
Dividend
(Yen)
Dividend per shareChange from
previous forecasts
as of Oct. 31
8
FY12 3rd Quarter Financial Results & FY12 Financial Forecasts
Fumihiko IkeSenior Managing Officer and DirectorChief Operating Officer for Business Management Operations
- FY12 3rd Quarter Consolidated Financial Results - FY12 Financial Forecasts - Dividend
Kohei TakeuchiOperating Officer, General Manager of Accounting Division
- FY12 3rd Quarter Consolidated Financial Results Net Sales and Other Operating RevenueChange in Income before Income TaxesBusiness Segment InformationGeographical InformationChange in Equity in Income of AffiliatesConsolidated Capital Expenditures
- FY12 Financial Forecasts
9
(+ 12.7 %) (- 18.7 %)
(- 0.1 %)
- 1,180.7 (- 17.6 %)
(+ 15.1 %) (- 5.4 %)(- 2.9 %) ( - 1.8 %)
-- 9.8Other Adjustments
3QNet Sales byBusiness Segment FY12FY11
2,110.4
68.0
136.4
1,613.8
301.9
64.0Power Product & Other Businesses
1,942.5Total
124.8Financial Services Business
1,451.0Automobile Business
302.5Motorcycle Business
78.9986.84US Dollar113.30 110.61Euro
77.3882.64US Dollar
112.23 104.29Euro
--Other Adjustments
Nine MonthsNet Sales byBusiness Segment FY12FY11
6,723.7
212.6
427.3
5,148.7
935.0
204.6Power Product & Other Businesses
5,543.0Total
387.1Financial Services Business
3,961.0Automobile Business
990.2Motorcycle Business
Excluding currency translation effects; - 36.5 ( - 1.7%)
Excluding currency translation effects; - 850.5 (- 12.7 %)
2,110.4+ 45.7 - 86.9 - 3.9 - 1.2
- 131.31,942.5
6,723.7
+ 119.0 - 963.6
- 5.7 - 0.2- 330.1 5,543.0(- 1.4 %)
- 167.8 ( - 8.0 %)
+ 9.8
Net Sales and Other Operating Revenue3rd Quarter (Three months)
Nine Months
Yen (billions)
Yen (billions)
Market average rates
Market average rates
FY11 3Q FY12 3Q
MotorcycleBusiness Automobile
BusinessFinancial Services
Business Power Product &
Other Businesses
Other adjustments
Currency Effects
FY11Nine Months
FY12Nine Months
MotorcycleBusiness
AutomobileBusiness
Financial ServicesBusiness
Power Product &
Other BusinessesCurrency Effects
10
Income before Income taxes - 73.0
131.5
58.4
- 32.9
- 16.1 + 11.6 - 10.3- 33.6
+ 3.5+ 4.7
Operating Income - 81.3 Other Income & Expenses
+ 8.2
Change in Income before Income Taxes <FY12 3rd Quarter>Yen
(billions)
Revenue, model mix,
etc. Cost Reduction, etc. Decrease in SG&A Increase in R&D
Currency Effects Unrealized gains andlosses related to
derivative instruments (Exhibit 2)
Others
FY11 3Q FY12 3Q
OperatingIncome
125.6
OperatingIncome44.2
*Please refer to Exhibit 1 regarding currency effects
11
Income before Income taxes - 389.5
553.9
164.3
- 217.8
- 133.3
+ 41.4 - 8.5 - 85.8
+ 0.7 + 13.8
Operating Income - 404.1 Other Income & Expenses
+ 14.5
Change in Income before Income Taxes <FY12 Nine Months >Yen
( billions )
OperatingIncome
523.5
OperatingIncome119.3
*Please refer to Exhibit 1 regarding currency effects
FY11Nine Months
FY12Nine Months
- Currency effect due to difference between average ratesand transaction rates: - 9.3
- Others + 23.1 Revenue, model mix,
etc.
Cost Reduction, etc. Decrease in SG&A
Increase in R&D
Currency Effects Unrealized gains andlosses related to
derivative instruments (Exhibit 2)
Others
<Increase Factors>- Decreased sales incentives, etc.<Decrease Factors>-The change in unit sales and model mix in automobile business, etc.
<Decrease Factors>- Increased fixed cost per unit due to decreased production
- Increased raw material cost, etc.
<Increase Factors>- Decreased quality-related expenses, etc.
