fy04 4 fy04 4
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1FY04 4th Quarter / 12-Month Results
FY04 4FY04 4thth Quarter / 12Quarter / 12--Month Financial ResultsMonth Financial Results
Acura TLAcura TL
2FY04 4th Quarter / 12-Month Results
Agenda
· Outline of FY04 Financial Results & FY05 Financial Forecasts
Presenter: Executive Vice President - Koichi Amemiya
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results(2) 12-Month Results(3) Consolidated Balance Sheets & Cash Flows(4) FY05 Financial Forecasts
Presenter: Senior Managing Director - Satoshi Aoki
3FY04 4th Quarter / 12-Month Results
· Outline of FY04 Financial Results & FY05 Financial Forecasts
(1) Outline of FY04 4th Quarter Consolidated Financial Results
(2) Outline of FY04 12-Month Financial Results· Consolidated· Unconsolidated
(3) FY05 Financial Forecasts· Consolidated· Unconsolidated
(4) Acquisition of Common Stock
4FY04 4th Quarter / 12-Month Results
Outline of FY04 4th Quarter Results
- 35.1%
- 36.5%
- 40.0%
- 43.3%
+ 0.8%
Change
120.8678.47EPS (yen)
116.774.1Net income
177.3106.4Income before income taxes
241.6137.1Operating income
2,128.62,144.9*Net sales & other operation revenue
FY03 4QFY04 4Q(Billions of Yen)
134107
weaker by 6 yen 128Euro
stronger by 12 yen119US DollarAverage Rates (yen)
* Record high through all quarters
5FY04 4th Quarter / 12-Month Results
Outline of FY04 12-Month Results
+ 10.8%
+ 8.8%
+ 5.3%
- 17.2%
+ 2.4%
Change
439.43486.91**EPS (yen)
426.6464.3**Net income
609.7641.9**Income before income taxes
724.5600.1Operating income
7,971.48,162.6*Net sales & other operation revenue
FY03 FY04 (Billions of Yen)
* Record high for four fiscal years in a row
133113
weaker by 11 yen 122Eurostronger by 9 yen122US Dollar
Average Rates (yen)
** Record high
6FY04 4th Quarter / 12-Month Results
(Billions of Yen)
226.4**311.2*184.7
3,319.7
FY04
+ 33.2%170.0Net income
+ 28.3%242.6Ordinary profit
+ 27.6%144.8Operating income
- 0.1%3,322.7Net sales & otheroperation revenue
ChangeFY03
* To set record high
FY04 Unconsolidated Financial Results
3 yen
19 yen
Interim
10 yen7 yenIncrease from FY03
42 yen23 yenDividend per share
Fiscal YearEnd of FY04
** To set record high for two fiscal years in a row
7FY04 4th Quarter / 12-Month Results
FY05 Consolidated Financial Forecasts(Billions of Yen)
- 16.0%464.3390.0Net income
414.49
500.0
560.0
8,500.0*
FY05
- 14.9%486.91EPS (yen)
- 22.1%641.9Income before income taxes
- 6.7%600.1Operating income
+ 4.1%8,162.6Net sales & other operation revenue
ChangeFY04
125 105
stronger by 8 yen133Eurostronger by 8 yen113US Dollar
Average Rates (Yen)
* To set record high for five fiscal years in a row
8FY04 4th Quarter / 12-Month Results
125.0165.090.0
3,390.0*
FY05
- 44.8%226.4Net income
- 47.0%311.2Ordinary profit
- 51.3%184.7Operating income
+ 2.1%3,319.7Net sales & other operation revenue
ChangeFY04
FY05 Unconsolidated Financial Forecasts(Billions of Yen)
* To set record high
4 yen
23 yen
Interim
4 yen-Increase from FY04
46 yen23 yenDividend per share
Fiscal YearEnd of FY05
9FY04 4th Quarter / 12-Month Results
Aggregate number of shares acquired :approx. 35.2 million shares
Aggregate amount of acquisition :approx. 160 billion yen
Aggregate number of shares acquired :approx. 20.9 million shares
Aggregate amount of acquisition :approx. 96.9 billion yen
From June 24, 2003 to April 15, 2004
Acquisition of Common Stock
* Total shares of common stock issued and outstanding: approx. 974.41 million shares * Total shares which are base of calculation of net income per share as of FY2004:
approx. 953.63 million shares
From June 25, 2002 to April 15, 2004
10FY04 4th Quarter / 12-Month Results
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results
Net Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(2) 12-Month ResultsNet Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(3) Consolidated Balance Sheets & Cash Flows
(4) FY05 Financial Forecasts
11FY04 4th Quarter / 12-Month Results
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results
Net Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(2) 12-Month ResultsNet Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(3) Consolidated Balance Sheets & Cash Flows
(4) FY05 Financial Forecasts
12FY04 4th Quarter / 12-Month Results
FY04 4th Quarter Net Sales by Business Segment(Billions of Yen) 2,128.6 + 16.2
( + 0.8% )
57.660.4
1,711.1 1,694.3
263.0 294.8
0
500
1,000
1,500
2,0002,144.9
+ 31.8( + 12.1% )
FY04 4QFY03 4Q98.194.0
MotorcycleBusiness
AutomobileBusiness
Financial Services
Power Product& Other Businesses
Market average rates US$1=JPY118.94Euro1=JPY127.74
US$: - 11.67 yenEuro: + 6.33 yen
Market average rates US$1=JPY107.27Euro1=JPY134.07
( Substantial sales increase of approx. 116 bn. yen < + 5.5% > if excluding currency translation effects < approx. 100 bn. yen > )
- 16.8( - 1.0% )
- 2.7( - 4.6% )
+ 4.0( + 4.3% )
13FY04 4th Quarter / 12-Month Results
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results
Net Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(2) 12-Month ResultsNet Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(3) Consolidated Balance Sheets & Cash Flows
(4) FY05 Financial Forecasts
14FY04 4th Quarter / 12-Month Results
Unit Sales of Motorcycles(Motorcycles + All-Terrain Vehicles, etc.)
