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Honda Corporate Update 2016 Autumn
Civic Hatchback
Honda Business Status
FY17 2Q Financial Highlights
Automobile Business Operations
Motorcycle Business Operations
Honda Corporate Update
Business Strategy
2
Profit Structure Profile over Past Decade and FY17 Forecast
3
70
80
90
100
110
120
130
183 203 199
177 192 182
461280
153
7.4%7.7% 7.9%
1.9%
4.2%
6.4%
2.9%
5.5%
6.6%
5.0%
3.4%
4.9%
-1%
1%
3%
5%
7%
-200
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY3/06 FY3/07 FY3/08 FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17P
Automobile
Motorcycle
Finance
O/P Margin
4.9%・Earthquake・Thai flood
FY3/12
Yen (billions)
231
569
363
189
953851868
*Includes gain on return of the substitutional portion of the Employees’ Pension Funds to the Japanese government (138 bil ) .
*
USD/JPY
544
¥100 forFY17 2H
650
823670
8.8% *
IFRSUS GAAP
503
Current Fiscal Year Projection (May-13 vs. Oct.-31)
FY17PreviousForecast(May-13)
FY17RevisedForecast(May-13)
Difference
FY17PreviousForecast(May-13)
FY17RevisedForecast(May-13)
Difference
Japan 150 160 + 10 600 595 - 5North
America 310 315 + 5 1,990 1,985 - 5Europe 180 210 + 30 190 180 - 10
Asia 9,780 9,955 + 175 730 700 - 30Other
Region 1,125 1,050 - 75 235 245 + 10Total 11,545 11,690 + 145 3,745 3,705 - 40
11,5453,745
+ 145( + 1.3 %)
- 40( - 1.1 %)
(Automobiles)(Motorcycles)
Consolidated Unit Sales
600.0650.0
+ 50.0
Vol/Mix Costreduction
SG&A
FY17PreviousForecast
Main reasons for revision of forecast Forex - 67.0
JPY/USD - 32.5USD/Others - 4.5 (BRL,CAD,MXN)Main Asian currencies - 11.0 (INR, THB, VND, CNY, IND)Others - 19.0
SG&A + 12.0
Vol/Mix + 21.0
Cost Reduction + 48.0
R&D - 6.0
Pension Impact + 84.0
Operating Profit Yen (billions)Unit (thousands)
ROS4.4%
ROS4.9%
R&DForex
4
11,6903,705
FY17RevisedForecast
+ 12.0- 21.0
- 67.0
+ 48.0 - 6.0Impact of pension
accounting treatment
+ 84.0
+ 33.0without Forex and pension impact
Honda Business Status
FY17 2Q Financial Highlights
Automobile Business Operations
Motorcycle Business Operations
Honda Corporate Update
Business Strategy
5
Honda FY2011 Rating ReviewAutomobile Business - CivicCore Strategies for Growth in Automobile Operations
Improve quality of business forsustainable & profitable growthImprove quality of business forsustainable & profitable growth
6
Develop Innovative ProductsUnique to Honda
Strengthen global and regional models
Flexible global production infrastructure
Strong attention to “product concept” and further evolution of design and driving experience
Electrification Technologies
Advance the Six-region Global Operation Structure
Strengthen Global and Regional models
16% 14%
7
Regional models
Global models
Global models
68%
Mini and compact models in Japan
Light Trucks in U.S.