12
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
51
- Increased sales of CG150FAN and CG125FAN in Brazil- Increased sales of Wave model, etc., in Argentina+ 71496Other
Regions
3,076
2,450
31
48
Major increase / decrease factorsChange from FY11 3QFY12 3Q
- Decreased sales of SH series models due to weak sales in Southern Europe- Positive impact of the introduction of NSC110 in Italy- 8Europe
- Increased sales of Activa and CB Shine in India - Increased sales of Air Blade and Wave series in Vietnam- Decreased sales in Thailand due to negative impact caused by the flood
+ 109Asia
+ 181Total
+ 4
+ 5
- Increased sales of utility ATVs- Increased sales of Shadow large cruiser model
- Increased scooter sales due to the introduction of GIORNO- Positive impact of the introduction of CBR250R
North America
Japan
Approx. 1,780
344
2,374
2,887
64
Approx. 4,667Approx. 1,950
445
2,153
2,729
41
Approx. 4,679
2,341 39
4252,895
Approx. 1,750Approx. 4,645
2,31058
476
2,934
Approx. 1,810Approx. 4,744
2,152 62
52
4392,751
Approx. 630Approx. 3,381
6045
4347
4446
3852
46
Approx. 750
496
2,450
3,076
31
Approx. 3,826
4851
Approx. 5,480
1,214
6,868
8,511
144
Approx. 13,991
147138
Approx. 2,130
1,481
7,169
9,103
140
Approx. 11,233
147166
+ 592( + 7.0% )
Approx. 750
546
2,567
3,276
47
Approx. 4,026
5363
+ 181( + 6.3% )
Activa (India)
Motorcycle Unit Sales (Motorcycles + All-Terrain Vehicles, etc.)Unit
(thousands)
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
* Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts to Honda’s affiliates accounted for under the equity method.
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
AsiaEurope
Other Regions
Japan
NorthAmerica
13
31.3
109.7
25.829.144.948.1
90.4
38.930.0
11.1%9.7%
8.5%
10.9%13.6%13.6%
9.6%9.6%9.8%
0
50
100
150
0%
2%
4%
6%
8%
10%
12%
14%
Includesrevenuerelated to
dissolution of a joint venture
with Hero Honda
( + 0.2% )
302.53Q
330.31Q
FY12
357.32Q
935.09 Months
FY11 FY12FY11
353.14Q
990.2301.9312.8320.2NetSales
9 Months3Q2Q1Q
(+ 21.3%)
( - 11.2%)
( + 5.9% )
Motorcycle Business Net Sales/Operating Income (Margin)
Yen(billions)
Yen(billions)
Operating Margin
Operating Income
Currency Effect - 45.1(Revenue from sales to
external customers)
Currency Effect - 63.8(Revenue from sales to
external customers)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
<Increase Factors>-Changes in unit sales and model mix, etc
<Decrease Factors>-Increased SG&A expenses, -Negative currency effect, etc
14
0
500
1,000
1,500
2,000
2,500
3,000
70
261
53
370
899
145
61
24448
368
898
177
8556726541364
118
134
- Decreased sales in Brazil due mainly to tightening of the financing regulation- Decreased sales in Australia due to the decreased supply caused by the flood in Thailand- 1948Other
Regions
830
244
38
366
Major increase / decrease factorsChange from FY11 3QFY12 3Q
- Negative impact of decreased production at the U.K. plant due to flood in Thailand- Positive impact of the introduction of JAZZ HYBRID in Germany- 3Europe
- Decreased production and sales caused by the flood in Thailand- Increased sales of parts for production of CIVIC to China - Positive impact of the introduction of BRIO in India
- 21Asia
- 25Total
+ 2
+ 16
- Increased supply of CIVIC, increased sales of ODYSSEY, etc.- Decreased supply of CR-V due to the timing of the model change
- Positive impact of the introduction of FIT SHUTTLE HYBRID, FREED HYBRID, N-BOX, etc.- Increased sales of STEPWGN- Reversal impact of the weak sales after termination of the government’s subsidy in 2011
NorthAmerica
Japan
86068
23856
356
142
54757
13935225
- 25( - 2.9% )
4824438366
830
134
770
142
2,652
440
1,102
198
669
113
2,149
356
860
151
- 503( - 19.0% )
46286
40269
772
131
FREED HYBRID (Japan)
Automobile Unit Sales Unit
(thousands)
Unit (thousands)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
* Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts to Honda’s affiliates accounted for under the equity method.** Certain sales of automobiles that are financed with residual value type auto loans by our domestic finance subsidiaries are accounted for as operating leases in conformity with
U.S. generally accepted accounting principles. As a result, they are not included in total sales of our automobile segment or in our measure of unit sales.