JapanNorth AmericaEurope
Others
Asia
(Thousands of Unit)
123 94 120 86 103170 99 140 190 227101 57 50
197 209210
209
203
9192
1,9961,832
1,6911,4981,486
0
700
1,400
2,100
2,800
4Q 1Q 2Q 3Q 4Q
2,620
+ 552,000 units( + 26.7% )
2,068 2,0012,218
2,367
FY03 FY04
15FY04 4th Quarter / 12-Month Results
Motorcycle Operation: Japan
• Decreased sales of Lead100(100cc scooter) and Crea SCOOPY(50cc scooter)
• Increased sales of Smart Dio Z4
Unit Sales in FY04 4Q: 103,000 units( - 20,000 units from FY03 4Q )
Smart Dio Z4
16FY04 4th Quarter / 12-Month Results
Motorcycle Operation: North AmericaUnit Sales in FY04 4Q: 227,000 units
( + 57,000 units from FY03 4Q )
• Increased sales of CRF50F • Increased sales of ATVs ( + 28,000 units )
CRF50FTRX350FE
17FY04 4th Quarter / 12-Month Results
Motorcycle Operation: EuropeUnit Sales in FY04 4Q: 91,000 units
( - 1,000 units from FY03 4Q )
• Decreased sales of 50cc scooters• Increased sales of Lead and CBF600 series
Lead CBF600S
18FY04 4th Quarter / 12-Month Results
• Increased sales in India, Thailand and China
Motorcycle Operation: AsiaUnit Sales in FY04 4Q: 1,996,000 units
( + 510,000 units from FY03 4Q )
Wave 125Eterno Wave
19FY04 4th Quarter / 12-Month Results
• Increased sales in Latin America
Motorcycle Operation: Other RegionsUnit Sales in FY04 4Q: 203,000 units
( + 6,000 units from FY03 4Q )
CG125 Titan C100 Biz
20FY04 4th Quarter / 12-Month Results
19.2
5.82.3
7.4
26.87.3%
1.0%
3.3%
9.1%
2.4%
0
10
20
30
4Q 1Q 2Q 3Q 4Q0%
2%
4%
6%
8%
10%(Billions of Yen)
Motorcycle BusinessNet Sales / Operating Income / Operating Margin
OP IncomeOP Margin
FY03 FY04
263.0 294.8 ( + 12.1% )226.3233.5241.5Net Sales
(+ 39.3%)
21FY04 4th Quarter / 12-Month Results
Japan
North America
Europe
Others
Asia
(Thousands of Unit)
221153 176 177 210
402397 385 407 369
56 57 44
23 33 4338
66
7464 79 84 76
10227
0
200
400
600
800
4Q 1Q 2Q 3Q 4Q
793
+ 13,000 units( + 1.7% )
780708 735 747
FY03 FY04
Unit Sales of Automobiles
22FY04 4th Quarter / 12-Month Results
Automobile Operation: JapanUnit Sales in FY04 4Q: 210,000 units
( - 11,000 units from FY03 4Q )
• Decreased sales of Fit • Increased sales of Odyssey and Life
LifeOdyssey
23FY04 4th Quarter / 12-Month Results
Automobile Operation: North AmericaUnit Sales in FY04 4Q: 369,000 units
( - 33,000 units from FY03 4Q )
• Decreased sales of Accord
• Strong sales of Acura TSX, Acura TL and Pilot
Acura TSX Acura TL Pilot
24FY04 4th Quarter / 12-Month Results
• Favorable sales of Accord Diesel and Jazz
Automobile Operation: EuropeUnit Sales in FY04 4Q: 74,000 units
( + 10,000 units from FY03 4Q )
JazzAccord Diesel
25FY04 4th Quarter / 12-Month Results
• Strong sales in China and India
Automobile Operation: AsiaUnit Sales in FY04 4Q: 102,000 units
( + 36,000 units from FY03 4Q )
Accord City
26FY04 4th Quarter / 12-Month Results
• Strong sales in Latin America and Middle East
Automobile Operation: Other RegionsUnit Sales in FY04 4Q: 38,000 units
( + 11,000 units from FY03 4Q )
CivicFit
27FY04 4th Quarter / 12-Month Results
160.9
122.6126.2 133.6
53.3
9.4%
7.7% 8.4%
3.2%
7.6%
0
50
100
150
200
4Q 1Q 2Q 3Q 4Q0%
2%
4%
6%
8%
10%(Billions of Yen)
