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Honda Corporate Update 2016 Spring

Clarity Fuel Cell

１. FY16 Results

FY16 Operating profit / Results (Operating profit: 503.3 billion yen（ROS 3.4%）・Excluding the impact of airbag inflators, profitability improved versus last FY・FMC of core models in N.A. as well as cost reduction efforts have certainly

improved business fundamentals

Airbag Inflators・ A modification of expense estimates resulted in additional product quality

expense provisions (４Ｑ：approx. 267 billion yen, FY16 Total：approx. 436 billion yen)・Financial provisions have now been made for all non-desiccant inflators

(cumulative total of approx. 51 million units)

２．FY17 Budget・ Analysis of factors underlying Operating profit of 600 billion yen (ROS 4.4%）

3．Mid-term business plan

（＋）Reverse accounting effect for quality related expenses（＋）Profit contribution due to improvement in model profitability（－）FOREX effects（－）SG&A（including preparatory expenses）

Additional impact due to accounting measures （－）Reverse accounting effect of one-off items from last FY（－）Increase in R&D expenses due to IFRS

Main discussion points

Honda Business Status

FY16 Financial Highlights

Automobile Business Operations

Motorcycle Business Operations

Honda Corporate Update

Business Strategy

3

Profit Structure Profile over Past Decade and FY17 Forecast

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%

4.4%

-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

4.4%

4

・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 ) .

*

544600

823670

8.8% *

IFRSUS GAAP

503

Fiscal Year 2017 Projection (FY16 results vs. FY17 forecast)

FY16Results

FY17Forecast Difference FY16

ResultsFY17

Forecast Difference

Japan 180 150 - 30 614 600 - 14North

America 308 310 + 2 1,929 1,990 + 61Europe 204 180 - 24 172 190 + 18

Asia 8,650 9,780 + 1,130 670 730 + 60Other

Region 1,230 1,125 - 105 251 235 - 16Total 10,572 11,545 + 973 3,636 3,745 + 109

10,57211,545

3,636 3,745

+ 973( + 9.2 %)

+ 109( + 3.0 %)

(Automobiles)(Motorcycles)

Consolidated Unit Sales

Motorcycle : Mainly increased in Asia

Automobile : Mainly increased in North America and Asia

503.3600.0

+ 96.6

Vol/Mix Cost reduction

SG&A

+ 291.0

FY16Results

FY17Forecast

Main Assumptions of Forecast Forex -303.0

JPY/USD - 182.0USD/Others -14.0 (BRL,CAD,MXN)Main Asian currencies -53.5 (INR, THB, VND, CNY, IND)Others - 53.5

SG&A + 291.0

Vol/Mix + 49.6

Cost Reduction +113.0

Operating Profit Yen (billions)Unit (thousands)

ROS3.4%

ROS4.4%

+49.6R&D

Forex

5

-303.0+113.0

-54.0






Business Strategy

6

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

7

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%

8

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

Honda’s Global Compact Series is Being Rolled Out to Global Markets

(City / Grace)

(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

2013

Jan

Feb

Mar Ap

rM

ay Jun Jul

Aug

Sep

Oct

Nov De

c20

14 Ja

nFe

bM

ar Apr

May Jun Jul

Aug

Sep

Oct

Nov De

c20

15 Ja

nFe

bM

ar Apr

May Jun Jul

Aug

Sep

Oct

Nov De

c20

16 Ja

nFe

bM

ar

Vezel/HR-V/XR-VMore than 600K units

(FY3/2016)

Vezel/HR-V/XR-VMore than 600K units

(FY3/2016)

Global Compact Series1.3 mil units in 2015 (+41% vs LY)

385K units in Jan-Mar 2016 (+21% vs LY)

(thousands)

City / Grace

Fit / Jazz

Vezel / HR-V / XR-V

Global models: Global Compact Series

9

Global models: CIVIC

10

5D hatch prototypeGlobal launch scheduleOne platform for all Civic models

5D hatch to be produced exclusively in the U.K.