Asia
Europe
Other Regions
Japan
NorthAmerica
15
- 122.3
303.7
- 16.9- 29.1
- 76.2
- 39.168.486.3148.9
- 3.1%
5.9%
- 1.2%- 2.2%
- 6.5%
- 2.4%
4.2%5.0%
8.2%
-200
-100
0
100
200
300
-9%
-6%
-3%
0%
3%
6%
9%
12%
15%
1,455.63Q
1,178.81Q
FY12
1,337.12Q
5,153.89 Months
FY11 FY12FY11
1,648.44Q
3,971.61,615.91,723.51,814.4NetSales
9 Months3Q2Q1Q
( - 9.9% ) ( - 22.9% )
Automobile Business Net Sales/Operating Income (Margin)
Yen(billions)
Yen(billions)
Operating Margin
Operating Income
Currency Effect - 75.7(Revenue from sales to
external customers)
Currency Effect - 224.0(Revenue from sales to
external customers)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
<Increase Factors>-Decreased SG&A expenses. etc
<Decrease Factors>-Changes in unit sales and model mix, -Increased raw material cost,-Increased R&D expenses,-Negative currency effect, etc
16
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
105344
230
662
99
136367
200
367
1,166
96
157307254350
1,157
89
139307
490
706
1,746
104
- 136
- 23
- 18
- 54
- 20
- 21
Change from FY11 3Q
68
- Declined supply of GX160 engines for OEM use to South Africa, and GX25 engines for OEM use to Australia caused by the flood in Thailand
- Decreased sales of GX160 engines for long-tail boats 134Other
Regions
1,021
289
200
330
Major increase / decrease factorsFY12 3Q
- Decreased sales of GCV135、GX390 engines for OEM use due to economic uncertainty - Declined sales due to shortage of supply caused by the flood in ThailandEurope
- Decreased sales of GX390 engines for OEM use in Thailand and the Philippines due to shortage of supply caused by the flood in Thailand
- Increased sales of WBK30 pumps and GK200 engines for OEM use for pumps in India supported by government’s subsidy for agriculture
Asia
Total
- Reversal impact of favorable sales of GCV160 engines in 2Q FY12 - Increased demand for EU2000 generators due to climates in the East Coast area
- Decreased export sales of GX160 / 390 general-purpose engines for OEM use due to appreciated Japanese yen
- Decreased sales of GX160 OEM engines for pumps due to the flood in Thailand
NorthAmerica
Japan
109399
307
577
1,512
120
1,440
- 136(- 11.8% )
1,021
68
134289200330
3,763
284
684
1,379
1,018
398
3,809
303
707
1,344
1,078
377
+ 46(+ 1.2%)
1,276
115
134390
200
437
WBK30 (India)
Power Products Unit Sales Unit
(thousands)
Unit (thousands)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
* Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts to Honda’s affiliates accounted for under the equity method.