OP IncomeOP Margin
FY03 FY04
Automobile BusinessNet Sales / Operating Income / Operating Margin
1,711.1 1,694.3 ( - 1.0% )1,630.41,646.21,621.0Net Sales
(- 66.8%)
28FY04 4th Quarter / 12-Month Results
Japan
North America
Europe
OthersAsia
(Thousands of Unit)
119 110 135 109 123
712 634419 415
895
244
177 302
75
8485
83
592538
200
154
163153
14993
0
300
600
900
1,200
1,500
1,800
4Q 1Q 2Q 3Q 4Q
1,788
+ 72,000 units( + 4.2% )
1,716
1,217
9781,064
FY03 FY04
Unit Sales of Power Products
29FY04 4th Quarter / 12-Month Results
• Increased sales of general-purpose engines in North America
Power Products OperationUnit Sales in FY04 4Q: 1,788,000 units
( + 72,000 units from FY03 4Q)
GC engine
30FY04 4th Quarter / 12-Month Results
2.3
1.1
2.9
2.1
4.12.4%
3.8%
2.7%
4.2%
1.3%
0
1
2
3
4
5
6
4Q 1Q 2Q 3Q 4Q0%
1%
2%
3%
4%
5%
(Billions of Yen)
OP IncomeOP Margin
Power Product and Other BusinessesNet Sales / Operating Income / Operating Margin
FY03 FY04
96.0 99.8 ( + 4.0% )79.176.885.7Net Sales
(+ 78.1%)
31FY04 4th Quarter / 12-Month Results
13.0 13.8
52.7
14.920.120.5
59.0
21.5%
31.8%
25.0%23.7%
32.1%
0
30
60
90
120
4Q 1Q 2Q 3Q 4Q0%
10%
20%
30%
(Billions of Yen)
OP IncomeOP Margin
Financial ServicesNet Sales / Operating Income / Operating Margin
FY03 FY04
61.0 58.6 ( - 4.1% )59.663.563.9Net Sales
(- 10.7%)
100%96.7% 90.0%
FY03 4Q includes effects of reclassification by 45.9 billion yenFY04 4Q includes effects of reclassification by 38.8 billion yen
32FY04 4th Quarter / 12-Month Results
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results
Net Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(2) 12-Month ResultsNet Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(3) Consolidated Balance Sheets & Cash Flows
(4) FY05 Financial Forecasts
33FY04 4th Quarter / 12-Month Results
38.0 37.839.5
30.7
84.2
3.8% 4.2%3.2%
7.8%
4.0%
0
20
40
60
80
100
4Q 1Q 2Q 3Q 4Q0%
2%
4%
6%
8%
(Billions of Yen)
OP IncomeOP Margin
JapanNet Sales / Operating Income / Operating Margin
FY03 FY04
992.5 1,081.5 ( + 9.0%)962.3943.1943.8Net Sales
(+ 121.6%)
34FY04 4th Quarter / 12-Month Results
168.5
98.9
70.4
101.0
39.6
13.5%
6.0%
8.6%
3.5%
8.2%
0
50
100
150
200
4Q 1Q 2Q 3Q 4Q0%
3%
6%
9%
12%
15%
(Billions of Yen)
North AmericaNet Sales / Operating Income / Operating Margin
OP IncomeOP Margin
1,252.5 1,120.2 ( - 10.6% )1,173.81,167.31,211.6Net Sales
(- 76.4%)
FY03 FY04
35FY04 4th Quarter / 12-Month Results
7.0
1.4
11.5
5.8
10.72.3%
2.4%
0.8%
5.2%
4.1%
0
3
6
9
12
15
18
4Q 1Q 2Q 3Q 4Q0%
1%
2%
3%
4%
5%
6%(Billions of Yen)
EuropeNet Sales / Operating Income / Operating Margin
OP IncomeOP Margin
266.1 290.1 ( + 9.0% )186.5220.4251.3Net Sales
(- 34.7%)
FY03 FY04
36FY04 4th Quarter / 12-Month Results
7.2
10.0
14.1
10.99.5
4.7%
7.9%6.8%
4.7%
6.3%
0
5
10
15
20
4Q 1Q 2Q 3Q 4Q0%
2%
4%
6%
8%
(Billions of Yen)
AsiaNet Sales / Operating Income / Operating Margin
OP IncomeOP Margin
153.3 204.7 ( + 33.5% )160.4179.4159.4Net Sales
(+ 32.7%)
FY03 FY04
37FY04 4th Quarter / 12-Month Results
Equity in Income of Affiliates – Asia
34.9 32.7
44.3
54.5
34.5
13.3 17.1
21.1
12.311.0
0
10
20
30
40
50
60
4Q 1Q 2Q 3Q 4Q
(Billions of Yen)
Income before income taxes
