ｽﾗｲﾄﾞ ﾀｲﾄﾙなし

Honda Update June 2008
2008 ACCORD TOURER
(for European Market)
CR-Z
(a lightweight sports hybrid concept )
Outline
Highlights of Honda’s Business Growth Strategy
• US Operations
(Automobile)
• Brazil Operations
(Automobile & Motorcycle)
• Asia Operations
(Automobile & Motorcycle)
• Europe Operations
(Automobile)
• Production Capacity
(Automobile)
• Growth Potential of Motorcycle Business
• Hybrid Vehicle Business Strategy
P 2- 8
P 9- 11
P 12- 18
P 19- 20
P 21
P 22
P 23
Financial Highlights
• FY 08 Results
• Outline
• Segment Information
• Profit Analysis
• FY 09 Forecasts
• Dividend per Share
P 24- 25
P 26- 32
P 33- 36
P 37- 40
P 41- 42
Honda’s Business Growth Strategy
Major Key Drivers
z US Operations
: Automobile
z Brazil Operations
: Automobile and Motorcycle
z Asia Operations
: Automobile and Motorcycle
z Europe Operations
: Automobile
z Growth Potential of Motorcycle Business
z Hybrid Vehicle Business Strategy
1
Operation in North America
Operating income in North America compressed
by higher yen and weak model mix
Yen
(billions)
12%
150
9.5%
7.8%
100
8%
7.5%
7.3%
7.2%
6.7%
6.5%
5.8%
7.7%
10%
6.1%
5.4%
6%
4.3%
4%
50
2%
72.7
68.5
106.7
105.8
114.4
95.7
118.2
128.4
97.0
116.0
156.3
63.1
FY06 1Q
2Q
3Q
4Q
FY07 1Q
2Q
3Q
4Q
FY08 1Q
2Q
3Q
4Q
0%
0
2
Update on Honda’s U.S. Automobile Business
Honda’s steady growth despite weak SAAR
Honda’s Retail Unit Sales
Industry Demand
Unit
(thousands)
Unit
(thousands)
20,000
Passenger Cars
Light Trucks
16,965
16,884
(aggregate numbers of Honda brand and Acura brand)
Passenger Cars
Light Trucks
16,556
1,500
16,149
1,462
1,509
1,552
1,570
1,394
15,300
15,000
1,000
10,000
500
5,000
0
0
CY 04
'05
'06
'07
08(E)
CY 04
'05
'06
'07
08(P)
Source: Honda
3
U.S. Light Vehicle Retail Sales YoY Changes by manufacturers
January – April, 2008 vs 2007
Ho n da
Sm ar t USA
Mazda
Me r c e de s- Be n z
Vo lkswage n
Su zu ki
Kia
BMW
Nissan
Mit su bish i
Hyu n dai
T o yo t a
Fo r d
C h r ysle r
Ge n e r al M o t o r s
T OTAL
Unit
(thousands)
-250
-400
-200
-150
-100
-50
0
50
4
U.S. Passenger Car Retail Sales YoY Changes by manufacturers
January – April, 2008 vs 2007
Honda
Nissan
Smart USA
Kia
Chrysler
Volkswagen
Hyundai
Mercedes-Benz
Mitsubishi
BMW
Mazda
Toyota
Suzuki
TOTAL
General Motors
Ford
Unit
-25
(thousands)
-20
-15
-10
-5
0
5
10
15
20
5
U.S. Light Truck Retail Sales YoY Changes by manufacturers
January – April, 2008 vs 2007
Suzuki
Mazda
Mercedes-Benz
BMW
Volkswagen
Mitsubishi
Kia
Hyundai
Honda
Nissan
Toyota
Ford
General Motors
Chrysler
TOTAL
Unit
(thousands)
-200
-350
-150
-100
-50
0
50
6
Update on Honda’s U.S. Automobile Business
Unit
(thousands)
Honda’s fuel efficient vehicles are well received in the U.S.
demonstrates solid passenger car sales
Fit
1800
Ridgeline
1600
Fit
MDX
1400
CR-V
1200
1000
Element
CR-V
Odyssey
800
Pilot
600
TSX
Civic
400
RDX
TL
200
Accord
2008(P)
2007
2006
2005
2004
2003
2002
2001
2000
1999
CY 1998
0
Legend/RL
Civic
Accord
7
Product pipeline and production flexibility in North America
Total Annual Production Capacity: 1,420,000 (current) ⇒ 1,620,000 (fall of 2008)
Passenger cars
Annual
Capacity
location
Line
Line 11
Canada
Canada
Ontario
Ontario
195
195
Small
Middle
Civic
Light Trucks
Luxury
Crossover
Pickup
Van
CSX
Alliston
Alliston
Line
Line 22
195
195
Civic
MD-X Pilot Ridgeline Odyssey
Accord
Marysville
Marysville
440
440
East
East
Liberty
Liberty
240
240
Civic
Greensburg
Greensburg
200
200
Civic
TL
RDX
Ohio
Ohio
U.S.
U.S.
Indiana
Indiana
CR-V
Line
Line 11
Alabama
Alabama
Lincoln
Lincoln
Ridgeline Odyssey
150
150
Line
Line 22
Pilot
150
150
Mexico
Mexico
Import
Import
from
from Japan
Japan
El
El Salto
Salto
50
50
Element
Accord
Accord
Odyssey
CR-V
CR-V
New model in 2008
8
Operation in South America
Operating income in Other region
centered in Brazil to grow
Yen
(billions)
50
13%
40
11.7%
11.4%
11.3%
11.2%
10.9%
10.3%
10.4%
30
11%
9.6%
8.6%
9%
8.3% 8.4%
20
7.2%
7%
10
13.6
15.1
16.6
11.6
15.2
21.4
16.0
19.5
21.7
30.1
31.7
32.7
0
5%
FY06 1Q
2Q
3Q
4Q
FY07 1Q
2Q
3Q
4Q
FY08 1Q
2Q
3Q
4Q
9
Honda’s Automobile Business Growth in South America
Honda’s Unit Sales
Industry Demand
Unit
(thousands)
(including commercial vehicles)
Unit
(thousands)
5,000
4,500
Brazil
Argentina
Venezuela
Colombia
Ecuador
Peru
Good sales of FFV models continue to
contribute to growth in 2008.
