fy09 4th quarter financial results
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1
Honda Motor Co., Ltd.April 28, 2009
FY09 4th Quarter Financial Results
Honda INSIGHTFor U.S Market
2
FY09 4th Quarter Financial Results & FY10 Financial Forecasts
(1) FY09 Twelve Months Consolidated Financial Results (2) FY10 Financial Forecasts (3) Dividend to Shareholders
(1) 4th Quarter & Twelve Months Consolidated Financial Results (2) Consolidated Capital Expenditures(3) FY10 Financial Forecasts
・Outline Executive Vice President - Koichi Kondo
・ Details Chief Operating Officer for Business Management Operations – Yoichi Hojo
33
EPS (Yen) 330.54 75.50 - 77.2%( - 255.04 yen)
Note : Shares which are based on calculation of EPS
approx.1,815,356,000 shares
approx.1,814,561,000 shares
Outline of FY09 Twelve Months Financial Results (Consolidated)
Unit (Sales)FY09 Twelve Months
FY08 FY09 Change
Motorcycles 9,320 10,114 + 8.5%
Automobiles 3,925 3,517 - 10.4%
Power Products 6,057 5,187 - 14.4%
Financial resultsFY09 Twelve Months
FY08 FY09 ChangeNet sales & other operating revenue 12,002.8 10,011.2 - 16.6%
Operating income 953.1 189.6 - 80.1%
Income before income taxes 895.8 161.7 - 81.9%
Equity in income of affiliates 118.9 99.0 - 16.7%
Net income 600.0 137.0 - 77.2%
US Dollar 114 101 Yen up by 13 yen
Euro 162 142 Yen up by 20 yen
Average Rates (Yen)
Yen(billions)
Major Change Factors
Business Environment
(weighted average number of shares outstanding )
(weighted average number of shares outstanding )
Unit (thousands)
Motorcycle market
Automobile market
Unit SalesMotorcycles:
Automobiles:
Power Products:
Net sales & other operating revenue
Operating income
<Decrease Factors>
<Increase Factors>
Crude oil and raw material prices rose significantly worldwide in the first half, then declined in the second half. The economy in the U.S. and Europe deteriorated caused by the financial crisis. A further downturn due to the negative economic cycle is feared. In China and India, economic growth slowed down in the second half.In Japan, both capital expenditures and consumer spending declined, and the economy is rapidly deteriorating Yen appreciation against the U.S. dollar and Euro
Demand in the U.S declined significantly Due to strong sales in the first half, industry-wide sales volume in Brazil, India and Thailand maintained YOY despite reduced sales in the second half
Demand in the U.S., Western Europe and Japan declined significantly in the second half. Overall market size was increased in Brazil, China and India despite a temporary decline in demand.
Asia and other regions including Brazil contributed to gain in operating profit, offsetting deterioration in major markets.
Decline due to lower sales volume of automobiles and power productsNegative currency translation effects
Increases in Asia and “Other” Region, which includes Middle East Decreases in North America, Europe and Japan
Favorable sales in Asia and Other Regions, which includes BrazilDecreases in North America, Japan and Europe
Strong sales in Asia and BrazilDecreases in North America, Japan and Europe
Decrease in revenue and model mix change, etc.Increased raw material costsIncreased fixed cost due to production cutCurrency factors
Effects of cost reductionDecrease in R&D
4
Change
- 97.0
- 49.0
- 151.7
- 179.6
- 1,641.2
Amount
40.0
50.0
10.0
10.0
8,370.0
FY10Forecasts
- 49.5%99.0Equity in income of affiliates
- 70.8%
- 93.8%
- 94.7%
- 16.4%
%
137.0Net income
161.7Income before income taxes
189.6 Operating income
10,011.2Net sales & other operating revenue
FY09Results
Yen (billions)
Note : Shares which are basedon calculation of EPS (as of Mar. 31, 2009)
Approx. 1,814,561,000 shares Approx. 1,814,609,000 shares
FY10 Financial Forecasts (Consolidated)
- 53.46 - 70.8%22.0475.50 EPS (Yen)
Yen up by 17 yen
Yen up by 6 yen
125
95
142Euro
101U.S. Dollar
Average Rates (Yen)
(weighted average number of shares outstanding )
※Net income FY10 means attributable toshareholders of Honda
※
5
FY09 Financial Results & FY10 Financial Forecasts (Unconsolidated)
FY10Forecasts
FY09Results
FY08Results
-
-
-
- 16.7%
Change
- 59.6
- 3.2
- 158.4
3,404.5
298.5
351.1
140.4
4,088.0
Change
-
-
-
- 20.4%
141.0Net income
119.0Ordinary Profit
- 148.0Operating Profit
2,710.0Net sales
Yen up by 17 yen
Yen up by 6 yen
Yen up by 20 yen
Yen up by 13 yen
Euro
U.S. Dollar
125
95
162
114
142
101
Yen (billions)
Average Rates (Yen)
6
Dividend to Shareholders
(Yen)(Yen)
±0
- 14 8 + 222201st quarter End
