FY18 1st Quarter Financial Results Odyssey Honda Motor Co., Ltd. - PowerPoint PPT Presentation

FY18 1st Quarter Financial Results Odyssey Honda Motor Co., Ltd. (North America) August 1, 2017 1

Topics - News Topics - FY18 1st Quarter Financial Results - FY18 Financial Forecast - Dividend 2

News Topics  Takuma Sato became the first Japanese driver to win the prestigious Indianapolis 500 in the 101st running of the race (May)  Launch of the 250cc class supersports CBR250RR (May ： Japan)  New Odyssey sales start (May ： N. America)  New Civic Type R sales start (June ： N. America)  Launch of all-new CR-V (July ： China) CBR250RR • Dual type lineup “SPORT TURBO” and “SPORT HYBRID”* *”SPORT HYBRID” will be launched in September  Automobile sales in China reached 340,000 units in 1Q, Civic Type R an all-time record for the fiscal first quarter  Establishment of a joint venture for electric vehicle motors with Hitachi Automotive Systems (July) CR-V  Established a research project related to artificial intelligence with Kyoto University Graduate School of Informatics (April)  Initiated a joint research project with Boston University focusing on information security for artificial intelligence (May) 3

Outline of FY18 1st Quarter Results Summary (Consolidated) Results Summary Despite a negative impact from an increase in SG&A expenses and FOREX currency effects, robust motorcycle sales in Asia, cost reduction efforts and the reverse effect of the impact of the 2016 Kumamoto Earthquake on business operations during the same period last year resulted in operating profit of 269.2 billion yen, a 0.9% increase compared to the same period last year. 1st Quarter Results FY17 and FY18 FY17 FY18 Sales Revenue / Operating Profit / Profit for the Period Consolidated Unit Sales Unit Yen 2,000 (thousand) 300 300 (billion) 4,000 3,245 1,000 3,471.7 3,713.0 266.8 269.2 908 900 2,831 3,000 1,488 1,500 3,000 207.3 1,331 200 200 174.6 2,000 1,000 500 2,000 100 100 1,000 500 1,000 0 0 0 0 0 0 Motorcycles Automobiles Power Products Sales Revenue Operating Profit Profit for the Period attributable to owners of the parent 4

FY18 1st Quarter Unit Sales FY17 FY18 Honda Group Unit Sales 1Q Results (3 Months) Honda Group Unit (thousand) 4,352 4,699 Unit Sales FY17 FY18 Change 1,400 1,213 1,267 5,000 2,000 (thousand) 1,200 1,488 1,331 4,000 1,500 1,000 4,352 4,699 + 8.0% Motorcycles 3,000 800 1,000 600 Automobiles 1,213 1,267 + 4.5% 2,000 400 500 1,000 200 1,488 1,331 - 10.6% Power Products 0 0 0 Motorcycles Automobiles Power Products 1Q Results (3 Months) Consolidated Unit Sales Unit Consolidated (thousand) 2,000 5,000 1,400 Unit Sales FY17 FY18 Change (thousand) 1,200 1,488 1,331 4,000 1,500 3,245 1,000 900 908 2,831 3,245 + 14.6% Motorcycles 2,831 3,000 800 1,000 600 2,000 908 900 - 0.9% Automobiles 400 500 1,000 200 1,488 1,331 - 10.6% Power Products 0 0 0 Motorcycles Automobiles Power Products Honda Group Unit Sales - Increase in motorcycle unit sales due mainly to sales growth in India and Vietnam, despite decline in sales in Indonesia - Increase in automobile unit sales due mainly to sales growth in China and Japan, despite decline in North America 5

FY18 1st Quarter Financial Results (Consolidated) 1Q Results (3 Months) Financial Summary Financial Results FY17 FY18 Change Yen (billion) Sales revenue increased by 7.0% primarily 3,471.7 3,713.0 + 7.0% Sales revenue due to an increase in sales revenue in Operating profit 266.8 269.2 + 0.9% motorcycle and financial services business operations as well as the positive impact of 7.7% 7.3% - 0.4pt Operating margin foreign currency translation effects. Share of profit of investments 27.2 52.9 + 94.5% accounted for using the equity method Operating profits increased by 0.9% mostly 288.4 335.0 + 16.1% Profit before income taxes due to increased revenue related to the Profit for the period 174.6 207.3 + 18.7% positive impact of revenue and model mix as attributable to owners of the parent well as cost reduction efforts, despite an Earnings per share *1 (Yen) + 18.11 96.93 115.04 increase in SG&A expenses and other attributable to owners of the parent Market average rates (Yen) For *1, please refer to the footnote on page 29 factors . Yen down US Dollar 108 111 by 3yen Operating Profit Operating Margin Yen (billion) 10% 300 FY17 FY17 269.2 266.8 7.7% FY18 FY18 7.0% 8% 228.0 5.9% 207.6 200 7.3% 6% 3.7% 138.1 4% 100 2% 0% 1Q 2Q 3Q 4Q 0 1Q 2Q 3Q 4Q 6

