Honda Motor : Financial Results Presentation (with Script)*

FY24 Financial Results

May 10, 2024

I would like to express my deep gratitude to all of you for your gracious support of Honda's daily business operations.

The core of Honda's value proposition
Environment	Safety
Strive to eliminate environmental impact	Realize safety protecting precious human lives
	2

As a mobility company, Honda must conscientiously address the enormous challenges of "zero environmental impact" and "absolute safety" as we aim to realize our vision of future mobility and an attractive mobility society which embraces the social values of "environment and safety."

We will manifest a future path of growth for our company through our efforts to realize this vision.

We would like to ask for your continued understanding and support of Honda's initiatives.

At this time, I would like to review the financial results for FY24 as well as the outlook for FY25.

Financial Summary

			FY23 Results	FY24 Results	FY25 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	2,084.0 bil. yen	3,056.9 bil. yen	Same level as
operating activities (CFO)	previous fiscal year
Power	after R&D adjustment *1
	493.9 bil. yen
Future	Capital Expenditures	387.9 bil. yen	670.0 bil. yen
Investment	R&D Expenditures	852.0 bil. yen	976.3bil. 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 divid end 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 resul ts are calculated that the stock split was
	carried out at the beginning of the fiscal year.		3

Operating profit in FY24 reached a historical high of

1 trillion 381.9 billion yen and the operating profit margin was 6.8%.

In FY25, we will steadily proceed with dedicating resources towards electrification and aim to achieve operating profit of 1 trillion 420 billion yen and an operating profit margin of 7%, which is one year ahead of our original target.

Also, in FY24, cash flows from operating activities excluding research and development expenses, which indicates the source of future investment, increased by 1 trillion yen from the previous fiscal year to approximately 3 trillion yen.

We believe that we have built a foundation to support investment for future growth.

Regarding shareholder returns, we consider this to be an issue of utmost importance for management.

The dividend of 68 yen in FY24 was 28 yen more than the previous fiscal year. Furthermore, in FY25, we will conduct a share buyback of 300 billion yen - a record high- and will strive to pay stable and continuous dividends.

				Initiatives to Establish an Earnings Base
			Motorcycle Business				Automobile Business
Image of Honda's Share（CY 2023）			Platform Aggregation Image*	Hybrid System Evolution
							* Units per platform
■ Honda							Mini
■ other				JPN/US/EU		Honda
		China
		India					Architecture
						Large
				ASEAN 3	Latin America		2018 Model Year	2023 Model Year
				Indonesia			Small	ACCORD	ACCORD
Africa		Other Asia
					・Increased power density
				Brazil
			Philippines	Vietnam
			Bangladesh	Thailand				・25% reduction in system cost
Establishment of a structure that enables	Achievement of both improved profitability
		well-balanced global income
				and increased product appeal
				South America
Profit image by
	Developed Countries					560.6 bil. yen
location				556.2 bil. yen
						（4.1%）
			Asia	（17.3%） South	Asia
				America
Operating Profit	291.6 bil. yen					209.6 bil. yen
（Operating Margin） （13.9%）
Consolidated			13,215K	12,219K		（1.9%）		2,856K
			3,748K
Unit Sales
		FY19	FY24				FY19	FY24
										4

Next, I would like to explain the efforts we have made thus far to establish an earnings base.

In addition to the dominant motorcycle business base we have in Asia, expansion of sales of large motorcycles in developed countries as well as enhancement of our product lineup in South America has served to further strengthen our business structure and led to the realization of well-balanced global performance and the formation of a profitable business structure.

In automobile business operations, where profitability was an issue, expansion of the commonality ratio of core models such as the CR-V, CIVIC and ACCORD - among others, cost reductions and the increased product appeal of our hybrid system as well as other measures, have led to steady improvement of our business structure.

With respect to our hybrid system, in the second half of the 2020's, we plan to achieve an even higher level of advanced performance as well as cost improvement.

Towards Increasing Corporate Value

Past

PresentFuture

Analysis on	Decline in capital
efficiency due to
low PBR
capital accumulation
Direction of Optimization of Capital
Approach	through Proactive
	Shareholder Returns
	Acquisition of the
FY24/FY25	Company's Own Shares
FY24：250.0 bil. yen
Initiatives	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)) / Inves ted 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

Next, I would like to talk to you about initiatives aimed at increasing corporate value.

As indicated, I think there are three reasons why the Price-to-Book Ratio is currently below 1.

The direction of our approach as we proceed to address this issue will be optimization of capital through proactive shareholder returns, establishment and continuation of an earning base and enhancement of the resolution of our electrification strategy.

Initiatives for FY25 include a share buyback of 300 billion yen.

We are also on track to achieve an operating profit margin of 7%.

With respect to our electrification strategy and capital allocation, I will explain details as part of "2024 Honda Business Briefing" scheduled on May 16th.