Brio series in Asia
China specific models
4.6CY2015
mil
:core models developed for worldwide distribution
Global Compact Series Civic
Avancier (China) BR-V (Asia)
Ridgeline
CR-V Accord
: models developed and produced locally tomeet specific needs of that region or market
Global models: Global Compact Series
Honda’s Global Compact Series is Being Rolled Out to Global Markets
(City / Grace / Greiz)
(Fit / Jazz)
(Vezel / HR-V / XR-V)
with best-in class Fun to Drive, Fuel Economy, Packaging and Safety
0
20
40
60
80
100
120
140
160
180
Jan-
13Fe
b-13
Mar
-13
Apr-
13M
ay-1
3Ju
n-13
Jul-1
3Au
g-13
Sep-
13O
ct-1
3N
ov-1
3De
c-13
Jan-
14Fe
b-14
Mar
-14
Apr-
14M
ay-1
4Ju
n-14
Jul-1
4Au
g-14
Sep-
14O
ct-1
4N
ov-1
4De
c-14
Jan-
15Fe
b-15
Mar
-15
Apr-
15M
ay-1
5Ju
n-15
Jul-1
5Au
g-15
Sep-
15O
ct-1
5N
ov-1
5De
c-15
Jan-
16Fe
b-16
Mar
-16
Apr-
16M
ay-1
6Ju
n-16
Jul-1
6Au
g-16
Sep-
16
Global Compact Series1.3 mil units in 2015 ( + 41% vs LY )
1.1 mil units in Jan-Sep 2016 ( + 20% vs LY )
(thousands)
City / Grace / Greiz
Fit / Jazz
Vezel / HR-V / XR-V
8
Global models: CIVIC
Civic 5D Hatch Prototype
9
Civic 4D Launch
CIVIC 5D Hatchback
CIVIC 2D Coupe
CIVIC 4D
Global launch schedule
0
1,000
2,000
3,000
010203040506070
Civic 2D Civic 4D Civic 5D US Incentive
Civic Global Sales and U.S. Incentives(K unit) (USD)Civic 2D Civic 5D
America
4.6CY2015
mil
CR-V Accord15% 12%
Civic12%
Fit / City / Vezel28%
CR-V and Accord continue to be widely popular representing approx. 27% of CY2015 global Honda unit sales
Global Models: CR-V and Accord
10
New CR-V and Accord to be launched with new platform and downsized turbo engine
Regional Models in North America
(June 2015)
Ridgeline
2016 ~2015
2016 Pilot
New Odyssey
(May 2015)
HR-V
Regional models
Global models
11
2016 Civic (November 2015)
New Accord
(June 2016)Ridgeline
2D Coupe (March 2016)
5D Hatchback (Autumn 2016)
All Honda Light Trucks to undergo full-model change in short period
CR-V (2017 Winter)
Ohio ELPOhio ELPCanadaCanada
AlabamaAlabama
MDX dual-source production will
start in spring 2017
Civic CR-V RDX
OdysseyRidgeline
Leverage Japan production base to
enhance Fit and Civic(Plan) supply
FitMDX Pilot
Start CR-V production in 2017
Civic
CR-V
-
5
10
15
20
Jan14
Mar May Jul Sep Nov Jan15
Mar May Jul Sep Nov Jan16
Mar May Jul Sep
FitHR-V
Increase HR-V production in Mexico
Monthly Production Profile (thousand units)Mexico El SaltoMexico El Salto Mexico CelayaMexico Celaya
Start to produce HR-V in El Salto plant in 2017(Annual capacity : 63k)
Ohio MAPOhio MAP
AccordTLX
ILX
Production in North America
HR-VFit
12
Flexibleproduction
Transfer
IndianaIndiana
Regional Models in China
13
By utilizing common platforms and strengthening local procurement and R&D functions, successive launch of cost competitive models being realized
SDN(4D/5D) SUV MUV
D
Guangqi
Dongfeng
C
Guangqi
Dongfeng
B
Guangqi
Dongfeng
Accord(2013 FMC)
Jade (2013)
Crider (2013)
Odyssey
Spirior(Dec 2014)
Gienia(Oct 2016)
Segment
(Aug 2014)
Fit (May 2014)
City (Aug 2015)
Concept D
Vezel 1.5L (Mar 2015)
XR-V 1.5L (Jul 2015)
Vezel 1.8L (Oct 2014)
XR-V 1.8L (Dec 2014)
CR-V MMC (Apr 2015)
Elysion(Jan 2016)
Greiz (Nov 2015)
All-new SUV
New Civic(April 2016)
Avancier(Oct 2016)
Regional Models in Asia
14
India
Thailand
Indonesia
20152014201320122011
Brio Series
Global Compact Series
Fit / JazzCity HR-V
Brio Amaze Mobilio
(thousand units)
0%
5%
10%
15%
20%
0
50
100
150
200
250
CY12 13 14 15
Volume
Honda Share
0%
5%
10%
15%
20%
0
20
40
60
80
100
120
CY12 13 14 15
Volume
Honda share
0%
5%
10%
15%
20%
0
50
100
150
200
CY12 13 14 15
Volume
Honda Share
0%
5%
10%
15%
0
50
100
150
200
250
300
CY12 13 14 15
Volume
Honda Share
*First car incentive
Malaysia
BR-V
Indonesia & Thailand (Jan 16)India (May 16)
Honda FY2011 Rating ReviewHonda FY2011 Rating ReviewAutomobile Business - CivicGlobal Production Capacity
1,066 1,066