FY18 Financial Forecast (Consolidated) Yen (billion) Change FY18 FY17 Change from previous forecast amount % Results Forecast 13,999.2 14,500.0 Sales revenue + 500.8 + 3.6% + 300.0 840.7 725.0 - 115.7 Operating profit - 13.8% + 20.0 6.0% 5.0% - 1.0 pt - Operating margin Share of profit of investments 164.7 180.0 + 15.2 + 9.2% + 5.0 accounted for using the equity method Profit before income 1,006.9 900.0 - 106.9 - 10.6% + 25.0 taxes Profit for the year 616.5 545.0 - 71.5 - 11.6% + 15.0 attributable to owners of the parent Earnings per share *1 (Yen) 342.10 - 39.71 302.39 + 8.32 attributable to owners of the parent For *1, please refer to the footnote on page 29 Market average rates (Yen) 107 Yen down 108 US Dollar Yen up by 1 yen by 2 yen (1Q 111 / 2 - 4Q 105 ) 7

Dividend (Yen) FY18 FY17 Dividend per Share Increase / Decrease (Expectation) from FY17 1 st Quarter End 22 24 + 2 2 nd Quarter End 22 ( 24 ) ( + 2 ) 3 rd Quarter End 24 ( 24 ) ( - ) 4 th Quarter End 24 ( 24 ) ( - ) 92 ( 96 ) ( + 4 ) Fiscal Year 8

Topics - FY18 1st Quarter Financial Results - Honda Group Unit Sales - Change in Sales Revenue - Change in Profit before Income Taxes - Business & Geographical Segment Information - Share of Profit of Investments Accounted for using the Equity Method - Capital Expenditures - FY18 Financial Forecast 9

Motorcycles * - Honda Group Unit Sales Unit (thousand) <Japan> ・ Positive impact of the new CBR250RR introduction ・ Reverse effect of the impact of the 2016 Kumamoto Earthquake + 347 CBR250RR <Asia> ( + 8.0 % ) ・ Increased sales in India, Vietnam and Thailand (Japan) ・ Decreased sales in Indonesia, other 5,000 4,000 3,000 4,699 4,538 4,523 4,352 4,248 2,000 1,000 0 1Q 2Q 3Q 4Q 1Q FY17 FY18 29 33 49 45 42 Japan North 78 71 68 77 80 America 72 48 31 66 81 Europe 3,885 4,125 4,115 3,812 4,219 Asia Other 288 261 260 248 277 Regions Total 4,352 4,538 4,523 4,248 4,699 10 * Motorcycles, All-Terrain Vehicles, Side-by-Sides, etc.

Automobiles - Honda Group Unit Sales Unit (thousand) <Asia> ・ Increased sales of Civic, Avancier and others in China + 54 ・ Positive impact of the new WR-V introduction in India Avancier ( + 4.5 % ) <North America> (China) ・ Decline in sales of sedan models 1,000 1,312 1,285 1,267 1,213 1,218 500 0 1Q 2Q 3Q 4Q 1Q FY17 FY18 146 156 170 196 157 Japan North 510 479 510 471 481 America 45 45 43 51 42 Europe 453 482 527 502 523 Asia Other 59 56 62 65 64 Regions Total 1,213 1,218 1,312 1,285 1,267 11

Power Products - Honda Group Unit Sales ＜ Europe ＞ Unit (thousand) ・ Increased sales of lawn mower/construction equipment OEM - 157 engines, other ＜ North America ＞ ( - 10.6 % ) ・ Decreased sales of lawn mower/pressure washer OEM GX160 engines, other (Engine) 2,500 2,000 1,500 2,218 1,000 1,488 1,331 1,240 1,175 500 0 1Q 2Q 3Q 4Q 1Q FY17 FY18 59 87 54 101 59 Japan North 769 522 521 1,165 596 America 225 165 190 455 240 Europe 360 376 311 383 362 Asia Other 75 90 99 114 74 Regions Total 1,488 1,240 1,175 2,218 1,331 12

Change in Sales Revenue <FY18 1st Qtr> Yen (billion) + 241.3 ( + 7.0 % ) Excluding currency translation effects + 166.0 ( + 4.8 % ) 3,713.0 + 1.2 + 75.3 + 59.0 + 47.1 ( + 1.6 %) ( + 12.7 %) + 58.6 ( + 1.9 %) 3,471.7 ( + 13.6 %) Currency Power Product Financial Services Effects & Automobile Business Motorcycle Other Businesses Business Business Sales Revenue FY17 1Q FY18 1Q Motorcycles 432.4 508.5 Automobiles 2,498.9 2,589.9 Financial Services 464.6 536.9 Business Power Product & 75.6 77.6 Other Businesses Total 3,471.7 3,713.0 Market average rates (Yen) US Dollar 108 111 FY17 1Q FY18 1Q 13

Change in Profit before Income Taxes <FY18 1st Qtr> Yen (billion) Profit before Income Taxes + 46.5 ( + 16.1 % ) Operating Profit + 2.3 ( + 0.9 % ) 335.0 + 18.4 + 19.9 - 27.6 + 28.3 + 25.7 - 7.4 - 10.8 288.4 Cost Reduction, Finance income Increase in Increase in and etc. SG&A Revenue, Currency Share of profit of finance costs R&D investments model mix, Effects accounted for etc. using the equity method <Increase Factors> - JPY / USD + 5.0 ・ Cost reduction efforts, etc. - USD / Others - 3.5 <Decrease Factors> (BRL, CAD, MXN) ・ Rise in material costs, etc. - JPY / Asian Currencies + 2.5 (INR, THB, VND, CNY, IDR) Operating Operating - Others - 14.8 Profit Profit 266.8 269.2 + 15.7 - Currency Effects <Increase Factors> - Interest rate swap/currency swap ・ Reverse effect of the impact of + 1.5 - Others + 1.0 the 2016 Kumamoto Earthquake ・ Decreased incentives, etc. FY17 1Q FY18 1Q 14