- 14 8 22222nd quarter End
- 3 8 - 1111223rd quarter End
±08 - 14 8224th quarter End
- 3132 - 2363 86Fiscal Year
Increase/Decreasefrom
FY08 Results
FY08Results
Increase/Decreasefrom
FY09 Results
FY10Projection
FY09Results &Projection
Dividend per share
Projection as of Apr. 28th
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
7
FY09 4th Quarter Financial Results & FY10 Financial Forecasts
(1) 4th Quarter & Twelve Months Consolidated Financial Results (2) FY10 Financial Forecasts (3) Dividend to Shareholders
(1) 4th Quarter & Twelve Months Consolidated Financial Results (2) Consolidated Capital Expenditures(3) FY10 Financial Forecasts
・Outline Executive Vice President - Koichi Kondo
・ Details Chief Operating Officer for Business Management Operations – Yoichi Hojo
8
(1) 4th Quarter & Twelve Months Consolidated Financial ResultsOutline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating RevenueChange in Operating IncomeBusiness Segment InformationGeographical InformationChange in Income before Income Taxes < Other Income/Expenses and
Currency Effects >
(2) Consolidated Capital Expenditures
(3) FY10 Financial Forecasts
Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts
9
EPS (Yen) 14.01 - 102.59 -( - 116.60 yen)
Note : Shares which are based on calculation of EPS
approx.1,814,587,000 shares
approx.1,814,610,000 shares
Outline of FY09 4th Quarter Financial Results (Consolidated)
Unit (Sales)4Q Results
FY08 FY09 Change
Motorcycles 2,368 2,002 - 15.5%
Automobiles 1,051 680 - 35.3%
Power Products 2,092 1,531 - 26.8%
Financial results4Q Results
FY08 FY09 ChangeNet sales & other operating revenue 3,055.5 1,783.8 - 41.6%
Operating income 168.8 - 283.0 -
Income before income taxes 146.8 - 309.5 -
Equity in income of affiliates 24.3 2.7 - 88.7%
Net income 25.4 - 186.1 -
US Dollar 106 94 Yen up by 12 yen
Euro 158 121 Yen up by 37 yen
Average Rates (Yen)
Yen(billions)
(weighted average number of shares outstanding )
(weighted average number of shares outstanding )
Unit (thousands)
Major Change Factors
Business Environment
Motorcycle market
Automobile market
Unit SalesMotorcycles:
Automobiles:
Power Products:
Net sales & other operating revenue
Operating income
<Decrease Factors>
<Increase Factors>
Decreased unit sales in all the regions
Decreased unit sales in all the regions
Decreased unit sales in all the regions
Financial crisis and deterioration of real economy led the U.S. and Europe recession to deepen and become more serious. Japan economy deteriorated rapidly due mainly to a decline in exports.Pace of economic expansion has further slowed down in AsiaYen appreciation against the U.S. dollar and Euro
Steep deterioration not only in the U.S. but in Thailand and IndonesiaDemand in India has recovered from the previous quarter.
Steep downturn in the U.S., Japan and Western EuropeDemand in Russia continued to decline largely.Expanding markets in India, Brazil and China
Honda earned operating profit for the fiscal year, however it posted operating loss in the 4Q due to decreased volume in all businesses under rapid market deterioration.
Decline mainly due to decreased unit sales of automobilesNegative currency translation effects
Decrease in revenue and model mix change, etc.Increased fixed costs due to production cutIncreased raw material costsCurrency factors
Effects of cost reductionDecrease in SG & A
10
(1) 4th Quarter & Twelve Months Consolidated Financial ResultsOutline of 4th Quarter Consolidated Financial ResultsNet Sales and Other Operating RevenueChange in Operating IncomeBusiness Segment InformationGeographical InformationChange in Income before Income Taxes < Other Income/Expenses and
Currency Effects >
(2) Consolidated Capital Expenditures
(3) FY10 Financial Forecasts
Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts
11
Power Product &
Other Businesses
Automobile Business
Financial ServicesBusiness
Currency Effects
FY09 4QFY08 4Q
4QNet Sales by Business Segment FY09FY08
3,055.5
116.8
138.0
2,356.6
444.0
72.6Power Products
& Other Business
1,783.8Total
135.2Financial Services Business
1,301.4Automobile Business
274.4Motorcycle Business
Market average rates
100.54114.28U.S. Dollar
161.53 143.48Euro
93.61105.29U.S. Dollar
157.65 121.81Euro
Yen (billions)
Twelve monthsNet Sales byBusiness Segment FY09FY08
12,002.8
421.1
533.5
9,489.3
1,558.6
343.0Power Products
& Other Business
10,011.2Total
582.2Financial Services Business
7,674.4Automobile Business
1,411.5Motorcycle Business