1,923 1,923
200 200
960 1,080
840+501,080+50
150 151
Mar '15 Mar '16
5,189
(thousand units)
as of
Japan
NorthAmerica
Europe
Asia
China
Other
5,550+361
China +240Guangqi +120 Dongfeng +120
Thailand +120Nigeria +1
FY2016(Export only)(Export only)
15
China
Europe
Capacity increase to 5.7 milEstablish stable production structure leveraging regional capacity + mutual parts/model sharing
North America
South AmericaAsia
Japan (Units)
1.06 mil
<Export> Global Models
& Hybrid models 1.92 mil200,000
Primarily Civic 5D and CR-V production
150,000
1.13 mil
<Export> Acura & L/T models
Fit & CR-V
1.08 mil
<Export> • Strengthen mutual parts/model
sharing within Asia• Export to Africa
<Export> Leverage local cost benefit for
next markets (Africa)
Middle East and Africa
JazzHybrid models
CR-V
Accord & L/T models
Acura
10-20%for Other regions
80-90% for Local markets
Total Capacity
approx. 5.55 mil units(end of FY2016)
Accord
Utilization Image
Fit
Civic 5D from UK
Flexible global production infrastructure
16
1,000
CR-V , HR-V(plan)
Capacity Utilization by Region
101% 88% 81%94%FY14 FY15
96% 77% 70%96%
95% 95%50% 61%
100%FY16 FY14 FY15 FY16
FY14 FY15 FY16 FY14 FY15
111% 73%FY16
64%FY16
104%FY16FY14 FY15FY14 FY15
(Excluding export factory)
17
103%
North America Japan
China Asia
Europe South America
FY17 1H
※Civic 5D production started in summer 2016
71% 69%
FY17 1H
85%
108% 70%
67%
75%FY17 plan
FY17 1H FY17 1H
FY17 1H FY17 1H
※Targeting 950K units annual production in Japan
Engines
18Targeting best Fuel Efficiency and Fun to Drive in all categories
Turbo engines
Transmissions Hybrid Powertrains
Earth Dreams Technology
18
2010 2020 2030
DI engineCVT / DCT
Turbo engine
Enable people to experience the joy and freedom of mobility and contribute to the creation of a sustainable society where people can enjoy more harmonious lifestyles
Honda’s Environmental and Safety Vision
2000
(CO
2(g/
km)
0 (2002) (2008)
New PHEV
(2016)
Global expansion
Global expansion
Technologies to increaseelectrical efficiency
Technologies to increasethermal efficiency
ZEROemissions technologyNew BEV
New FCV
(2020)
One-motorHybrid system
Two-motorHybrid system
Three-motorHybrid system
(2013)
Looking towards zero emissions withthe development of ZEV and PHEV
CLARITY FUEL CELLFCX CLARITYFCX
ACCORD PHEV
Roadmap for Environmental Technologies
19
(2017)
(2017)
Roadmap for Environmental Technologies
Clarity3兄弟戦略
The Clarity Fuel Cell, only five-passenger fuel cell sedan in the industry, launched in Japan in March 2016 and will be launched in the U.S. and Europe within 2016
The Clarity Electric and the Clarity Plug-in Hybrid will be launched in the U.S. in 2017
All of the Clarity models will leverage the platform that has made the Clarity Fuel Cell’s
low, wide and aerodynamic proportions and spacious five-passenger cabin possible
Honda Clarity series to Leverage Common Platform
20
Toward Zero Collisions
Aiming for practical application of autonomous driving on highways around 2020
Roadmap for Safety Technologies
21
22
North America Automobile Operations
Unit(thousands)
0
500
1,000
1,500
2,000
CY07 08 09 10 11 12 13 14 15
AcuraHonda Passenger CarsHonda Light Trucks
Source: Honda
Industry Demand Honda Unit SalesUnit
(thousands)
1,5511,428
1,150
New Model Launches/ FMC
1,259
1,147
1,4221,525
1,541
Source: Honda
Acura NSX (May 2016)
1,586
Honda Topics Improve cost competitiveness of core models
- Increase commonality of platforms and parts- Leverage global suppliers- Utilize Mexican local suppliers to drive down overall North
American costs Increase production capacity of Light Trucks
- Start dual production of MDX in Ohio and Alabama plants from spring 2017
Introduce Environmentally Friendly Vehicles- Accord Hybrid, FCX Clarity, PHEV, BEV and more
Accord Hybrid (June 2016)
Civic Coupe (Mar 2016)
Ridgeline (June 2016)
Civic 5D(Sep 2016)