160
Chile
Flexible Fuel Vehicles (currently marketed in Brazil)
140
4,000
Petrol Engine Vehicles
120
3,500
South America
3,000
100
2,500
80
108
Brazil only
84
2,000
60
1,500
40
1,000
500
20
0
0
CY 04
05
06
07
08(E)
86
68
67
57
57
50
CY 04
05
06
07
Source: Global Insight
Honda’s Progress in South America
1. Features of Honda FFV models in Brazil (Civic &Fit)
- Adapt to ethanol-to-gasoline ratios of between 20% and 100%
Source: Honda
Flexible Fuel Vehicles introduced in Brazil
Civic FFV
Fit FFV
2. Further acceleration of production capacity in Brazil
100,000→ 120,000 within 2008
3. New plant in Argentina
Capacity:30,000 units, to start operation in 2009
Introduced in Nov. 2006
Introduced in Dec. 2006
10
Honda’s Motorcycle Business in Brazil
Solid operation as the market leader in the growing Brazil market
Industry:
Unit (thousands)
Further expansion of capacity is planned in 2009
(1,500 Æ 2,000 thousand units)
Other brands
Honda
2,000
1,800
1,600
1,400
1,200
1,000
800
600
Expansion of production capacity Dec.2007
(1,350 → 1,500 thousand units per year)
400
200
0
CY 04
05
06
07
Source:
Honda
Principal models
CG 150 Titan
08(E)
CG 125 FAN
Biz 125
11
Operation in Asia
Operating income in Asia exceed 100 billion in FY08
with higher auto and motorcycle growth
Yen
(billions)
14%
50
12%
40
9.4%
30
8.3%
10%
9.3%
8.0%
6.8%
8%
6.9%
6.8%
6.7%
5.8%
6%
20
5.2%
5.3%
4.5%
4%
10
2%
19.1
15.8
17.2
12.7
19.4
18.2
20.2
19.2
36.9
33.4
38.3
21.9
1Q
2Q
3Q
FY06 4Q
1Q
2Q
3Q
FY07 4Q
1Q
2Q
3Q
FY08 4Q
0%
0
12
Update on Honda’s Automobile Business in India
Industry Demand
Unit
(thousands)
1,400
Honda’s Unit Sales
Unit
(thousands)
(excluding commercial vehicles,
SUV and MUV)
80
Category
70
1,200
Premium
1,000
60
"A"
800cc
55
50
60
CR-V
Civic
800
40
40
35
600
30
400
City
20
10
200
Accord
0
0
CY 04
05
06
07
08(E)
CY 04
05
06
07
Source: Honda
Source: Global Insight
Honda’s Progress in India
Honda model line up in India
1. Enhancing dealer network
- Number of Dealer outlets: 34 (Mar. 2003) → 80 (Mar. 2008)
2. Further Accelerating production capacity expansion
Existing Plant
Second Plant
50,000 →100,000 units
(2008 Jan. completed)
60,000 units
(Operation starts toward
the end of 2009 to 2010)
City (Oct 2003-)
CR-V (Nov 2006-)
Civic (July 2006-)
Accord (May 2008-)
13
Honda’s Motorcycle Business in India
Solid business foundation with 2 companies in rapidly growing market
Industry:
Unit (thousands)
10,000
Expansion of annual production capacity
HHML 500 thou. Increase from April 2008
(India total 4,900 → 5,400 thousand units)
Other brands
Hero Honda
Honda Motorcycle & Scooter India
8,000
6,000
4,000
2,000
0
CY 04
05
06
Principal models of Hero Honda Motors Limited
Splendor+
CD Deluxe
Passion+
07
08(E)
Principal models of
Honda Motorcycle & Scooter India
Source :
Honda
Activa Shine
14
Growth of HMSI in India
Steady Growth of Honda Motorcycle & Scooter India, subsidiary of Honda
Expansion of production capacity by the end of 2010
Industry:
Unit (thousands)
1,000
(1,000 → 1,200 thousand units per year)
800
600
400
200
0
CY 04
05
06
Principal models of Honda Motorcycle & Scooter India
Activa
Shine
Unicorn (Sep 2004-)
Source :
Honda
07
Aviator (Mar 2008-)
HMSI Dealer
15
Honda’s Motorcycle Business in Vietnam
Honda to enhance product pipeline for growing market,
Further expansion of production capacity
Industry:
Unit (thousands)
3,000
Expansion of production capacity in Aug 2008
(1,000 → 1,500 thousand units per year)
Other brands
Honda
2,500
2,000
1,500
1,000
500
0
CY 04
05
06
07
08(E)
Source:
Honda
Principal models
Wave S
Future Neo FI
(May 2007-)
(Apr 2007-)
Click* (Oct 2006-)
Air Blade* (Apr 2007-)
* AT model: Motorcycles equipped with automatic transmission
16
Honda’s Motorcycle Business in Indonesia
Honda to enhance product pipeline to go with the momentum of the market
Industry:
Unit (thousands)
Other brands
Honda
6,000
5,000
4,000
3,000
2,000
1,000
Added annual production capacity in Sep. 2005
(2,000 → 3,000 thousand units)
0
CY 04
05
06
08(E)
Source:
Honda
Coming in 2008
Principal models
Revo
07
Vario*
Supra X 125
* AT model: Motorcycles equipped with automatic transmission
17
Update on Honda’s Automobile Business in China
Industry Demand
Unit
(thousands)
7,000
(excluding commercial vehicles)
Honda’s Unit Sales
Unit
(thousands)
500
Over 490
450
6,000
424
WDHAC models
400
Civic
5,000
350
323
CR-V
300
4,000
257
250
Fit
214
3,000
200
City
150
2,000
GHAC models
Odyssey
100
1,000
50
0
Accord
0
CY 04
05
06
07
CY 04
Source: CAAM
05
06
07
08(P)
Source: Honda
GHAC model line up
Honda’s Progress in China
1 Enhancing model lineup and dealer network
- New Accord introduced in Jan. 2008, New Fit to be introduced within 2008
- Number of Dealer outlets: GHAC 361, WDHAC 189, Acura 8(Mar.2008)
Total 700 outlets within a year
- Introduction of Acura (RL/TL/MDX)
Fit
City
2 Progress in Manufacturing Operation
GHAC*1 : Capacity 360 thou. units
WDHAC*2 : Capacity 120 thou. units--> 240 thou. units within 2yrs
CHAC*3 : Added 2nd shift from Apr. 2007, capacity 50 thou. units
Accord
Odyssey
WDHAC model line up
*1 GHAC: Guangzhou Honda Automobile Co., Ltd.