If excluding currency translation effects; - 920.0bn. yen (- 30.1 %)
If excluding currency translation effects; - 795.8 bn. yen (- 6.6 %)
4th Quarter (Three months)
Twelve Months
MotorcycleBusiness
Power Product &
Other BusinessesAutomobile
BusinessFinancial Services
Business
MotorcycleBusiness
FY08 Twelve Months
FY09Twelve Months
Market average rates
Yen (billions)
Net Sales and Other Operating Revenue
Currency Effects
(- 19.5 %)
(- 34.5 %) (+ 10.0 %) (- 28.2 %)
3,055.5
- 86.6- 814.2 + 13.8 - 33.0
- 351.5
1,783.8
(+ 1.1 %) (- 9.3 %)
(+ 23.3 %) (- 11.6 %)
12,002.8+ 18.5 - 889.9
+ 124.7 - 49.0- 1,195.7
10,011.2
- 1,271.6(- 41.6 %)
- 1,991.5 (- 16.6 %)
12
(1) 4th Quarter & Twelve Months Consolidated Financial ResultsOutline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating RevenueChange in Operating IncomeBusiness Segment InformationGeographical InformationChange in Income before Income Taxes < Other Income/Expenses and
Currency Effects >
(2) Consolidated Capital Expenditures
(3) FY10 Financial Forecasts
Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts
13
Change in Operating Income <FY09 4th Quarter>
<Increase Factors>• Decrease in quality related expenses• Decreased expenses for advertising, sales promotion, etc.<Decrease Factors>• 0ne-off expenses related to withdrawal from some racing activitiesand cancellations of new model developments , etc.
Income before Income taxes - 456.4 bn. yen
146.8
-309.5
- 357.9
- 107.9
+ 21.5 + 19.3 - 26.8- 7.6 + 3.0
Operating Income - 451.8 bn. yen
<Increase Factors>• Effects of cost reductions, etc.<Decrease Factors>• Increase in fixed cost due to production cut• Impact of increase in raw material prices, etc.
Other Income &
Expenses- 4.5 bn. yen
Operating income
168.8
Operating income
-283.0
<Increase Factors>• Change in pricing for the new model year, etc.
<Decrease Factors>• Decline in profit attributable to lower unit sales •Model mix impact, etc.
Revenue, model mix, etc.
Cost Reduction, the effect of raw
material cost , etc.
Decrease in R&D Currency Effect Fair value of derivativeinstruments
OthersDecrease in SG&A
FY09 4QFY08 4Q
Yen (billions)
14
Change in Operating Income <FY09 Twelve Months>
FY08 Twelve Months
Yen (billions)
FY09 Twelve Months
Income before Income taxes - 734.1 bn. yen (- 81.9%)
895.8
161.7
- 247.7
- 182.5
- 88.3+ 24.7 - 269.5
+ 85.7 - 56.4
Operating Income- 763.4 bn. yen ( - 80.1 % )
Operating income
953.1 Operating income
189.6
Other Income &
Expenses+ 29.3 bn. yen
<Increase Factors>• Change in pricing for the new model year• Decrease in sales incentives for North America automobile business
<Decrease Factors>• Decline in profit attributable to lower unit sales•Model mix impact, etc.
Revenue, model mix, etc.
Cost Reduction, the effect of raw
material cost , etc.Decrease in R&D
Currency Effect Fair value of derivativeinstruments
Others
Increase in SG&A
<Increase Factors>• Effects of cost reductions, etc.<Decrease Factors>• Impact of increase in raw material prices• Increase in fixed cost due to production cut , etc.
<Increase Factors>• Decrease in quality related expenses , etc.<Decrease Factors>• 0ne-off expenses related to withdrawal from some racing activitiesand cancellations of new model developments
• Increase in provisions for credit loss and residual loss , etc.
15
(1) 4th Quarter & Twelve Months Consolidated Financial ResultsOutline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating RevenueChange in Operating IncomeBusiness Segment InformationGeographical InformationChange in Income before Income Taxes < Other Income/Expenses and
Currency Effects >
(2) Consolidated Capital Expenditures
(3) FY10 Financial Forecasts
Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts
16
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Motorcycle Unit Sales (Motorcycles + All-Terrain Vehicles, etc.)Unit
(thousands) FY09 4QChange from
FY 08 4QMajor increase/decrease factors
Japan 51 - 15- Increase of leisure model such as Monkey- Decrease in sales of scooters such as TODAY and
FORZA
North America 72 -78 - Decrease of sports bikes such as CBR1000RR and
custom bikes such as VTX1300C
Europe 71 - 18 - Increase of scooters such as SH150 in Italy- Decrease of scooters such as SH125 in Spain
Asia 1,449 -168 - Increase of Unicorn、Shine in India- Decrease of Wave、CLICK in Thailand
Other Regions 359 -87 - Increase of CG125 in Brazil
- Decrease of CG150 TITAN, BIZ125 in Brazil
Total 2,002 -366
* 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.