Launch of downsized turbo engine in global market

New Civic launch in Nov 15

Civic 5D Hatch Prototype

Car of the Year Award

Strong start in the US

10

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

11

New CR-V and Accord to be launched with new platform and downsized turbo engine

(June 2015)

Ridgeline

2016 ～2015

2016 Pilot

All Honda Light Trucks to undergo full-model change in short period

New Odyssey

(May 2015)

HR-V

Regional models

Global models

Regional Models in North America

12

2016 Civic (November 2015)

New CR-V New Accord

(1H 2016P)Ridgeline

2D Coupe (March 2016)

5D Hatchback (Autumn 2016)

Ohio ELPOhio ELPCanadaCanada

AlabamaAlabama

MDX dual-source production will

start in 2017

Civic CR-V RDX

OdysseyRidgeline

Leverage Japan production base to enhance Fit supply

Fit

MDX Pilot

IndianaIndianaStart CR-V production

in 2017Civic

CR-V

-

5

10

15

20

Jan14

Mar May Jul Sep Nov Jan15

Mar May Jul Sep Nov Jan16

Mar

FitHR-V

Increase HR-V production in Mexico

Celaya Monthly Production Profile (thousand units)Mexico El SaltoMexico El Salto Mexico CelayaMexico Celaya

Production of HR-V in El Salto plant to start in 2017(Annual capacity : 63k)

Ohio MAPOhio MAP

AccordTLX

ILX

Production in North America

HR-VFit

13

Regional Models in China

14

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

Dong Feng

C

Guangqi

Dong Feng

B

Guangqi

Dong Feng

Accord(2013 FMC)

Jade (2013)

Crider (2013)

Odyssey

Spirior(Dec 2014)

Concept B(in 2016)*

Segment

*the joint venture company to sell concept B is TBA

(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(2016)

Regional Models in Asia

15

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 1,066

1,923 1,923 1,923

200 200 200

960 1,080 1,140

840+501,080+50 1,080+50

150 151 151

Mar '15 Mar '16 Mar '17 (P)

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)

16

5,610+60

India +60

FY2017(P)

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 (plan)

Flexible global production infrastructure

17

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 1H

61%FY14 FY15 FY16 1H

FY14 FY15 FY16 1H FY14 FY15

113% 73%FY16 1H

65%FY16 1H

109%FY16 1HFY14 FY15FY14 FY15

(Excluding export factory)

18

100% 82%FY16 2H

109%FY16 2H

74%FY16 2H

63%FY16 2H

99%FY16 2H

North America Japan

China Asia

Europe South America

FY16 2H

※Civic 5D production will start in summer 2016

※Targeting 950K units annual production in Japan

Engines

19Targeting best Fuel Efficiency and Fun to Drive in all categories

Turbo engines

Transmissions Hybrid Powertrains

Earth Dreams Technology

19

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

20

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

21

Toward Zero Collisions

Aiming for practical application of autonomous driving on highways around 2020

Roadmap for Safety Technologies

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 (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 2017

Introduce Environmentally Friendly Vehicles- Accord Hybrid, FCX Clarity, PHEV, BEV and more

Accord Hybrid (Spring 2016)

Civic Coupe (Mar 2016)

Ridgeline (Spring 2016)

Civic 5D(2H 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


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 Hybrid (May 2016)

Clarity Fuel Cell(Mar 2016)

Odyssey Hybrid(Feb 2016)

New Freed

(2016)

Japan Automobile Operations

25

Europe Automobile Operations


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 (August 2015) HR-V (September2015)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 were launched in 2015

Honda Topics

China Automobile Operations


Introduce more new models to establish presence in all segments

- New Civic and all-new SUV, Avancier, to be launched in 2016

- All-new compact SUV, CDX, will debut in 2016 as Acura model

- Start of local hybrid engine production - 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(2016)Civic (April 2016)

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 models launched to meet specific market needs in each Asian market

- All new HR-V is rolling out in Asian markets

- All-new BR-V will cultivate entry SUV market in Asia

- 10th generation Civic to be launched in Asia in 2016

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


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

Expand dealer network

Launch of new models equipped with diesel engines

- BR-V will be 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

New 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 will be launched in 2016