*2 WDHAC: Dongfeng Honda Automobile Co., Ltd.
*3 CHAC: Honda Automobile (China) Co., Ltd.
3 GHAC begin selling products under its own brand in 2010
Civic
CR-V
18
Operation in Europe
Operating income in Europe (including Russia) to grow,
expecting higher sales in Russia
Yen
(billions)
5%
30
4.3%
4.3%
4.2%
4%
20
2.9%
2.8%
2.9%
3%
2.6%
2%
2.0%
10
1.6%
1.4%
1%
1.1%
12.7
0.80.3%
2.8
9.8
6.4
9.0
3.7
12.6
10.3
16.7
5.8
18.6
2Q
3Q
4Q
FY07 1Q
2Q
3Q
4Q
FY08 1Q
2Q
3Q
4Q
0%
0
FY06 1Q
19
Update on Honda’s Automobile Business in Russia
Industry Demand
Unit
(thousands)
(excluding commercial vehicles)
3,000
60
Unit
(thousands)
Honda’s Unit Sales
Foreign brands
2,500
Domestic brands
40
2,000
38.6
Jazz
CR-V
1,500
20
1,000
Civic
15.7
500
8.9
6.0
Accord
0
0
CY 04
05
06
07
CY 04
05
06
Honda’s Progress in Russia
07
Source: Honda
Source: AEB (The Association of European Businesses)
Honda model line up in Russia
1 Starting business
- Established subsidiary company (HMR) in Feb. 2004
2 Enhancing dealer network
- Number of Dealer outlets:
15 (2004 end) → 43 (Mar. 2008)
expand mainly in large cities,
total 70 outlets in a few years
Jazz
CR-V
Civic 5D
Accord
Civic 4D
Pilot (coming in 2008)
20
Expansion of Production Capacity (Automobiles)
High value added model at Yorii Auto Plant
Next generation high efficiency engine at Ogawa Engine Plant
Indiana
+200
4,055
Current
Brazil
+20
India
+60
Argentina
+30
Yorii
Japan
+200
Unit
(thousands)
Thailand
+120
WDHAC
China
+120
2008
within 2yrs
2009
2010
21
Growth Potential of Motorcycle Business in Emerging Markets
Penetration Rate (% of population) of Motorcycles
GDP per capita
(U.S.$)
10%
(JETRO 2006)
$15,482
Taiwan
$5,718
Malaysia
$3,136
Thailand
$723
Vietnam
$1,640
Indonesia*
$5,714
Brazil
$796
India*
20%
30%
40%
50%
60%
59.5%
Population (millions)
Units in operation (millions)
*Indonesia data as of 2004
*India data as 2004 provisional
28.3%
23.8%
20.5%
10.8%
5.1%
4.6%
100 mil
200 mil
1,100 mil
Motorcycle penetration is still low in Honda’s principal markets
Industry:
( thousands )
20,000
Vietnam
Thailand
Brazil
Indonesia
India
●
12,000 Honda wholesales:
Honda wholesales unit (thousands)
( thousands )
10,000
8,000
6,000
10,000
4,000
2,000
Source: Honda
0
0
CY 04
05
06
07
08(E)
Honda has strong position in such markets
22
Hybrid Vehicle Business Strategy
Unit
(thousands)
Hybrid Car in the U.S. market
350
Other Brand
300
Honda
Hybrid technology is about to hit the “growth” stage,
Honda aims wider market penetration with
new dedicated hybrid model
250
200
150
100
Introduction of Honda Insight
50
Insight,
first hybrid vehicle in the U.S.
0
CY99 00
01
02
03
04
05
06
07
Cost down on Next Hybrid System
2006 Civic Hybrid,
won the “World Car of the Year Award”
for Greenest Car
-Compact Control Unit / Battery
-Thin Hybrid Motor
-Efficient manufacturing processes
Hybrid models with affordable price: 500,000 annual global sales beyond 2010
New Hybrid Model
Hybrid Sports
Honda annual
global sales
beyond 2010
Compact, 5 door/5 passenger, to be marketed in early 2009
CR-Z, Concept model
New Civic Hybrid
Fit Hybrid
23
Financial Highlights
•FY 08 Results
•Outline
•Segment Information
•Profit Analysis
•FY 09 Forecasts
•Dividend per Share
Outline of 4th Quarter Financial Results (Consolidated)
4Q Results
Unit Sales
Unit (thousands)
FY07
FY08
Change
Motorcycles
2,408
2,368
- 1.7%
Automobiles
957
1,051
+ 9.8%
2,128
2,092
-1.7%
Power Products
Business environment
US economy slow down, ongoing subprime loan impact
Declining personal consumption in European economy
Continued growth of Asian economy
Signs of weakness in Japan economy
Continued high prices for crude oil and raw materials
Yen appreciation against U.S. dollar, depreciation against
other currencies
Motorcycle Market
Growth in Vietnam and Brazil continued
Declining market in North America
Automobile Market
4Q Results
Financial results
Yen (billions)
FY07
FY08
Change
Net sales & other
operating revenue
3,087.8
3,055.5
- 1.0%
Operating income
250.2
168.8
- 32.5%
Income before
income taxes
239.0
146.8
- 38.6%
Equity in income
of affiliates
24.3 *
+ 22.1%
Net income
176.1
25.4
- 85.6%
EPS (Yen)
96.70
14.01
- 82.69
approx.