Equity in Incomeof Affiliates
FY03 FY04
38FY04 4th Quarter / 12-Month Results
2.6
5.6 5.6
8.1
4.34.0%
6.3%
8.5%
4.7%
8.2%
0
2
4
6
8
10
12
4Q 1Q 2Q 3Q 4Q0%
3%
6%
9%
12%(Billions of Yen)
Other RegionsNet Sales / Operating Income / Operating Margin
OP IncomeOP Margin
65.2 93.2 ( + 42.9% )95.589.969.4Net Sales
(+ 65.8%)
FY03 FY04
39FY04 4th Quarter / 12-Month Results
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results
Net Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(2) 12-Month ResultsNet Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(3) Consolidated Balance Sheets & Cash Flows
(4) FY05 Financial Forecasts
40FY04 4th Quarter / 12-Month Results
177.3
106.4
-22.7
33.6
18.8
-40.0
-0.5-60.0
0
50
100
150
200
Change in Income Before Income Taxes
Revenue, model mix,
etc
CurrencyEffect
FY034Q
(Billions of Yen)
FY044Q
Cost Reduction
Increase in R&D
Factors affecting Operating Income
Increase in SG&A
Other Income & Expenses
- Increase in quality related expenses in North America
- Increase in human resourceexpenses
· Decrease of unit sales in North American Automobile Business
· Increase of unit sales in Asia, Europe, Other regions’ Automobile Businesses
Materials & Others: + 21.9 bn.Labor expenses: - 3.1 bn.
- 70.8 bn.( - 40.0% )
Change in average rates: - 31.4 bn.Translation effects: - 8.6 bn.
< FY04 4th Quarter >
41FY04 4th Quarter / 12-Month Results
177.3
106.4
-22.7
33.6
18.8
-40.0
-0.5-60.0
0
50
100
150
200
Change in Income Before Income Taxes
Revenue, model mix,
etc
FY034Q
(Billions of Yen)
FY044Q
Cost Reduction
Increase in R&D
Increase in SG&A
Other Income & Expenses
- 70.8 bn.( - 40.0% )
< FY04 4th Quarter >
Gain & Loss on derivative instruments: + 8.0 bn.Difference between transaction rates and average rates: - 1.6 bn.Decrease in loss on sales and impairment ofinvestment securities, etc.: + 27.2 bn.
CurrencyEffect
42FY04 4th Quarter / 12-Month Results
Gain and Loss on Derivative Instruments and Related Others
+ 13.0- 6.7+ 6.3Foreign Currency Exchange Related*
- 5.0+ 4.5- 0.5Interest Rate and Others
+ 8.0
Change
- 2.2+ 5.8Total
FY03 4QFY04 4Q
Gain and Loss on Fair Value Adjustments for Foreign Currency Exchange Contracts
Fair Value Adjustments for the Current Quarter
Reversal of Fair Value Adjustmentsfor the Prior Quarter
- 2.8
- 7.2
+ 4.4
1Q
+ 18.2
+ 11.0
+ 7.2
2Q
- 1.3- 11.0A
+ 7.6+ 1.3B
+ 6.3- 9.7A + B
4Q3Q*Fair Value Adjustments for Foreign Currency Exchange Contracts
(Billions of Yen)
43FY04 4th Quarter / 12-Month Results
177.3
106.4
-22.7
33.6
18.8
-40.0
-0.5-60.0
0
50
100
150
200
Change in Income Before Income Taxes
Revenue, model mix,
etc
FY034Q
(Billions of Yen)
FY044Q
Cost Reduction
Increase in R&D
Increase in SG&A
Other Income & Expenses
< FY04 4th Quarter >
Difference between transaction rates and average rates:
Currency effects(change in average rates / translation effects): - 40.0 bn.
+
- 41.6 bn.Currency effect on Income before income taxes:
- 1.6 bn.
- 70.8 bn.( - 40.0% ) Gain & Loss on derivative instruments: + 8.0 bn.
Difference between transaction rates and average rates: - 1.6 bn.Decrease in loss on sales and impairment ofinvestment securities, etc.: + 27.2 bn.