Clarity Fuel Cell (2016)
0
10,000
20,000
CY07 08 09 10 11 12 13 14 15
Passenger Cars
Light Trucks
10,42911,588
12,778
14,491 15.60016.522
17.470
23
24
0
2,000
4,000
6,000
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Regular size vehicle Mini vehicle
Industry Demand Honda Unit Sales
0
250
500
750
1,000
1,250
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Registered vehicle
Mini vehicle
Source: HondaSource: JAMA, Honda
New Model Launches/ FMC
Enhancement of product line-up- Strengthen minivan and hybrid line-up by introducing Odyssey Hybrid, Accord (hybrid) and new Freed
Honda Topics
Improve capacity utilization- Fit (Jazz) export for North America and Europe started in 2015- Accord Hybrid exports began in 2016
Accord (May 2016)
Clarity Fuel Cell(Mar 2016)
Odyssey Hybrid(Feb 2016)
Freed(Sep 2016)
Japan Automobile Operations
25
Europe Automobile Operations
New Model Launches/ FMC
New models with Earth Dream Technology powertrains
Restructuring of operations to improve efficiency
Industry Demand(EU+EFTA)
(excluding commercial vehicles)
Honda Unit Sales
(EU+EFTA)
0
5,000
10,000
15,000
CY08 09 10 11 12 13 14 15
Unit(thousands)
0
50
100
150
200
250
300
350
400
08 09 10 11 12 13 14 15
Unit(thousands)
Source: ACEA / Honda Source: ACEA / HondaCY
Jazz (Aug 2015) HR-V (Sept 2015)Civic Type R (July 2015)- U.K factory to concentrate on producing 5D Civic hatchback to improve plant efficiency
- New CR-V, new Jazz, brand new HR-V and Civic Type R with VTEC turbo engine launched in 2015
Honda Topics
New Model Launches/ FMCIntroduce more new models to establish presence in all segments - New Civic launched in April 2016 - All-new SUV, Avancier, and all-new Gienia launched in Oct 2016- All-new compact SUV, CDX, debut in July 2016 as Acura modelFirst Acura model produced in China
- Introduction of hybrid model - 2016 Accord Hybrid
0
200
400
600
800
1,000
CY08 09 10 11 12 13 14 15
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
CY08 09 10 11 12 13 14 15
Source: HondaSource: CAAM / Honda
Honda Unit Sales in ChinaChina Industry Demand(excluding commercial vehicles)
Accord
Odyssey
CR-V
Civic
City
Fit
※2008-2014 Wholesale ※Wholesale
Spirior
S1Ciimo
Crider
JADEElysion
Crosstour
Strengthen cost structure- Increase local procurement to achieve further cost reductions
Vezel
XR-V
2015 Retail
Honda Topics
Elysion (Jan 2016)
26
Acura CDX (Jul 2016)
Avancier (Oct 2016)
Civic (April 2016)
Accord Hybrid (Sep 2016) Gienia (Oct 2016)
China Automobile Operations
Asia Automobile Operations
0
50
100
150
200
250
300
350
400
450
500
CY08 09 10 11 12 13 14 15
Malaysia Thailand
Indonesia Philippines
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
CY08 09 10 11 12 13 14 15
Malaysia Thailand
Indonesia Philippines
Source: Honda
Honda Unit SalesIndustry Demand
Source: Honda
※Retail Sales
New Model Launches/ FMC
New models launched to meet specific market needs in each Asian market
- All new HR-V rolled out in Asian markets
- All-new BR-V is cultivating entry SUV market in Asia
- 10th generation Civic is being rolled out in Asia
HR-V
Nov 2014 Thailand
Jan 2015 Indonesia
Feb 2015 Malaysia
881 800
666 666
1,208 1,013
Indonesia
Thailand
Malaysia
Honda Topics
27
BR-V
Jan 2016 Indonesia
Jan 2016 Thailand
Civic
Mar 2016 Thailand
Apr 2016 Indonesia
Apr 2016 Malaysia
India Automobile Operations
New Model Launches/ FMC
0
50
100
150
200
250
300
CY09 10 11 12 13 14 15
Honda Unit Sales in India
City
Accord
Civic
Source: Honda
※Retail Sales
JAZZ
Source: SIAM / Honda
India Industry Demand
BRIO
Amaze
Expansion of dealer network
Launch of new models equipped with diesel engines
- BR-V debuted in May 2016
Profitability of automobile operations in Indian market hasimproved due to introduction of new models
Mobilio
1,770
2,320 2,4402,753 2,553 2,571
2,771
450
650760
813
687 606651
0
1,000
2,000
3,000
4,000
5,000
CY09 10 11 12 13 14 15