1,821,994,000 shares
Review of financial results
Operating margin decreased due to factors including
significant yen appreciation against U.S. dollar despite the
increased automobile unit sales achieved in the toughening
business environment such as in the U.S.
Unit Sales
Motorcycles:
19.9
Note : Shares which are based
on calculation of EPS
Growth of emerging markets such as BRICs
Strong demand for fuel-efficient cars in the U.S.
Japan automobile market remain stagnant
approx.
* Record high
1,814,587,000 shares
for 4Q
(weighted average number of shares outstanding )
Average Rates (Yen)
U.S. Dollar
120
106
stronger by
14 yen
Euro
157
158
weaker by
1 yen
Strong sales in South America, etc.
Decreased unit sales of component parts for Asia
Automobiles: Unit sales increased in all regions
Power Products:Increased unit sales in Europe, Asia, Other Regions
Decreased unit sales in North America
Net sales & other operating revenue
Increased unit sales in automobile segments
Net sales decreased due to currency translation effects
Operating income
<Increase Factors>
Continuing cost reduction effects
Increased profit from increased automobile unit sales
<Decrease Factors>
Currency effect of yen appreciation against U.S. dollar
Increase in sales incentives in North America
Increased raw material costs
24
Outline of 4th Quarter & Twelve Months Financial Results (Consolidated)
Twelve Months Results
4Q Results
Unit Sales
Unit (thousands)
FY07
FY08
Change
FY07
FY08
Change
Motorcycles
2,408
2,368
- 1.7%
10,369
9,320
- 10.1%
Automobiles
957
1,051
+ 9.8%
3,652
3,925
+ 7.5%
2,128
2,092
-1.7%
6,421
6,057
- 5.7%
Power Products
Twelve Months Results
4Q Results
Financial results
Yen (billions)
FY07
FY08
Change
FY07
FY08
Change
Net sales & other
operating revenue
3,087.8
3,055.5
- 1.0%
11,087.1
12,002.8 *
+ 8.3%
Operating income
250.2
168.8
- 32.5%
851.8
953.1 *
+ 11.9%
Income before
income taxes
239.0
146.8
- 38.6%
792.8
895.8 *
+ 13.0%
Equity in income
of affiliates
19.9
24.3*
+ 22.1%
103.4
118.9*
+ 15.0%
Net income
176.1
25.4
- 85.6%
592.3
600.0 *
+ 1.3%
EPS (Yen)
96.70
- 82.69
324.62
330.54*
+ 5.92
Note : Shares which are based
on calculation of EPS
approx.
1,821,994,000 shares
14.01
approx.
* Record high
for 4Q
1,814,587,000 shares
(weighted average number of shares outstanding )
approx.
1,824,675,000 shares
approx.
* Record high for
1,815,356,000 shares twelve months
(weighted average number of shares outstanding )
Average Rates (Yen)
U.S. Dollar
120
106
stronger by
14 yen
117
114
stronger by
3 yen
Euro
157
158
weaker by
1 yen
151
162
weaker by
11 yen
25
Motorcycle Unit Sales (Motorcycles ＋ All-Terrain Vehicles, etc.)
FY08 4Q
Unit
(thousands)
Change
from FY 07 4Q
- 1,049
Major increase / decrease factors
（ - 10.1% ）
Approx.4,580
Approx.2,860
66
- 13
North
America
150
-14
Europe
89
-8
1,617
- 89
13,000
13,000
Japan
12,000
12,000
11,000
11,000
10,000
10,000
9,000
9,000
8,000
8,000
Asia
Other
Regions
Total
446
+ 84
2,368
- 40
・Decrease of Dio etc.
・Decrease of CBR600RR, VT750
Wave S (Vietnam)
・ Decrease of ATV such as Four Trax Foreman
・Decrease of CBR600RR in Italy
・Decrease of component parts for Indonesia
・Increase of Wave S and AT models such as Air Blade in
Vietnam
10,369
1,305
・Introduction of POP100 in Brazil
・Increase of CG125, NXR150 in Brazil
CG125 FAN (Brazil)
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
7,000
7,000
- 40
6,000
6,000
9,320
Other
1,610 Regions
（ - 1.7% ）
7,895
6,633 Asia
5,000
5,000
4,000
4,000
Approx.560
3,000
3,000
Approx.500
2,380
2,000
2,000
1,000
1,000
00
Approx.640
2,816
2,765
341
314
Approx.1,160 Approx.1,280
Approx.1,150 Approx.1,100
Approx.1,020
2,408
362
288
2,217
2,163
1,809
105
89
89
1Q
第１四半期
第１四半期
71
143
98
1,706
56
107
71
2Q
3Q
第２四半期
第３四半期
第２四半期
第３四半期
FY07
2,253
2,333
371
392
1,623
1,645
97
164
79
95
80
84
4Q
第４四半期
第４四半期
1Q
第１四半期
第１四半期
2,366
2,368
401
446
1,748
68
121
107
1,617
61
102
54
89
150
66
4Q
2Q
3Q
第２四半期
第３四半期
第４四半期
第２四半期
第３四半期
第４四半期
FY08
329
503
337
313
453
311
Europe
North
America
Japan
Twelve
Months Twelve
Months
ヶ月間通算
ヶ月間通算
1212
1212
ヶ月間通算
ヶ月間通算
FY07
FY08
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. 26
Motorcycle Business
FY07
1Q
Net Sales
Yen
(billions)
160
310.1
2Q
3Q
4Q
335.5
303.2
421.7
Net Sales/Operating Income/Operating Margin
FY08
1Q
368.3
2Q
3Q
4Q
381.6
364.6
444.0
（+ 5.3%）
Operating Income
Operating Margin
FY08
FY07
Twelve Months Twelve Months
1,370.6
1,558.6
Yen
(billions)
（+ 13.7%）
15%
140
11.9%
120
10.5%
9.7%
9.7%
9.6%