CurrencyEffect
44FY04 4th Quarter / 12-Month Results
---+ 3.5JPY / Others
Total
Transactions between other currencies
JPY / Euro
JPY / USD
Difference of Average Rates
-
-
+ 6 yen
- 12 yen
Change
--- 31.4
--- 5.1
128134+ 3.8119107- 33.6
FY03 4QAverage Rates
( yen )
FY04 4QAverage Rates
( yen )
Effects(Billions of Yen)
JPY/Euro
JPY/USD
Difference of Currency translation
+ 6.33 yen
- 11.67 yen
Change
127.74134.07- 8.6
118.94107.27
FY03 4Q Market Average
Rates ( yen )
FY04 4Q Market Average
Rates ( yen )
Effects(Billions of Yen)
Difference between transaction rates and
average rates- 1.6
Total - 41.6
Currency Effect on Income Before Income Taxes
Impact on
Operating Income
Impact on Other Income &Expenses
(Billions of Yen)
45FY04 4th Quarter / 12-Month Results
Equity in Income of Affiliates
- 4.1
Change
Equity in income declined due to translation effectsFactors
18.314.1Equity in Income
FY03 4QFY04 4Q
(Billions of Yen)
46FY04 4th Quarter / 12-Month Results
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results
Net Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(2) 12-Month ResultsNet Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(3) Consolidated Balance Sheets & Cash Flows
(4) FY05 Financial Forecasts
47FY04 4th Quarter / 12-Month Results
FY04 12 Months - Net Sales by Business Segment(Billions of Yen) 7,971.4
242.6237.9
6,440.0 6,592.0
978.0 996.2
0
2,000
4,000
6,000
8,0008,162.6
FY04FY03331.5315.3
MotorcycleBusiness
AutomobileBusiness
Financial ServicesPower Product& Other Businesses
Market average rates US$1=JPY121.95Euro1=JPY121.04
US$: - 8.88 yenEuro: + 11.57 yen
Market average rates US$1=JPY113.07Euro1=JPY132.61
( Substantial sales increase of approx. 506 bn. yen < + 6.4% > if excluding currency translation effects < approx. 315 bn. yen > )
+ 191.1( + 2.4% )
+ 18.1( + 1.9% )
+ 151.9( + 2.4% )
+ 4.7( + 2.0% )
+ 16.2( + 5.1% )
48FY04 4th Quarter / 12-Month Results
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results
Net Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(2) 12-Month ResultsNet Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(3) Consolidated Balance Sheets & Cash Flows
(4) FY05 Financial Forecasts
49FY04 4th Quarter / 12-Month Results
Unit Sales of Motorcycles(Motorcycles + All-Terrain Vehicles, etc.)
JapanNorth America
Europe
Others
Asia
(Thousands of Unit)
440 407 404 432 403519 590 610 656341 315 305
785
831
394
299389
7,0175,948
4,7863,851
3,213
0
2,000
4,000
6,000
8,000
10,000
FY00 FY01 FY02 FY03 FY04
9,206
+ 1,126,000( + 13.9% )
4,4365,118
6,095
8,080
50FY04 4th Quarter / 12-Month Results
42.4
57.2
69.6
56.447.2
7.0%
4.3%
5.9%
7.3%6.6%
0
20
40
60
80
100
FY00 FY01 FY02 FY03 FY040%
2%
4%
6%
8%(Billions of Yen)
Motorcycle BusinessNet Sales / Operating Income / Operating Margin
OP IncomeOP Margin
718.9 996.2 ( + 1.9% )978.0947.9805.3Net Sales
(- 25.9%)
51FY04 4th Quarter / 12-Month Results
Japan
North America
Europe
OthersAsia
(Thousands of Unit)
706 776 878 849 716
1,295 1,346 1,368 1,5221,558
191176
207
105 137
223 231249
267 244205 341
0
500
1,000
1,500
2,000
2,500
3,000
FY00 FY01 FY02 FY03 FY04
2,983
2,473 2,580 2,6662,888
Unit Sales of Automobiles+ 95,000( + 3.3% )
52FY04 4th Quarter / 12-Month Results
348.0320.0
520.5551.3
438.8
7.0%
8.8% 8.6%
6.7%6.1%
0
100
200
300
400
500
600
700
FY00 FY01 FY02 FY03 FY040%
3%
6%
9%(Billions of Yen)
OP IncomeOP Margin
Automobile BusinessNet Sales / Operating Income / Operating Margin
4,961.0 6,592.0 ( + 2.4% )6,440.05,929.75,231.3Net Sales
(- 20.4%)
53FY04 4th Quarter / 12-Month Results
Japan
North America
Europe
Others
Asia
(Thousands of Unit)
183 164 409 472 477
1,614 1,4121,601
1,8722,363
1,2691,012
1,290
293327
1,325
1,2619351,039 904
657619
0
1,000
2,000
3,000
4,000
5,000
FY00 FY01 FY02 FY03 FY04
5,047
4,057 3,884 3,926
4,584
Unit Sales of Power Products
+ 463,000( + 10.1% )
54FY04 4th Quarter / 12-Month Results
12.8-0.3
4.08.0 10.3
4.4%
1.4%
2.5%3.0%
-0.1%