Enhance local R&D facilities and expand local parts procurement

HR-V(Mar 2015)

Honda Topics

Civic(2016)






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)

3.0mil India16.0 mil

Indonesia7.8mil

ThailandThailand

VietnamVietnam

1.4mil

Pakistan

1mil

Philippines

Bangladesh1mil

Myanmar

GDP per capita1.7mil

2.7mil

Growth in Motorcycle Popularity

33

(CY2014)

Thailand

Vietnam

Indonesia

India

Number of motorcycles units in operationPopulation

1,259

252

88

6740%

33%

27%

8%

Significant growth expected

Motorcycle Market Penetration in Asia (millions)Source: Honda

0.2 mil

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

110cc Motorcycle

Dream Yuga

125cc Motorcycle

CB Shine

0%

10%

20%

30%

40%

50%

60%

70%

0

100,000

200,000

300,000

400,000

500,000

600,000Competitors (Unit)

Honda (Unit)

Honda Share(%)

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

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%






Business Strategy

37

4,000

5,000

6,000

7,000

Honda Group Unit Sales

12-Month Results

FY15 FY16 Change

Motorcycles 17,592 17,055 - 3.1%

Automobiles 4,367 4,743 + 8.6%

Power Products 5,983 5,965 - 0.3%


12-Month Results

FY15 FY16 Change

Motorcycles 10,725 10,572 - 1.4%

Automobiles 3,513 3,636 + 3.5%

Power Products 5,983 5,965 - 0.3%

5,000

10,000

15,000

20,000

2,000

3,000

4,000

5,000

4,000

5,000

6,000

7,000

5,000

10,000

15,000

20,000

2,000

3,000

4,000

5,000

17,592 17,055 4,3674,743

5,983 5,965

10,72510,5723,5133,636

5,9835,965

38

(thousand)

(thousand)



FY15 FY16

Motorcycles Automobiles Power Products


Unit (thousand)

Unit (thousand)

Honda Group Unit Sales- Decrease in motorcycle unit sales due mainly to decline in sales in Indonesia and South America,

despite sales growth in Pakistan and Vietnam- Increase in automobile unit sales due primarily to new model launches and full model changes in China

and North America, despite decreased sales in Japan

Outline of FY16 Unit Sales (Consolidated)

38

Financial Results 12 MonthsFY15 FY16 Change

Sales revenue 13,328.0 14,601.1 + 9.6%

Operating profit 670.6 503.3 - 24.9%

Operating margin 5.0% 3.4% - 1.6 ptShare of profit of investmentsaccounted for using the equity method 96.0 126.0 + 31.1%

Profit before income taxes 806.2 635.4 - 21.2%

Profit for the periodattributable to owners of the parent 509.4 344.5 - 32.4%

Earnings per shareattributable to owners of the parent 282.66 191.16 - 91.5

US Dollar 110 120 Yen down by 10 yen

*1

0

200

400

600

800

1,000

0

200

400

600

800

1,000

Profit before Income Taxes

Share of profit of investments accounted for

using the equity method

806.2

635.4

96.0 126.0

5,000

7,000

9,000

11,000

13,000

15,000 14,601.1

0

200

400

600

800

1,000

670.6

503.3

0

200

400

600

800

1,000

509.4

344.5

Sales Revenue Operating Profit

13,328.0

Market average rates (Yen)

(Yen)

FY15 FY16

Yen(billion)

Financial SummarySales revenue increased 9.6% primarily due to increases in automobile and financial services business operations.

Operating profit decreased by 24.9% due primarily to increased SG&A expenses, including quality related costs, and negative foreign currency effects, despite an increase in sales volume and model mix and continuing cost reduction efforts.