Commercial
Passenger+UVs
Jazz PE/DE(July 2015)
Honda Topics
BR-V (May 2016)
28
29
Other Regions Automobile Operations
118 126 126
93
135 139 138153
0
20
40
60
80
100
120
140
160
180
200
CY08 09 10 11 12 13 14 15
2,671
3,008
3,329 3,426
3,634 3,580
3,333
2,481
0
1,000
2,000
3,000
4,000
CY08 09 10 11 12 13 14 15
Source: HondaSource: ANFAVEA
Honda Unit SalesIndustry Demand
(excluding trucks)※Retail Sales※Registration
Launch of Global Compact Series All-new HR-V launched in Mar 2015New Civic launched in August 2016
New Model Launches/ FMC
Enhance local R&D facilities and expand local parts procurement
HR-V(Mar 2015)
Honda Topics
Civic(August 2016)
Honda Business Status
FY17 2Q Financial Highlights
Automobile Business Operations
Motorcycle Business Operations
Honda Corporate Update
Business Strategy
30
31
0
4,000
8,000
12,000
16,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
69 114 101 151 100 59 139 143 110 177 192 182
6.3%9.3% 7.3%
9.7%7.1% 5.2%
10.8% 10.6%8.2%
10.5% 10.4% 10.1%
0
50
100
150
200
250
300
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Honda M/C Business = High Profitability + Stability + Growth Potential
Honda Global Unit Sales
*excluding sales by Hero Honda
*Operating profit and margin from FY05 to FY13 are based on US GAAP while FY14 and FY15 are based on IFRS
Operating Profit and Margin(billion yen)
(thousand units)
Overview of Motorcycle Business
Indonesia
Malaysia
Thailand
VietnamIndia
PakistanChina
Japan
Bangladesh
Brazil
Argentine
PeruNigeria
Kenya
ItalyU.S.A
(ATV, S×S)Mexico
Philippines
27%
India16.1 mil
70%
Vietnam2.8 mil
69%
Indonesia6.5 mil
78%
Brazil1.3 mil
79%
Thailand1.7 mil
44%
50%
Pakistan1.5 mil
Cambodia0.3mil 90%
21%U.S.A (MS+ATV)
0.7 mil
47%0.4 mil
17%Europe0.8 mil
Motorcycle productionat 34 plants in 21 countries
Motorcycle productionat 34 plants in 21 countries
Motorcycle Market Size and Honda Share
Philippines0.8mil
(CY2015)
Annual Production Capacity in India
4.6mil in 2015 5.8mil in 2016
Annual Capacity in Pakistan
0.6mil in 2014 1.2mil in 3 years
32
*Market share excluding 50cc
Motorcycle Market Size and Honda Share (CY2015)
Next Markets Growing Markets Mature Markets
Africa
1,000
2,000
3,000
4,000
(USD)
4.0mil India16.1 mil
Indonesia6.4mil
ThailandThailand
VietnamVietnam1.4mil
Pakistan
1mil
Philippines
Bangladesh0.8mil
Myanmar
GDP per capita 1.7mil
2.8mil
Growth in Motorcycle Popularity
33
(CY2015)
Thailand
Vietnam
Indonesia
India
Number of motorcycles units in operationPopulation
1,292
255
91
6840%
33%
25%
8%
Significant growth expected
Motorcycle Market Penetration in Asia (millions) Source: Honda & IMF
0.1mil
1.6 1.6 1.6 1.6
1.2 1.2 1.2 1.2
1.2 1.8 1.8 1.8
1.2
CY13 14 15 16
Expanded annual production capacity to 5.8 milThe 4th plant to produce only automatic scooters to meet growing demand.
1st
2nd
3rd
4.0mil4.6mil
5.8mil4.6mil
Capacity Expansion
34
India Motorcycle Operation
4th
Manesar
Rajasthan
Karnataka
Gujarat
3rd
2nd
4th
1st
Product Line-upProduct Line-up
110cc AT-Scooter
Activa
125cc Motorcycle
CB Shine
AT Scooter business operation in India
35
■ Monthly Scooter Unit Sales of Honda / Competitors and Honda Share in Scooter Market
18%
82%
In CY201130%
70%
In CY2015SC SC
MCMC
■ Fast Growing Segment
Scooter / Motorcycle Sales Ratio (Industry)
Activa
0%
10%
20%
30%
40%
50%
60%
70%
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000 Competitors (Unit)
Honda (Unit)
Honda Share(%)
ATV
S×S
M/C +2%
+8%
U.S. Market by Business Segment(sales volume in 2015 (vs. 2014))
2014 2015
Work
Sport
Multi
Side by Side (S x S) Segments(units sales in 2014 and 2015)
0
10
20
30
2012 2013 2014 2015
+ 89%+ 89%
Pioneer 700(Sep ‘13)
Pioneer 500(Jul ‘14)
Honda S x S Unit Sales
Pioneer 1000(Oct ‘15)
(Source: M/C and ATV: Motorcycle Industry Council / S×S:Honda estimate)
+ 90%+ 90%
(thousand units)
(thousand units)
Side by Side in the U.S.