-10
0
10
20
30
FY00 FY01 FY02 FY03 FY04-2%
0%
2%
4%
6%(Billions of Yen)
OP IncomeOP Margin
Power Product and Other BusinessesNet Sales / Operating Income / Operating Margin
288.8 341.6 ( + 4.7% )326.3293.8264.7Net Sales
(+ 28.3%)
55FY04 4th Quarter / 12-Month Results
61.9 69.6108.4107.8
45.030.8
18.0
12.5%
21.5%
25.7%28.3%
17.5%
0
40
80
120
160
200
FY00 FY01 FY02 FY03 FY040%
10%
20%
30%
(Billions of Yen)
OP IncomeOP Margin
Financial ServicesNet Sales / Operating Income / Operating Margin
147.7 245.8 ( + 2.0% )240.9209.3176.0Net Sales
(+ 0.6%)
50%44.7% 44.1%
FY03 includes effects of reclassification by 45.9 billion yenFY04 includes effects of reclassification by 38.8 billion yen
56FY04 4th Quarter / 12-Month Results
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results
Net Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(2) 12-Month ResultsNet Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(3) Consolidated Balance Sheets & Cash Flows
(4) FY05 Financial Forecasts
57FY04 4th Quarter / 12-Month Results
116.3146.0
253.4
191.4 192.43.4%
6.6%
4.9% 4.9%4.1%
0
50
100
150
200
250
300
FY00 FY01 FY02 FY03 FY040%
2%
4%
6%
(Billions of Yen)
OP IncomeOP Margin
JapanNet Sales / Operating Income / Operating Margin
3,448.2 3,930.8 (+ 0.3%)3,918.93,811.03,594.5Net Sales
(+ 0.5%)
58FY04 4th Quarter / 12-Month Results
273.0 276.5
402.3444.3
310.1
8.2%9.3% 9.4%
6.6%7.7%
0
100
200
300
400
500
FY00 FY01 FY02 FY03 FY040%
2%
4%
6%
8%
10%(Billions of Yen)
North AmericaNet Sales / Operating Income / Operating Margin
OP IncomeOP Margin
3,331.5 4,673.0 (- 0.8% )4,711.94,307.93,608.4Net Sales
(- 30.2%)
59FY04 4th Quarter / 12-Month Results
-55.5-35.3
14.425.8
-2.1%
-5.9%
1.8%2.7%
-10.1%-60
-40
-20
0
20
40
FY00 FY01 FY02 FY03 FY04-15%
-10%
-5%
0%
5%
10%
-14.4
(Billions of Yen)
EuropeNet Sales / Operating Income / Operating Margin
OP IncomeOP Margin
678.5 948.5 ( + 15.0% )824.5603.5547.2Net Sales
(+ 78.2%)
60FY04 4th Quarter / 12-Month Results
37.844.6
7.2%6.3%
0
20
40
60
80
FY00 FY01 FY02 FY03 FY040%
2%
4%
6%
8%
10%(Billions of Yen)
AsiaNet Sales / Operating Income / Operating Margin
OP IncomeOP Margin
704.1 ( + 34.6% )523.1Net Sales
(+18.2%)
Notes: ‘Asia’ was included in ‘OtherRegions’ prior to FY04 and are not re-classified for periods prior to FY03
61FY04 4th Quarter / 12-Month Results
Equity in Income of Affiliates – Asia
166.1
138.4
61.748.2
0
30
60
90
120
150
180
FY00 FY01 FY02 FY03 FY04
(Billions of Yen)
Income before income taxes
Equity in Incomeof Affiliates
Notes: ‘Asia’ was included in ‘OtherRegions’ prior to FY04 and are not re-classified for periods prior to FY03
62FY04 4th Quarter / 12-Month Results
23.2 23.7
8.5%
6.8%
0
10
20
30
40
FY00 FY01 FY02 FY03 FY040%
2%
4%
6%
8%
10%(Billions of Yen)
Other RegionsNet Sales / Operating Income / Operating Margin
OP IncomeOP Margin
348.2 ( + 26.9% )274.3Net Sales
(+ 2.5%)
Notes: ‘Asia’ was included in ‘OtherRegions’ prior to FY04 and are not re-classified for periods prior to FY03
63FY04 4th Quarter / 12-Month Results
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results
Net Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(2) 12-Month ResultsNet Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(3) Consolidated Balance Sheets & Cash Flows
(4) FY05 Financial Forecasts
64FY04 4th Quarter / 12-Month Results
Change in Income Before Income Taxes
Revenue, model mix,
etcCurrency
Effect
(Billions of Yen)
< FY04 12 Months >
Cost Reduction Increase
in R&D
Increase in SG&A
Other Income & Expenses
609.7 641.9
23.1156.5
58.8
-101.0-12.1-93.2
0
200
400
600
800
Factors affecting Operating Income
- Increase in human resource & quality related expenses
- Allowance for financial services- Increase of unit sales in Overseas
Automobile Businesses- Increase of unit sales in Asian
Motorcycle Business
Materials & Others: + 70.9 bn.Labor expenses: - 12.1 bn.
Change in average rates: - 74.9 bn.Translation effects: - 26.1 bn.