Through the above initiatives as well as ongoing dialogue with stakeholders, we will aim to achieve a Price-to-Book-Ratio of more than 1 in the near future.

FY24 Financial Results

I will explain our FY24 results, then outlook for FY25 and returning profits to shareholders.

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.

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

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

• 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
＜Entered FIM* E-Xplorer World Cup＞
Launched on April 18, 2024	7
*FIM:Fédération Internationale de Motocyclisme

First of all, let me provide you an update on the status of major markets.

In automobile business, although there was a decrease in China,

an increase in the United States due to steady demand resulted in overall sales exceeding our results for the same period last year.

In motorcycle business, although there was a decrease in Vietnam related to an economic slowdown, an increase in sales in India and Brazil, due to steady demand, led to overall sales exceeding the same period last year.

		FY24 Results: Honda Unit Sales (Twelve Months)
								Unit (thousand)
	Motorcycles	Automobiles	Power Products
Honda	FY23	FY24	Change	FY23	FY24	Change	FY23	FY24	Change
Group Unit
Sales
Japan	246	241	- 5	550	595	+ 45	376	302	- 74
North	459	498	+ 39	1,195	1,628	+ 433	2,274	1,083	- 1,191
America
Europe	347	440	+ 93	84	103	+ 19	1,168	794	- 374
Asia	16,108	16,016	- 92	1,744	1,651	*	1,408	1,294	- 114
- 93
Other	1,597	1,624	+ 27	114	132	+ 18	419	339	- 80
Regions
Total	18,757	18,819	+ 62	3,687	4,109	+ 422	5,645	3,812	- 1,833
Change			+ 0.3%			+ 11.4%			- 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

Next, regarding Honda group sales…

in motorcycle business, mainly by an increase in Europe compared to last fiscal year, sales totaled 18 million 819 thousand units.

In automobile business, sales totaled 4 million 109 thousand units, primarily due to an increase in North America.

In power products business, total sales were 3 million 812 thousand units, mainly due to a decrease in North America.

			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)
Sales revenue
Operating profit
Operating margin
Share of profit of investments accounted for using the equity method
Profit before income taxes
Profit for the year attributable to owners of the parent
Earnings per share attributable to owners of the parent (Yen)	*1
*2
ROIC (Return On Invested Capital)
ROE (Return On Equity)

FY23 Results	FY24 Results	Amount	Change
16,907.7	20,428.8	+ 3,521.0	+ 20.8%
780.7	1,381.9	+ 601.2	+ 77.0%
4.6%	6.8%		+ 2.2 pt
117.4	110.8	- 6.6	- 5.6%
879.5	1,642.3	+ 762.8	+ 86.7%
651.4	1,107.1	+ 455.7	+ 70.0%
128.01	225.88		+ 97.87
5.9%	9.1%		+ 3.2 pt
6.0%	9.3%		+ 3.3 pt

Market average rates (Yen)
U.S. Dollar	136	145	+ 9

*3

*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

Next, I would like to summarize the consolidated financial results for FY24.

Mainly due to an increase in automobile unit sales and improved model profitability, operating profit increased by 601.2 billion yen to 1 trillion 381.9 billion yen.

Sales revenue, profit before income taxes and profit for the year attributable to owners of the parent all reached record highs.

Furthermore, ROIC was 9.1% and ROE was 9.3%.

FY24 Results: Change in Profit before Income Taxes

Profit before Income Taxes + 762.8 ( + 86.7 % )

Operating Profit + 601.2 ( + 77.0 % )

Yen (billion)

	+ 524.7	- 357.9					+ 168.2	1,642.3
			- 34.7	+ 151.1		- 6.6
					Profit of	Other
	+ 317.9
	Expenses	R&D	Currency	equity method
			*2
	Price/Cost			effects
879.5
			*3
impacts
	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					JPY/USD			+ 105.5	Twelve Months
	Revenue, model mix	+ 448.7	Warranty	- 82.7	USD / Others			+ 25.5
	(BRL, CAD, MXN)
	Finance	+ 8.4	Finance	- 34.5
	JPY / Asian currencies	+ 9.5
	Other	- 139.2	Other	- 240.7
	(INR, THB, VND, CNY, IDR)
					Other			+ 10.6

10

Next, I would like to explain the increase and decrease factors impacting profit compared to the results of the previous fiscal year.

Although there were some negative effects such as inflation, the positive effect of pricing that reflects increased product value as well as an increase in the volume of automobiles unit sales, among other factors, led to operating profit of 1 trillion

381.9 billion yen, an increase of 601.2 billion yen compared to the previous fiscal

year.

Profit before income tax increased by 762.8 billion yen compared to the previous fiscal year resulting in a total of 1 trillion 642.3 billion yen.