36
+ 48%+ 48%
-1%
Honda Business Status
FY17 2Q Financial Highlights
Automobile Business Operations
Motorcycle Business Operations
Honda Corporate Update
Business Strategy
37
0
500
1,000
1,500
0
500
1,000
1,500
Outline of FY17 2nd Quarter Unit Sales (Consolidated)
38
Honda Group Unit Sales
2Q Results (3 Months)
FY16 FY17 Change
Motorcycles 4,370 4,538 + 3.8%
Automobiles 1,139 1,218 + 6.9%
Power Products 1,275 1,240 - 2.7%
Consolidated Unit Sales
2Q Results (3 Months)
FY16 FY17 Change
Motorcycles 2,740 3,042 + 11.0%
Automobiles 889 890 + 0.1%
Power Products 1,275 1,240 - 2.7%
0
1,000
2,000
3,000
4,000
5,000
0
200
400
600
800
1,000
1,200
1,400
0
1,000
2,000
3,000
4,000
5,000
0
200
400
600
800
1,000
1,200
1,400
4,370 4,5381,139 1,218 1,275 1,240
2,740 3,042 889 890
1,275 1,240
(thousand)
(thousand)
Honda Group Unit Sales
Consolidated Unit Sales
Motorcycles Automobiles
FY16 FY17
Unit (thousand)
Motorcycles Automobiles
Honda Group Unit Sales- Increase in motorcycle unit sales due mainly to sales growth in India, despite decline in sales in Indonesia and Brazil
- Increase in automobile unit sales due primarily to sales growth in China
Power Products
Power Products
Unit (thousand)
39
FY17 2nd Quarter Financial Results (Consolidated)
Financial Results2Q Results (3 Months)
FY16 FY17 Change
Sales revenue 3,621.2 3,262.9 - 9.9%
Operating profit 164.8 228.0 + 38.4%
Operating margin 4.6% 7.0% + 2.4ptShare of profit of investmentsaccounted for using the equity method 34.1 39.8 + 16.6%
Profit before income taxes 210.9 270.5 + 28.3%Profit for the periodattributable to owners of the parent 127.7 177.0 + 38.6%
Earnings per shareattributable to owners of the parent 70.88 98.26 + 27.38
*1については巻末をご覧くださいUS Dollar 122 102 Yen up by 20 yen
*1
239.2
164.8 163.0
-63.8
266.8 228.0
-100-50
050
100150200250300
1Q 2Q 3Q 4Q
FY16FY17
6.5%
4.6%
4.5%
-1.7%
7.7% 7.0%
-2%
0%
2%
4%
6%
8%
10%
1Q 2Q 3Q 4Q
FY16FY17
Market average rates (Yen)
Operating Profit Yen (billion) Operating Margin
Financial SummarySales revenue decreased by 9.9% primarily due to negative foreign currency translation impact, despite increases in automobile, financial services, and motorcycle business operations.
Operating profit increased by 38.4% due primarily to cost reduction efforts, a decline in SG&A expenses, including quality related expenses, as well as the impact of pension accounting treatment, despite negative foreign currency effects.
Yen (billion)
(Yen)
Change in Profit before Income Taxes <FY17 2nd Qtr>
40
41
Cash Flows of Non-financial Services Businesses
131 68 70 -115
185
132
4.8%
2.6% 2.6%
-4.2%
7.3%
5.5%
1QFY16
2Q 3Q 4Q 1QFY17
2Q 3Q 4Q
Honda Consolidated Financial Results
FY16O/P
M/CFinance
36%
FY16Revenue
M/CPower Products
Finance12%
56 49 50 28 31 60
11.8% 10.8% 11.2%
6.3% 7.2%
14.5%
0
50
100
150
200
1QFY16
2Q 3Q 4Q 1QFY17
2Q 3Q 4Q
Quarterly Profit Business Scale
Yen (billions)
Operating IncomeOperating Margin
69 114 101 151 100 59 139 143 110 177 192 182
6%
9%
7%
10%
7%
5%
11% 11%
8%
10% 10% 10%
0
50
100
150
200
250
300
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Annual Profit
Auto
Auto
FY16Revenue
M/CPower Products
Finance
73%
Operating IncomeOperating Margin
Auto
Motorcycle business
Automobile business
Yen (billions)
452 628 600 662 25 127 265 -77 286 461 280 153
6%
8%7% 7%
0%2%
4%
-1%
4%
5%
3%
1%
-200
0
200
400
600
800
1000
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
(99)*
(8%)*
* (excluding one time profit)
(512)*
(6%)*
* (excluding one time profit)42
FY16O/P
Auto
Finance
30%
M/C
US GAAP IFRS
US GAAP IFRS
12.9% (excl. pension impact)
2.4% (excl. pensionimpact)
52 52 51 44 51 38