100
10%
8.5%
7.3%
8.3%
80
60
5%
4.2%
40
3.7%
20
13.1
32.0
11.1
44.2
31.1
37.0
30.3
52.7
100.6
151.2
0
0%
FY07 1Q
2Q
3Q
4Q
FY08 1Q
2Q
3Q
4Q
FY07
FY08
27
Automobile Unit Sales
Unit
(thousands)
FY08 4Q
191
Japan
4,000
3,500
3,000
Change
from FY 07 4Q
+2
・Increase of FIT and Inspire
・Decrease of That’s
+9
・Increase of Accord and CR-V
・ Decrease of Pilot
North
America
459
Europe
109
+7
Asia
203
+ 54
Other
Regions
Total
Major increase / decrease factors
89
+ 22
1,051
+ 94
+ 273
（ + 7.5% ）
FIT (Japan)
3,925
3,652
・Increase of Civic and CR-V in Russia, Ukraine
314 Other
Regions
248
・Increase of component parts for China (CR-V and Fit etc )
・Increase of CR-V in ASEAN countries such as Indonesia
Civic (Russia)
755
Asia
620
・Increase of Civic FFV in Brazil
・Increase of Accord in Middle East countries such as
Saudi Arabia and UAE
324
2,500
391 Europe
CR-V (Indonesia)
2,000
+ 94
（ + 9.8% ）
1,500
1,000
1,788
991
1,850 North
America
1,051
896
884
915
957
946
937
60
153
71
60
163
79
61
155
72
67
149
102
66
187
92
72
177
87
188
100
90
456
411
471
450
465
445
481
459
156
171
156
189
136
143
145
191
1Q
第１四半期
2Q
第２四半期
4Q
第４四半期
1Q
第１四半期
89
203
109
500
0
3Q
第３四半期
FY07
2Q
3Q
第２四半期
第３四半期
FY08
4Q
第４四半期
672
615
Japan
Twelve累計
Months Twelve
Months
累計
FY07
FY08
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. 28
Automobile Business
FY07
1Q
Net Sales
Yen
(billions)
750
2,095.6
2Q
3Q
4Q
2,098.8
2,263.8
2,430.7
Net Sales/Operating Income/Operating Margin
FY08
1Q
2,327.2
2Q
3Q
4Q
2,356.4
2,449.0
2,356.6
（- 3.0%）
Operating Income
Operating Margin
FY08
FY07
Twelve Months Twelve Months
8,889.0
9,489.3
Yen
(billions)
（+ 6.8%）
700
12%
650
600
10%
550
9.0%
9.0%
500
450
8%
7.2%
400
7.1%
6.2%
6.5%
6.7%
6.4%
7.0%
350
6%
300
250
4%
200
3.4%
150
2%
100
50
150.0
130.8
160.7
157.7
148.3
213.0
220.7
79.5
599.5
661.6
0%
0
FY07 1Q
2Q
3Q
4Q
FY08 1Q
2Q
3Q
4Q
FY07
FY08
29
Power Products Unit Sales
FY08 4Q
Unit
(thousands)
6,500
6,000
Change
from FY 07 4Q
Major increase / decrease factors
- 364
（- 5.7%）
GX35T
Japan
151
+ 12
・Increase of general purpose engines for OEM
North
America
888
-135
・Decrease of general purpose engines for OEM, generators in
the U.S.
Europe
671
+ 47
・Increase of general purpose engines for OEM
(general purpose engine)
5,500
Asia
251
+ 21
5,000
Other
Regions
131
+ 19
・Increase of lawn mowers in Australia
・Increase of generators in South Africa
2,092
- 36
Total
406
760
GCV160
(general purpose engine)
Asia
1,625
HRU19D1 Buffalo Buck
1,693 Europe
(lawn mower)
3,500
- 36
（- 1.7%）
3,000
2,500
2,000
1,724
1,500
72
162
382
1,000
0
484 Regions
915
4,000
500
6,057
Other
・Increase of general purpose engines for OEM, water pumps in
Thailand, Indonesia
・Decrease of general purpose engines
4,500
6,421
971
1,187
105
207
254
1,382
2,128
2,092
112
230
131
251
624
117
161
365
1,529
97
220
390
615
137
127
124
1Q
第１四半期
2Q
第２四半期
3Q
第３四半期
FY07
116
242
280
1,023
494
1,258
687
139
135
4Q
第４四半期
1Q
第１四半期
1,178
3,103
2,415 North
America
671
140
202
352
479
361
141
123
2Q
3Q
第２四半期
第３四半期
FY08
888
527
550 Japan
151
4Q
第４四半期
Twelve累計
Months Twelve
Months
累計
FY07
FY08
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. 30
Power Products & Other Businesses
FY07
1Q
Net Sales
Yen
(billions)
40
108.4
2Q
3Q
4Q
100.0
105.0
125.3
FY08
1Q
115.2
Net Sales/Operating Income/Operating Margin
2Q
3Q
4Q
105.0
100.2
122.3
（- 2.4%）
Operating Income
Operating Margin
FY08
FY07
Twelve Months Twelve Months
438.9
442.7
（+ 0.9%）
14%
35
30
Yen
(billions)
12%
10.2%
25
9.9%
10%
8.2%
7.5%
8%
6.9%
20
6.6%
5.0%
6%
5.8%
15
4.2%
4%
10
2%
2.3%
5
11.0
7.4
10.4
7.2
7.9
6.9
2.2
5.1
36.1
22.3
0%
0
FY07 1Q
2Q
3Q
4Q
FY08 1Q
2Q
3Q
4Q
FY07
FY08
31
Financial Services Business
FY07
1Q
Net Sales
Yen
(billions)
120
110
90.8
2Q
3Q
98.9
105.0
FY08
1Q
4Q
*
118.4
Net Sales/Operating Income/Operating Margin
*
129.8
2Q
*
137.8
3Q
*
139.6
FY08
FY07
Twelve Months Twelve Months
4Q
*
141.7
*
（+ 19.6%）
Operating Income
Operating Margin
* Including increased net sales due to start of operating lease transaction
413.3
549.0
Yen
(billions)
（+ 32.8%）
34.6%
32.2%
100
30%
28.0%
26.4%
90
80
21.3%
22.8%
70
21.5%
22.1%
21.7%
20%
60
16.4%
50
40
10%
30
20
10
29.2
22.6
22.7
40.9
34.2
29.3
22.9
31.3
115.5
117.7
0
0%
FY07 1Q
2Q
3Q
4Q
FY08 1Q
2Q
3Q
4Q
FY07
FY08
32
Change in Income Before Income Taxes < FY08 4th Quarter >
Yen (billions)
Income before Income taxes
- 92.2 bn. yen ( - 38.6 % )
Operating Income - 81.3 bn. yen ( - 32.5 %)
<Increase Factors>
- Continuing cost reduction effects, etc.