AsiaEurope
Other Regions
Japan
NorthAmerica
17
- 3.1
0.2
-2.3- 2.0
- 0.5 - 0.5
- 2.1
-0.1
- 2.0
- 3.2%
- 0.2%- 0.7%
0.4%
- 2.8%- 2.9%
- 0.7%- 1.4% - 0.9%
-5
-4
-3
-2
-1
0
1
2
3
4
5
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
68.03Q
73.9
1QFY12
72.1
2Q
224.79 Months
FY11 FY12FY11
83.1
4Q
214.172.174.577.9NetSales
9 Months3Q2Q1Q
( - 5.7% ) ( - 4.7% )
Power Product & Other Businesses Net Sales/Operating Income (Margin)
Yen(billions)
Yen(billions)
Operating Margin
Operating Income
Currency Effect - 2.6(Revenue from sales to
external customers)
Currency Effect - 7.7(Revenue from sales to
external customers)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
<Decrease Factors>-Decreased unit sales in
power product business,-Negative currency effect, etc
18
54.6 47.439.6
53.642.8
134.0146.6
37.544.6
33.9%33.6%29.5%33.2%
38.7%
32.0%32.9%35.8%
28.8%
0
20
40
60
80
100
120
140
160
180
200
0%
10%
20%
30%
40%
50%
( - 15.7% )
127.5
5,290.53Q
5,169.25,445.75,572.15,427.25,480.35,558.0Total Assets of Finance
Subsidiaries
129.1
2Q
436.1
9 MonthsFY11
138.6
1QFY12 FY12FY11
137.3
4Q
395.3139.2144.2152.5NetSales
9 Months3Q2Q1Q
(- 8.4%) (- 9.3%)
(- 8.6%)
Financial Services Business Total Assets/Net Sales/Operating Income (Margin)
Yen(billions)
Yen(billions)
Operating Margin
Operating Income
Currency Effect - 7.6(Revenue from sales to
external customers)
Currency Effect - 34.4(Revenue from sales to
external customers)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
<Decrease Factors>- Negative currency impact, etc
19
- 41.2- 35.3
- 45.8- 21.8
14.620.153.1
87.9
- 122.4
-150
-100
-50
0
50
100
( - 4.8 % )( 1.7 % )
( - 5.3 % )
( 3.2 % )
863.13Q
625.3
1QFY12
805.3
2Q
2,717.39 Months
FY11 FY12FY11
893.8
4Q
2,293.9867.5928.2921.5NetSales
9 Months3Q2Q1Q
( - 0.5% ) ( - 15.6% )
Net Sales/Operating Income (Margin)Japan
Yen(billions)
Yen(billions)
Operating Income
Operating Margin (%)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
<Increase Factors>-Decreased SG&A expenses, etc
<Decrease Factors>-Increased R&D expenses,-Increased raw material price, -Negative currency impact, etc
20
141.0
276.3
110.7
75.889.6
24.5 18.547.7
74.8
0
50
100
150
200
250
300
( 8.9 % )( 7.6 % )
( - 16.5%)
( 5.6 % )
( - 49.0%)
( 8.7 % )
986.23Q
733.9
1QFY12
794.1
2Q
3,171.29 Months
FY11 FY12FY11
976.6
4Q
2,514.31,011.81,021.61,137.8NetSales
9 Months3Q2Q1Q
( - 2.5% ) ( - 20.7% )
Net Sales/Operating Income (Margin)North America
Yen(billions)
Operating Income
Operating Margin (%)
Yen(billions)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
<Decrease Factors>-Increased raw material cost,-Negative currency impact, etc
21
- 13.9
- 8.4
4.0-0.3
-9.4-1.7 -6.1
- 4.0 - 3.8
-15
-10
-5
0
5
10
15
20
25
30
( - 3.2 % )( - 6.3 % ) ( - 3.4 % )( - 1.7 % )
119.43Q
150.9
1QFY12
144.5
2Q
501.99 Months
FY11 FY12FY11
197.3
4Q
414.9150.7161.3189.8NetSales
9 Months3Q2Q1Q
( - 20.7% ) ( - 17.3% )
Europe Net Sales/Operating Income (Margin)
Yen(billions)
Yen(billions)
Operating Income
Operating Margin (%)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
<Increase Factors>-Decreased SG&A expenses, etc
22
60.3
118.5
44.438.3 35.7
32.125.1 21.8
13.30
50
100
150
( 4.2 % )
( 8.0 % )
( - 62.7% )
( 5.5 % )
( - 49.1% )
( 8.7 % )
317.63Q
373.4
1QFY12
407.7
2Q
1,368.79 Months
FY11 FY12FY11
472.4
4Q
1,098.9445.5452.9470.2NetSales
9 Months3Q2Q1Q
( - 28.7% ) ( - 19.7% )
Asia Net Sales/Operating Income (Margin)
Yen(billions)
Yen(billions)
Operating Income
Operating Margin (%)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
<Decrease Factors>-Changes in revenue and model mix,-Increased cost per unit due to decreased production,-Negative currency impact, etc
23
12.5
23.0
15.713.115.6
20.420.2
56.3
51.3
0
10
20
