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Summary of Consolidated Financial Results for the Fiscal 4th Quarter

and the Fiscal Year ended March 31, 2012

Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2012.

Consolidated Financial Summary

Despite the unfavorable currency effects due to the appreciation of the Japanese yen and increase in R&D expenses, consolidated operating income for the fiscal fourth quarter (January 1, 2012 through March 31, 2012) amounted to 111.9 billion yen, approximately 2.4 times greater than the same period of last year, primarily due to motorcycle business, which marked record-high unit sales for any quarter, increased revenue in automobile business  mainly in Japan and North America and decreased selling, general and administrative (SG&A) expenses.

Despite the increased revenue in motorcycle business, consolidated operating income for the fiscal year (April 1, 2011 through March 31, 2012) declined by 59.4% compared to the previous fiscal year and amounted to 231.3 billion yen, primarily due to the impact of decreased automobile production due to the Great East Japan Earthquake and the flooding in Thailand, increased R&D expenses and the unfavorable currency effects due to the appreciation of the Japanese yen. Consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal year amounted 211.4 billion yen, 60.4% decrease from the previous fiscal year.

Honda plans for year-end cash dividends of JPY 15 per share. Together with the quarterly cash dividends of JPY 15 for the first, second and third fiscal quarters, the total cash dividends to be paid for the fiscal year ended March 31, 2012 are planned to be JPY 60 per share, which is an increase of JPY 6 per share from the annual dividends paid for the year ended March 31, 2011. The year-end dividends are matters to be resolved at the general shareholders’ meeting.

Consolidated Financial Results for the Fiscal 4th Quarter

4th quarter

ended

Mar. 31, 2011

4th quarter ended

Mar. 31, 2012

Difference

Unit Sales

(million units)

Motorcycles*1

2.934

3.456

+ 0.522

Automobiles*2

0.860

0.988

+ 0.128

Power Products

1.746

2.010

+ 0.264

Financial

Results

(billion yen)

Net sales and other operating revenue

2,213.0

2,405.0

+ 191.9

Operating income

46.2

111.9

+ 65.7

Income before

income taxes

76.6

93.0

+16.4

Equity in income

of affiliates

25.0

33.2

+ 8.2

Net income attributable to Honda Motor Co., Ltd.

44.5

71.5

+ 27.0

Honda’s

Average

Rates (Yen)

USD =

82

80

Up by 2 yen

EUR=

113

104

Up by 9 yen

Consolidated Financial Results for the Fiscal Year ended March 31, 2012 (FY12)

FY11

results

FY12

forecasts

announced on

Jan. 31, 2012

FY12

results

Difference

from FY11

Difference

from forecasts announced on

Jan. 31, 2012

Unit Sales

(million units)

Motorcycles*1

11.445

12.660

12.559

+1.114

– 0.101

Automobiles*2

3.512

3.150

3.137

– 0.375

– 0.013

Power Products

5.509

5.850

5.819

+0.310

– 0.031

Financial

Results/

Forecasts

(billion yen)

Net sales and other operating revenue

8,936.8

7,850.0

7,948.0

-988.7

+ 98.0

Operating income

569.7

200.0

231.3

– 338.4

+ 31.3

Income before

income taxes

630.5

250.0

257.4

– 373.1

+ 7.4

Equity in income

of affiliates

139.7

95.0

100.4

– 39.3

+ 5.4

Net income attributable to Honda Motor Co., Ltd.

534.0

215.0

211.4

– 322.6

– 3.5

Honda’s

Average

Rates (Yen)

USD =

86

78

79

Up by

7 yen

Down

by

1 yen

EUR =

114

106

108

Up by

6 yen

Down

by

2 yen

*1 Unit sales of approximately 0.81 million units for the current fiscal 4th quarter, and approximately 2.94 million units for the current fiscal year ended March 31, 2012 of Honda-brand motorcycle products are not included in the total sales of the motorcycle segment or in the measure of unit sales, in conformity with U.S. generally accepted accounting principles because they are manufactured and sold by overseas affiliates accounted for under the equity method but do not use any parts supplied from Honda and its consolidated subsidiaries.

*2 Certain sales of automobiles that are financed with residual value type auto loans by Honda’s Japanese finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles. As a result, they are not included in the total sales of the automobile segment or in the measure of unit sales.

Forecasts for the Fiscal Year ending March 31, 2013 (FY13)

Honda’s financial forecasts for the fiscal year ending March 31, 2013 are described below, with assumption of the average currency exchange rates of JPY 80 = USD 1 and JPY 105 = Euro 1 for the fiscal year.

(million units)

FY12

Results

FY13

forecasts

Difference

Honda Group

Unit Sales*3

Motorcycles

15.061 

16.600 

+ 1.539 

Automobiles*4

3.108 

4.300 

+ 1.192 

Power Products

5.819 

6.300 

+ 0.481 

Consolidated

Unit Sales*3

Motorcycles

8.650 

9.900 

+ 1.250 

Automobiles*4

2.482 

3.540 

+ 1.058 

Power Products

5.819 

6.300 

+ 0.481 

FY12

results

FY13

forecasts

Difference

Financial

Results/

Forecasts

(billion yen)

Net sales and other operating revenue

7,948.0 

10,300.0 

+ 2,351.9

Operating income

231.3 

620.0 

+ 388.6

Income before

income taxes

257.4 

635.0 

+ 377.5

Equity in income

of affiliates

100.4 

120.0 

+ 19.5

Net income attributable to Honda Motor Co., Ltd.

211.4 

470.0 

+ 258.5

Honda’s

Average

Rate (Yen)

USD =

79 

80 

Down by

1 yen

EUR =

108 

105 

Up by

3 yen

Concerning automobile unit sales of Honda group, Honda plans to set a record-high for annual unit sales of 4.3 million units, with plans for a significant increase in sales mainly in North America and Asia.

The total cash dividends for the fiscal year ending March 31, 2013 are planned to be JPY 76 per share, an increase of JPY 16 from the annual dividends to be paid for the fiscal year ended March 31, 2012.

Honda will be making changes in disclosure regarding "unit sales" starting with the new fiscal year ending March 31, 2013. For details, please refer to footnote *3. 

*3 Changes in disclosure regarding "unit sales" starting with the new fiscal year ending March 31, 2013

From fiscal year ending March 31, 2013 (FY13), Honda discloses the total of unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method as "Honda Group Unit Sales".

Until the fiscal year ended March 31, 2012 (FY12), Honda has disclosed as "Unit Sales" the total of unit sales of completed products of Honda and its consolidated subsidiaries, and sales of parts for local production at Honda’s affiliates accounted for under the equity method (FY12 results: Motorcycle business: 12.559 million units/ Automobile business: 3.137 million units). From FY13, Honda discloses "Consolidated Unit sales" along with the "Honda Group Unit Sales" in place of the current "Unit Sales". "Consolidated Unit Sales" is the total of unit sales of completed products of Honda and its consolidated subsidiaries, not including parts for local production at Honda’s affiliates accounted for under the equity method (FY12 results: Motorcycle business: 3.909 million units/ Automobile business:
0.655 million units).

*4 Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles and are not included in consolidated net sales to the external customers in our automobile segment. As a result, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile segment.

For additional information, please visit:
//world.honda.com./investors/library/financialresult/
where you can download financial results information.

TOKYO / Bucuresti, 27.04.2012

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