Honda Motor : Financial Results Presentation*

FY24 Financial Results

May 10, 2024

1

The core of Honda's value proposition

EnvironmentSafety

Strive to eliminate environmental impact

Realize safety protecting precious human lives

2

Financial Summary

FY23 ResultsFY24 ResultsFY25 Forecast

		1,381.9 bil. yen	1,420.0 bil. yen
Operating Profit	780.7 bil. yen	（6.8%）	（7.0%）
（Operating Margin）
	（4.6%）

Earning	Cash Flows from
operating activities (CFO)
Power
after R&D adjustment *1
Future	Capital Expenditures
Investment	R&D Expenditures

2,084.0 bil. yen	3,056.9 bil. yen	Same level as
previous fiscal year
493.9 bil. yen	387.9 bil. yen	670.0 bil. yen
852.0 bil. yen	976.3 bil. yen	1,190.0 bil. yen

Acquisition of the

Company's Own Shares

Shareholder	Dividend Per Share*2
Return

170.0

40

bil. yen

yen

250.0

68

bil. yen

yen

300.0

68

bil. yen

yen

	（Dividend Payout Ratio）	（31.2%）	（30.1%）	（32.3%）
	Steadily Improving Earnings Base ＋ Building a Foundation for Future Investment
		＋ Further Expanding Shareholder Returns
*1	CFO excluding R&D expenses (CFO of non-financial services businesses + R&D expenditures - amount transferred to development assets)
*2	The company implemented the stock split into 3 shares per share with the effective date of October 1, 2023. The interim dividend for the fiscal year ending March 31,
	2024, which has a dividend record date of September 30, 2023, is paid based on the shares after the stock split. FY23 results are calculated that the stock split was
	carried out at the beginning of the fiscal year.		3

Initiatives to Establish an Earnings Base

Motorcycle Business

Image of Honda's Share（CY 2023）

Automobile Business

Platform Aggregation Image* Hybrid System Evolution

* Units per platform

■ Honda

■ other

China

JPN/US/EU

Mini

Honda

		India
			ASEAN 3	Latin America
			Indonesia
	Africa	Other Asia
		Vietnam		Brazil
		Philippines
		Bangladesh	Thailand
Establishment of a structure that enables
		well-balanced global income
Profit image by	South America
Developed Countries
location		556.2 bil. yen
		Asia	（17.3%） South
			America Asia
Operating Profit 291.6 bil. yen
（Operating Margin） （13.9%）
Consolidated	13,215K	12,219K
Unit Sales
		FY19	FY24

Large Architecture

	2018 Model Year	2023 Model Year
Small	ACCORD	ACCORD

・Increased power density

・25% reduction in system cost

Achievement of both improved profitability

and increased product appeal

560.6 bil. yen

（4.1%）

209.6 bil. yen

（1.9%）

3,748K 2,856K

FY19FY24

4

Towards Increasing Corporate Value

Past

PresentFuture

Analysis on

low PBR

Direction of

Approach

FY24/FY25

Initiatives

Decline in capital efficiency due to capital accumulation

Optimization of Capital

through Proactive

Shareholder Returns

Acquisition of the

Company's Own Shares

FY24：250.0 bil. yen

FY25：300.0 bil. yen

Capital Efficiency

FY24 ROIC 9.1%*1

Profitability of

Automobile Business

Establishment and

Continuation of Earnings base

Operating Profit Margin

FY26：above 7.0%

Operating Profit Margin

FY24：6.8%

FY25：7.0%

Operating Profit Margin Aim to achieve goal 1 year ahead of schedule

Anxiety due to

uncertainty about

electrification

Enhancement of Resolution of

Electrification Strategy

Towards future growth,

electrification strategy and

capital allocation announcement

（A detailed explanation is planned as part of "2024 Honda Business Briefing" on May 16th ）

Aim to achieve a PBR of more than 1x in the near future through various initiatives ＋ continuous dialogue with the stock market

*1 ROIC： (Profit for the year attributable to owners of the parent + Interest expense (excluding Financial services business)) / Invested capital (Equity attributable to
owners of the parent + Interest-bearing liabilities (excluding Financial services business)).
Invested capital is calculated using the average of the beginning and end of the period.	5

FY24 Financial Results

Main Market (Automobile and Motorcycle Business)

Automobile Business	Retail
Main Countries

YTD（ Apr. - Mar. ）	Unit	vs. FY23
（thousand）	（％）
Japan	611	109.0
The United States	1,358	135.5
China	1,221	98.5

• Sales Results in FY24

• Despite a decrease in China, exceeded the same period last year mainly due to stable demand in the United States.