371
1,623958084
2,253
Approx 1,100 Approx 1,020
392
1,64568
121107
2,333
- 366( - 15.5% )
Approx 1,160
401
1,74861
10254
2,366446
1,61789
15066
2,368
Approx 1,280
436
2,050918058
2,715
Approx 1,210
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
1,610
6,633
313453311
9,320
Approx 4,580
509
2,146669379
2,893
Approx 1,260
+ 794( + 8.5% )
1,763
7,523
276320232
10,114
Approx 4,700
459
1,878487544
2,504
Approx 1,110
3591,449
71
51
2,002
72
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
AsiaEurope
Other Regions
JapanNorth America
Approx 1,100
Unicorn (India)
Monkey (Japan)
17
Motorcycle Business Net Sales/Operating Income/Operating Margin
Yen(billions)
Operating Margin
Operating Income
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
1,411.51,558.6274.4342.8401.0393.0444.0364.6381.6368.3Net Sales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY09FY08FY09FY08
Yen(billions)
- 2.8
25.2
46.3
31.1
52.7
30.337.031.1
151.2
99.9
- 1.0%
7.4%
11.6%
9.7%7.9%
11.9%
8.3%8.5%9.7%
7.1%
-20
0
20
40
60
80
100
120
140
160
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
<Increase Factors>• Effects of cost reduction, etc.<Decrease Factors>• Increase in raw material costs,• Decrease in revenue and model mix change, etc.
( - 34.0% )
(- 38.2%) (- 9.4%)
18
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
18
Unit(thousands) FY09 4Q Change from
FY 08 4Q Major increase/decrease factors
Japan 141 - 50 - Increase of FREED, INSIGHT, etc.- Decrease of FIT, etc.
North America 219 -240 - Increase of FIT, etc.
- Decrease of Accord, Civic, CR-V, etc.
Europe 103 - 6 - Increase of Civic and CR-V in Russia- Decrease of CR-V and Civic in the U.K., Spain and Italy
Asia 151 -52- Decrease of component parts for China (Accord and
CR-V, etc.) - Decrease of CR-V, in Indonesia, etc.
Other Regions 66 -23 - Increase of CR-V in Brazil
- Decrease of Civic, CR-V in Australia
Total 680 - 371
Automobile Unit Sales
* 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.
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
- 371( - 35.3% )
6618792
465
946
136
72177100
445
937
143
87
18890
481
991
145
89203109
459
1,051
191
78
22175
460
962
128
91
20487
401
935
152
314
755
391
1,850
615
3,925
322
793
350
1,496
556
3,517
- 408( - 10.4% )
CR-V (Brazil)
87
217
85
416
940
135
INSIGHT (Japan)
66151103219
680
141
AsiaEurope
Other Regions
Japan
North America
19
Automobile Business Net Sales/Operating Income/Operating Margin
Yen(billions)
Yen(billions) Operating Margin
Operating Income
7,674.49,489.31,301.41,974.22,170.62,228.02,356.62,449.02,356.42,327.2Net Sales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY09FY08FY09FY08
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
24.5
661.6
148.3213.0 220.7
79.5161.2
79.0 70.5
- 286.2
0.3%
7.0%
6.4% 9.0%
3.4%7.2%9.0%
3.6% 3.6%
-22.0%
-300
-200
-100
0
100
200
300
400
500
600
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
(- 96.3%)
700
(- 44.8%) (- 19.1%)
<Increase Factors>• Effects of cost reductions, • Decrease in SG&A expenses etc.<Decrease Factors>• Decrease in revenue and model mix change , etc.• Increase in fixed cost due to production cut• Increase in raw material costs etc.
20
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
20
FY094Q
Change from FY 08 4Q
Major increase/decrease factors
Japan 101 - 50- Increase of gas-powered mini-tiller Pianta FV200, etc- Decrease of GX series engines for OEM generators
North America 655 - 233 - Decrease of GC/GC(V) series for OEM washer
pressure and lawn mower in United States
Europe 472 - 199- Decrease of general purpose engines, such as
GX/GC series engines for OEM construction machinery and generators
Asia 200 -51 - Increase of water pumps in Indonesia- Decrease of generators in India
Other Regions 103 -28
- Decrease in general purpose engines, such as the GX series generators in Australia
Total 1,531 - 561
Power Products Unit Sales
* 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.