11.0% 11.1% 11.5%9.5% 10.8%
8.5%
FY161Q
2Q 3Q 4Q FY171Q
2Q 3Q 4Q
Honda Consolidated Financial Results
FY16Revenue
M/C
Power Products
Finance
2%
1-4 -7 -20
1 -1
0.6%
-4.4%-9.1%
-21.6%
0.7%-1.4%
FY161Q
2Q 3Q 4Q FY171Q
2Q 3Q 4Q
Quarterly Profit Business Scale
Yen (billions)
Operating IncomeOperating Margin
19 36 36 22 -15 -17 -6 -4 -103
-4-31
6%
9% 8%5%
-4% -5%
-2% -1% -3%
1%
-1%
-9%-50
0
50
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Annual Profit
FY16Revenue
M/CPower Products
FinanceOperating IncomeOperating Margin
Auto
Power Product & Other Business
Financial Business
Yen (billions)
90 91 116 118 81 195 186 170 158 183 203 199
35% 29% 28%
21%
14%
31% 32% 32%28%
14% 13%11%
0
50
100
150
200
250
300
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
13%
43
FY16O/P
Finance
Auto
FY16O/P
Finance
M/C40%
Auto
M/C
US GAAP IFRS
US GAAP IFRS
*
-6%
Power Products
-4.4% (excl. pension impact)
28 26 28
-180
-20 86
3.0% 2.7% 2.7%
-18.1%
-2.2%
8.8%
FY161Q
2Q 3Q 4Q FY171Q
2Q 3Q 4Q
109 37 3826
171 38
5.0%
1.8% 1.8% 1.3%
8.3%
2.1%
FY161Q
2Q 3Q 4Q FY171Q
2Q 3Q 4Q
Honda Consolidated Financial Results
Quarterly Profit Business Scale
Operating IncomeOperating Margin
185 371 228 193 -162
-29
66 -110 178 246 210 -99
4%
8%
5%4%
-4%
-1%
2%
-3%
5%6% 5%
-3%-200
-100
0
100
200
300
400
500
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Annual Profit
Operating IncomeOperating Margin
Japan
321 354 457 433 80 236 301 223 209 336 182 211
7%6%
7%7%
2%
6%
7%6%
4%5%
3%2%
0
50
100
150
200
250
300
350
400
450
500
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
FY15Revenue
North America
Other Regions
Europe
Asia
Japan12%
FY15O/P North
America
Other Regions
Europe
Asia
Japan-22%
North America
Yen (billions)
(233)*
(5%)*
* (excluding one time profit)
Yen (billions)
FY15Revenue
JapanOther Regions
Europe
Asia
NorthAmerica
55%
FY15O/P
Other Regions
Europe
Asia46%
NorthAmerica
Japan
US GAAP IFRS
US GAAP IFRS
44
96 86 88 66 90 91
10.6%9.8% 9.7%
7.8%
10.9% 11.0%
FY161Q
2Q 3Q 4Q FY171Q
2Q 3Q 4Q
FY15O/P
FY15Revenue
FY15O/P
FY15Revenue
-13
-522
1
0-0.6%
1.7%
-2.8%
9.5%
0.7%0.1%
FY161Q
2Q 3Q 4Q FY171Q
2Q 3Q 4Q
Honda Consolidated Financial Results
Business Scale
Yen (billions)
Operating IncomeOperating Margin
61 65 77 131 104 113 151 77 147 232 279 336
7% 7%6%
8%6%
7%8%
5%6%
8% 8%9%
0
50
100
150
200
250
300
350
400
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Annual Profit
Operating IncomeOperating Margin
Asia (China JVs are not included)
Yen (billions)
41 26 32 52 10 -11 -10 -12 0 -34 -23
19
4%
2% 2%3%
1%-1% -1% -2%
0% -4%-3%
2%
-100
-50
0
50
100
150
200
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
North America
Other Regions
Europe
Asia
Japan
6%
North America
Other Regions
Europe
Asia
Europe
North America
Other Regions
Europe
Asia Japan
Other Regions
Europe
Asia73%
Japan
Quarterly Profit
Japan
21%
North America
45
US GAAPIFRS
US GAAP IFRS
4%
5 7 0
-20
14 13
1.9%3.4%
-0.2%
-12.1%
8.3% 7.7%
FY16Q1
Q2 Q3 Q4 FY17Q1
Q2 Q3 Q4
FY15O/P
FY15Revenue
Honda Consolidated Financial Results
Business Scale
Yen (billions)
Operating IncomeOperating Margin
33 57 72 116 135 46 70 57 36 38 40
-8
7%
10%9%
11%12%
5%7% 6%
4% 4% 4%
-1%
-50
0
50
100
150
200
250
300
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Annual Profit
Other region
Yen (billions)
78 73 73 86 98 91 111 88 78
18 27 3133
2 2
29
135
0
100
200
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Equity Income
North America
Europe
Other Japan
Europe
Asia
6%Japan
Quarterly Profit
6%
North America
Asia
Other
96 100 103119
9993
140
10083
131
38 34 45 8 27 40
FY161Q
2Q 3Q 4Q FY171Q
2Q 3Q 4Q
*Discontinued JV with Hero at Dec 2010