Profit for the periodattributable to owners

of the parent

FY16 Financial Results (Consolidated)

39


4Q Results (3 Months)

FY15 FY16 Change

Motorcycles 4,307 4,173 - 3.1%

Automobiles 1,069 1,229 + 15.0%

Power Products 2,022 1,955 - 3.3%


4Q Results (3 Months)

FY15 FY16 Change

Motorcycles 2,777 2,633 - 5.2%

Automobiles 881 980 + 11.2%

Power Products 2,022 1,955 - 3.3%

0

1,000

2,000

3,000

4,000

5,000

0

200

400

600

800

1,000

1,200

1,400

1,000

1,500

2,000

2,500

0

1,000

2,000

3,000

4,000

5,000

0

200

400

600

800

1,000

1,200

1,400

4,307 4,1731,069

1,229

2,0221,955

2,777 2,633881

980 2,0221,955

40

(thousand)

(thousand)



FY15 FY16

Unit (thousand)

Unit (thousand)


Motorcycles Automobiles Power Products1,000

1,500

2,000

2,500

Honda Group Unit Sales- Decrease in motorcycle unit sales due mainly to decreased sales in Brazil and China,

despite sales growth in Pakistan and Philippines- Automobile unit sales increased due to sales growth in North America and China, as well as the positive

impact of new model introductions in Indonesia.

Outline of FY16 4th Quarter Unit Sales (Consolidated)

40

6.4%5.4% 6.0%

2.5%

6.5%

4.6% 4.5%

-1.7%-2%

0%

2%

4%

6%

8%

10%

1Q 2Q 3Q 4Q

FY15FY16

205.5 168.9

210.0

86.0

239.2

164.8 163.0

-63.8 -100

0

100

200

300

1Q 2Q 3Q 4Q

Financial Results 4Q Results (3 Months)FY15 FY16 Change

Sales revenue 3,491.5 3,657.8 + 4.8%

Operating profit 86.0 - 63.8 -

Operating margin 2.5% - 1.7% - 4.2 ptShare of profit of investmentsaccounted for using the equity method 17.9 8.3 - 53.3%

Profit before income taxes 107.6 - 58.7 -Profit for the periodattributable to owners of the parent 81.9 - 93.4 -

Earnings per shareattributable to owners of the parent 45.45 - 51.85 - 97.30

US Dollar 119 115 Yen up by4 yen

*1

Yen (billion)

(Yen)


Operating Profit Yen (billion)

Operating Margin

FY15 FY16

Financial SummarySales revenue increased 4.8% primarily due to an increase in automobile business operations despite negative foreign currency translation effects.

Operating loss declined by JPY 149.9 billion due primarily to increased SG&A expenses, including quality related costs, and negative foreign currency effects, despite an increase in sales volume and model mix and continuing cost reduction efforts.

FY16 4th Quarter Financial Results (Consolidated)

41

42

Profit before Income Taxes - 170.7 ( - 21.2 % )

806.2

635.4

+ 220.1+ 109.8 - 397.2

- 39.7 - 60.1 + 29.9 - 33.4

Operating Profit - 167.2 ( - 24.9 % )

OperatingProfit

670.6

OperatingProfit

503.3※Provisions made for warranty programs related to airbag inflators included in Product warranty expenses：FY15: approximately 120.0 billion yen, FY16: approximately 436.0 billion yen

FY15 FY16

Yen (billion)

- JPY / USD - USD / Others

(BRL, CAD, MXN)- Others

+ 122.8- 154.2

- 28.7

Finance income and

finance costs

Revenue,model mix,

etc.

Cost Reduction,etc.

Increase inSG&A Increase in

R&D CurrencyEffects

Share of profit of investments

accounted for using the equity

method

- Currency Effects - 38.1 - Interest rate swap/currency swap

+ 3.6- Others + 0.9<Increase Factors>

- Increased sales volume and model mix,- Decreased Incentives, etc.

<Increase Factors>- Cost reduction efforts, - Raw material price decrease, etc.

<Decrease Factors>- Increased product warranty expenses, etc.