- 561(- 26.8%)
97220
390
687
135
1,529
116242
280
479
141
1,258
140202352
361
123
1,178
131251
671
888
151
2,092
119249
319
493
159
1,339
127
296
231402
146
1,202
484
915
1,693
2,415
550
6,057
502
970
1,306
1,893
516
5,187
- 870(- 14.4%)
153225284
343110
1,115 103200
472
655
101
1,531
Unit(thousands)
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
Pianta FV200 (Japan)
Asia
Europe
Other Regions
Japan
North America
21
Power Product & Other Businesses Net Sales/Operating Income/Operating Margin
Yen(billions)
Yen(billions)
Operating Margin
Operating Income
368.9442.779.479.5103.0106.8122.3100.2105.0115.2Net Sales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY09FY08FY09FY08
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
- 15.4
22.3
7.9 6.92.2 5.1
0.2 - 0.9- 2.8
- 11.9- 4.2%
5.0%6.9%
2.3%4.2%
0.2%
6.6%
- 0.9%- 3.5%
- 15.0%-20
-15
-10
-5
0
5
10
15
20
25
-16%
-12%
-8%
-4%
0%
4%
8%
12%
16%
20%
<Increase Factors>• Decrease in SG&A expenses<Decrease Factors>• Decrease in revenue
and model mix change, etc.• Increase in R&D expenses
for Other Businesses (expenses related to start-up
of new businesses) , etc.
(- 35.1%) (- 16.7%)
22
Financial Services Business Net Sales/Operating Income/Operating Margin
Yen(billions)
Yen(billions)
Operating Margin
Operating Income
596.5549.0138.3146.0162.6149.5141.7139.6137.8129.8Net Sales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY09FY08FY09FY08
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
(- 2.4%) (+ 8.6%)
(- 31.5%)(- 42.3%)
18.09.4
24.328.731.322.9
29.334.2
117.7
80.6
13.1%
6.5%
14.9%
21.3%
19.2%
22.1%
16.4%
26.4%
21.5%
13.5%
0
10
20
30
40
50
60
70
80
90
100
110
120
130
0%
10%
20%
30%
<Increase Factors>• Increase in finance receivables and property on operating leases, etc.<Decrease Factors>• Increase in provisions for residual loss, etc.
23
(1) 4th Quarter & Twelve Months Consolidated Financial ResultsOutline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating RevenueChange in Operating IncomeBusiness Segment InformationGeographical InformationChange in Income before Income Taxes < Other Income/Expenses and
Currency Effects >
(2) Consolidated Capital Expenditures
(3) FY10 Financial Forecasts
Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts
24
Net Sales/Operating Income/Operating MarginJapan
Yen(billions)
Yen(billions)
Operating Income
Operating Margin (%)
4,162.54,889.0740.11,079.21,193.51,149.61,251.01,246.11,215.51,176.2Net Sales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY09FY08FY09FY08
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
- 176.0
- 64.3
40.937.92.356.2
73.360.6
192.5
- 161.6
-200
-150
-100
-50
0
50
100
150
200
(- 40.8%) (- 14.9%)
( 0.2 % )
( - 23.8 % )
( 3.9 % )
(- 3.9 % )
<Increase Factors>• Effects of cost reductions• Decrease in R&D expenses, etc.
<Decrease Factors>• Decrease in revenue and model mix change, etc• Increase in raw material costs• Currency effects, etc.
25
Net Sales/Operating Income/Operating MarginNorth America
Yen(billions)
Yen(billions)
Operating Income
Operating Margin (%)
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
4,779.16,265.2684.21,231.61,370.01,493.11,484.11,640.51,557.11,583.3Net Sales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY09FY08FY09FY08
- 107.4
70.022.5
94.563.1
156.3116.0
97.0
432.6
79.7
-200
-100
0
100
200
300
400
500
( 4.3 % )
(- 15.7 % )
( 6.9 % )
( 1.7 % )
(- 81.6 %)
(- 53.9%) (- 23.7%)
<Increase Factors>• Decrease in SG&A expenses, • Effects of cost reductions etc.<Decrease Factors>• Decrease in revenue and model mix change, etc• Increase in fixed cost due to production cut• Increase in raw material costs etc.
26
10.2
51.5
10.3
16.7
5.8
18.6
11.28.3 1.1
-10.5
-15
-5
5
15
25
35
45
55
Net Sales/Operating Income/Operating MarginEurope
Yen(billions)
Yen(billions)
Operating Income
Operating Margin (%)
1,278.91,594.2264.2299.4350.7364.5441.3361.7390.8400.2Net Salse
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY09FY08FY09FY08
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
(- X.X%) (+ X.X%)
( 4.2 % )
(- 4.0 % )
( 3.2 % )
( 0.8 % )
(- 80.2%)
(- 40.1%) (- 19.8%)
<Increase Factors>• Effects of cost reductions, etc.<Decrease Factors>
• Decrease in revenue and model mix change, etc• Increase in fixed cost due to production cut etc.
27
Net Sales/Operating Income/Operating MarginAsia
Yen(billions)
Yen(billions)
Operating Income
Operating Margin (%)
1,608.21,638.2334.8385.2451.8436.2415.9413.4415.6393.3Net Sales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY09FY08FY09FY08
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
103.6
130.7
36.9 33.438.3
21.9
48.336.6
24.9
- 6.3-20
0
20
40
60
80
100
120
140
( 5.3 % )
( - 1.9 % )
( 8.0 % )
( 6.4 % )
(- 20.7%)
(- 19.5%) (- 1.8%)
<Increase Factors>• Decrease in SG&A expenses, etc.<Decrease Factors>• Decrease in revenue and model mix change, etc• Increase in raw material costs etc.