<Decrease Factors>
- Increased raw material costs
- Increase in depreciation expenses, etc.
- 28.3
+ 31.6
Revenue,
model mix,
etc.
Cost Reduction,
the effect of raw
material cost
fluctuations, etc.
<Decrease Factors>
- Increase in provision for the allowance for
credit losses
- Increase in quality related expenses
Other Income
& Expenses
- 10.8 bn. yen
- Increased logistics expenses due to the
increase in unit sales, etc.
- 46.2
Increase
in SG&A
+ 4.4
Decrease
in R&D
- 42.8
Currency
Effect
<Decrease Factors>
- Increase in sales incentives in North America
- Change in model mix, etc.
<Increase Factors>
- Increased profit from increased automobile unit sales
- Change in sales prices, etc.
- 27.0
Fair value of
derivative
instruments
( Exhibit 2)
+ 16.1
Others
- Currency effect due to difference between average
rates and transaction rates:
+ 28.1 bn. yen
- Gain and loss from valuation of the balance of
receivable and debt:
- 12.0 bn. yen
239.0
146.8
FY07 4Q
FY08 4Q
【Currency Effect 】
<Impact on Operating income>
<Impact on Other income & expenses>
<Impact on Income before income taxes>
- 42.8 bn. yen (due to difference of average rates & translation effects)
+ 28.1 bn. yen (due to difference between average rates and transaction rates)
- 14.6 bn. yen
(see also Exhibit 1)
33
FY08 4th Quarter & Twelve Months Change in Income Before Income Taxes
- Currency effects (effects associated with sales transactions and translation effects) -
(Exhibit 1)
Yen (billions)
FY08 4Q
Effects in Yen
(billions)
FY07 4Q
FY08 4Q
JPY / USD
- 44.5
120
106
JPY / Euro
+ 0.5
157
158
- 0.2
―
+ 11.8
―
JPY / Others
between other currencies
Due to difference of average rates
(Impact on Operating income)
*1
Due to difference between average
*2
rates and transaction rates
(Impact on Other income & expenses)
Currency effect associated with
sales transactions
Currency effect from translation
*3
of foreign financial statements
- 32.3
+ 28.1
Change
Twelve months
Effects in Yen
(billions)
stronger
by 14 yen
weaker
by 1 yen
+ 15.2
―
―
+ 23.6
―
―
+ 8.6
*1: Impact of YOY difference of FOREX to be used for
booking revenue of foreign currency transactions
*2: Impact of YOY difference between average FOREX and
hedge rates during the period
- 4.1
- 34.5
+ 13.0
+ 53.6
+ 66.7
*3: Effect due to the difference of the rate used for
- 10.4
(Impact on Operating income)
Total
FY08
Average Rates (Yen)
- 14.6
translating Honda’s overseas subsidiaries’ financial
statements denominated in foreign currencies into
Japanese yen with the corresponding period of the
fiscal year
+ 24.6
+ 91.3
34
FY08 4th Quarter & Twelve Months Change in Income Before Income Taxes
(Exhibit 2)
- Gain and loss on derivative instruments -
Yen (billions)
4Q
Twelve Months
FY07
FY08
+ 14.2
+ 21.8
+ 7.6
- 0.8
+ 14.5
+ 15.4
Interest rate swap
- 6.6
- 41.0
- 34.3
- 28.7
- 84.2
- 55.5
Others
- 0.7
- 1.0
- 0.3
- 27.2
- 0.5
+ 26.6
+ 6.7
- 20.2
- 27.0
- 56.8
- 70.2
- 13.4
Gain and loss on fair value
adjustments for foreign
currency exchange contracts
Total
Reference：
Change
FY07
(4Q)
(Twelve Months)
＜Swap interest rate＞
＜Swap interest rate＞
At the end of Dec, 2006 5.16%
At the end of Mar, 2007 5.04%
(-0.12%)
Difference
At the end of Dec, 2007 3.92%
At the end of Mar, 2008 2.53%
Difference
(-1.39%)
FY08
At the end of Mar, 2006 5.23%
At the end of Mar, 2007 5.04%
(-0.19%)
Difference
Change
At the end of Mar, 2007 5.04%
At the end of Mar, 2008 2.53%
Difference
(-2.51%)
35
Asia
Equity in income of affiliates
Yen
(billions)
+ 7.6
+ 13.4
（ + 114.3% ）
（ + 18.5% ）
86.1
80
72.6
70
60
50
40
30
22.6
26.8
23.2
22.2
20.1
20
22.6
14.3
6.6
10
0
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
FY07
FY08
FY07
Reference：
Operating income & Net income of affiliates accounted for under the equity method in Asia
Operating
58.0
55.7
49.9
30.1
61.2
56.3
55.7
38.0
income
Net income
51.8
50.2
44.2
27.6
57.2
50.0
49.7
Twelve Months Twelve Months
31.0
FY08
193.8
211.4
174.0
188.0
Affiliates accounted for under the equity method
Automobile Business：
Motorcycle Business
China
India
Indonesia
Malaysia
Pakistan
Thailand
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 Limited*
A.P. Honda Co., Ltd.