FY03 FY04
+ 32.1 bn.( + 5.3% )
65FY04 4th Quarter / 12-Month Results
Change in Income Before Income Taxes
Revenue, model mix,
etcCurrency
Effect
(Billions of Yen)
< FY04 12 Months >+ 32.1 bn.( + 5.3% )
Cost Reduction
Increase in SG&A
Other Income & Expenses
609.7 641.9
23.1156.5
58.8
-101.0-12.1-93.2
0
200
400
600
800
FY03 FY04
Gain & Loss on derivative instruments: + 118.8 bn.Difference between transaction rates and average rates: + 4.1 bn.Decrease in loss on sales and impairment ofinvestment securities, etc. + 33.6 bn.
Increase in R&D
66FY04 4th Quarter / 12-Month Results
Change in Income Before Income Taxes
Revenue, model mix,
etcCurrency
Effect
(Billions of Yen)
< FY04 12 Months >+ 32.1 bn.( + 5.3% )
Cost Reduction
Increase in SG&A
Other Income & Expenses
609.7 641.9
23.1156.5
58.8
-101.0-12.1-93.2
0
200
400
600
800
FY03 FY04
Gain & Loss on derivative instruments: + 118.8 bn.Difference between transaction rates and average rates: + 4.1 bn.Decrease in loss on sales and impairment ofinvestment securities, etc. + 33.6 bn.
Difference between transaction rates and average rates:
Currency effects(change in average rates / translation effects): - 101.0 bn.
+
- 96.9 bn.Currency effect on Income before income taxes:
+ 4.1 bn.
Increase in R&D
67FY04 4th Quarter / 12-Month Results
---+ 17.7JPY / Others
Total
Transactions between other currencies
JPY / Euro
JPY / USD
Difference of Average Rates
-
-
+ 11 yen
- 9 yen
Change
--- 74.9
--- 12.8
122133+ 17.8122113- 97.6
FY03Average Rates
( yen )
FY04Average Rates
( yen )
Effects(Billions of Yen)
JPY/Euro
JPY/USD
Difference of Currency translation
+ 11.57 yen
- 8.88 yen
Change
121.04132.61- 26.1
121.95113.07
FY03Market Average
Rates ( yen )
FY04 Market Average
Rates ( yen )
Effects(Billions of Yen)
Difference between transaction rates and
average rates+ 4.1
Total - 96.9
Currency Effect on Income Before Income Taxes
Impact on
Operating Income
Impact on Other Income &Expenses
(Billions of Yen)
68FY04 4th Quarter / 12-Month Results
Equity in Income of Affiliates
+ 13.1
Change
Equity in income rose mainly due to increased income of affiliates in AsiaFactors
61.975.1Equity in Income
FY03FY04
(Billions of Yen)
69FY04 4th Quarter / 12-Month Results
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results
Net Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(2) 12-Month ResultsNet Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(3) Consolidated Balance Sheets & Cash Flows
(4) FY05 Financial Forecasts
70FY04 4th Quarter / 12-Month Results
Consolidated Balance Sheets
*Excluding currency effect
(Billions of Yen)
+ 1,290.0+ 647.47,681.28,328.7Total Assets+ 740.0+ 314.33,327.53,641.9Financial Subsidiaries only
+ 98.0+ 41.11,394.31,435.5Property, plant and equipment only
Change Actual difference*End of FY03End of FY04
+ 840.0+ 402.75,051.55,454.3Total Liabilities+ 570.0( + 610.0 )
( - 40.0 )
+ 293.5( + 337.5 )
( - 44.0 )
2,322.4( 2,049.8 )
( 272.6 )
2,616.0( 2,387.4 )
( 228.5 )
Interest Bearing Debt only( Financial Subsidiaries only )
( Non-financial services business )
- 19.8- 28.5286.8258.3Capital Expenditures
- 1.6- 6.4205.5199.0Depreciation
Change Actual difference*FY03FY04
( Capital Expenditure & Depreciation are amount of Property, plant & Equipment < but excluding company vehicles > )
stronger by 0.95 yen
stronger by 14.51 yen
129.83128.88Euro
120.20105.69 US Dollar
Exchange rates
71FY04 4th Quarter / 12-Month Results
547.4
724.4
712.9
459.5
-967.4-28.0
0
200
400
600
800
1,000
1,200
1,400
Beginning Balance
Operating Activities
Investing Activities
FY04 Consolidated Cash Flows
(Billions of Yen)
Financing Activities
Currency Effects
Cash & cash equivalents
FY04Ending Balance
Cash & cash equivalents
FY04
Increase of 177.0 billion yen
72FY04 4th Quarter / 12-Month Results
547.4
724.4
712.9
459.5
-967.4-28.0
0
200
400
600
800
1,000
1,200
1,400
Beginning Balance
Operating Activities
Investing Activities
FY04 Consolidated Cash Flows
(Billions of Yen)
Financing Activities
Currency Effects
Cash & cash equivalents
FY04Ending Balance
Cash & cash equivalents
FY04
Increase of 177.0 billion yen
Free cash flow- 254.4 bn.
73FY04 4th Quarter / 12-Month Results
530.3
707.9
548.6 -165.7
-178.3
-26.9
0
300
600
900
1,200
Beginning Balance
Operating Activities
Investing Activities
(Billions of Yen)
Financing Activities
Currency Effects
Cash & cash equivalents
FY04Ending Balance
Cash & cash equivalents
FY04
Free cash flow370.3 bn.