28
55.773.665.456.3
38.0 39.5
244.0211.4
65.461.2
22.2
97.5
14.322.6
86.1
30.413.923.626.8 29.5
0
50
100
150
200
250
300
Operating Income of Affiliates and Honda’s Equity in Income
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 Ltd. *A.P. Honda Co., Ltd.
China
IndiaIndonesiaMalaysiaPakistanThailand
Guangzhou Honda Automobile Co., Ltd.*Dongfeng Honda Engine Co., Ltd.*Dongfeng Honda Automobile Co., Ltd.*
Others 40, Total 50 companies
Motorcycle Business: Automobile Business :As of the end of March, 2009Affiliates accounted for under the equity method in Asia
Fiscal term of companies marked “*” differs from that of Honda Motor Co., Ltd.
Yen(billions)
China
Operating Income of AffiliatesAsia
Yen(billions)
+ 1.5( + 3.9% )
+ 32.6( + 15.4% )Operating Income Equity in Income
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
35.2
39.54Q
64.0
73.6
3Q
58.3
65.4
1QFY09
56.1
65.4
2Q
188.0
211.412 Months
FY08
244.038.055.756.361.2OperatingIncome
FY09FY08
31.0
4Q
213.749.750.057.2Net Income
12 Months3Q2Q1Q
29
Net Sales/Operating Income/Operating MarginOther Regions
Yen(billions)
Yen(billions)
Operating Income
Operating Margin (%)
1,144.21,092.8196.1304.7349.5293.7313.9284.6267.9226.3Net Sales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY09FY08FY09FY08
4Q3QFY09FY08FY09FY08
12 Months12 Months1Q 2Q4Q3Q2Q1Q
135.0
116.4
21.730.1 31.7 32.7 36.3
48.741.8
8.0
0
20
40
60
80
100
120
140
160
180
( 10.4 % ) ( 4.1 % )
( 10.7 % )
( 11.8 % )
(+ 16.0%)
(- 75.4%)
(- 37.5%) (+ 4.7%)
<Increase Factors>• Effects of cost reductions, etc.<Decrease Factors>• Increase in SG&A expenses, • Currency effects, etc.
30
(1) 4th Quarter & Twelve Months Consolidated Financial ResultsOutline of 4th Quarter Consolidated Financial Results Net Sales and Other Operating RevenueChange in Operating IncomeBusiness Segment InformationGeographical InformationChange in Income before Income Taxes < Other Income/Expenses and
Currency Effects >
(2) Consolidated Capital Expenditures
(3) FY10 Financial Forecasts
Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts
31
Yen (billions)
Change in Income before Income Taxes <FY09 4th Quarter>
146.8
-309.5
- 357.9
- 107.9
+ 21.5 + 19.3 - 26.8- 7.6 + 3.0
Revenue, model mix, etc.
Cost Reduction, the effect of raw
material cost , etc.
Decrease in R&D Currency Effect Fair value of derivativeinstruments
OthersDecrease in SG&A
FY09 4QFY08 4Q
Operating income
168.8
Operating income
-283.0
Income before Income taxes - 456.4 bn. yen
Operating Income - 451.8 bn. yen Other Income
& Expenses
- 4.5 bn. yen
<Increase Factors>• Decrease in quality related expenses• Decreased expenses for advertising, sales promotion, etc.<Decease Factors>• 0ne-off expenses related to withdrawal from some racing activitiesand cancellations of new model developments , etc.
<Increase Factors>• Effects of cost reductions, etc.<Decease Factors>• Increase in fixed cost due to production cutImpact of increase in raw material prices,
etc.
<Increase Factors>• Change in pricing for the new model year, etc.
<Decease Factors>• Decline in profit attributable to lower unit sales •Model mix impact, etc.
<Currency Effects >Impact on Operating income - 26.8 bn. yen (due to difference of average rates and translation effects)Impact on Other income & expenses +12.4 bn. yen (due to difference between average rates and transaction rates)Impact on Income before income taxes - 14.4 bn. yen (see also Exhibit 1)
Currency effect due to difference between average rates and transaction rates: +12.4 bn. yenInterest rate swap cost, etc. : - 9.3 bn.yen
(Exhibit 2)
32
Change in Income before Income Taxes < FY09 Twelve Months >
FY08 12 Months
Yen (billions)
FY09 12 Months
895.8
161.7
- 247.7
- 182.5
- 88.3+ 24.7 - 269.5
+ 85.7 - 56.4
Operating income
953.1Operating
income
189.6
Revenue, model mix, etc.