Change in Profit before Income Taxes <FY16 Twelve Months>

43

Profit before Income Taxes - 166.3 ( - 154.5 % )

107.6

- 58.7

+ 96.4+ 37.7 - 210.4

- 31.0- 42.6

- 9.5 - 6.8

Operating Profit - 149.9 ( - 174.1 % )

OperatingProfit

86.0

OperatingProfit

- 63.8

Yen (billion)

FY15 4Q

FY16 4Q

Finance income and

finance costs

Revenue,model mix,

etc.

Cost Reduction,etc.

Increase inSG&A

Increase inR&D

CurrencyEffects Share of profit of

investmentsaccounted for

using the equity method


(BRL, CAD, MXN)- Others

- 4.4- 22.8

- 15.4

- Currency Effects - 17.3 - Interest rate swap/currency swap

+ 11.9- Others - 1.5

<Increase Factors>- Increased sales volume and model mix,- Decreased Incentives, etc.

<Increase Factors> - Cost reduction efforts, etc.

<Decrease Factors>- Increased Depreciation

and amortization, etc.

<Decrease Factors>- Increased product warranty

expenses, etc.

Change in Profit before Income Taxes <FY16 4th Qtr>

44

+ 1,430.5 - 709.0

- 306.8- 126.2

1,378.5 1,666.8

Net Change + 288.3

+ 1,068.3 - 706.6

- 232.5 + 77.31,171.9 1,378.5

Free cash flow+ 361.7 Net Change + 206.5

Free cash flow+ 721.4

FY15 Twelve Months

FY16 Twelve Months

Cash & Cash equivalentsat end of period

Cash & Cash equivalentsat beginning of FY15

Cash flows fromoperating activities

Cash flows from investing activities Cash flows from

financing activitiesEffect of exchange

rate changes

Profit before income taxes + 592.0Share of profit of investment accounted for using the equity method - 96.0Depreciation + 622.2Other - 49.8

Capital expenditures - 647.7Intangible assets - 231.2Other + 172.4

Dividends paid - 158.6Others - 73.9

Yen (billion)

Cash flows fromoperating activities

Cash flows from investing activities Cash flows from

financing activities Effect of exchange rate changes

Cash & Cash equivalentsat beginning of FY16

Cash & Cash equivalents at end of period

Profit before income taxes + 419.3Share of profit of investment accounted for using the equity method - 126.0Depreciation + 657.8Other + 479.3

Capital expenditures - 634.4Intangible assets - 232.3Other + 157.7

Dividends paid - 158.6Others - 148.2

* Depreciation, amortization and impairment losses excluding equipment on operating leases

Cash Flows of Non-financial Services Businesses

111 77 110 -18 131 68 70 -115

4.7%3.4% 4.2%

-0.7%

4.8%

2.6% 2.6%

-4.2%

1QFY15

2Q 3Q 4Q 1QFY16

2Q 3Q 4Q

Honda Consolidated Financial Results

FY15O/P

M/CFinance 29%

FY15Revenue

M/CPower Products

Finance14%

42 44 53 53 56 49 50 28

9.8% 10.2%11.2%

10.4%11.8%

10.8% 11.2%

6.3%

0

50

100

150

200

2Q 3Q 4Q 2Q 3Q 4Q

Quarterly Profit Business ScaleYen

(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


Annual Profit

Auto

Auto

FY15Revenue

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


(99)*

(8%)*

* (excluding one time profit)

(512)*

(6%)*

* (excluding one time profit)45

FY15O/P

Auto

Finance

42%

M/C

US GAAP IFRS

US GAAP IFRS

IFRS

IFRS

50 49 50 54 52 52 51 44

13.5% 13.4% 13.0% 11.9% 11.0% 11.1% 11.5%9.5%

FY151Q

2Q 3Q 4Q FY161Q

2Q 3Q 4Q


FY15Revenue

M/C

Power Products

Finance

2%

3 -1 -3 -3 1-4

-7 -20

4.1%

-1.4% -3.2% -3.4%0.6%

-4.4%-9.1%

-21.6%

FY151Q

2Q 3Q 4Q FY161Q

2Q 3Q 4Q

Quarterly Profit Business Scale

Yen (billions)