烨 (yè) Series（China）	CR-V e:FCEV（Japan・North America）
Unveiled in April 2024	To be launched from Japan in summer 2024

Motorcycle Business	Wholesale
Main Countries

YTD ( Apr. - Mar. )	Unit	vs. FY23
（thousand）	（％）
India	4,530	112.5
Vietnam	2,050	85.2
Thailand	1,435	98.6
Indonesia	4,770	106.5
Brazil	1,236	109.9

• Sales Results in FY24

• Despite a decrease in Vietnam related to an economic slowdown, stayed almost the same level as the same period last year mainly due to firm demand in India and Brazil.

NX400（Japan）	CR ELECTRIC PROTO
Launched on April 18, 2024	＜Entered FIM* E-Xplorer World Cup＞
*FIM:Fédération Internationale de Motocyclisme 7

FY24 Results: Honda Unit Sales (Twelve Months)

Motorcycles

Honda	FY23	FY24	Change
Group Unit
Sales

Automobiles

FY23	FY24	Change

Unit (thousand)

Power Products

FY23	FY24	Change

Japan	246	241	- 5
North	459	498	+ 39
America
Europe	347	440	+ 93
Asia	16,108	16,016	- 92
Other	1,597	1,624	+ 27
Regions
Total	18,757	18,819	+ 62
Change			+ 0.3%
(%)

550	595	+ 45
1,195	1,628	+ 433
84	103	+ 19
1,744	1,651	- 93*
114	132	+ 18
3,687	4,109	+ 422
		+ 11.4%

376 302 - 74

2,274	1,083	- 1,191
1,168	794	- 374
1,408	1,294	- 114
419	339	- 80
5,645	3,812	- 1,833
		- 32.5%

* - 55 in China are included

Consolidated	12,161	12,219	+ 58	2,382	2,856	+ 474	5,645	3,812	- 1,833
Unit Sales
									8

			FY24 Financial Results
	Operating	Primarily due to an increase in unit sales of automobiles and improving profitability of models,
	profit :	operating profit increased by 601.2 billion yen to 1,381.9 billion yen.

Income Statements

Yen (billion)

FY23 Results

FY24 Results

Amount

Change

	Sales revenue	16,907.7	20,428.8	+ 3,521.0	+ 20.8%
	Operating profit	780.7	1,381.9	+ 601.2	+ 77.0%
	Operating margin	4.6%	6.8%		+ 2.2 pt
	Share of profit of investments accounted for using the equity method	117.4	110.8	- 6.6	- 5.6%
	Profit before income taxes	879.5	1,642.3	+ 762.8	+ 86.7%
	Profit for the year attributable to owners of the parent	651.4	1,107.1	+ 455.7	+ 70.0%
	Earnings per share attributable to owners of the parent (Yen)*1	128.01	225.88		+ 97.87

ROIC (Return On Invested Capital)*2	5.9%	9.1%	+ 3.2 pt
ROE (Return On Equity)	6.0%	9.3%	+ 3.3 pt
Market average rates (Yen)		145	*3
U.S. Dollar	136	+ 9

*1 Each share of common stock was split into 3 shares per share on the record date of September 30, 2023, with an effective date of October 1, 2023. Earnings per share were calculated that the stock split was carried out at the beginning of the previous fiscal year. Please refer to the footnotes on the last page for weighted average number of shares outstanding.

*2 ROIC： (Profit for the year attributable to owners of the parent + Interest expense (excluding Financial services business)) / Invested capital (Equity attributable to owners of the parent + Interest-bearing liabilities (excluding Financial services business). Invested capital is calculated using the average of the beginning and end of the period

*3 + weak yen / - strong yen

9

FY24 Results: Change in Profit before Income Taxes

Profit before Income Taxes + 762.8 ( + 86.7 % )

Yen (billion)

Operating Profit + 601.2 ( + 77.0 % )

1,642.3

+ 524.7

- 357.9

+ 151.1

- 6.6

+ 168.2

- 34.7

Other

+ 317.9

Profit of

Expenses

R&D

Currency

equity method

879.5

Price/Cost

*2

effects

impacts

*3

Sales

Operating

impacts *1

Operating

Profit

Profit

780.7

1,381.9

FY23

FY24

Results

*1 Sales impacts

*2 Expenses

*3 Currency effects

Results

Twelve Months

Twelve Months

JPY/USD

+ 105.5

Revenue, model mix

+ 448.7

Warranty

- 82.7

USD / Others

+ 25.5

(BRL, CAD, MXN)

Finance

+ 8.4

Finance

- 34.5

+ 9.5

JPY / Asian currencies

Other

- 139.2

Other

- 240.7

(INR, THB, VND, CNY, IDR)

+ 10.6

Other

10