Cost Reduction, the effect of raw
material cost , etc. Decrease in R&D
Currency Effect Fair value of derivativeinstruments
Others
Increase in SG&A
Income before Income taxes - 734.1 bn. yen (- 81.9%)
Operating Income- 763.4 bn. yen ( - 80.1 % ) Other Income &
Expenses+ 29.3 bn. yen
<Increase Factors>• Change in pricing for the new model year• Decrease in sales incentives for North America automobile business
<Decease Factors>• Decline in profit attributable to lower unit sales•Model mix impact, etc.
<Increase Factors>• Effects of cost reductions, etc.<Decease Factors>• Impact of increase in raw material prices• Increase in fixed cost due to production cut , etc.
<Increase Factors>• Decrease in quality related expenses , etc.<Decease Factors>• 0ne-off expenses related to withdrawal from some racing activitiesand cancellations of new model developments
• Increase in provisions for credit loss and residual loss , etc.
Currency effect due to difference between average rates and transaction rates: +33.0 bn. yenInterest rate swap cost, etc. : - 89.4 bn.yen
<Currency Effects >Impact on Operating income - 269.5 bn. yen (due to difference of average rates and translation effects)Impact on Other income & expenses + 33.0 bn. yen (due to difference between average rates and transaction rates)Impact on Income before income taxes - 236.5 bn. yen (see also Exhibit 1)
(Exhibit 2)
33
(1) 4th Quarter & Twelve Months Consolidated Financial ResultsOutline of 4th Quarter Consolidated Financial ResultsNet Sales and Other Operating RevenueChange in Operating IncomeBusiness Segment InformationGeographical InformationChange in Income before Income Taxes < Other Income/Expenses and
Currency Effects >
(2) Consolidated Capital Expenditures
(3) FY10 Financial Forecasts
Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts
34
FinancialServicesBusiness
Power product&
Other BusinessesMotorcycle Automobile
Business
FY08 Twelve MonthsMarket average ratesUS$ 1= JPY 114.28Euro 1= JPY 161.53
FY09 Twelve Months
Currency Effects
16.9Power Product & Other Businesses
599.1Total
1.0Financial Services Business
490.7Automobile Business
90.4Motorcycle Business
If excluding currency translation effects + 4.3 bn. yen (+ 0.7 %)
Yen
(billions)
Market average ratesUS$ 1= JPY 100.54 (Yen up by 13.74 yen)Euro 1= JPY 143.48 (Yen up by 18.05 yen)
Yen (billions)
21.7Power Product & Other Businesses
654.0Total
0.6Financial Services Business
544.9Automobile Business
86.6Motorcycle Business
Yen (billions)
※ Capital expenditures in results aforementioned excludeinvestment in operating leases and intangible assets
Consolidated Capital Expenditures <FY09 Twelve Months>
- 6.9654.0
+ 12.9 + 0.6 - 2.3 - 59.2
599.1
- 54.8 bn. yen (- 8.4 %)
35
(1) 4th Quarter & Twelve Months Consolidated Financial ResultsOutline of 4th Quarter Consolidated Financial ResultsNet Sales and Other Operating RevenueChange in Operating IncomeBusiness Segment InformationGeographical InformationChange in Income before Income Taxes < Other Income/Expenses and
Currency Effects >
(2) Consolidated Capital Expenditures
(3) FY10 Financial Forecasts
Details of FY09 4th Quarter Financial Results & FY10 Financial Forecasts
36
Japan
Europe
Other Regions
Asia
NorthAmerica
Automobiles Power Products
FY09Results
Motorcycles
FY10Forecasts
Unit sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its subsidiaries
Unit(thousands)
FY09Results
FY09Results
Forecast: Unit Sales by Business Segment
* 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.
FY10Forecasts
FY10Forecasts
0
3,000
6,000
9,000
12,000
15,000
0
1,000
2,000
3,000
4,000
5,000
6,000
0
1,000
2,000
3,000
4,000
- 307 - 527- 1,519
10,114
Approx 5,380
8,595
Approx 4,700
3,2103,517
5,187
7,523
320232
276
1,763
350
556
1,496
322
793
1,306
516
1,893
502
970
6,500
190
205
1,465
235
290
555
1,350
240
775
4,660
1,230
420
1,690
440
880
37
Change
- 97.0
- 49.0
- 151.7
- 179.6
- 1,641.2
Amount
40.0
50.0
10.0
10.0
8,370.0
FY10Forecasts
- 49.5%99.0Equity in income of affiliates
- 70.8%
- 93.8%
- 94.7%
- 16.4%
%
137.0Net income
161.7Income before income taxes
189.6 Operating income
10,011.2Net sales & other operating revenue
FY09Results
Yen (billions)
Note : Shares which are basedon calculation of EPS (as of Mar. 31, 2009)
Approx. 1,814,561,000 shares Approx. 1,814,609,000 shares
FY10 Financial Forecasts (Consolidated)
- 53.46 - 70.8%22.0475.50 EPS (Yen)
Yen up by 17 yen
Yen up by 6 yen
125
95
142Euro
101U.S. Dollar
Average Rates (Yen)
(weighted average number of shares outstanding )
※Net income FY10 means attributable toshareholders of Honda
※
38
CurrencyEffect
OthersFair value of
derivativeinstruments
FY09Results
Yen
(billions)
Forecast: Change in Income before Income Taxes
Revenue, model mix,
etc. Cost Reduction, etc.