China
Others 37,
Guangzhou Honda Automobile Co., Ltd.*
Dongfeng Honda Engine Co., Ltd.*
Dongfeng Honda Automobile Co., Ltd.*
Total 47 companies
As of the end of March, 2008
* Indicates fiscal term of companies differs from that of Honda Motor Co., Ltd.
36
FY09 Financial Forecasts: 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 Approx.4,720
Unit
(thousands)
Automobiles
Power Products
+ 215
+ 98
+ 1,300
Approx.4,580
3,925
12,000
6,000
755
920
5,000
391
470
4,000
314
10,620
9,000
360
4,000
9,320
1,845
6,057
6,155
484
525
Other
Regions
915
990
Asia
1,693
1,725
Europe
2,415
2,365
North
America
550
550
3,000
1,610
6,000
4,140
7,685
3,000
2,000
6,633
1,850
1,770
2,000
3,000
1,000
1,000
313
453
311
FY08
310
480
300
FY09
Forecast
615
FY08
620
FY09
Forecast
FY08
Japan
FY09
Forecast
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.37
FY09 Financial Forecasts (Consolidated)
Yen (billions)
FY08
FY09
Results
Forecasts
Change
amount
%
Net sales & other
operating revenue
12,002.8
12,140.0
+ 137.1
+ 1.1%
Operating income
953.1
650.0
- 303.1
- 31.8%
Income before
income taxes
895.8
675.0
- 220.8
- 24.7%
Equity in income
of affiliates
118.9
106.0
- 12.9
- 10.9%
Net income
600.0
490.0
- 110.0
- 18.3%
270.04
- 60.50
EPS (Yen)
Note : Shares which are based
on calculation of EPS
330.54
approx.
1,815,356,000 shares
(weighted average number
of shares outstanding )
approx.
1,814,538,000 shares
(as of Mar. 31, 2008)
Average Rates (Yen)
U.S. Dollar
Euro
114
(1H: 119
2H: 110)
162
(1H: 162
2H: 161)
100
stronger by 14 yen
(1H: 100 2H: 100)
(1H: stronger by 19 yen
2H: stronger by 10 yen)
155
(1H: 155 2H: 155)
stronger by 7 yen
(1H: stronger by 7 yen
2H: stronger by 6 yen)
38
FY09 Financial Forecasts: Change in Income Before Income Taxes
Yen (billions)
Income before income taxes
- 220.8 bn. yen ( - 24.7 %)
Operating Income - 303.1 bn. yen ( - 33.8 %)
Other Income
& Expenses
+ 82.2 bn. yen
- 49.0
+ 198.0
895.8
Revenue,
model mix,
etc.
Cost Reduction,
the effect of raw
material cost
fluctuations, etc.
- 122.0
- 27.1
Increase
in SG&A
Increase
in R&D
- 303.0
- 11.7
+ 94.0
Currency
Effect
FY08
Others
675.0
Fair value of
derivative
instruments
FY09
Forecasts
39
FY09 Financial Forecasts (Consolidated)
Yen (billions)
FY08
FY09
Results
Forecasts
Capital
expenditures *
654.0
710.0
+ 55.9
Depreciation and
amortization *
417.3
430.0
+ 12.6
R&D expenses
587.9
615.0
+ 27.1
Change
* Capital expenditures in results and the forecast aforementioned exclude investment in operating leases.
Depreciation and amortization in results and the forecast aforementioned exclude depreciation of investment in operating leases.
Average Rates (Yen)
U.S. Dollar
Euro
114
(1H: 119
2H: 110)
162
(1H: 162
2H: 161)
100
(1H: 100 2H: 100)
155
(1H: 155 2H: 155)
stronger by 14 yen
(1H: stronger by 19 yen
2H: stronger by 10 yen)
stronger by 7 yen
(1H: stronger by 7 yen
2H: stronger by 6 yen)
40
Dividend per Share
(Yen)
Dividend per share
1st quarter End
FY07
FY08
Results
Results &
Projection
-
20
Increase from
FY07 Results
FY09
Projection
Increase from
FY08 results
22
*
+2
*
22
*
±0
*
+ 12
2nd quarter End
30
22
3rd quarter End
17
22
+ 5
22
*
±0
*
4th quarter End
20
22 *
+ 2*
22
*
±0
*
Fiscal Year
67
86 *
+ 19 *
88*
*
+ 2*
Projection as of April 25th
41
Dividend per Share
Dividend per share
(JPY)
Dividend
Yield
3.02%
140
3.09%
3.0%
*1,*2
Dividend Yield
120
*3
2.5%
Dividend per share (JPY)
100
2.0%
80
1.63%
1.37%
60
1.5%
1.21%
0.81%
40
0.45%
0.88%
1.0%
0.52%
0.5%
20
11.5
14
16
21
32.5
50
67
86
88
0
0.0%
FY 01
02
*1 FY01-FY08(projection)
*2 FY09 (projection)
*3 FY01-FY06
03
04
05
06
07
08
09
(projection) (projection)
based on share price at each fiscal year-end
based on stock price of Mar.31, 2008
restated based on the number of common shares after stock split
42
Caution
Cautionwith
withRespect
Respectto
toForward-Looking
Forward-LookingStatements:
Statements:
This
Thisslide
slidecontains
containsforward-looking
forward-lookingstatements
statementsabout
aboutthe
theperformance
performanceofofHonda,
Honda,which
whichare
arebased
basedon
onmanagement’s
management’s
assumptions
and
beliefs
taking
into
account
information
currently
available
to
it.
Therefore,
please
be
advised
assumptions and beliefs taking into account information currently available to it. Therefore, please be advisedthat
thatHonda’s
Honda’s
actual
actualresults
resultscould
coulddiffer
differmaterially
materiallyfrom
fromthose
thosedescribed
describedininthese
theseforward-looking
forward-lookingstatements
statementsas
asaaresult
resultofofnumerous
numerous
factors,
factors,including
includinggeneral
generaleconomic
economicconditions
conditionsininHonda’s
Honda’sprincipal
principalmarkets
marketsand
andforeign
foreignexchange
exchangerates
ratesbetween
betweenthe
the
Japanese
Japaneseyen
yenand
andthe
theU.S.