FY04 Cash Flows from Operating ActivitiesIncrease of
177.5 billion yen
74FY04 4th Quarter / 12-Month Results
· Details of FY04 Financial Results & FY05 Financial Forecasts(1) 4th Quarter Results
Net Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(2) 12-Month ResultsNet Sales by Business SegmentBusiness Segment InformationGeographic Segment InformationChange in Income before Income Taxes, Equity in Income of Affiliates
(3) Consolidated Balance Sheets & Cash Flows
(4) FY05 Financial Forecasts
75FY04 4th Quarter / 12-Month Results
432 403656
3,8514,786
785
831
370404407610590519 715341 315 305 299
295
5,9486,980 7,017
930
0
2,000
4,000
6,000
8,000
10,000
FY01 FY02 FY03 FY04 FY05
6,095
8,0809,206 9,290
5,118
(Thousands of Unit)
Forecast: Unit Sales of Motorcycles(Motorcycles + All-Terrain Vehicles, etc.)
Asia
JapanN. AmericaEurope
Forecast
Others
+ 84,000
76FY04 4th Quarter / 12-Month Results
849 716 770
1,558
205267 244
105 137155
776 878
1,5651,346 1,368 1,522
255231207176191
510341
0
500
1,000
1,500
2,000
2,500
3,000
3,500
FY01 FY02 FY03 FY04 FY05
2,6662,888 2,983
3,255
2,580
(Thousands of Unit)
Others
Japan
N. America
Europe
Forecast: Unit Sales of Automobiles
Forecast
Asia
+ 272,000
China:151,000China:270,000
77FY04 4th Quarter / 12-Month Results
472 477 420
2,363
657619
790
1,039 904
293327
250
164 409
2,840
1,4121,601 1,872
1,3001,261
1,2901,012
1,269
0
1,000
2,000
3,000
4,000
5,000
6,000
FY01 FY02 FY03 FY04 FY05
3,884 3,926
5,0475,600
4,584
(Thousands of Unit)
Asia
Japan
N. America
Europe
Forecast
Forecast: Unit Sales of Power Products
Others
+ 553,000
78FY04 4th Quarter / 12-Month Results
Forecast: Net Sales
0
2,000
4,000
6,000
8,000
FY01 FY02 FY03 FY04 FY05
Financial Services
Automobiles
Motorcycles
Billions of Yen
Power Product & Other Businesses
6,463.87,362.4
7,971.4 8,162.68,500.0
+ 337.4 bn. ( + 4.1% )
Forecast
79FY04 4th Quarter / 12-Month Results
FY05 Consolidated Financial Forecasts(Billions of Yen)
- 16.0%464.3390.0Net income
414.49
500.0
560.0
8,500.0*
FY05
- 14.9%486.91EPS (yen)
- 22.1%641.9Income before income taxes
- 6.7%600.1Operating income
+ 4.1%8,162.6Net sales & other operation revenue
ChangeFY04
125 105
stronger by 8 yen133Eurostronger by 8 yen113US Dollar
Average Rates (Yen)
* To set record high for five fiscal years in a row
80FY04 4th Quarter / 12-Month Results
Forecast of Change in Income Before Income Taxes
Revenue, model mix,
etc
CurrencyEffect
(Billions of Yen)
- 141.9 bn.( - 22.1% )
Cost Reduction
Increase in R&DDecrease
in SG&A
Other Income & Expenses
641.9500.0
55.0
-102.0
42.0-139.0
-21.023.0
300
400
500
600
700
800
FY04 FY05Forecast
Materials & Others: + 56.0 bn.Labor expenses: - 14.0 bn.
Gain & Loss on derivative instruments: - 89.0 bn.Others: - 13.0 bn.
Change in average ratesU.S. Dollar vs. Yen: - 70.0 bn.Euro vs. Yen: - 10.0 bn.Others vs. Yen: - 16.0 bn.Between other currencies: - 20.0 bn.
Translation effectsGross profit: - 71.0 bn.SG&A: + 48.0 bn.
Total currency effects: - 139.0 bn.
81FY04 4th Quarter / 12-Month Results
+ 4.7%
+ 0.5%
+ 12.3%
Change
448.9470.0R & D
199.0200.0Depreciation
258.3290.0Capital Expenditure
FY04FY05(Billions of Yen)
FY05 Consolidated Financial Forecasts
( Capital Expenditure & Depreciation are amounts of Property, plant & Equipment < but excluding company vehicles> )
82FY04 4th Quarter / 12-Month Results
Caution with Respect to Forward-Looking Statement:
This slide contains forward-looking statements about the future 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 other major currencies, as well as other factors detailed from time to time.
Segment Information:
The segment information has been prepared in accordance with a Ministerial Ordinance under the Securities and Exchange Law of Japan, which requires certain additional information to be disclosed, including business and geographical segment information.
83FY04 4th Quarter / 12-Month Results