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


Annual Profit

FY15Revenue

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


11%

46

FY15O/P

Finance

Auto

FY15O/P

Finance

M/C30%

Auto

M/C

US GAAP IFRS

US GAAP IFRS

* Under IFRS, when P.P.E held for lease to others is routinely sold in the course of the ordinary activities, the sale for these itemsis recognized on a gross basis (recognize Revenue and Cos), while it is presented on a net basis under US GAAP

*

IFRS

IFRS

63 63 76 9 28 26 28 -180

6.4% 6.5% 7.9% 0.8%3.0% 2.7% 2.7%

-18.1%

FY151Q

2Q 3Q 4Q FY161Q

2Q 3Q 4Q

67 43 80 -8 109 37 38 26

3.9%2.6%

4.1%

-0.4%

5.0%

1.8%1.8% 1.3%

FY151Q

2Q 3Q 4Q FY161Q

2Q 3Q 4Q


Quarterly Profit Business ScaleOperating 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


Annual Profit


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


FY15Revenue

North America

Other Regions

Europe

Asia

Japan16%

FY15O/P

North America

Other Regions

Europe

Asia

Japan31%

North America

Yen (billions)

(233)*

(5%)*

* (excluding one time profit)

Yen (billions)

47

FY15Revenue

JapanOther Regions

Europe

Asia

NorthAmerica

52%

FY15O/P

Other Regions

Europe

Asia

26%NorthAmerica

Japan

US GAAP IFRS

US GAAP IFRS

IFRS

IFRS

69 61 77 72 96 86 88 66

9.2%7.8%

8.8%7.8%

10.6%9.8% 9.7%

7.8%

FY151Q

2Q 3Q 4Q FY161Q

2Q 3Q 4Q

FY15O/P

FY15Revenue

FY15O/P

FY15Revenue

2-6 -3 -16 -1

3

-5

22

0.9%-3.2% -1.5% -8.9% -0.6%

1.7%

-2.8%

9.5%

FY151Q

2Q 3Q 4Q FY161Q

2Q 3Q 4Q


Business Scale

Yen (billions)


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


Annual Profit


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


North America

Other Regions

Europe

Asia

Japan

5%

North America

Other Regions

Europe

Asia

Europe

North America

Other Regions

Europe

Asia Japan

Other Regions

Europe

Asia41%

Japan

Quarterly Profit

Japan

20%

North America

48

US GAAPIFRS

US GAAP IFRS

IFRS

IFRS

9 14 10 8 5 7 0 -20

3.6%5.8% 4.2%

3.4%1.9%

3.4%-0.2%

-12.1%

FY15Q1

Q2 Q3 Q4 FY16Q1

Q2 Q3 Q4

FY15O/P

FY15Revenue


Business Scale

Yen (billions)


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


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


Equity Income

North America

Europe

Other Japan

Europe

Asia

6%Japan

Quarterly Profit 7%

North America

Asia

Other

96 100 103119

9993

140

10083

131

36 5 37 18 38 34 45 8

FY151Q

2Q 3Q 4Q FY161Q

2Q 3Q 4Q

*Discontinued JV with Hero at Dec 2010

*ChinaGuangqi HondaDongfeng Honda

IndonesiaP.T Astra Honda

PakistanAtlas Honda

JapanShowa, Keihin, etc

Affiliates

49

96

US GAAP IFRS

US GAAP IFRS

IFRS

IFRS

(from Asia)(30.6) (15.8) (30.4) (16.0) (32.5) (28.9) (39.4)

126

(24.3)

50

FY16Results

FY17Forecast

Change

amount %

Sales revenue 14,601.1 13,750.0 - 851.1 - 5.8%

Operating profit 503.3 600.0 + 96.6 + 19.2%

Operating margin 3.4% 4.4% + 1.0 ptShare of profit of investmentsaccounted for using the equity method

126.0 130.0 + 3.9 + 3.2%

Profit before income taxes 635.4 705.0 + 69.5 + 10.9%

Profit for the yearattributable to owners of the parent 344.5 390.0 + 45.4 + 13.2%