30
40
50
60
70
( 6.1 % )( 6.6 % )
( - 20.2% )
( 7.5 % )
( - 9.0% )
( 7.9 % )
206.13Q
229.9
1QFY12
244.3
2Q
717.79 Months
FY11 FY12FY11
264.3
4Q
680.4238.8242.5236.3NetSales
9 Months3Q2Q1Q
( - 13.7% ) ( - 5.2% )
Net Sales/Operating Income (Margin)Other Regions
Yen(billions)
Operating Income
Operating Margin (%)
Yen(billions)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
<Decrease Factors>-Changes in revenue and model mix,-Negative currency effect etc
24
67.1
22.9
114.7
15.5
35.6 35.643.4
25.0 28.622.1
66.4
91.5
14.8
27.5 29.534.4
19.529.3
0
20
40
60
80
100
120
140- 20.5
( - 47.3 % )- 47.6
( - 41.5 % )
Change in Equity in income of affiliates
Total Asia
Yen(billions)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
25
40.3
78.0 73.382.5 73.254.7
233.8
168.4
75.8
14.829.329.527.5 34.4
22.1
91.566.4
19.5
0.0
50.0
100.0
150.0
200.0
250.0
- 12.2( - 35.6 % )
45.454.7
3QFY12FY11FY12FY11
62.5
73.31Q
34.1
40.32Q
195.5233.89 Months
142.1168.49 Months
75.873.278.082.5OperatingIncome
66.5
4Q
60.264.171.1Net Income
3Q2Q1Q
- 25.1( - 27.5 % )
Operating Income of Affiliates in Asia and Honda’s Equity in Income from Asia
Yen(billions)
Operating Income of Affiliates and Honda’s Equity in Income
Operating Income Equity in Income
Yen(billions)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 Months 9 MonthsFY11 FY12 FY11 FY12
Sundiro Honda Motorcycle Co., Ltd.*Wuyang-Honda Motors (Guangzhou) Co., Ltd.*P.T. Astra Honda Motor *Boon Siew Honda Sdn. BhdAtlas Honda Ltd. A.P. Honda Co., Ltd.
Guangqi Honda Automobile Co., Ltd.*Dongfeng Honda Engine Co., Ltd.*Dongfeng Honda Automobile Co., Ltd.*
Others 34 , Total 43 companiesFiscal term of companies marked “*” differs from that of Honda Motor Co., Ltd.
Affiliates accounted for under the equity method in AsiaMotorcycle Business:
China
IndonesiaMalaysiaPakistanThailand
Automobile Business :China
As of the end of December 31, 2011
26
7.1Power Product & Other Businesses
190.4Total
0.1Financial Services Business
162.0Automobile Business
21.0Motorcycle Business
6.0Power Product & Other Businesses
239.7Total
0.1Financial Services Business
194.1Automobile Business
39.4MotorcycleBusiness
Excluding currency translation effects + 62.2 ( + 32.7 % )
+ 42.0
190.4+ 20.8
+ 0.0 - 0.7 - 12.9239.7
+ 49.3 ( + 25.9 % )
Consolidated Capital Expenditures <FY12 Nine Months>
Yen(billions)
MotorcycleBusiness
AutomobileBusiness
FinancialServicesBusiness
Power product&
Other BusinessesCurrency
Translation Effects
FY11 Nine MonthsMarket average ratesUS$ 1= JPY 87Euro 1= JPY 113
FY12 Nine MonthsMarket average rates
US$ 1= JPY 79 (Yen up by 8 yen)Euro 1= JPY 111 (Yen up by 2 yen)
Yen (billions) Yen (billions)
※ Capital expenditures in results aforementioned excludeinvestment in operating leases and intangible assets
27
0
1,000
2,000
3,000
4,000
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
7,000
11,445
Approx.3,065
12,705
Approx.7,290
3,4353,5125,509
9,178
185190
202
1,690198
582
1,458
266
1,008
1,174
388
2,085
537
1,325
10,120
220
215
1,955
195
195
565
1,375
220
1,080
6,075
1,190
370
2,390
555
1,570
Approx. 18,735
Approx. 15,770
Approx.2,940
12,660
10,040
225
205
1,990
200
Approx. 15,600
3,150
165
585
1,320
200
880
5,850
1,090
380
2,365
530
1,485
595
- 285
Forecast: Unit Sales by Business Segment
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
Motorcycles Automobiles Power ProductsUnit (thousands)
Japan
Europe
OtherRegions
Asia
NorthAmerica
FY11 FY12Forecasts
As of Aug.1
FY12Revised
Forecasts
FY11 FY12Forecasts
As of Aug.1
FY12Revised
Forecasts
FY11 FY12Forecasts
As of Aug.1
FY12Revised
Forecasts
including unit sales that is financed with residual value type auto loans,and are defined as operating lease sales under US GAAP.