Decrease in R&D
Decrease in SG&A
FY10Forecasts
161.7
10.0
Operating Income - 179.6 bn. yen ( - 94.7 %) Other Income &
Expenses + 27.9 bn. yen
- 334.8
- 39.0
+ 339.0
+ 48.2 - 193.0
+ 20.0 + 7.9
Income before income taxes - 151.7 bn. yen ( - 93.8 %)
Operating income
189.6
Operating income
10.0
39
Yen
(billion)
Forecast: Capital Expenditures, Depreciation, R&D Expenses
- 48.1
- 28.2
- 209.1
Change
563.1
408.2
599.1
FY09Results
515.0
380.0
390.0
FY10Forecasts
R&D expenses
Depreciation and
amortization *
Capital
expenditures *
125
95
Yen up by 17 yen
Yen up by 6 yen
142 Euro
101U.S. Dollar
* “Capital expenditures” in results and the forecast aforementioned exclude investment in operating leases and acquisition of intangible assets.
* “Depreciation and amortization” in results and the forecast aforementioned exclude depreciation of investment in operating leases and amortization of intangible assets.
40
Caution with Respect to Forward-Looking Statements:This slide contains forward-looking statements about the performance of Honda, which are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that Honda’s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda’s principal markets and foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailed from time to time.
Accounting standards: Our consolidated financial standards are prepared in conformity with U.S. generally accepted accounting principles.
Notice on the Factors for Increases and Decreases in Income:With respect to the discussion above of the change in operating income, management has identified the factors set forth below and used what it believes to be a reasonable method to analyze the respective changes in such factors. Each of these factors is explained below. Management has analyzed changes in these factors at the levels of the Company and its material consolidated subsidiaries.
(1)“Foreign currency effects” consist of translation adjustments, which come from the translation of the currency of foreign subsidiaries’ financial statements into Japanese Yen, and foreign currency adjustments, which result from foreign-currency-denominated sales, which, at the levels of the Company and those consolidated subsidiaries which have been analyzed, primarily relate to the following currencies: U.S. dollar, Canada dollar, Euro, GBP, BRL and Japanese Yen.
(2) With respect to “cost reduction and effects of raw material cost fluctuations”, management has analyzed cost reduction and effects of raw material cost fluctuations at the levels of the Company and its material foreign manufacturing subsidiaries in North America, Europe and other regions.
(3) With respect to “changes in net sales and model mix”, management has analyzed changes in sales volume and in the mix of product models sold in major markets which have resulted in increases/decreases in profit, as well as certain other reasons for increases/decreases in net sales and cost of sales.
(4) With respect to “selling, general and administrative expenses”, management has analyzed reasons for an increase/decrease in selling, general and administrative expenses from the previous fiscal year net of currency translation effects.
41
- 189.1- 31.6Currency effect associated with sales transaction
- 47.3*3:Effect due to the difference of the rate used for
translating Honda’s overseas subsidiaries’financial statements denominated in foreign currencies into Japanese yen with the corresponding period of the fiscal year
+ 17.2Currency effect from translation of foreign financial statements (impact on operating income)
- 236.5
+ 33.0
- 222.1
+ 7.5- 43.3- 30.9
- 155.4
FY0912 Months
Average Rates (Yen)
ChangeFY094Q
FY084Q
FY09 4Q
Yen up by 12 yen94106- 25.4JPY / USD
Yen upby 37 yen121158- 13.6JPY / Euro
―――- 4.8JPY / Others
―――- 0.0Transactions between other currencies
*1:Impact of YOY difference of FOREX to be used for booking revenue of foreign currency transactions
- 44.0Difference of average rates(Impact on Operating income)
*2:Impact of YOY difference between average FOREX and hedge rates during the period+ 12.4
Difference between transaction rates and average rates (Impact on Other income & expenses)
- 14.4Total
*1
*2
*3
Yen(billion)
-Currency Effects-(effects associated with sales transactions and translation effects)
(Exhibit 1)
42
- 70.2
- 0.5
- 84.2
+ 14.5
FY08
12 Months
+ 15.5
+ 1.8
+ 39.5
- 25.8
FY09
+ 85.7
+ 2.3
+ 123.8
- 40.4
Change
- 20.2
- 1.0
- 41.0
+ 21.8
FY08
4Q
- 27.8
+ 0.2
+ 16.7
- 44.8
FY09
- 7.6
+ 1.2
+ 57.8
-66.7
Change
Others
Total
Interest rate swap Currency swap
Foreign currencyForward
Yen(billion)
- Gain and Loss on Fair Value Adjustments for Derivative Instruments - (Exhibit 2)
47
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