U.S.dollar,
dollar,the
theEuro
Euroand
andother
othermajor
majorcurrencies,
currencies, as
aswell
wellas
asother
otherfactors
factorsdetailed
detailedfrom
fromtime
timetototime.
time.
Accounting
Accountingstandards:
standards:
Our
Ourconsolidated
consolidatedfinancial
financialstandards
standardsare
areprepared
preparedininconformity
conformitywith
withU.S.
U.S.generally
generallyaccepted
acceptedaccounting
accountingprinciples.
principles.
Notice
Noticeon
onthe
theFactors
Factorsfor
forIncreases
Increasesand
andDecreases
Decreasesin
inIncome:
Income:
With
totothe
above
ofofthe
income,
management
has
the
factors
set
Withrespect
respect
thediscussion
discussion
above
thechange
changein
inoperating
operating
income,
management
hasidentified
identified
the
factors
setforth
forth
below
and
used
what
it
believes
to
be
a
reasonable
method
to
analyze
the
respective
changes
in
such
factors.
Each
of
below
and
used
what
it
believes
to
be
a
reasonable
method
to
analyze
the
respective
changes
in
such
factors.
Each
of its
these
factors
isisexplained
below.
Management
has
analyzed
changes
ininthese
factors
atatthe
levels
ofofthe
Company
and
these
factors
the
levels
these
factors
explained
below.
Management
has
analyzed
changes
the
Company
and
its
material
materialconsolidated
consolidatedsubsidiaries.
subsidiaries.
(1)
ofoftranslation
adjustments,
which
from
ofofthe
currency
ofofforeign
(1)“Foreign
“Foreigncurrency
currencyeffects”
effects”consist
consist
translation
adjustments,
whichcome
come
fromthe
thetranslation
translation
the
currency
foreign
subsidiaries’
financial
statements
into
Japanese
Yen,
and
foreign
currency
adjustments,
which
result
from
foreign-currencysubsidiaries’
financial
statements
into
Japanese
Yen,
and
foreign
currency
adjustments,
which
result
from
foreign-currencydenominated
sales,
which,
atatthe
levels
and
consolidated
subsidiaries
which
been
denominated
sales,
which,
the
levelsofofthe
theCompany
Company
andthose
those
consolidated
subsidiaries
whichhave
have
beenanalyzed,
analyzed,
primarily
relate
to
the
following
currencies:
U.S.
dollar,
Canada
dollar,
Euro,
GBP,
BRL
and
Japanese
Yen.
primarily relate to the following currencies: U.S. dollar, Canada dollar, Euro, GBP, BRL and Japanese Yen.
(2)
toto“cost
and
ofofraw
material
cost
fluctuations”,
management
has
analyzed
reduction
(2)With
Withrespect
respect
“costreduction
reduction
andeffects
effects
raw
material
cost
fluctuations”,
management
has
analyzedcost
cost
reduction
and
effects
of
raw
material
cost
fluctuations
at
the
levels
of
the
Company
and
its
material
foreign
manufacturing
subsidiaries
and
effects
of
raw
material
cost
fluctuations
at
the
levels
of
the
Company
and
its
material
foreign
manufacturing
subsidiaries
ininNorth
NorthAmerica,
America,Europe
Europeand
andother
otherregions.
regions.
(3)
respect
toto“changes
ininnet
model
mix”,
management
has
ininsales
volume
and
(3)With
With
respect
“changes
netsales
salesand
and
model
mix”,
management
hasanalyzed
analyzedchanges
changes
sales
volume
andin
inthe
the
mix
of
product
models
sold
in
major
markets
which
have
resulted
in
increases/decreases
in
profit,
as
well
as
certain
other
mix
of
product
models
sold
in
major
markets
which
have
resulted
in
increases/decreases
in
profit,
as
well
as
certain
other
reasons
reasonsfor
forincreases/decreases
increases/decreasesininnet
netsales
salesand
andcost
costofofsales.
sales.
(4)
“selling,
general
and
administrative
expenses”,
management
has
reasons
for
(4)With
Withrespect
respecttotoin
“selling,
general
and
administrative
expenses”,
management
hasanalyzed
analyzed
reasons
foran
an translation
increase/decrease
selling,
general
and
administrative
expenses
from
the
previous
fiscal
year
net
of
currency
increase/decrease
in
selling,
general
and
administrative
expenses
from
the
previous
fiscal
year
net
of
currency
translation
effects.
effects.
(Reference) Foreign Currency Exchange rates (U.S. dollar & Euro to JPY)
Yen per U.S. dollar / Euro
170
160
150
Euro
140
130
120
U.S. dollar
110
100
90
1Q
2Q
3Q
FY07
4Q
1Q
2Q
3Q
4Q
FY08
The exchange rate prevailing on the Tokyo Foreign Exchange Market
(Reference) Transition of commodity markets (Base metal prices)
3500
Aluminum
(US$/tonne)
9000
Copper
(US$/tonne)
8000
3000
7000
Average
2,802
2500
Average
2,729
2000
Average
7,759
6000
Average
5,921
5000
4000
1500
3000
1000
2000
500
1000
0
0
1Q
2Q
3Q
FY07
4Q
1Q
2Q
3Q
FY08
4Q
1Q
2Q
3Q
FY07
4Q
1Q
2Q
3Q
4Q
FY08
*Source: LME
(Reference) Transition of commodity markets (Precious metal prices)
(US$ per troy oz)
(US$ per troy oz)
Platinum
2200
Rhodium
10000
9000
2000
8000
1800
7000
1600
Average
8,268
6000
Average
1,881
1400
Average
5,915
5000
4000
1200
3000
Average
1,193
1000
2000
1000
800
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
FY08
FY07
1Q
2Q
3Q
FY07
4Q
1Q
2Q
3Q
4Q
FY08
(US$
per troy oz)
600
Palladium
500
400
Average
446
Average
345
300
200
100
1Q
2Q
3Q
FY07
4Q
1Q
2Q
3Q
FY08
4Q
*Source: Platinum Today