*ChinaGuangqi HondaDongfeng Honda
IndonesiaP.T Astra Honda
PakistanAtlas Honda
JapanShowa, Keihin, etc
Affiliates
46
96
US GAAP IFRS
US GAAP IFRS
(from Asia)
(32.5) (28.9) (39.4)
126
(24.3)
-2%
(36.2)(39.3)
47
FY17 Financial Forecasts (Consolidated)
FY16Results
FY17Forecast
Change Change from previous forecastamount %
Sales revenue 14,601.1 13,400.0 - 1,201.1 - 8.2% - 350.0
Operating profit 503.3 650.0 + 146.6 + 29.1% + 50.0
Operating margin 3.4% 4.9% + 1.5 pt + 0.5 ptShare of profit of investments accounted for using the equity method
126.0 140.0 + 13.9 + 11.1% + 10.0
Profit before income taxes 635.4 770.0 + 134.5 + 21.2% + 65.0
Profit for the yearattributable to owners of the parent 344.5 415.0 + 70.4 + 20.5% + 25.0
US Dollar 120 103(1H 105 / 2H 100)
Yen up by 17 yenYen up
by 2 yen
Earnings per shareattributable to owners of the parent 191.16 230.26 + 39.10 + 13.87
Yen (billion)
Market average rates (Yen)
(Yen)
FY17 Guidance: Units Sales by Business Segment [IFRS]
48
"Honda Group Unit Sales"
Motorcycles Automobiles Power Products
“Consolidated Unit Sales"
Global Honda group unit sales including affiliates, such as China Auto and Motorcycle in Indonesia
Consolidated unit sales do not include sales units in affiliates
(thousands)
Motorcycles Automobiles Power Products(thousands)
49
FY17 Forecast: Change in Profit before Income Taxes
50
FY17 Forecast: Capital Expenditures, Depreciation, R&D Expenditures
0%
2%
4%
6%
8%
0
200
400
600
800
FY04 05 06 07 08 09 10 11 12 13 14 15 16
17P
0%
2%
4%
6%
8%
0
200
400
600
800
FY04 05 06 07 08 09 10 11 12 13 14 15 16
17P
0%
2%
4%
6%
8%
0
200
400
600
800
FY04 05 06 07 08 09 10 11 12 13 14 15 16
17P
Capital Expenditures Depreciation / Amortization
Actual Amounts (billion Yen) % against Sales
US GAAP IFRS US GAAP IFRS US GAAP IFRS
560
440
690R&D Expenditure
Dividend
51
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 fluctuation of foreign exchange rates, as well as other factors detailed from time to time.Accounting standards: Our consolidated financial standards are prepared in conformity with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB)Notice on the Factors for Increases and Decreases in Income:With respect to the discussion above of the change in Operating profit, 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)“Currency effects” consist of translation adjustments, which come from the translation of the currency of foreignsubsidiaries’ 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 beenanalyzed, primarily relate to the following currencies: U.S. dollar, Canada dollar, Euro, GBP, BRL and Japanese Yen.(2) With respect to “Cost reduction, etc”, management has analyzed cost reduction and effects of raw material costfluctuations at the levels of the Company and its material foreign manufacturing subsidiaries in North America, Europeand other regions.(3) With respect to “Revenue, model mix, etc”, management has analyzed changes in sales volume and in the mix ofproduct models sold in major markets which have resulted in increases/decreases in profit, as well as certain otherreasons for increases/decreases in sales revenue and cost of sales.(4) With respect to “Selling, General and Administrative expenses”, management has analyzed reasons for anincrease/decrease in selling, general and administrative expenses from the previous fiscal year net of currencytranslation effects.(5) With respect to “Research and Development expenses”, management has analyzed reasons for an increase/decreasein research and development expenses from the previous fiscal year net of currency translation effects.
52
53