US Dollar 120 105 Yen up by 15 yen

*1Earnings per shareattributable to owners of the parent 191.16 216.39 + 25.23

(Yen)

For *1, please refer to the footnote on page 35


Yen (billion)

FY17 Financial Forecasts (Consolidated)

"Honda Group Unit Sales"


“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)

( 3.6%)( +7.7%) (+ 1.6%)(vs last FY)

( +3.0%)( +9.2%) ( +1.6%)(vs last FY)

FY17 Guidance: Units Sales by Business Segment [IFRS]

51

FY16Results

FY17Forecast Change FY16

ResultsFY17

Forecast Change FY16Results

FY17Forecast Change

Japan 180 150 - 30 668 650 - 18 363 330 - 33North

America 308 310 + 2 1,929 1,990 + 61 2,811 2,950 + 139Europe 204 180 - 24 172 190 + 18 1,008 1,035 + 27

Asia 15,133 16,595 + 1,462 1,723 1,850 + 127 1,349 1,360 + 11Other

Region 1,230 1,125 - 105 251 235 - 16 434 385 - 49Total 17,055 18,360 + 1,305 4,743 4,915 + 172 5,965 6,060 + 95

FY16Results

FY17Forecast Change FY16

ResultsFY17

Forecast Change FY16Results

FY17Forecast Change

Japan 180 150 - 30 614 600 - 14 363 330 - 33North

America 308 310 + 2 1,929 1,990 + 61 2,811 2,950 + 139Europe 204 180 - 24 172 190 + 18 1,008 1,035 + 27

Asia 8,650 9,780 + 1,130 670 730 + 60 1,349 1,360 + 11Other

Region 1,230 1,125 - 105 251 235 - 16 434 385 - 49Total 10,572 11,545 + 973 3,636 3,745 + 109 5,965 6,060 + 95

52

Operating Profit + 96.6 ( + 19.2 % )

OperatingProfit

600.0

OperatingProfit

503.3

FY16Results

FY17Forecast

Finance income and

finance costsRevenue,model mix,

etc.

Cost Reduction,etc.

Decrease inSG&A

Increase inR&D

CurrencyEffects

Share of profit of investments

accounted for using the equity

method

635.4705.0+ 49.6

+ 113.0

+ 291.0 - 54.0- 303.0

+ 3.9 - 31.0

Profit before Income Taxes + 69.5 ( + 10.9 % )Yen (billion)


(BRL, CAD, MXN)- JPY / Asian Currencies

(INR, THB, VND, CNY, IND)- Others

- 182.0- 14.0

- 53.5

- 53.5

FY16 Forecast: Change in Profit before Income Taxes

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 R&D

Actual Amounts (billion Yen) % against Sales

US GAAP IFRS US GAAP IFRS US GAAP IFRS

560

440

690

FY17 Forecast: Capital Expenditures, Depreciation, R&D Expenditures

53

FY16Results

FY17Forecast

Change

Capitalexpenditures * 647.4 560.0 - 87.4

Depreciation andamortization * 440.4 440.0 - 0.4

Research and developmentexpenditures **

719.8 690.0 - 29.8

* Capital expenditures as well as Depreciation and amortization in results and forecast aforementioned exclude investment in operating leases, capital leases and intangible assets

** Research and development expenditures are research and development activity related costs incurred during the reporting period. In accordance with IFRS, a portion of research and development expenditures is recognized as an intangible asset and amortized over its estimated useful life. As such, this amount is not in conformity with "Research and development" on our Consolidated Statement of Income

Yen

Dividend

54

Dividend per Share FY15 FY16( Projection) FY17

(Expectation)Increase/

Decrease fromFY15

Increase/Decrease from

FY16

1st Quarter End 22 22 - ( 22 ) ( - )

2nd Quarter End 22 22 - ( 22 ) ( - )

3rd Quarter End 22 22 - ( 22 ) ( - )

4th Quarter End 22 ( 22 ) ( - ) ( 22 ) ( - )

Fiscal Year 88 ( 88 ) ( - ) ( 88 ) ( - )

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.

55

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