28
Change
- 319.0
- 44.7
- 380.5
- 369.7
- 1,086.8
amount
215.0
95.0
250.0
200.0
7,850.0
FY12Revised Forecasts
- 32.0%139.7Equity in income of affiliates
- 59.7%
- 60.4%
- 64.9%
- 12.2%
%
534.0 Net income attributable to Honda Motor Co., Ltd.
630.5Income before income taxes
569.7Operating income
8,936.8Net sales & other operating revenue
FY11Results
- 176.38119.29295.67EPS attributable toHonda Motor Co., Ltd. (Yen)
106
78
Yen up by 8 yen
Yen up by 8 yen
114Euro
86US Dollar
FY12 Financial Forecasts (Consolidated)Yen (billions)
Note : Shares which are based on calculation of EPS
approx.1,806,360,000 shares
approx.1,802,300,000 shares
(weighted average number of shares outstanding )
(weighted average number of shares outstanding )
Average Rates (Yen)
29
Income before Income taxes - 380.5 ( - 60.4 % )
630.5
250.0
- 171.2
- 79.0+ 46.0 - 37.5 - 128.0
+ 17.0 - 27.7
Operating Income - 369.7 ( - 64.9 % )Other Income & Expenses
- 10.7
Forecast: Change in Income before Income TaxesYen (billions)
Operating Income569.7
FY11
Operating Income200.0
FY12Revised
Forecasts
Revenue,model mix,
etc. Decrease in SG&A
Cost Reduction, etc.
Increasein R&D
Currency Effect Unrealized gainsand losses related toderivative
instruments
Others
30
Income before Income taxes - 35.0 ( - 12.3 % )
250.0- 84.0
- 20.0+ 61.0
- 57.0
+ 17.0+ 18.0
Operating Income - 70.0 ( - 25.9 % )Other Income & Expenses
+ 35.0
285.0+ 30.0
- Impact of the flood in Thailand :Approx. - 110.0- Negative currency effect :Approx. - 57.0- Companywide effort to reduce
costs and expenses : Approx. + 97.0
Forecast: Change in Income before Income Taxes
Yen (billions)
Revenue,model mix,
etc. Decrease in SG&A
Decreasein R&D
Cost Reduction, etc.
Currency Effect Unrealized gainsand losses related toderivative
instruments
Others
Operating Income270.0
FY12Forecasts
As of Aug. 1
Operating Income200.0
FY12Revised
Forecasts
31
+ 37.5
- 30.2
+ 98.7
Change
487.5
325.2
311.3
FY11Results
525.0
295.0
410.0
FY12Revised Forecasts
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.
3232
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.
33
- 63.3- 24.0Currency effect associated with sales transaction
- 31.7- 11.1Currency effect from translation of foreign financial statements (impact on operating income)
- 95.1
- 9.3
- 54.0
- 0.7- 7.6- 1.6
- 44.0
FY129 Months
Average Rates (Yen)
ChangeFY123Q
FY113Q
FY12 3Q
Yen up by 6 yen
77 83- 15.5JPY / USDYen up by
7 yen105112- 1.4JPY / Euro
―――- 4.7JPY / Others
―――- 0.7Transactions between other currencies
- 22.4Difference of average rates(Impact on Operating income)
- 1.6Difference between transaction rates and average rates (Impact on Other income & expenses)
- 35 2Total
*1
*2
*3
-Currency Effects-(effects associated with sales transactions and translation effects) (Exhibit 1)
Yen(billion)
*1:Impact of YOY difference of FOREX to be used for booking revenue of foreign currency transactions
*2:Impact of YOY difference between average FOREXand hedge rates during the period
*3:Effect due to the difference of the rate used for translatingHonda’s overseas subsidiaries’ financial statements denominated in foreign currencies into Japanese yenwith the corresponding period of the fiscal year
34
+ 26.6
- 0.3
+ 12.1
+ 14.7
FY11
9 Months
+ 27.3
+ 0.4
+ 18.3
+ 8.5
FY12
+ 0.7
+ 0.7
+ 6.1
- 6.2
Change
- 2.4
- 0.1
- 2.5
+ 0.1
FY11
3Q
+ 1.0
+ 0.0
+ 6.2
- 5.2
FY12
+ 3.5
+ 0.2
+ 8.7
- 5.4
Change
Others
Total
Interest rate swap Currency swap
Foreign currencyForward
- Unrealized Gains and Losses Related to Derivative Instruments - (Exhibit 2)
Yen(billion)
35